Big food companies are struggling due to limited growth opportunities. After years of price hikes without significant product improvements, companies like General Mills, Campbell’s, and Kraft Heinz have seen their stock prices increase. However, this growth is largely driven by new players that offer healthier options, rather than the traditional brands losing sales. As a result, shoppers are choosing store brands or opting for prescription medications over snacks, reducing volume in the market.
Source: https://www.wsj.com/business/retail/food-mega-mergers-hardly-ever-work-could-mccormick-unilever-be-different-f9100870