Domestic stone has prompted a large number of Americans to purchase more quantities of washing powders, crackers and cooking ingredients, which has been in the interest of consumer giants such as Kraft Heinz, Procter & Gamble and Kellogg’s.
What contributed to the benefit of these large companies from the health crisis is that customers tend, in light of fears and anxieties, to the most famous items, and they stored quantities of these commodities at the beginning of the pandemic.
“The majority of consumers are keeping more stocks in their homes than usual. They are also consuming more,” said John Mueller, CFO, John Muller, on Thursday.
The group, for example, sold more washing powders in the second quarter of the year, given that Americans are more likely to wash their clothes than before.
From April to June, there was a four percent increase in the volume of the company that distributes Ariel washing powder, and other items such as Gillette, Oral B, Pampers and Fix.
Sales of the Washing Powders and Household Hygiene Division increased specifically by 11 percent, while sales of baby diapers, feminine hygiene products, toilet paper and cleaning paper increased by three percent.
In contrast, sales of barber items fell by five percent, given that men are going to their offices less than before.
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“We thought home consumption growth would slow a lot during the second quarter, but as the crisis continued, consumption remained high for a longer period than expected,” Stephen Kyle’s chairman, Keylogos, revealed.
In addition to breakfast cereals, the group also sells Pringles and Cheese Eat crisps as well as frozen foods.
These internal sales grew by nine percent, which prompted the group to raise its forecasts for the whole of the current year.
As for the giant “Kraft Hinz” group in the field of food industries, the demand increased, especially for products such as ketchup, mustard, and the famous macaroni and cheese pasta and frozen potatoes.
Despite the decline in restaurant orders, sales increased by 7.4 percent.
The Mondlys International group, which owns the biscuit brands “Lu” and “Oreo”, noted a strong demand for forms for domestic consumption, that is, in large sizes.
“Of course we first noticed a tendency to stockpiling, but this is no longer the case,” said company director Dirk Van de Bout.
He waits for a surge in sales in the United States as long as consumers spend more time at home.
However, this tendency also means that many other categories such as chewing gum that are often bought quickly or products sold at airports will suffer a decline.
Like many companies, these large groups spent more money to ensure the safety of their employees. Difficulties were encountered in the supply chain and sometimes in meeting demand.
In the next stage, these groups expect stability in sales as the situation remains unclear.
“Are the children going back to school or not? Are we going back to the office or not?” Asked Kraft Heins president Miguel Patricio. He believed that “all of that could change a lot.”
As for Kellogg’s President, Stephen Cayenne, he said, “We are observing at the present time the continued strong consumption in homes. On the level of expectations until the end of the year, it is impossible to know what will happen with this virus.”
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