Why We Eat More SPAM

Fascinating, how consumer food tastes change during an economic slump. Some companies are actually earning major profits, and it’s thought provoking to see which ones.

For example, Hershey’s Co. saw a 20% spike in revenue. Has bad news driven us to chocolate coat our economic woes?

And Barrons reported that Kraft posted a 10% increase in profits for the first quarter of 2009. The company even raised prices on its flagship product, Kraft Macaroni and Cheese. Which companies have you seen that have actually raised prices during the recession? And this price hike is what helped boost profits by three percentage points above what analysts estimated.

The website Media Post reported that convenience meal revenue has increased 8.2% and top performers include DiGiorno, California Pizza Kitchen, Jack’s pizza, and Oscar Mayer Deli Fresh meats, bacon, and Lunchables. And the top five brands of cookies and crackers grew 10% since the beginning of the year.

Another food product that’s seeing a surge: SPAM. According to CNN/Money, Edward Jones analyst Matt Jones said, “[Hormel canned foods] are really poised to shine in this kind of environment…they are very affordable meal alternatives.”

I find the phrase meal alternatives interesting. Is he saying that SPAM is not a meal but an alternative to one? Or is he saying that SPAM isn’t really…well…what is it really anyway?

Overall, canned foods have helped Hormel’s bottom line driven by consumer demand. The flip side is that its food service business declined as a result of more Americans eating at home and traveling less.

So if we were to analyze the recession by observing food trends, we can say that the slump has caused us to eat more macaroni and cheese, SPAM, cookies, and chocolate. I think it’s clear to say that the dip in the nation’s bottom line is certainly not going to have a similar effect on our waistlines.

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