Coronavirus will increase near-term sales of shelf-stable and frozen foods

As consumers prepare for potential home quarantine due to the Coronavirus, analysts at Bernstein said consumption of shelf-stable and frozen packaged foods would temporarily increase.  This will likely benefit companies such as Campbell Soup, Conagra Brands in frozen, General Mills, and Kellogg in cereal, Mondelez International, and Kellogg in crackers, J.M. Smucker in peanut butter, jams and jellies, and Kraft Heinz in macaroni and cheese. Campbell Soup said last week that it is increasing production due to the increased demand. Consumers are raiding supermarket shelves and stockpiling on cleaning supplies and durable foods. There is an increased demand for companies producing frozen and canned goods, but there are challenges with production and international sales. Many companies have facilities in other countries where the Coronavirus is more widespread, and it has already had a significant impact on workers and their supply chain. The Bernstein report also cautioned that Big Food companies with a lot of involvement in the foodservice channel could face challenges if the outbreak continues to spread in the U.S. because consumers may not want to go out to eat. Analysts said companies like Beyond Meat, Tyson Foods, and McCormick are the most exposed to disruption in that segment. @ https://www.fooddive.com/news/coronavirus-will-lift-near-term-sales-of-shelf-stable-and-frozen-foods-ana/573676/?utm_source=Sailthru&utm_medium=email&utm_campaign=Newsletter%20Weekly%20Roundup:%20Food%20Dive%2003-14-2020&utm_term=Food%20Dive%20Weekender