Through the eyes of the typical American consumer, the differences between our three finalists and Campbell are plain to see. If the average shopper is anything like Jeff or me, soup consumption is pretty consistent from month to month or even year to year. If the price is marked down, we may buy a can or two more than usual. On the flip side, there is always plenty of room in our stomachs for soft drinks and snack foods, with little regard for price. These consumer-oriented observations are subjective to say the least.
Every buyer is different.
So instead of looking at the overall food demand picture from the buyer's point of view and drawing possibly individually biased conclusions, let's look at the supply situation through the eyes of a grocery retailer. Soup can sit on the shelves for a long time without selling, which goes a long way toward explaining Campbell's recent store-level inventory problems. Once the household inventory is established, though, the buildup stops. Everybody expects to see soup stocked on the shelves in their neighborhood stores, but shoppers are not exactly rushing for the soup aisle to replenish their supplies every trip. Conversely, our three finalists sell many of the most profitable items in the store.