Yahoo Finance Goldfish crackers are having a moment — and this stock may be the play
In a sea of tasty, healthier snacks down supermarket aisles, it appears teens are leaning on an old favorite of their parents as their snack of choice — Goldfish crackers, long produced by the tomato soup hawking Campbell's Soup (CPG).
In Piper Sandler's new "Taking Stock With Teens" survey out on Tuesday, Goldfish crackers were the most preferred snack by teens. About 12% of teens surveyed listed Goldfish as their favorite snack compared to 9% in Piper Sandler's spring survey. Roughly 67% of teens who listed Goldfish as their favorite brand plan to eat more or the same amount over the next six months — this was the third highest among large preferred snack brands.
Piper Sandler surveyed 10,000 teens, average age of 15.8 years old, spanning 44 states.
"Teens like to snack. They have been sitting at home for the last 18 months, and it is a top trend," said Piper Sandler analyst Erinn Murphy on Yahoo Finance Live. "We'll have to dig into if it's more of TikTok trend. That seems to be the golden wand that flashes across our survey and makes things move higher."
Besides teens posting videos on TikTok of eating Goldfish, the demand for the iconic snack may just be because Campbell's has jazzed up the brand.
"Turning to Goldfish, we delivered sustained share growth, increasing for a second quarter in a row by more than 1 point compared to this time last year. On a 1- and 2-year basis, Goldfish delivered strong results, including double-digit consumption growth, increased household penetration, and higher repeat rates. This solid performance on Goldfish was due in part to the successful launch of limited edition Goldfish Frank's RedHot Crackers. Additionally, the reinstatement of promotions, improved performance on multi-packs, and an effective marketing campaign contributed to our strong results," Campbell's Soup CEO Mark Clouse said on an early September earnings call.
The success with Goldfish helped power Campbell's snacks business to a 1% sales increase and 7% operating earnings improvement in the most recent quarter. Sales in Campbell's meals and beverages business fell 9% and 30%, respectively.
Clouse teased further new products for the Goldfish line, something that will likely get teens jazzed up if Piper Sandler's survey is any indication.
"We are excited to continue to introduce on-trend limited editions on Goldfish, with the launch this week of Goldfish Jalapeno Popper and plans for additional innovation later this fiscal year," Clouse said.
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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