The early stages of the pandemic forced many to stay home, which inspired a wave of grocery shopping and cooking. Everyone probably knows at least one person who tried to make sourdough bread from scratch.
The surge in home cooking boosted companies from grocery retailers to food staple companies, like Campbell Soup. Campbell has long been a stock that has held up well during recessions, as consumers shift eating behavior and stock up on less expensive staples. The pandemic was no different. Campbell saw a surge in sales, with a 40+% jump in Q2.
The issue today is that consumer patience with the pandemic is waning, as may be the enthusiasm for cooking at home. Campbell's sales rose 21% in Q3, which while strong is less than half of what they posted in Q2. Kroger also saw slower sales growth last quarter than in the early months of the pandemic. Is the food trade waning? The A.I.-powered analysis below gives an overview of the group.