New York | Confined to the house, many Americans have bought more laundry, snacks or ingredients for cooking, enjoying the giants of the consumer, such as Kraft, Heinz and his touting, Procter & Gamble and its products for household or Kellogg’s and their cereals.
These large companies have benefitted most from the health crisis that, in times of uncertainty, clients look to the most well known brands and have inventories at the beginning of the pandemic.
“Consumers keep in their reserves higher than usual. They also consume more,” said Thursday the finance director of Procter & Gamble (P&G), Jon Moeller.
His group, for example, has been more of laundry in the second quarter, as the Americans have had a tendency to wash their clothes more often.
The turnover of the company, which distributes brands Ariel, but also Mr. Clean, Gillette, Oral-B, Pampers, or Vicks, has increased in total by 4% from April to June.
The sales of the division laundry and home maintenance, in particular, have jumped by 11%, while those of the division diapers, feminine hygiene products, toilet paper and paper towels have increased by 3%.
The men are making less in the office, the sales of shaving products, however, were down 5%.
“Are we gonna go back to the office?”
“It was thought that the growth of consumption at home was going to slow down significantly in the second quarter, but the crisis dragged on at, the consumption remained high longer than expected”, also found on Thursday that Steven Cahillane, the president and CEO of Kellogg.
In addition to the cereals, the group sells snacks, Pringles and Cheez-It as well as frozen products.
The internal growth of its sales, which do not include the effects of exchange or any divestments or acquisitions, has posted 9%. And the group has raised its forecasts for the year as a whole.
At Kraft, Heinz, another giant of the agri-food sector, the demand has especially increased for products such as ketchup and condiments, popular dishes of pasta “macaroni & cheese” and frozen potato.
Despite the fall in orders from food companies, its sales have increased 7.4%.
The owner of the brands of biscuits Lu and Oreo, Mondelez International, for its part, has found a stronger interest for formats that are intended to be consumed at home, such as tablets rather than simple bars of chocolate.
“Of course, at the beginning of the crisis, there has been a bit of storage but it is no longer part of the equation now” said on Tuesday its CEO Dirk Van de Put.
As long as consumers will spend more time at home, he is expecting a rise in sales in the United States. But this trend also means that some categories, such as chewing gum are often bought on-the-fly, or the products sold in airports are struggling.
Like many companies, these large groups have also spent more to ensure the safety of their employees. They have faced difficulties in their supply chain and have sometimes struggled to meet the demand.
For the rest, they expect a priori to a decrease in sales. With however large uncertainties.
“The kids go or not to go back to school? Va-t-on or not to return to the office?”, asked Thursday, the CEO of Kraft, Heinz, Miguel Patricio. “All this can still change a lot”, he noted.
“There is currently consumption is still high in the house” has said his side is Steven Cahillane, the boss of Kellogg. For forecasts by the end of the year, “it is impossible to know what will happen with this virus.”