New York: Face masks and hand sanitizer may be the signature items of the COVID-19 economy, but the upheaval in consumer behaviour also is boosting sales of cereal, ketchup and paper towels.
“We remain highly relevant across the board,” said Procter & Gamble Chief Financial Officer Jon Moeller, who thinks the shift in demand that boosted sales of the consumer product giant’s soap and cleaning products could prove lasting.
Cereal giant Kellogg is another beneficiary from the work-from-home trend. Companies have been forced to spend more to employ social distancing in operations and provide employees with personal protective equipment. And there have been supply chain challenges, both to procure raw materials and to ramp up manufacturing to meet increased demand.
But the benefits generally have more than offset the costs for consumer goods companies, a group that also includes Clorox and Campbell’s Soup.
Kellogg’s sales jumped for Cheez-It crackers, Pringles potato chips and Eggo waffles. But the company’s trademark meal remains breakfast cereal, which has been especially impacted by the upheaval of the pandemic.
At Kraft Heinz, the winners included ketchup and condiments, macaroni and cheese and frozen potatoes, enabling the company to score a 7.4 percent increase in organic sales — a measure that excludes newly-acquired product lines.