NEW YORK (AP) — Packaged food companies benefit from their products being stocked at Wal-Mart Stores Inc., in addition to traditional grocery stores, an analyst said Wednesday.
In a note to investors, BMO Capital Markets analyst Kenneth Zaslow said the economic climate has led more and more shoppers to discounters.
"Despite initial signs that the recession may be easing, the current economic environment has created an undeniable shift in consumer behavior toward value-based shopping formats," Zaslow wrote.
He said Wal-Mart's U.S. food sales outpaced supermarkets this year.
"U.S. packaged food companies will either win with Wal-mart or lose, as Wal-Mart's food sales (at least 5 percent annual growth over next five years) should outpace its competitors," Zaslow wrote.
General Mills is a likely winner, he said, since one-fifth of its sales come from Wal-mart.
Shares of Wal-Mart fell 12 cents to $51.28 during midday trading.
General Mills shares rose 10 cents to $60.61.