Food processing companies are seeing a stock bump attributed to consumers stocking up their pantries as a reaction to the coronavirus, Bloomberg News reports.
Campbell Soup’s share price rose 6.3% on March 2, its biggest jump in almost nine months. General Mills, Conagra Brands and Kellogg Co. also made noticeable gains. The S&P 500’s packaged food index as a whole rose 4.7%, its biggest gain in more than three years.
“We believe U.S. consumers are preparing to be able to stay at home for extended periods, and some food categories may benefit more than others,” an analyst told Bloomberg.
The bump in food stock prices was a lesser version of that seen by marketers of products directly related to infection prevention, such as hand sanitizer and sanitizing wipes. Clorox Co. saw its stock price rise 7.9%.
