Snack Sales Holding Their Own -- For Now
Apparently, people aren’t cutting back much on junk food just yet.
Sales volumes are down, but only slightly, and companies have been able to boost prices by enough to more than make up for the decline, the Associated Press reported Thursday.
That marks something of a reversal. In the past month, sales declined by less than they had in most months overthe previous year.
Big companies such as Pepsico’s Frito-Lay unit and Kellogg have reported that snack sales have helped drive their most recent earnings results.
Still, the sector could get more competitive if the economy continues to falter. Goldman Sachs analyst Judy Hong warned that raising prices too high could send consumers away from brand names and toward regional or private-label brands.
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