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Below is a brief excerpt from a complimentary research note written by our Consumer Staples analysts Howard Penney and Daniel Biolsi. If you are an institutional investor interested in accessing our research email sales@hedgeye.com |
Fresh produce slowing but still indicating elevated at-home meal consumption (SFM)
During the week ended July 5, fresh produce sales grew 9.1%, as seen in the following chart.
Frozen produce sales increased by 24.4% while shelf-stable grew 18.1%. Fresh fruit sales tend to be impulse purchases, while vegetable sales indicate meal preparation. We believe fresh vegetable demand is a better indicator of meal consumption at home, stripping out the stockpiling effect, which has lessened but has continued during the pandemic.
Fresh vegetable sales still indicate elevated at-home meal consumption. According to IRI’s survey, consumers are preparing 84% of all meals at home currently, down slightly from 89% at the peak.
38% of the workforce expects to be working from home five days a week compared to 15% pre-COVID-19. Sprouts Farmers Market (SMF) is positioned well for elevated sales of home meal consumption and produce.
