Which Food Companies Have Pricing Power?
Even as food prices continue to climb, the following consumer staple companies should still have pricing power, said Jonathan Feeney, senior analyst at Janney Capital Markets.
“I’d say your impulse snacking-item companies such as Hershey and Pepsico [should do well], but also Kellogg and General Mills have done better than others,” Feeney told CNBC.
Feeney has a “buy” rating on Hershey . He said the companies above produce high-margin items that don't have easy private-label substitutes.
However, Feeney said companies such as Kraft and RalCorp that produce more meal-centered items such as cheese and pasta are riskier in terms of margins in the near-term.
Scorecard—What He Said:
- Feeney's Previous Appearance on CNBC (Mar. 1, 2011)
CNBC Data Pages:
Feeney does not own shares of HSY, PEP, K or GIS. However, Janney Capital makes a market in the securities of HSY, PEP, K and GIS.