An evolving set of mega trends make investing in food far more complex than many stockpickers might think. Within food itself, there is the insatiable appetite for protein by the world’s growing middle class and a growing body of health conscious consumers in the west is putting pressure on products packed with salt, sugar and fat.
Expanding the future of food theme, a power shift is under way in the food retail sector where the dominant forces in supermarkets are being challenged and technology is playing an increasingly prominent role in our consumption habits. Who doesn’t enjoy seeing the preparation stages of their pizza on a mobile app?
Taking a bite
Just chucking some volatile soft commodities or a well-known fast food brand into your portfolio in the same way you would a loaf of bread into your basket when wandering around the supermarket might be a simple way to access the food theme but it does not do justice to a wave of change in terms of what, where and how we eat and which companies are involved in these changes.