Right now, we’re all looking for unique stocks to invest in. Much of finding a good stock to invest in is dependent on figuring out what people are currently interested in. Interest, after all, propels the success of a business, and the more successful the business, the more valuable your investments. The pandemic has obviously had a major effect on the economy, with many stock options being affected by the pandemic as people’s ways of living change.
Perhaps one of the biggest economic shifts that has occurred in the wake of the pandemic is a focus on personal health. People understand that they need to be as healthy as possible in order to avoid falling prey to the COVID-19 virus. While this may have initially led to an increase in investments in companies that produced personal protective equipment like masks, it’s gradually led to interest in the best organic food stocks as well. Millennials in particular have always been interested in higher quality food, with a recent survey indicating that they are willing to pay more money for it. But the pandemic has made it clearer than ever that not only should we be looking for food that makes us healthier; we should also be looking for food that is more sustainable.
Sustainability means that food can be made in a way that is better for the environment. The best organic food stocks usually revolve around sustainable food, because organic food is most often sustainably farmed. Millennials like knowing that their buying power is going towards something that is good for the environment. Yes, buying stocks is about money management. But it’s also about bolstering companies that are making products that you believe in. Sustainable living means using products that are more recyclable and have less of a carbon footprint. What’s not to like about that?
However, before you jump into investing in organic food stock, you should first research the types of stock that would not only best serve the organic and sustainable movement you believe in, but your investment portfolio as well. Keep in mind that some of these stocks may correspond with your money management algorithms, but you still need to think before investing. Below are some of the best organic food stocks to invest in right now. Some of them might surprise you!
1. SunOpta (STKL)
Right now, a lot of people are worried about an obesity epidemic that is particularly problematic in North America but is quickly becoming globalized. A lot of this has to do with the fact that people simply love to eat. It’s a comfort for them, and people also just enjoy food. So the question, as argued by SunOpta, is not one of how we get people to stop eating, but how to make what they eat better for them. Based in Canada, SunOpta experienced a huge amount of stock growth in 2020 because of its wide range of healthy snacks. With many of their snacks being fruit-based, SunOpta quickly became popular among millennials, and as such, the value of its stock rose exponentially over the past year.
Now, you may initially be hesitant to invest in SunOpta precisely because it experienced such growth last year. Some people make the mistake of investing in companies that experience a lot of single-year promise. These companies then fail to grow or even crash, leaving some unlucky investors seeking bankruptcy services. But this is unlikely to happen with SunOpta because the company has shown an aptitude towards long-term planning. In particular, SunOpta has started to explore milk alternative offerings. Some of the best organic food stocks are focusing on alternatives to cow’s milk. This is because milk is a staple in the kitchen, and being able to offer an alternative that is both good to drink and good to cook and bake with is hugely beneficial to organic food companies. SunOpta offers alternatives like coconut, hemp, soy, and almond milk, broadening its range even further. Not only is this a want for millennials; with millions of them suffering from lactose intolerance, it’s a need as well.
2. Lifeway (LWAY)
When seeking the best organic food stocks, you should make sure that you’re taking cheese companies into account. Cheese is something that a lot of people really don’t feel they can go without, despite the fact that it’s not exactly the healthiest meal option in the world. But it can be made healthier, and there is a lot of opportunity for companies that can offer tasty, healthy cheeses and cheese alternatives. This where Lifeway originally came into the picture, offering both healthy beverages and healthy cheeses. But there are other aspects of the company that really makes it appeal to millennials in particular.
For one thing, Lifeway is extremely strict about its policies regarding the usage of all natural ingredients. While some companies boast about using all natural ingredients, a closer look at their ingredients’ lists reveals that they are bending the rules. This is not the case with Lifeway. The management at Lifeway also has a major focus on sustainability, encouraging partners to prioritize animal welfare and engage in sustainable agricultural practices. Additionally, there are a lot of interesting opportunities for those that invest in Liveway to make money in the future. As millennials become more concerned with replacing sugary soft drinks with something healthier, Lifeway offers its kefir beverages. These cultured milk smoothies are much healthier than traditional soft drinks, and due to their uniqueness, they can be charged with a premium compared to the competition. While kefir beverages may not be incredibly mainstream in the United States right now, they are common in other countries and are becoming more normalized. Before long, drinking kefir beverages could be seen in a manner as normal as nutritional supplements.
