Newell Q1 Sales Growth Driven by Stay-At-Home Consumers

    Crockpot, slow cooker, Newell
    A Crockpot slow cooker.

    Newell Brands reported a strong start to 2021 as its kitchenware products were cited by company officials as a key driver of its continued growth in sales.

    Company-wide net sales for the quarter ended March 31 were $2.3 billion, a 21.3% increase over the first quarter of 2020.

    Sales in Newell’s Home Appliances segment that includes brands such as Crock-Pot, Sunbeam and Oster were up 38.9% to $360 million. In the United States, company officials said double-digit growth in consumption was evident across subcategories including heated cooking, blending and coffee.

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    The Home Solutions segment featuring brands including Calphalon, Rubbermaid and FoodSaver saw growth of 33.8% with quarterly sales reaching $504 million. 

    Each of our business units and geographic regions delivered significant sales growth, fueled by consumption, as our supply chain teams operated with excellence and successfully managed broad-based demand surges,” said Ravi Saligram, president and CEO for Newell Brands.

    During an investor conference call, Saligram said the company continues to benefit from consumers still preparing and eating nearly all meals at home. This continuing trend was particularly beneficial to the company’s food storage and food preservation segments.

    “FoodSaver continues to do well,” he said. “Our VS3000 (unit) launched in July 2020 has already sold 350,000 units and is moving the needle,” he said.

    The time spent at home by consumers also renewed an interest in canning, which allowed the company’s Ball brand to build on its market share. 

    Saligram noted continued consumer interest in gardening bodes well for this trend to continue. To meet the demand for products, Newell in the first quarter launched Ball nesting jars that stack together, which helps reduce the amount of space needed to store the mason jars by 30%.

    The challenge for Newell going forward is maintaining the robust sales growth as the lives of consumers begin returning to normal and they seek experiences outside the home. 

    New products will continue to be key and Saligram pointed to the company’s new full iced coffee assortment that is now launching.