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Profit Among the Ruins

It’s not real estate or contemporary art but the old standbys—from soup to lipstick—that soar while the economy swoons.
Gods falling from Heaven
When so many people got it so wrong, nobody can gloat—for now. Read More
Last Trade:Change:
Industry:
Consumer Goods
Primary executive:
David L. Kennedy,
Summary:
The Company and its subsidiaries operate in a single segment and manufactures and sells an array of cosmetics, women's hair … View More
Last Trade:Change:
Primary executive:
Kendall J. Powell,
Summary:
The Company is a manufacturer and marketer of branded consumer foods sold through retail stores. It also supplies branded … View More
Last Trade:Change:
Primary executive:
Douglas R. Conant,
Summary:
The Company together with its subsidiaries, is a global manufacturer and marketer of branded convenience food products. View More

Cereal
General Mills is having a good year. Net sales are up 14 percent, and sales of its Fiber One cereal bars have reached $100 million annually. “Food is recession-proof,” an NPD Group analyst notes—particularly food that doesn’t require its customers to do any cooking.

Cosmetics
Lipstick remains an affordable, spirit-boosting luxury, an analyst says: “As long as women want to look beautiful, beauty will always do well.” Revlon stock is up, and one researcher calculates that its Renewist brand’s sales are up 68.5 percent, to $5.5 million, in the past year.

Videogames
Ninety percent of videogame consumers are in the recession-resistant six-to-30-year-old demographic, says Wedbush Morgan analyst Michael Pachter, who expects Epic Games’ highly anticipated shooter Gears of War 2 to be a top seller this year.

Soup
Campbell’s iconic, economical condensed tomato soup is championed in current marketing as an alternative to fast food: It’s on the “original dollar menu.” The company’s net earnings jumped 46 percent in the quarter ended August 3.

Beer
SABMiller, the world’s second-largest brewer, says value-conscious consumers trade down from wine and spirits—and that its “economy” (i.e., downscale) brand Keystone Light has enjoyed double-digit growth this year.
 


 



 

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