(Bloomberg) -- American consumers who’ve worked their way through the trove of shelf-stable meals they frantically bought back in March are at it again. This time, food makers are prepared.
General Mills Inc (NYSE:GIS)., the maker of Cheerios and Annie’s boxed mac and cheese, added 45 external production lines through contractors since the first round of pantry loading this spring. Campbell Soup (NYSE:CPB) Co. spent $40 million to expand production of Goldfish crackers and is building capacity for chip brands like Cape Cod. Conagra Brands (NYSE:CAG) Inc. boosted third-party manufacturing and warehousing, while Stonyfield Farm, a producer of organic yogurt and milk, added farmers to its supply network.
America’s food-makers are determined not to get caught flatfooted again. Many companies left sales on the table this spring when they couldn’t ramp up production fast enough for the dried pasta and canned soups that skittish consumers were stockpiling. Food producers used a calmer summer to assess the new grocery landscape and rework their strategies. Now, with Covid-19 cases climbing again and big holiday meals getting closer, investors are waiting to see whether it will be enough.-- More...