3. Hain Celestial (HAIN)
Many people don’t realize the full reach of Hain Celestial just quite yet. The company has a connection to both food and beverages, known for its organic food products and its delicious teas. Additionally, while it is one of the best organic food stocks of the moment, it doesn’t only produce food and beverages. Hain Celestial also makes organic skincare products. Organic skincare, much like organic food, is a pet project for many millennials. Lots of them are making the switch over to organic skincare only, which means that there is a great opportunity for Hain Celestial to make money in that sector within the future, even if ultimately the company remains more concerned about organic food products.
Hain Celestial, like many organic food companies, has benefited from the pandemic in part because people have been forced into more sedentary lifestyles. They still want to be healthy, and a part of being healthy is eating healthily. Additionally, because people have more time to spend at home, they also have more time to spend on cooking. Therefore, they’re more willing to try new things and experiment with different food products. This is why Hain Celestial is seeing a major potential boon with its Yves Veggie Cuisine brand. Not only have Yves products been tested and proven to be tried and true over decades; they also don’t come with any artificial colors or flavorings. This is a major problem with a lot of veggie meat replacement brands. They are flavored or colored with additives to make them seem more like meat, which ultimately disturbs the quality of the product and may also negatively affect its flavor. A lot of people just their meat replacements to be straightforward and simple. Yves burgers have only three to four grams of fat, suggesting just how simple it can be to eat healthier while still maintaining what you like to eat on some level. These types of innovations keep Hains Celestial on point as one of the best organic food stocks on the market right now.
4. Kroger (KR)
Yes, you heard us right: Kroger is one of the best organic food stocks available at this moment. Initially, the COVID-19 pandemic meant that grocery store chains experienced a burst of activity. However, that burst did eventually die down as was expected. But if you have mortgages that you’re looking to pay off with your investment earnings, you may want to think about grocery store chains. Additionally, if you’re looking to invest in a chain with its finger on the pulse while still having wide appeal, Kroger may be the way to go.
Obviously, Kroger does not only offer organic food. If that’s the kind of stock that you’re looking for, it may not be for you. Kroger in general, however, has always been known for providing a wide array of different types of food, including organic snacks and meals, as well as high-quality cheeses and produce. But perhaps one of the most interesting products for millennials, especially vegans and vegetarians, is its Simple Truth plant-based meat. Right now, there is a lot of competition happening in the plant-based meat market, and Simple Truth stands a lot to gain by being rolled out by Kroger. Simple Truth is Kroger’s own brand, illustrating the company’s interest in putting itself further into the organic, health food market. The patties and ground “meat” offered by Simple Truth are meant to imitate ground beef, and earlier reviews indicate that they function and taste quite similar. This kind of flashy new brand is sure to increase Kroger’s value. Before long, products like Simple Truth could be used to make food everywhere from restaurants at country clubs to your own kitchen.
5. General Mills (GIS)
Like Kroger, General Mills doesn’t seem very consistent with the ideas behind the best organic food stocks. It’s true that many of the products that General Mills is known for as a company are high in sugar and fat. These products are not necessarily going away. However, as with Kroger, there are a lot efforts being made within the company to offer healthier and more organic food options as well. With these larger companies, which often are easier for newer investors to invest in, the mission should not be to find a perfect company but rather to find a company that offers at least some of the goals you’re targeting, while at the same time being a financially sound choice.
Annie’s is the General Mills brand most known for creating healthy and organic snacks, but it’s not alone in terms of being a more positive branch of the big company. Cascadian Farm, a brand known for its sustainable agricultural practices, is actually owned by General Mills. Additionally, because General Mills is in part funded by its massive amount of business surrounding less healthy options, it is able to offer its healthier options somewhat more affordable than other companies. This is hugely important if we expect many families under economic stress to eat more healthily.
6. Sprouts Farmers Market (SFM)
Like many premium grocery outlets, Sprouts Farmers Market is typically known for charging more than its competitors. While this could have been expected to be a major problem during the pandemic, Sprouts actually performed much better than many thought it would. The thing about what Sprouts has to offer is that many people feel good about buying from them. For one thing, they know that the food is organic and often sustainably sourced. But for another, there is often an overall more premium experience, down to how the food is packaged.
As long as millennials continue to care about where they’re shopping and how the experience affects them, stores like Sprouts Farmers Market will continue to fare well. Additionally, they also often have contracts with local seafood restaurants and other restaurants that need the freshest ingredients possible en masse.
There is a lot to like about these options. They represent some of the best organic food stocks available right now. One thing the pandemic has shown us is that planning ahead is difficult, but it remains important. Invest wisely, and remember to think about what people are passionate about now.