3 Delicious Opportunities in the Packaged Food Space
Last Updated: 28.1.2024 5:17
We Live in a Fast-Paced World. A World Where People Are Dedicating Less Time to Cooking Meals at Home
It’s tough to work an eight-hour shift, and then come home and cook a three-course meal. With more consumers reaching for packaged foods these days, investors should consider these three packaged food stocks for potential outsized gains in 2023.
While eating out and ordering in is becoming more popular, it is not affordable for most people to eat out daily.
With no time to cook and not enough money to frequent restaurants daily, consumers are increasingly opting for pre-made foods, whether they be entire frozen meals, packaged seasonings or bottles of sauce. In fact, the packaged food industry is expected to realize a CAGR of 4.5% over the next five years, one of the highest growth rates among consumer staple subsectors.
Below are four companies in the packaged food space that investors should consider for outsized gains relative to their larger competitors.
While most consumers are unfamiliar with the parent company, they likely know more than a few of B&G Foods’ brands, including Cream of Wheat, Crisco, Green Giant and Spice Islands. The company also licenses and produces other well-known brands, including Cinnamon Toast Crunch, Einstein Bros. Bagels and Twix.
The company also pays one of the highest dividend yields in the industry at 5.4%, although the company recently cut the dividend due to challenging market conditions. The worst is likely over for the company, which, thanks to its offering of consumer staples, should fare better than most in the face of a possible recession.
Shares of B&G Foods last traded at $14.04, up +4.85% on the day.
Learn more about B&G Foods: Website | Investor Deck | BGS Chart
2. Yoshitsu Co., Ltd. (NASDAQ: TKLF)
One of Asia’s fastest-growing home goods and health & beauty providers, Yoshitsu Co. Ltd., recently announced that they would enter the packaged food space. After announcing the addition of sauces, salad dressings and condiments to its Japanese stores in November last year, the company now says they will introduce additional packaged food options such as frozen and refrigerated meals, processed foods and confections.
The Principal Executive Officer of the company, Mei Kanayama, commented on the rollout, stating:
Shares of Yoshitsu last traded at $1.28, up +1.59% on the day.
Learn more about Yoshitsu: Website | Investor Deck | TKLF Chart
Also Read: Stuff Your Christmas Stockings With These 3 Consumer Good Stocks
3. John B. Sanfilippo & Son (NASDAQ: JBSS)
The smallest company on our list, John B. Sanfilippo and Son, Inc. (JBSS), has had the most stable stock of the bunch, having only lost 6.8% over the previous twelve months, which has been difficult for just about all companies.
John B. Sanfilippo and Son’s nutritious but affordable products should prove popular in the trying times to come. The company’s products revolve around snack foods, in particular nuts and their byproducts. The company’s flagship brand, Fisher, offers a wide variety of nuts, nut butters, nut flours and trail mixes.
Shares of John B. Sanfilippo & Son last traded at $81.67, up +0.73% on the day.
Learn more about John B. Sanfilippo & Son: Website | Investor Deck | JBSS Chart
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Yoshitsu Co. Ltd. is a paid client of Wealthy VC.
Wealthy VC’s parent company has been compensated $75,000 per month for four months for investor relations and market awareness services by Yoshitsu Co. Ltd. (NASDAQ: TKLF).
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