After sales of Campbell Soup’s iconic broths and soared 35% during its fiscal third quarter, the company is expecting to keep seeing elevated demand, even as the weather heats up and states reopen.
Campbell CEO Mark Clouse said on “Squawk on the Street” that retailers will have to restock their inventories, which will lift demand even if consumers are buying less of those products.
Still, Clouse said that he expects that consumers will continue to eat more soup and consume other Campbell’s products compared to historic levels. The pandemic has reversed consumers’ preference for fresher food options, reviving sales for categories that had been declining in recent years.
Shares of the company fell nearly 5% in morning trading despite it raising its 2020 outlook and topping analysts’ earnings estimates.