Who doesn’t love food? When it comes to what’s for dinner, we’re spoiled for choice these days, with the ability to buy practically any type of condiment, cereal, packaged goods, fruit, vegetable, meat (or meat alternative) that exists on the planet. 

It seems simple, but the industry and the logistical machine that makes this all possible is unbelievably complex.

From the farm to our dining room table, there are a string of companies who operate with incredible efficiency in an industry that is practically immune to the ups and downs of the economy.

For investors, that’s a recipe for tasty returns.

Invest in food during uncertain times

With growing levels of political and economic uncertainty around the world, the ongoing impacts of climate change and recent disturbances to logistics routes, food prices have been increasing rapidly.

But even as prices have risen, demand hasn’t dropped off. After all, we all need to eat. 

This makes companies who provide food and water products and services an attractive investment opportunity, with companies linked to food production being about as ‘recession proof’ as you could hope for.

But it’s not all about capitalizing on bad news, there’s also a lot of positive developments in the food industry as well. 

From man made meat alternatives to clean water technology to companies pioneering new and innovative farming methods, the drive for greater efficiency and better products is very strong in the food technology sector.

How Food Fund works

As with many of our Kits, we task our AI with predicting asset performance for the coming week across a range of different verticals, automatically rebalancing the underlying holdings in line with these predictions.

As well as a wide range of direct stocks (with some examples listed below), the Kit universe also includes a number of food and beverage, agriculture and consumer staples ETFs.

There are five verticals within the Kit, which include the following:

Food technology

Companies pushing the envelope when it comes to innovation and efficiency in the food industry. Example stocks that you might find in this category include Beyond Meat, Impossible Foods and Ginkgo Bioworks.

Agriculture

Long gone are the days of the family farm with a few fields and a handful of livestock. Nowadays, farming is big business. In this vertical you’ll find companies like Deere and Company (John Deere) and Cargill.

Retail and restaurants

Further down the food chain, retail and restaurants serve up the finished product from the companies who create the ingredients. Companies like McDonalds, Walmart and Kroger are able to maintain very stable demand throughout an ever-changing economy.

Water treatment

Water might seem like a given, but the availability of clean drinking water is a bigger global challenge than you might think. There are many companies charged with providing purification and distribution of clean water, such as Aqua America, Danaher Corporation and Xylem Inc. 

Fish farming

Fish farming sits outside the normal agricultural bucket given that the process is highly specialized and differentiated from traditional farming, though arguably equally as important. Companies in this space include AquaBounty Technologies and The Kingfisher Company.

The bottom line

For investors looking for assets that have the potential to make gains through all market cycles and against a backdrop of political and climate uncertainty, the food and beverage sector is a great option.

Food Fund provides exposure to companies all along the global food chain, from farming to water distribution to grocery stores and restaurants. It’s a Limited Edition Kit, meaning this Kit will stick around as long as our team of analysts and quants believe it’s a good investment strategy.

Are you ready to dig in? Add Food Fund to your investment portfolio.