K cereal performance weak on tough comps: As
expected, K saw volume decline by 2.5% on tough
comparables (i.e., volume increased 1.9% in the
year-ago period). While pricing (+1.4%) acted as an
offset, total cereal sales declined by 1.2%. K held share
steady, while GIS gained 0.6% and private label gained
0.5%.
GIS gains share in soup: GIS took market share from
CPB in soup after increasing sales 1.5% (vs. a 1.6%
decline for CPB). Able to increase volume 0.4% on top
of a 4.5% price increase, GIS improved its refrigerated
dough market share another 7.5% (bringing total share
to 73.5%). Strong dough and soup performance was
met by a disappointing 2.3% drop in yogurt sales and a
2.1% market share loss.
KFT fundamentals remain soft: Total sales declined
3.4%, the largest decline in our universe. Kraft lost
market share in 7 of the 11 key categories that we track,
and volume in those categories only increased if price
decreased YoY. Kraft’s cookie performance remains
solid.
CPB soup performance still subpar: Continued
volume declines (-3.5%) and below average pricing
growth (+2%) resulted in sales declines (-1.6%) and
market share losses (-1%) in soup, potentially a result of
decelerating merchandising growth (i.e., merchandising
growth in the most recent 4 weeks slowed relative to the
most recent 12 weeks).
HSY shows sequential improvement, though
volumes still declining: HSY lost volume and market
share in all categories, but dollar sales strength
continues due to substantial price increases.