As Food Prices Soar, So Do Sales Of Spam

More Consumers Are Turning To The Oft-Mocked But Inexpensive Meat To Stretch Food Budgets

(AP)  Love it, hate it or laugh at it - at least it's inexpensive.

Sales of Spam - that much maligned meat - are rising as consumers are turning more to lunch meats and other lower-cost foods to extend their already stretched food budgets.

What was once cheeky, silly and the subject of a musical (as Monty Python mocked the meat in a can), is now back on the table as people turn to the once-snubbed meat as costs rise, analysts say.

Food prices are increasing faster than they've risen since 1990, at 4 percent in the U.S. last year, according to the Agriculture Department. Many staples are rising even faster, with white bread up 13 percent last year, bacon up 7 percent and peanut butter up 9 percent.

There's no sign of a slowdown. Food inflation is running at an annualized rate of 6.1 percent as of April, according to the Bureau of Labor Statistics.

The price of Spam is up too, with the average 12 oz. can costing about $2.62. That's an increase of 17 cents, or nearly 7 percent, from the same time last year. But it's not stopping sales, as the pork meat in a can seems like a good alternative to consumers.

Kimberly Quan, a stay-at-home mom of three who lives just outside San Francisco, has been feeding her family more Spam in the last six months as she tries to make her food budget go further.

She cooks meals like Spam fried rice and Spam sandwiches two or three times a month, up from once a month previously.

Pulling Spam from the shelf prevents last-minute grocery store trips and overspending, said Quan, 38, of Pleasanton, Calif.

"It's canned meat and it's in the cupboard and if everything else is gone from the fridge, it's there," she said.

Spam's maker, Hormel Foods Corp., reported last week that it saw strong sales of Spam in the second quarter, helping push up its profits 14 percent. According to sales information coming from Hormel, provided by The Nielsen Co., Spam sales were up 10.6 percent in the 12-week period ending May 3, compared to last year. In the last 24 weeks, sales were up nearly 9 percent.

The Austin, Minn.-based company, also known for the Jennie-O Turkey Store, has embarked on its first national advertising campaign for the 71-year-old brand in several years. They've credited the sales increase to that, along with new products like individually packaged "Spam Singles" slices. Also helping sales, executives said in an earnings conference call, was the fact that people looking to save money are skipping restaurant meals and eating more at home.

Spam sales are reaching across all spectrums, young and old and rich and poor, said Swen Neufeldt, Hormel's group product manager for the area that includes Spam. Many of the eaters are new to Spam, which was created in 1937 and gained fame as the meat that fed Allied troops during World War II.

"We have significantly increased our household penetration," Neufeldt said. "I think it's a lot of folks that are coming into the brand perhaps for the first time and coming back to the brand."

Hormel began its national advertising campaign, including print and television, for Spam in January. Neufeldt said such campaigns are planned in advance and it wasn't tied to perceived weakness in the economy.

Consumers are quick to realize that meats like Spam and other processed foods can be substituted for costlier cuts as a way of controlling costs, said Marcia Mogelonsky, senior research analyst with Mintel International in Chicago.

These products have protein and decent nutritional value, and they provide some variety to consumers who may be bored because they're eating more at home, she said.

"They might not have Spam at every single meal, but they might supplement a couple of meals," she said.

Consumers are also using more coupons and paying more attention to sales, doing anything they can to save money, she said. You may be able to cut back on your driving due to high gas prices, but you're not going to stop eating because of high food prices, she said.

Quan just bought a couple more cans of Spam on sale and some ramen, the instant noodle dish long a staple on college campuses. Her food and gas budgets are together, so she's had to cut back on food spending while the cost of gas increases. Her favorite Spam meal? Spam and macaroni and cheese. She doesn't skimp on nutrition, though. Quan serves her husband and three children - ranging in age from 4 to 11 - organic vegetables like salads, broccoli and carrots.

"It balances out," she said.

Other companies are seeing similar boosts in their lunch meats. Kraft Foods Inc. reported last month that subsidiary Oscar Mayer, which makes hot dogs, bacon and cold cuts, saw double-digit revenue growth in the previous quarter in its Deli Fresh cold cuts. The company, based in Madison, Wis., has recently introduced new products including family sized deli-meat packs and deli carved, which offers thicker slices of meat.

April Smith has been changing the way she feeds her family in Broken Arrow, Okla., to keep up with rising costs. This summer the 33-year-old administrative assistant will feed her two boys, ages 11 and 8, more ramen for lunch. Normally they eat the noodle soup on Saturdays, but since ramen costs about a dime per pack, they'll get it twice a week. Smith says she'll throw in some leftover frozen vegetables to make it more nutritious.

"Since it's cheap and easy, I figure why not let them eat it twice a week instead of once a week," Smith said.

[terrorislami]

It is common knowledge that his father and step father were Muslim. That being the case, Islam considers Obama a Muslim. If you convert, you are an apostate and this, Islam punishes by death. It is further understood by Islamic laws that the children born of a Muslim man must be raised as Muslims, which means that the religion of the children born of a Muslim man must be Islam. Therefore, it is obvious that Barack Obama is considered, according to Islamic Shari%u2019a, a Muslim regardless of whether he practiced the religion of Islam in dedication to the prayers, paying the %u2018zakat%u2019 (alms giving), or going to Mecca for pilgrimage, or any of the other conditions prescribed by the Quran for Muslims to follow.
http://creepingsharia.wordpress.com/2008/04/17/hamas-endorses-obama/

[terrorislami]

International Solidarity Movement (ISM) an umbrella organization of communists, anarchists and social misfits working in conjunction with the PLO and Islamic fascist countries such as Saudi Arabia and the UAE
http://www.stoptheism.com/
http://www.google.com/search?hl=en&q=obama+islamic marxist group ISM &btnG=Search

