September 30, 2020
You know this aisle well. When you have the munchies, it’s your go-to destination. For those with children, it’s also the aisle where the kids are most likely to try and sneak unsanctioned items into the shopping cart. Our ongoing series on the supermarket brands you can own has already shopped the produce, frozen foods, condiments and household cleansers aisles, so let’s take a look at something near and dear to many of us – snacks.
Whether you’re into crackers, nuts, pretzels, potato chips, popcorn, beef jerky, dried fruits, granola, energy bars or some cheesy puffed item, snacks are a massive global industry. The global snacks market size was valued at $439.9 billion in 2018 and is expected to grow at a compound annual growth rate of 6.2 percent from 2019 to 2025, according to Grand View Research, an India & U.S. based market research and consulting company. Here is a look at some of the major players.
Mondelēz International (Tii:MDLZ)
Through its Nabisco subsidiary of Mondelēz International, one of the largest snack companies in the world with global net revenues of $25.9 billion, has a strong presence in this aisle through brands that include Belvita, Chips Ahoy!, Oreo, Ritz, TUC, Triscuit and more. While net revenues decreased 2.5% primarily driven by unfavorable currency impacts, the company's strong balance sheet led to an 11% increase in its quarterly dividend to $0.315 per share of Class A common stock.
PepsiCo, Inc. (Tii:PEP)
One of the heavy-hitters in the consumer brands space, PepsiCo generated more than $67 billion in net revenue in 2019 on the strength of snack brands that include Lay's and Ruffles potato chips, Cracker Jack, Funyuns as well as the unintentionally rhyming Doritos, Cheetos, Fritos and Tostitos. While sales were down slightly for its second quarter (3.1 percent), PepsiCo Chairman and CEO, Ramon Laguarta cited a notable level of resiliency in the company's global snacks and foods business.
Kellogg Co. (Tii:K)
Whether you’re into salty, crunchy snacks like Cheez-Its and Pringles, or prefer the sweeter Nutri Grain bars or Pop-Tarts, Kellogg isn’t just about breakfast cereals. The company reported slightly higher net sales of $3.465 billion for its quarter ended June 27, 2020, as the pandemic drove elevated at-home demand during the quarter. As a result, Kellogg increased production to keep up with demand and rebuild inventory.
General Mills Inc. (Tii:GIS)
Though known primarily as a producer of breakfast cereals and baking products (through its Pillsbury business), General Mills is also in the snack foods aisle, offering a host of treats that include Annie's Bugles, Nature Valley and Fruit Roll-Ups. Making this company even more palatable, General Mills stock is up 15.7 percent for the year (as of September 28).
The Kraft Heinz Co. (Tii:KHC)
With an extensive line of Planters nut-based products as well as Cheez Balls, Cheez Curls, Corn Nuts, Kraft Heinz has gone beyond condiments and mac and cheese to establish a presence in several supermarket aisles, including snack foods. The company recently announced an agreement to sell its Natural, Grated, Cultured and Specialty cheese businesses to a U.S. affiliate of Groupe Lactalis for $3.2 billion as part of a transition from managing its portfolio as more than 55 individual categories to six consumer-driven platforms.
With many items still on our shopping list, be sure to check back again for more supermarket brands you can own.
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