B&G Foods CEO expects pantry demand to hold up post-pandemic
B&G Foods CEO Ken Romanzi told CNBC’s Jim Cramer Tuesday that he expects the company’s vast range of brands to retain a significant number of customers who were introduced to their food products during the pandemic.
B&G, the holding company of Cream of Wheat, Ortega, Polaner, B&G Pickles, Green Giant and other brands, has been one of the biggest beneficiaries of the coronavirus shutdown, along with other consumer goods and grocery companies, as households sheltered in place and restaurants closed in efforts to stop the spread of the deadly virus earlier this year.
“I think post-Covid, people will be working more at home, which means people will be eating more breakfast at home, which means you can run down at lunchtime and throw a banana bread in the oven,” Romanzi said in a “Mad Money” interview.
The comments come days after the food producer reported quarterly earnings that topped Wall Street estimates. The company’s revenue came in at $512.5 million, up 38% from a year earlier, and net income came in at $44.9 million. B&G, like other food companies, saw sales surge as demand for pantry items increased amid the pandemic.
While Romanzi does not expect the uptick in demand will hold in its entirety, he said on the earnings call Thursday that “new households are like the fountain of youth for a brand marketer.” If and when a Covid-19 vaccine is found and the masses are willing to venture outside again, behaviors will with the times as more people began cooking at home during the monthslong lockdown, he said.
“We’re in the pantry, we’re in the freezer and we’re ready to continue to meet consumers’ needs as they cook and eat more at home,” he said in Tuesday’s interview.
Shares of B&G Foods rose 0.65% to $29.51 in Tuesday’s session. The stock is up more than 64% this year.