Wall Street Manna

An irreverent look at Wall Street

Monday, November 17, 2008

SPAM production jumps

SPAM, Hormel's canned meat, is racking up tremendous sales, as the consumer continually trades down:

AUSTIN, Minn. — The economy is in tatters and, for millions of people, the future is uncertain. But for some employees at the Hormel Foods Corporation plant here, times have never been better. They are working at a furious pace and piling up all the overtime they want.

Through war and recession, Americans have turned to the glistening canned product from Hormel as a way to save money while still putting something that resembles meat on the table. Now, in a sign of the times, it is happening again, and Hormel is cranking out as much Spam as its workers can produce...

In a factory that abuts Interstate 90, two shifts of workers have been making Spam seven days a week since July, and
they have been told that the relentless work schedule will continue indefinitely...

Even as consumers are cutting back on all sorts of goods, Spam is among a select group of thrifty grocery items that are selling steadily.

Pancake mixes and instant potatoes are booming. So are vitamins, fruit and vegetable preservatives and beer, according to data from October compiled by Information Resources, a market research firm.

“We’ve seen a double-digit increase in the sale of rice and beans,” said Teena Massingill, spokeswoman for the Safeway grocery chain, in an e-mail message. “They’re real belly fillers.”
http://www.nytimes.com/2008/11/15/business/15spam.html?_r=2&sq=spam&st=cse&adxnnl=1&oref=slogin&scp=2&adxnnlx=1226919861-SnLzho+dBVCHZXdLsPbZkQ&oref=slogin

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