Less money, more sweets?

I never knew this, but apparently confectionery companies do great business in economic downturns. For example:

"Cadbury reported a 7% revenue growth in 2008, Hershey’s profits jumped by 8.5% in the fourth quarter of last year, and Nestle saw profits grow by 10.9% during the same period." PSFK

I wonder what the reason is? Nostalgia? Affordable pleasure? Desire for a sugar rush?

Any ideas?

More on the article here

Comfort Eating


The current economic crises has prompted an increase desire and spend on comfort food. People are increasingly becoming concerned about the economic climate and are choosing to spend money at super markets.

Also on the sales increase are the following franchises : Donut King, Michel’s Patisserie, Brumby’s Bakeries and bb’s café franchise systems indicating that Australian consumers are still willing to indulge their taste buds with comfort foods.

A number of takeaway franchises, including McDonald’s, Domino’s, Pizza Hut and Bakers Delight, report that their sales continue to grow. Restaurants and cafés have taken the greatest hit during the downturn, thus far.  

From www.ausfoods.com.au: 
Nielsen’s annual Grocery Report indicates that, as consumers seek ways to reduce their household costs, many are choosing to entertain at home more, cut back on non-essential grocery items and look for cheaper grocery alternatives such as Private Label brands. 

As a result, DIY cooking categories enjoyed robust growth in 2008, with many of the fastest growing grocery categories indicative of the move toward more in-home cooking - including: flour, cream, baking aids, butter, bread mixes and baking additives. Other products to make the fastest growing categories list reflected the consumer search for convenient and/or healthy meal solutions such as hot cereals, sports and energy drinks and frozen meals.