WASHINGTON — The consumer packaged goods industry performed significantly better than the rest of the market in 2008, according to a report by the Grocery Manufacturers Association and PricewaterhouseCoopers.
The study also found that CPG manufacturer median sales grew approximately 10% last year, down just slightly from 2007.
The “2009 Financial Performance Report: Focusing on Today, Envisioning Tomorrow” is based on research, interviews and financial data on 157 companies in the food, beverage and consumer products sector.
“Given the CPG industry’s laser focus on delivering value, innovation and investment in the future, it’s no surprise that it appears to be weathering this economic cycle better than other sectors,” GMA President and Chief Executive Officer Pamela Bailey said in a statement. “This performance is testimony to the fact that CPG companies are fulfilling their core mission, which is giving consumers the quality products they need at an affordable price.”
Among other key findings:
• The food sector experienced sales growth of 10.2%, evidence that consumers are increasingly cooking and eating at home. The beverage sector followed with 9.9% sales growth, and household products with 9.1% growth.
• Overall CPG company median shareholder returns for 2008 were down more than 25%, but performed better than the rest of the market.
• Selling, general and administrative (SG&A) spending relative to sales remained steady from 2007
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