General Mills, Inc. (GIS) in Minneapolis, Minn., and Camden, N.J.-based Campbell Soup Company (CPB) are two prominent players in the packaged foods industry. GIS manufactures and markets branded consumer foods, including snacks, ready-to-eat cereal, convenient meals, yogurt, wholesome natural pet food, super-premium ice cream, baking mixes and ingredients, and refrigerated and frozen dough. It also supplies branded and unbranded food products to the food service and commercial baking industries. In comparison, CPB manufactures and markets branded convenience food products, including soups and sauces, biscuits and confectionery, and food service through its Meals & Beverages and Snacks segments. It sells its products through retail food chains, mass discounters and merchandisers, club stores, convenience stores, drug stores, dollar stores, e-commerce, and independent contractor distributors.
High inflation, deepening supply chain issues, and rising energy and transportation costs have pushed food prices higher lately. However, strong consumer demand for packaged and ready-to-cook food products with prolonged shelf life should allow companies operating in this space to overcome rising input costs by passing them on to their customers. Also, the introduction of new products to meet changing consumer tastes and rapid digitalization of operations should benefit these companies substantially.
