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This statistic highlights B&G Foods’ Revenue by Customers from 2013 onwards, split between Walmart and other customers.
|Revenue by Customers||2017||2018||2019||2020|
(All figures in billions)
B&G Foods’ total revenue has been constantly rising. B&G Foods’ total revenue from customers from 2015 to 2020 increased from $0.966 billion to $1.660 billion, marking a 72% growth in revenue over these 5 years. On the other hand, there was no increase in revenue from 2019 to 2020, the total revenue being $1.660 billion in both the years. The revenue from Walmart increased whereas the revenue from other customers decreased by the same amount in this period, leading to the same revenue as in 2019.
The customers frequently change their taste preferences and dietary habits. Some competing channels have expanded significantly following the pandemic and the consumer preferences towards these e-commerce channels have increased. Hence, to remain in the business, the company may need to increase the spending on existing as well as new distribution channels, marketing as well as advertising and product development to increase the revenue and market share. Sales of some products is highly seasonal and tends to be higher in Q1 and Q4 and is influenced by the holidays, annual events as well as change in weather. Many of the raw materials can also only be purchased during some specific months only.
Walmart represented 26.5% of the total revenue generated by the company in the fiscal year 2020. Other than Walmart, no single customer accounted for 10% or more of the total revenue of 2020. Walmart accounted for approximately 26.1% and 32.6% of the consolidated nets sales for the first 3 quarters of 2021 and 2020 respectively. It can be seen that the major customer of B&G Foods is Walmart itself.
The total revenue from Walmart increased from $0.197 billion to $0.440 billion, from 2015 to 2020, reflecting a growth of about 123% over 5 years. Whereas the growth in revenue from Walmart increased from $0.425 billion in 2019 to $0.440 billion in 2020, making a rise of approximately 3.5%.
As retail customers, like supermarkets, warehouse clubs, food distributors and e-commerce merchants continue to consolidate and grow larger and more sophisticated, they may demand lower prices and increased promotional programs. These customers are reducing their inventories and are giving more importance to the top products in the market. Hence, the company may be unable to maintain its profitability in the face of a consolidating retail environment. Due to constantly changing consumer preferences, the company may need to reallocate its spending on new as well as existing distribution channels, marketing, technologies and the product to increase the revenue and market share.
The growth in revenue from customers other than Walmart was 58.6% over the 5 years, from $0.769 billion in 2015 to $1.220 billion in 2020. The revenue from other customers decreased from $1.235 billion to $1.220 billion, from 2019 to 2020, representing a fall in revenue of approximately 1.2%. Other unclassified customers accounted for 73.5% of the company’s revenue in 2020.
B&G Foods was incorporated on 25 November, 1996 and has been in business for more than 125 years. B&G Foods produces, as well as distributes and sells a variety of branded, superior quality, shelf-stable, frozen foods and household products across the United States, Canada and also Puerto Rico. These products appeal to the consumers wanting high quality as well as reasonable price. Many of the company’s products have leading shares in regional as well as national markets. The branded product retail sales are complemented with institutional and foodservice sales along with private label sales. The company has a successful track record of organic and acquisition-related growth. It aims to continue increasing its sales, cash flows and profitability by organic growth, disciplined acquisitions as well as development of new products. The stock of the company is traded on the NYSE under the ticker BGS.
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