Food Plays: Supermarket Stocks

Shopping for promising stocks? Where better than at the supermarket? Jeff Auxier of Auxier Asset Management has some tasty food-business selections for investors.

His Auxier Focus Fund is up an average of 10.5 percent per year over the last five years.


Auxier's list begins with British-based Tesco. "Tesco's probably the best-run supermarket chain in the world," he said.

"They're heavily levered into Eastern Europe and China, and they really out-compete all the other supermarkets in the world, including Wal-Mart."

He also likes Kroger.

"They've done a really good job competing, sticking to their knitting, keeping their costs down," he said. "They've got a very low cost structure, and...there's this trend toward private label and dining in; they're really adding to market share right now."

Also on his list is Safeway, another passenger on the private-label bandwagon.

"That's very profitable for these grocers,' he said. "[Safeway has] double-dight earnings and sales growth."


Auxier owns Tesco, Kroger and Safeway through his fund.


Contact Stocks


    Get the best of CNBC in your inbox

    To learn more about how we use your information,
    please read our Privacy Policy.
    › Learn More