Picking Stocks off the Grocery Shelves - InvestingChannel

Picking Stocks off the Grocery Shelves

Proprietary Data Insights

Top Snack Company Stock Searches This Month

#2General Mills19,955
#3Kraft Heinz19,367
#5Mondelez International11,413

Maybe you’re an investing nerd who also likes snack foods. Maybe you even enjoy grocery shopping. 

If so, tell us one of your favorite pastimes isn’t walking through the aisles of your local supermarket and seeing which massive global conglomerate owns the top snack brands you see on the shelves. 

The four most searched snack stocks in Trackstar, our proprietary sentiment indicator, are household names. But most people are less familiar with Mondelez International (MDLZ).

In a second, we’ll pull the highlights from the company’s 2022 State of Snacking report. But first, while Mondelez might not be a top-of-mind company, the snack brands it owns likely sit in most American (and international) pantries… 

Source: Mondelez International

The above is a mere sampling of what Mondelez controls. 

There’s also Chips Ahoy, Halls cough drops, Honey Maid graham crackers, Philadelphia cream cheese, Sour Patch Kids, Tang, Trident, Wheat Thins, and others. 

If you’re looking for a solid consumer defensive stock to add to your portfolio, MDLZ might be the one. The company is growing, albeit modestly, and has raised its dividend payment, currently a solid $1.54 annually, 10 years in a row. 

Just dropping a stock idea in your lap before we get to the good stuff. 

Next up, Mondelez’s take on how consumers are responding to inflation in the snack space along with other interesting insights.


Picking Stocks off the Grocery Shelves

Key Takeaways:

  • No doubt, the pandemic impacted snacking. 
  • More than before the pandemic, we’re relying on snacks for comfort during difficult times. 
  • We’re snacking earlier and more often. 
  • Big shocker, we love chocolate. 

According to Mondelez’s fourth annual State of Snacking report, 75% of consumers say they always find room in their budgets for snacks. 

And 75% of consumers say the increased cost of ingredients to make food at home has hurt their pocketbooks more than higher snack prices have. Among millennials, that number jumps to 80%. 

While 89% are worried about inflation overall, 60% are concerned about the availability of their favorite snacks in stores. 

Eggs be damned. They better have Oreos! 

Across demographics, 64% of people agree with the statement, “In tough times, snacks are the one thing I can count on.” A higher number of millennials (73%) and Gen Zers (69%) agree with this statement. 

We’re not sure if this should make us sad or happy. 

Snacks Are Growing in Popularity

  • 64% of survey respondents favor many small snacks throughout the day over a few large meals. 
  • Morning snack consumption (between 6 a.m. and 10 a.m.) is up 42%. 
  • Afternoon snacks (12 p.m. to 3 p.m.) are up 22%. 
  • Gen Z, slightly older millennials, and women are driving the increase in snacking. 


Source: Mondelez International

Diving deeper into the above comparisons of 2019 to 2022, it’s clear that in light of COVID we can readjust the “counting on snacks” statement to read: 

In tough times, particularly when I’m told I can’t leave my house or I might inadvertently kill an elderly person, snacks are the one thing I can count on.

Most of the categories posting increases seem to consist of comfort food. Which makes sense: 

  • 78% of consumers report eating snacks “to pamper or reward themselves,” while 77% snack for “a sense of comfort.” 
  • Chocolate takes the cake. 72% of snackers agree that “In tough times, I rely on little luxuries like chocolate to get through the day.”
  • 65% call chocolate a staple in their diet, saying they count on it for a flavor they can’t get from any other food. 

The Bottom Line: We do Juices like this frequently because they’re fun and insightful. But they also make an investing-related point. 

All it takes is a walk through a grocery store to find stock ideas. Heck, you can stretch that out to most retail: home improvement stores, clothing outlets, and so on. If you get bored waiting for somebody else to finish shopping, look at some labels and pull up some tickers. 

You might just walk out of there with a few new names to add to your portfolio – a great way to offset discretionary spending in the grocery store and other places where we might be inclined to buy more than we need.

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