Holding Steady in the Storm: Lessons from the Great Depression's Consumer Staples

Holding Steady in the Storm: Lessonsfrom the Great Depression's Consumer Staples

As the global economy once again edges toward recession, it’s worth looking back at history—not out of nostalgia, but for clarity.

During the Great Depression of the 1930s,countless businesses failed. But a select few industries held their ground.Among them was one of the most overlooked: the consumer staples sector.

Why begin there? Because what seemedordinary—soap, cereal, cleaning supplies—turned out to be the most resilient sources of cash flow, the first to rebound in demand, and some of the mostundervalued assets in long-term strategy.

The Exception in a Crisis: Why DidConsumer Staples Keep Selling?

Supported by Inelastic Demand: During the Great Depression, consumer staples such as food, soap, and other everyday goods showed remarkable resilience. These were products people needed regardless of how tight money got. While luxury items dropped off shopping lists, essential goods like detergent, diapers, and gasoline remained.

This inelastic demand meant that even asthe economy contracted, staples could maintain basic sales levels. In fact,some sectors like chemicals, tobacco, and paper even grew—demonstrating that certain "essential comfort" categories remained stable, even in deep downturns.

Counter-Cyclical Marketing Strategy: While most companies tightened their belts, some consumer staples brands did the opposite. They invested more in marketing, aiming to capture market share when others retreated. In 1932, for example, food ads accounted for 10% of all ads in The Seattle Times—up from just 4% in 1928 and 1935. This bold brand-building paid off: when the economy recovered, these companies were top-of-mind.

A Pillar of Social Stability: Staples also helped hold society together. Basic goods like soapand cleaning supplies were essential not just for personal hygiene, but also for public health and a sense of normalcy. In many ways, these companies became providers not just of products, but of stability and calm.

What Did They Do Right? Unusual Moves ina Downturn

P&G and the Birth of Soap Operas: Procter & Gamble didn’t cut back during the Depression. Instead, they launched radio dramas aimed at housewives—subtly integrating brand messages into daily entertainment. In 1933, they debuted "MaPerkins," sponsored by their Oxydol brand. These “soap operas” became a pioneering model of content marketing, forging deep emotional bonds with theiraudience.

Kellogg’s Bold Expansion: While competitor Post scaled down, Kellogg’s doubled its advertising spend. They pushed a new product, Rice Krispies, and created the now-iconic mascots Snap, Crackle, and Pop. By 1933, at the depth of the Depression, Kellogg’s had increased profits by nearly 30%, overtaking Post and securing its industry leadership.

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Strategic Model Takeaways:

"Maintain or increase marketing to build trust and visibility"

"Embrace new channels and innovate in products and messaging"

"Think long-term—invest when others retreat"

"Foster emotional ties by offering comfort and continuity"

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These weren’t just about "keeping upthe ads." They were about creating meaningful connections. The brand that stayed present became the brand people trusted.

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What Would Depression-Era Survivors TellToday’s SMEs?

Understand Your Foundational Role: Even if you sell software or tools, not soap or cereal—ask: are you critical to your customers’ daily operations? If yes, you have crisis-resistant value. That’s your version of being a “consumer staple.”

Stay Present, Even on a Budget: When budgets are tight, find creative ways to maintain brand presence. Social media, email, content marketing—all offer low-cost ways to keep your voice heard. Think of it as the modern equivalent of radio soapoperas.

Trust Over Discounts: In tough times, trust matters more than price. Customers remember who showed up when things were hard. Loyalty is built during downturns—not bought in boom times.

Solve Real Problems. Speak Plainly. AddValue: You’re not selling luxuries. You’re helping people with real needs. Frame your product or service as something essential, reliable, and grounding. Something they’ll still need tomorrow.

Final Thoughts

The Great Depression didn’t just leave usnumbers and case studies—it left us reminders of what businesses are really made of.

Crises end. But the seeds of trust andvalue that are planted in a downturn will keep growing long after. For today’ssmall and mid-sized businesses, the path through uncertainty begins byunderstanding your foundational role, staying emotionally connected, and beingvisible when others go quiet.

The storm may be coming. That’s all themore reason to hold steady.