Burson-Marsteller

Finding the golden ticket during a Recession

by Eduard Itkin on 25th March 2009 • The Cast Blog, Videos

Willy Wonka was smart for going into the candy business. If he were around in the current economic climate he would be one of the few not worried about the future of his company. Why should he worry when a recent International Herald Tribune article explored the rise in candy purchases that accompanied the layoffs and foreclosures people in the United States experienced.

Now this is not to say that Belgium will be experiencing a huge rush for chocolate, Godiva chocolates are hardly what a recently unemployed person would be purchasing, but Hershey’s bars and jelly beans are seeing their inventory fly off the shelves worldwide. Cadbury reported a 30 percent rise in profits for 2008, and Nestle saw profits grow 10.9 percent that same year. Most striking are the reports of people working candy into their monthly budgets, hopefully under mortgage payment and Billy’s college tuition, which make you realize just how recession-proof the candy industry really is. The bottomed-out economy is actually creating a market for cheap candy retailers as they attempt to position themselves as a way to escape into a happier place or bring back memories of life before bailouts and Madoff.

Reading this article sparked an interest to explore other foods which are relatively recession proof, after all now that I can’t trust Cramer to tell me which stocks to buy I am on my own. A Nielsen company study looked at past recessions and came up with the following recession-proof food items: seafood, dry pasta, candy, beer and pasta sauces. A surprising and interesting list to say the least. I imagine that the pasta sauce complements the dry pasta, which goes well topped with shrimp and scallops washed down with a nice Grimbergen blonde. Who says you can’t eat in style during a recession?

What was equally interesting was the list of recession-vulnerable items that included: carbonated beverages, eggs, cups and plates, food preparation and storage products, and tobacco.

Of course the previous lists may not apply to you, and that is why I am interested in knowing your opinion. During a recession, when funds may need to be cut or strategically delegated, what would make your recession-proof list? Is it something practical or a guilty pleasure?  I am interested in hearing your personal preferences.

If the economic crisis of today has made you forget the joy candy brings, hopefully Willy Wonka can help you remember.

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