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STORY: Consumer goods groups Unilever and Danone beat third-quarter sales estimates on Thursday (October 24).

That’s as they slowed price hikes and invested in winning back shoppers who’d turned to cheaper brands during an inflation surge.

During the pandemic, the cost of everything rose - from freight to raw materials.

While grain and energy surged in price after Russia’s 2022 invasion of Ukraine.

It meant the packaged food industry raised prices to protect margins.

Shoppers started trading down to cheaper alternatives, like brands owned by Walmart and Tesco.

At its peak in 2022, prices at Unilever, maker of Ben & Jerry’s and Dove, were hiked up to 17%.

In stark contrast, in the last quarter, both Unilever and Danone's prices rises were under 1% - and both reported a spike in sales volumes.

Unilever saw a rise of 3.5% -- the biggest since the first quarter of 2021.

And Danone, maker of Activia yogurt and Evian, was boosted by a 3.6% rise in sales volumes, on strong demand in North America for items including high-protein products.

Analysts branded these results as reassuring.

Although not all consumer groups have had buoyant news; Nestle last week cut its full-year sales growth outlook, battling high costs for coffee and cocoa.

Both Unilever and Danone kept their forecasts for 2024.