The meat processing and distribution infrastructure that normally supplies U.S. grocery stores has been impacted heavily in recent weeks as meatpacking facilities became Covid-19 hot spots and closed. At the same time, the U.S. has been on a trajectory of increased demand for alternative meat products and a variety of new lab and plant-based alternatives have emerged. These trends, combined with trends in consumer confidence, spending habits, and finances, have spurred a new dynamic for investors to consider.
During this webinar CFRA's analysts reviewed the factors influencing consumer spending and consumer confidence, the impact of Covid-19 on meat processors, and the trends and forecasts for plant-based meat and lab-based meat alternatives.
In this informative webcast, we discussed –
- Attractiveness of the Consumer Staples sector, which currently has low volatility and is outperforming the broader market and other sectors. CFRA’s Investment Policy Committee currently has a Marketweight rating on Consumer Staples.
- The impact of the 20 major U.S. meat processing plants that have closed at some point over the past month due to Covid-19 concerns, coupled with President Trump’s late-April actions to ensure the safety of our nation’s food supply.
- The companies that may benefit from consumer trends in alternative protein, which is forecasted to be a $100 billion market by 2030.
- Profiles of the leading food distributors (Sysco, US Foods) and supermarkets (Kroger, Trader Joes, and others), as well as emerging new food manufacturers like Beyond Meat, Impossible Foods, Memphis Meats, and the largest incumbents like Tyson, Nestle, Kellogg, Conagra Brands, and Hormel Foods.
- Garrett Nelson, Vice President, CFRA
- Arun Sundaram, Industry Analyst, CFRA