Big Food is itching to hit the reset button on its relationship with investors as it has been in bad shape with investors as consumers balk at the spread of Ozempic fever and still-inflated prices. .
CAGNY is officially known as the New York Consumer Analyst Group Annual Conference.
The event is well underway in Boca Raton, Florida, with big payouts including PepsiCo (PEP), Coca-Cola (KO), Hershey’s (HSY), Conagra Brands (CAG), and Molson Coors (TAP). Participating are major packaged food brands that pay , etc. will be on stage.
The conference is scheduled to run until Friday, and I’ve picked up some early themes here in the field, talking about sources and attending presentations.
Focus on volume: The focus is on volume recovery as Americans cut back on their purchases due to high prices (see chocolate). In a note to clients, Evercore ISI analyst David Palmer said that executives at both General Mills (GIS) and Conagra expect “fiscal year 2025 (starting in June) to be a return to growth in line with long-term goals.” I hesitate to comment on whether that will be the case.” From the event.
Hershey & Mondelez (MDLZ) called for a “price pack architecture” with products in different sizes and price points as another potential growth avenue. “We’ve always leveraged different price points and different pack sizes to make it accessible to everyone,” said Michelle Buck, Hershey’s CEO.
Innovation and marketing with new partners are also important tactics to re-engage consumers. For example, Hershey’s excited the crowd with NBA legend Shaquille O’Neal in attendance to announce a partnership to “win” in the gummy category, the fastest-growing sweets category. Conagra Brands shared that the Dolly Parton’s baking line is expanding to frozen shelves.
Trading possibilities: M&A talk is alive and well, with big deals like Campbell Soup (CPB) acquiring pasta sauce maker Sovos Brands and JM Smucker (SJM) acquiring the Twinkie King Hostess brand.
While no big announcements have been made (yet), many companies have teased that they are open to the idea of a deal, but are waiting for the right company to come along at the right price.
However, this may not be the traditional acquisition that everyone thinks. John Baumgartner, managing director at Mizuho Securities, said he sees the potential for “staple companies to acquire differentiated high-tech companies” to better understand consumers, similar to Walmart’s acquisition of Vizio this week. He said there is.
