WSJ What’s News What’s News in Earnings: Tough Times Come for Big Food
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Aug 6, 2025 Food companies are facing tough times as costs rise but consumers resist higher prices. Snack sales are declining while meals and beverages see growth, influenced by changing habits and weight loss medications. The podcast dives into the health trends reshaping eating habits and the political and competitive pressures on the industry. Amidst challenges like inflation, the discussion highlights potential adaptive strategies for big food brands and the hope for emerging winners in a difficult market.
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Food Companies Lose Pricing Power
- Big food companies face shrinking sales and reduced pricing power as consumers resist price hikes.
- Rising costs and tariffs squeeze margins, signaling problems for the sector's profitability.
Snack Sales Under Pressure
- Snack sales have declined sharply, despite being a previous growth focus for food companies.
- The rise of GLP weight loss drugs may explain consumers cutting back on snacks.
Health Trends Reshape Food Biz
- Health and wellness trends, including weight loss drugs and political pressure, reshape the food industry.
- Companies face a convergence of challenges including tariffs and inflation, complicating adaptation.