By Calli Gregg A s consumer continue to focus on fresh food alternatives, J.P. Morgan Chase food and retail analyst Ken Goldman told CNBC that the packaged food sector is not likely to grow. “I would count on very limited, you know, zero percent, maybe 1 percent growth with population, if they’re lucky,” Goldman said. Packaged food brands continue to struggle as specialty food stores, fresh food and online retailers such as Amazon, continue to take market share and this trend is not showing any sign of changing soon and online giants continue to battle it out online.
Goldman said most packaged food companies even the iconic ones like Kraft and Campbells, “would be thrilled to have a positive number for their organic sales.”
These comments come on the heels of a report that Kraft Heinz is interested in buying Campbell Soup. But, Goldman said Campbell has struggled of late and even acquired more debt in its efforts to expand. More reason why Goldman said he doesn’t think the deal is likely to happen. Kraft, he said, would be “taking on an awful lot of risk in doing this.”
We will have to keep an eye on what is stirring up between Kraft and Campbells.
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SPOTLIGHT ON BUSINESS MAGAZINE • MAY 2018
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