Package-Food Stocks Sink After “Most Downbeat” Consumer Conference, General Mills Guidance Woes
A fresh reminder that the K-shaped economy remains a very big problem emerged Tuesday at the Consumer Analyst Group of New York (CAGNY) conference, where top U.S. packaged food executives struck a sour tone about persistent consumer softening and unease over elevated food prices. General Mills CEO Jeff Harmening told the audience at CAGNY that cereal, snacks, and pet food are among the categories taking the biggest hit as consumers struggle with affordability woes. He said the pressure is being fueled by inflation, reductions in government food benefits, geopolitical uncertainty, and a fragile consumer environment. Those factors “have led to significant consumer stress, especially for the middle- and lower-income groups,” Harmening said. Also on Tuesday, General Mills plunged 7% (its biggest drop since May 2022) after cutting its full-year sales outlook. It now expects organic net sales to decline 1.5% to 2%, compared with its prior forecast of down 1% to up 1%. BNP Paribas analyst Max Gumport told clients CAGNY was “one of the most downbeat in recent memory for the packaged food group.” …
