27 Oct 2021
Posted in Consumer
Kraft Heinz Q3 results to be sustained by ‘soup season’ despite inflationary pressures, says GlobalData
Following today’s news that Kraft Heinz has reportedly beaten its Q3 sales estimates;
Carmen Bryan, Consumer Analyst at GlobalData, a leading data and analytics company, offers her view:
“Kraft Heinz will benefit from the drop in temperature as ‘soup season’ kicks off and more people look for comfort foods during the winter months. This is further amplified by home cooking trends and price inflation, which is seeing the price of commodities rise, and subsequently leading to more demand for shelf-stable, affordable food types such as canned goods.
“GlobalData’s consumer survey reveals that, in the last three months, over a third of people in North America have been cooking meals from scratch more frequently. The use of meal kits is also continuing to rise. Kraft Heinz is in a comfortable position to leverage these trends – particularly as Christmas and other holiday periods will see people come together with home cooked meals as a focal point.
“However, the financial pressures many people are currently experiencing – with half of the North America region (50%) stating that they are extremely or quite concerned about their personal finances – will put a damper on the company’s growth as inflation continues. Seasonal buying habits will surely support the brand in the short-term; however, sustained price hikes have the potential to isolate lower budget households.”