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Food scares boost demand for packaged staples and brand owners
Wall Street has looked at branded food and ingredient companies as beneficiaries when consumer confidence wobbles after food-safety scares, with business still holding up.
Food-scare headlines are drawing attention from investors to the packaged-staples and related brand businesses that can keep selling even when consumers change behavior, according to WSJ Markets.
The outlet notes that, in these moments, profitability can be supported by factors such as established brands, distribution, and repeat purchasing, helping some companies weather the headlines better than others.
WSJ Markets also points to Warren Buffett resuming buying activity, adding a separate signal that investors continue to find value in the sector despite periodic shocks.