1. CPG: Food

Kellogg CEO says snacking is speeding up, fueling company’s sales growth

Kellogg, the owner of Pringles and Cheez-its, is seeing snacking accelerate.

KEY POINTS
  • Kellogg is seeing snacking accelerate, CEO Steve Cahillane said on CNBC’s “Squawk on the Street.”
  • The Pringles and Cheez-its owner beat Wall Street’s estimates for its first-quarter earnings and raised its full-year outlook Thursday.
  • Strong demand for Kellogg’s snacks helped drive the quarter’s sales growth.

Snacking habits consumers picked up during the pandemic aren’t going away.

Kellogg, the owner of Pringles and Cheez-its, is actually seeing snacking accelerate.

Shares of Kellogg jumped more than 7% in midday trading Thursday after the company topped Wall Street’s earnings estimates and raised its full-year outlook. Despite last year’s pantry stockpiling, the company’s net sales rose 5.1% year over year to $3.58 billion.

Strong demand for its snacks helped drive the quarter’s sales growth. In North America, Kellogg saw organic revenue of its snacking division rise 3.5%.

“Snacking has not slowed down. In fact, snacking has sped up, so we believe in choice at Kellogg,” CEO Steve Cahillane said on CNBC’s “Squawk on the Street.”

Other companies, such as PepsiCo and Mondelez, have also reported that consumers are maintaining their pandemic snacking habits, even as states reopen their economies.

Cahillane said the company is seeing bifurcated eating trends from consumers. While some are trying to eat healthier by buying plant-based products from Kellogg’s MorningStar Farms, others are turning to more indulgent options.

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