Big Food Makers Expect At-Home Eating to Continue

MINNEAPOLIS—The initial surge in grocery sales at the start of the pandemic is moderating, but food manufacturers expect to see consumers eating at home as they continue to grapple with financial strain or work remotely, according to the Wall Street Journal.

“What we have learned from past recessions is that one of the first ways consumers look to save money is by eating at home more than at restaurants,” said Jeff Harmening, CEO, General Mills.

Sales at General Mills’ North America retail division rose 9% in the latest quarter from a year ago, after jumping 14% in the quarter that ended in August. Last week, Campbell Soup Co. reported a similar trend, with sales growth receding. General Mills and Campbell are among the companies that continue to bet that people will keep eating at home more than in the past.

Harmening said many consumers enjoy the benefits of working from home and having more time with their families. “I am highly confident people won’t be going into the office as much as they used to; they won’t be going on as many business trips,” he told the Journal. “That means eating more at home.”

The pandemic has provided big food makers with an opportunity to attract millions of new consumers, who stocked pantries and refrigerators early in the pandemic. The companies want to capitalize on the momentum by investing in marketing and production capacity.

General Mills, makers of Cheerios, Yoplait yogurt, Progresso soup and more, said many of its brands gained market share this year, which Harmening credits to pre-pandemic improvements in ingredients and recipes. The company has largely rebuilt food inventories that were depleted in the early months of the pandemic, but it still has capacity issues with soup, dessert mixes and Old El Paso taco shells.

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