David Wainer
Appearances
WSJ What’s News
S&P, Nasdaq Post Worst Quarter Since 2022
So the companies are, for now, really talking about the pressured consumer. For the last few years, America went through this massive period of inflation. Companies were able to pass a lot of those price increases to the consumer. And so many consumers are trading down to smaller snacks or to private labels. And that's really what they're pointing their finger at.
WSJ What’s News
S&P, Nasdaq Post Worst Quarter Since 2022
So the companies are going to be using promotional tools like discounting and spending more on advertising. At the same time, a lot of companies are hedging their bets and purchasing companies that focus on snacks that are enjoying better growth. For example, Pepsi did a $1.2 billion acquisition of Siete Foods, which is known for its grain-free tortilla chips.
WSJ What’s News
S&P, Nasdaq Post Worst Quarter Since 2022
Some analysts are talking about companies focused on yogurt or protein bars. So if you look at Greek yogurt, cottage cheese, nutrition shakes, meat snacks, all of these have actually been going up by 5-10% in sales in 2024.
WSJ What’s News
S&P, Nasdaq Post Worst Quarter Since 2022
And then if you look at some of the unhealthier snacks, like say ready-to-eat popcorn, chocolate, fruit snacks, pretzels, those are categories that are underperforming and going down. So this picture emerges that maybe some Americans at the margin are moving towards healthier snacks, and that could be a problem for some of these food companies.
WSJ What’s News
S&P, Nasdaq Post Worst Quarter Since 2022
That's true. They're definitely also watching what's happening in the Maha land, Make America Healthy Again. Recently appointed health secretary Robert F. Kennedy Jr. has been talking about removing artificial dyes from their foods and sort of blaming them for some of our health problems. When you talk to companies and analysts...
WSJ What’s News
S&P, Nasdaq Post Worst Quarter Since 2022
They really don't see a problem in eliminating like food additives, coloring in foods from the food supply. The big threat to these companies is if that Maha language really starts to change the way that many Americans perceive snacks and food in general.