Food conglomerates facing an uncertain future

Food conglomerates facing an uncertain future

by Pininvest Analysis

Consumer non-Durables ETFs on

  • constituents
  • 27.5% 1y performance
  • 10.7% volatility
Check the investment theme exit_to_app

The consumer staples ETF selection of our pininvest theme sums the difficulties of the industry majors to counter the many challenges of a fast-moving market place

  • with major consumer brands on the back foot, to wit the recent travails of Kraft Heinz 
  • with new and more competitive retailers, the German discount chains Lidl and Aldi,
  • shifting consumer demand favoring small and often local brands,
  • new online distribution led by Amazon   and followed by many others

To make our point that the market requires nimbleness and ingenuity, we include an ETFs substituting a ‘story-line’ to the non-durable dimension of staples in our theme 

We rank the approach as ‘recession proof’ because the funds will probably be less exposed to a market downturn; the price of these ETFs may suffer, especially after a brilliant run, but their investment strategy has staying power. Built on the strength of new consumer patterns, the funds invest in niche markets with likely growth potential

  • The Organics asset is a JanusHenderson fund aiming unabashedly at millennials, for whom "an environmentally friendly lifestyle plays a major role in their consuming habits". The fund is invested in organic food producers, natural personal care products and retailers from all over the world.

 It will be noted that Danish Chr. Hansen, defining itself as “a global bioscience company that develops natural solutions for the food, nutritional, pharmaceutical and agricultural industries” is currently the single most important investment of the fund

For further discussions on the consumer staple conglomerate, check our theme “Consumer Staples, a troubled partnership