Cookie Sales Aren't Crumbling Despite Rising Prices
A recession may be just around the corner, and the cost of ingredients from wheat to edible fats like margarine is at a high. However, none of those factors appear to have impacted cookie prices. Market research company IRI states that these have smashed past the $10 billion sales mark in the 52-week period between August 2021 and August 2022, per Food Business News.
Some brands were more in-demand than others: Nabisco sales were at $3.5 billion, representing a rise of 3.4%, per Food Business News. Food Dive reports that of Nabisco's bestsellers, Oreos and Chips Ahoy, were the most recession-proof, generating a 10.4% growth in sales.
Food Business News also reported that sales of store-owned private label brands were at $890 million, representing an increase of 15% from the same period 52 weeks prior. And Pepperidge Farm-branded cookies were up 3.8% with sales of $531 million. Of Pepperidge Farm's lineup, Food Business News reports that the company's Goldfish were the most popular; Mark A Clouse, CEO of Campbell Soup, which owns Pepperidge Farm, credits the popularity of Goldfish with having " ... grown from a favorite kids' food to a top choice of their teen siblings and their parents."
Cookies are resilient Mondelez CEO
Nabisco and Pepperidge Farms weren't the only brands that benefitted from America's sweet tooth; Hostess Brands and its Voortman brand also reported a sales boost of 24% during the 52-week period to hit $176 million. Hostess CEO Andrew P Callahan claims the brand to be the strongest in the sugar-free market, per Food Business News.
IRI's report on the resilience of his industry may not come as any surprise to Mondelez CEO Dirk Van de Put who, back in July, said the cookie segment has always remained resilient, regardless of economic conditions. He noted (via Seeking Alpha), " ... our categories, biscuits and chocolates are normally quite resilient in these circumstances. We've seen it during COVID, but we have also seen it in 2008 and in previous recessions because it's a small indulgence that consumers find difficult to forget or to leave behind." Mondelez is not expected to report its sales or earnings until November, so it may be a while before we find out whether the company is as recession-proof as its CEO would like to believe.