Food prices have soared amid supply chain constraints and robust demand. And because food prices are expected to remain high during the holiday season, we think it could be wise to bet on quality food stocks John B. Sanfilippo & Son (JBSS), HF Foods (HFFG), and Lifeway Foods (LWAY). So, let’s examine these names.While food demand is increasing, rising shipping rates and soaring commodity costs have caused food prices to soar. According to the United Nations, world food prices have surged to their highest level in more than a decade, driven by robust demand and lackluster harvests. Also, according to the FAO Food Price Index, prices increased for the third consecutive month in October.
The demand for food is expected to increase further during the holiday season, starting with Thanksgiving next week. According to a Global Industry Analysts Inc. report, the global foodservice industry market is expected to reach $4.10 trillion by 2026.
So, we think it could be wise to bet on fundamentally sound food stocks John B. Sanfilippo & Son, Inc. (JBSS), HF Foods Group Inc. (HFFG), and Lifeway Foods, Inc. (LWAY) to capitalize on the increasing food prices.