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May
15
Tim Lambert
Are Food Stocks the Best Way to Profit from Consumer Growth?
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A previous article on this site detailed how natural resource stocks like ExxonMobil (NYSE: XOM), Premier Exploration (OTC: PMMEF), Mondial Ventures (OTC: MNVN), BHP Billiton (NYSE: BHP), and others are excellent ways to profit from consumer growth around the world.  Food stocks ranging in size from PepsiCo (NYSE: PEP) and General Mills (NYSE: GIS) to small caps like The Original SoupMan (OTC: SOUP) and High Performance Beverages (OTC: TBEV) can also be profitable.

That is especially so when the products are positioned to evolve with consumer tastes such as The Original SoupMan and High Performance Beverages.

At the macro level, the global middle class is booming.  That will result in more consumer spending for food items.  When there is more discretionary income, food items always sell more.  That will benefit food stocks of all sizes such as The Original SoupMan, High Performance Beverages, PepsiCo, General Mills, and others.

Changing consumer tastes will benefit The Original Soupman and High Performance Beverages.

Consumers want food of a higher quality that is more convenient to eat and store.  That is The Original SoupMan.  With its tetra packaging and wide range of flavors with fresh ingredients, it is ideally situated to profit from the higher levels of taste that come from more discretionary spending.

High Performance Beverages will gain from the rising interest in sports and energy drinks.

Soda sales are falling for PepsiCo and others.  Sports and energy drink sales are booming.  That is a trend that will clearly increase.

So should the rising stock prices for food stocks like General Mills (chart below) and others.  Niche players like The Original SoupMan and High Performance Beverages are especially appealing as each is situated well to profit from increasing consumer spending the world.  Much of it will go to food stocks, which will be bullish for the sector, as it has been for natural resources.

 

 



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