How Obama%u2019s church and associates link him to the ISM
The question is if we want a man in the White House who will regularly give his ear to the likes of a Reverend Wright, his and Sabeel%u2019s replacement theologies, and pro-terrorist propagandists like Ali Abunimah on a regular basis? In one sense, Obama could be considered the ISM%u2019s Manchurian candidate given his wide connections to ISM activists and campaign movements such as the Wheels of Justice Tour, Joseph Carr a.k.a. Joseph Smith, Hannah Mermelstein, Anna Baltzer and others.
http://www.canadafreepress.com/index.php/article/2462

[terrorislami]

hmmmmmm what does ham-asss, nation of terrorislam and ism(international solidarity movement) know that you do not know???

http://www.google.com/search?hl=en&q=hamas+endorses obama&btnG=Search
http://www.google.com/search?hl=en&q=nation of islam endorses obama &btnG=Search
http://www.google.com/search?hl=en&q=International Solidarity Movement obama &btnG=Search
http://www.google.com/search?hl=en&q=obama islamic marxist group ISM &btnG=Search
http://www.google.com/search?hl=en&q=obama Audacity of Hope I will stand with the Muslims&btnG=Search

snakes on the plane airforce one,,,
snakes in the whitehouse,,,

Once upon a time there was a serpent who was badly injured in a fight with another animal. It managed to slither away to safety but would have surely died if a benevolent man had not seen it suffering by the side of the road. The goodly man carefully wrapped the snake up and took it to his house, where he bestowed the kindest and gentlest care on the snake until it was healed and could return to the wild. Just as the man was releasing the serpent back into the grass, the ungrateful snake turned and bit him on the hand.

"What did you do that for?" cried the man, who knew that the bite of this particular snake was usually fatal. "Didn''t I take care of you when no one else would?"

The snake shrugged (no small feat for a snake!) and replied to the benevolent--and now doomed-- man, "What did you expect? You knew I was a snake when you picked me up."

[terrorislami]

NO RECESSION!!!

Economy''''s growth picks up slightly in first quarter
Economy grows at a 0.9 percent pace, better than first thought but still weak
http://biz.yahoo.com/ap/080529/economy.html?.v=21

[sic_momma13]

sharncedar
where the f*ck you from. steaks are $3 where I come from. Oh ya if your still on you should read what I wrote on the comments about the teacher.

[sic_momma13]

apprxam
I''m from TEXAS. CORPUS CHRISTI. I don''t ride a horse or eat spam. That''s sh*t nasty. I bet you eat it though. Cause people like you eat sh*t.

[sharncedar]

"$2.62 for a 12-ounce can"

I bought steak for $1.72 for a pound this week, on sale with some careful shopping. Americans are just plain dumb, if you need to save money, these processed foods are not the way to go. Do a little cooking, lazy a$$.

[apprxam]

the worst republican is way better than the best demonic-rat,,,

Posted by terrorislami

-------------------------------

I can''t stand Dumocrats either, but that''s just silly, TI.

[apprxam]

Prick Cheney and Al Greenspan should be forced to eat spam 4 times-a-day until oil goes below $100-a-barrel and this housing mess is cleaned up.

I''d force George Bush too, but he probably already eats it, Texas style. With beans while riding a horse.

[terrorislami]

the worst republican is way better than the best demonic-rat,,,

[rudy654-2009]

If not Hillary, then McCain!!!!
If not Hannity, the insane!!!!!!!!

[moonshadow22]

BUT I DON''T LIKE SPAM!!!!

[wl7bzh]

"THIS IS A CBS COMMERCIAL FOR SPAM!
BUT WE STILL REFER TO IT AS "DOG FOOD""


So essentially you are saying that spam is advertising Spam?

[terrorislami]

NO RECESSION!!!

Economy''s growth picks up slightly in first quarter
Economy grows at a 0.9 percent pace, better than first thought but still weak
http://biz.yahoo.com/ap/080529/economy.html?.v=21

[zorar-2009]

If we''re not careful Spam" luncheon meat (Misubi)may be linked to Terrosm! look what happened to Dunkin Donuts & Rachel''s scarf!

[gopsoccermom]

http://www.youtube.com/watch?v=ODshB09FQ8w

[boston1954]

I cannot buy it, even if I wanted to. It gives my husband a headache.

[nothappyatall]

April Smith has been changing the way she feeds her family in Broken Arrow, Okla., to keep up with rising costs. This summer the 33-year-old administrative assistant will feed her two boys, ages 11 and 8, more ramen for lunch. Normally they eat the noodle soup on Saturdays, but since ramen costs about a dime per pack, they''ll get it twice a week. Smith says she''ll throw in some leftover frozen vegetables to make it more nutritious.

"Since it''s cheap and easy, I figure why not let them eat it twice a week instead of once a week," Smith said. "

LOL, yeah lets see how CHEAP we can feed growing kids, we''ll get the TEN CENT cardboard er Ramen dried noodles, dump in some LEFTOVER green beans and half rotten carots maybe and hope for best.
Im sure the kids will sneak meals at McDonalds after eating k rap like ramen with leftover grean krap in it.
Cant afford to feed kids DONT HAVE THEM

[brianp55]

Spam, eggs and Filipino fried rice makes an excellent meal any time of the day. Or, you can substitute corned beef hash and fried eggplant.

[jerr11]

While Americans resort to eating spam, the Liar-in-Chief and ******** Cheney continues to live a life of opulence.

Hey, Halliburton stocks are through the roof since we started that Iraq War!

Let the good times roll!