Posted on 03/31/2020 5:17:46 AM PDT by Moonman62
Conagra Brands Inc. CAG, +1.11% stock rose 4.3% in Tuesday premarket trading after the food company said it has experienced "significantly increased demand" in the fourth quarter and now expects to exceed expectations.
Conagra brands include Birds Eye, Marie Callender and Gardein. "While we are still early in our fourth quarter, we have seen significantly elevated demand for our retail products as consumers have started filling their pantries for more at-home eating," Chief Executive San Connolly said in a statement. Shipments and consumption have jumped by half even as foodservice demand has fallen.
(Excerpt) Read more at marketwatch.com ...
I even bought 2 frozen pizzas....which I have never done before.
Why would overall demand increase? Hopefully people aren’t sitting at home binge eating their stockpiles.
Been wondering if Tyson wasn’t a good buy.
Marie Callender pot pies are very good, I buy the big ones. Wish they’d bring back Banquet Cookin’ Bags, the turkey & gravy over Minute Rice was a favorite of my youth...
People building stockpiles.
After your first stockpile is completed, how many more do you need? Whether food is coming from a stockpile or store shelf, don’t we generally eat the same amount?
There’s gotta be a massive decline in shipments to restaurants now, but yeah.
Go from empty to full cupboards, then stick people at home in the mostly small homes of those with previously empty cupboards, and I think they’re gonna eat.
I imagine there’s anxiety, boredom, and probably a primal response to perceived food shortage all kicking in.
And what’s the old saying, “Starve a cold, feed a fever”?
Because people are buying 120% or more of what they will need, use or consume.
It’s sexy now to tell people I have a 70 day supply of toilet paper and 53 days of Chef Bogarde.
People building stockpiles.
3% increase isn’t much of a stockpile. More likely people are eating out less and cooking more at home.
It’s like binging on TP. If a supplier ramps up production to meet short term demand he will go bankrupt as accumulated stockpiles drive sharp future decreases in demand.
I bought more groceries last shopping trip just so I don’t have to shop as often. It’s mostly meat for the freezer. Normally I like to buy as needed.
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