By Nicholas G. Miller
Shares of consumer food companies fell after General Mills cut its fiscal-year outlook and warned about weak consumer sentiment weighing on its sales volume.
Mondelez was recently down 4.3%. Kraft Heinz dropped 3.5%. McCormick slipped 4.3%. J.M Smucker was down 4.1%. Conagra Brands fell 7.0%. Campbell's sank 7.4%.
General Mills Chief Executive Jeff Harmening kicked off the Consumer Analyst Group of New York conference saying that consumers were feeling pressured and uncertain. Inflation, SNAP benefits reductions and geopolitical uncertainty "have led to significant consumer stress, especially for the middle- and lower-income groups," Harmening said.
General Mills was recently trading 7% lower.
Harmening said the company is also "seeing financially stressed consumers buying more of their products on promotion," leading to a more costly sales mix. "We see a heightened focus on value, particularly for middle- and lower-income consumers. Cost of living and housing pressures are reshaping spending patterns, and value is a core expectation that is here to stay," Harmening said.
Additionally, Conagra executive Bob Nolan said at the conference that the company was seeing a bifurcation between upper-income and lower-income consumers. The lower-income cohort continues to seek value and looks to stretch their dollars, while upper-income shoppers are able to buy in higher quantities, Nolan said.
Write to Nicholas G. Miller at nicholas.miller@wsj.com.
(END) Dow Jones Newswires
02-17-26 1117ET
