Moody’s sees numerous cautionary tales among leading food companies.
While describing the outlook for the U.S. packaged food sector as “positive,” consumer spending is expected to rise very little and many companies are expected to face serious challenges, according to Moody’s Investors Service.
The analysis was part of a broader look at the global consumer products sector issued by Moody’s Dec. 14. The credit ratings agency was upbeat on the food business despite a forecast of 1% to 2% growth in consumer spending.
“But cost cutting will improve companies’ profitability and cash flows, as well as plant rationalization,” Moody’s said.