10 Small-cap Food Stocks

One commodity that will always be in demand no matter the shape of the economy is food. Except man is extinct, man will always need food.

The food market is big (very big) in size and complex in structure; there is the foodservice segment and food retailing segment.

The foodservice segment includes full-service restaurants, fast food outlets, caterers, and some cafeterias among other for profit prepare, serve and sell food to the general public establishments.

According to Statista report, “the global food service market reached 3.4 trillion US dollars in 2018. This figure is forecast to grow to 4.2 trillion US dollars in 2024.”

On the other hand, the food retail segment comprises business that sells food to consumers for preparation and consumption (and are consumed off-premise). These includes foods sold at grocery stores, drug stores, convenience stores, mass merchandisers and foodservice facilitates.

According to a report by Grand View Research, “the global food and grocery retail market size was valued at USD 11.7 trillion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 5.0% from 2020 to 2027.

If you are looking to buy cheap (small-cap) food stocks, consider the following food stocks:

1. Nomad Foods Limited

Nomad Foods Limited, together with its subsidiaries, produces, markets, and distributes frozen foods in the United Kingdom, Italy, Germany, Sweden, France, Norway, Austria, Spain, and rest of Europe.

The company offers fish products, including fish fingers, coated fish, and natural fish; vegetables, such as peas and spinach; and poultry and meat products comprising nuggets, grills, and burgers.

It also provides meals products that include ready to cook noodles, pasta, lasagne, pancakes, and other ready-made meals; and other products, such as soups, pizzas, and bakery goods.

The company sells its products to supermarkets and food retail chains directly or through distribution arrangements primarily under the Birds Eye, Iglo, Findus, Goodfella’s, La Cocinera, San Marco, and Aunt Bessie’s brands. Nomad Foods Limited is headquartered in Feltham, the United Kingdom.

2. United Natural Foods, Inc

United Natural Foods, Inc., together with its subsidiaries, distributes natural, organic, specialty, produce, and conventional grocery and non-food products in the United States and Canada. It operates through Wholesale and Other segments.

The company offers grocery and general merchandise, produce, perishables and frozen foods, nutritional supplements and sports nutrition, bulk and foodservice products, and personal care items.

It also distributes an array of specialty protein, cheese, deli, food service, and bakery goods; and organic and conventional produce and non-produce perishable items, and natural and organic specialty and gourmet ethnic products, as well as vitamins, minerals, and supplements.

In addition, the company is involved in importing, roasting, packaging, and distributing nuts, dried fruits, seeds, trail mixes, granola, natural and organic snack items, and confections; sale of natural foods and related products to the general public through retail storefronts; and marketing various products on behalf of food vendors.

Further, it offers Blue Marble Brands products on wholesale basis through third-party distributors in organic, natural, and specialty food brands, as well as directly to retailers; and Field Day brand products primarily to customers through its independent channel.

The company serves supermarket, supernatural, and independent customers, as well as foodservice, e-commerce, and international customers.

United Natural Foods, Inc. was founded in 1976 and is headquartered in Providence, Rhode Island.

3. Lifeway Foods, Inc

Lifeway Foods, Inc. produces and markets probiotic-based products in the United States and internationally. Its primary product is drinkable kefir, a cultured dairy product in various organic and non-organic sizes, flavors, and types, including low fat, non-fat, whole milk, protein, and BioKefir.

The company also offers European-style soft cheeses; cream and other products; ProBugs, a line of kefir products designed for children; cupped kefir and Icelandic Skyr, a line of strained kefir and yogurt products; and frozen kefir in soft serve and pint-size containers.

It sells its products primarily through direct sales force, brokers, and distributors. Lifeway Foods, Inc. was founded in 1986 and is based in Morton Grove, Illinois.

4. Dean Foods Company

Dean Foods Company, a food and beverage company, processes and distributes milk, and other dairy and dairy case products in the United States.

The company manufactures, markets, and distributes various branded and private label dairy and dairy case products, such as fluid milk, ice creams, cultured dairy products, creamers, ice cream mixes, and other dairy products; and juices, teas, and bottled water.

It sells its products under approximately 50 national, regional, and local proprietary or licensed brands, as well as private labels, including DairyPure, TruMoo, Alta Dena, Berkeley Farms, Country Fresh, Dean’s, Friendly’s, Garelick Farms, LAND O LAKES, Lehigh Valley Dairy Farms, Mayfield, McArthur, Meadow Gold, Oak Farms, PET, T.G. Lee, Tuscan, and others.

The company sells its products to retailers, distributors, foodservice outlets, educational institutions, and governmental entities through its local and regional sales forces.

Dean Foods Company was founded in 1925 and is headquartered in Dallas, Texas.

5. Natural Grocers by Vitamin Cottage, Inc

Natural Grocers by Vitamin Cottage, Inc., together with its subsidiaries, retails natural and organic groceries, and dietary supplements in the United States.

The company’s stores offer natural and organic grocery products, such as organic produce; bulk food products; private label products; dry, frozen, and canned groceries; meat and seafood products; dairy products, dairy substitutes, and eggs; prepared foods; bread and baked products; beverages; and beer, wine, and hard cider products.

Its stores also provide private label dietary supplements; body care products comprising cosmetics, skin care, hair care, fragrance, and personal care products containing natural and organic ingredients; pet care and food products; books and handouts; and household and general merchandise, including cleaning supplies, paper products, and dish and laundry soaps, as well as other common household products, such as diapers.

The company operates its retail stores under the Natural Grocers by Vitamin Cottage trademark. As of May 13, 2020, it operated 158 stores in 20 states. Natural Grocers by Vitamin Cottage, Inc. was founded in 1955 and is headquartered in Lakewood, Colorado.

6. SunOpta Inc

SunOpta Inc. manufactures and sells plant-based and fruit-based food and beverage products to retail customers, foodservice distributors, branded food companies, and food manufacturers; and sources and produces organic and non-genetically modified (non-GMO) ingredients for food industry worldwide.

The company operates through three segments: Global Ingredients, Plant-Based Foods and Beverages, and Fruit-Based Foods and Beverages.

• The Global Ingredients segment offers organic and non-GMO ingredients that includes fruits, vegetables, oils, fats, coffee, nuts, dried fruits, sugars, liquid sweeteners, seeds, grains, rice, and pulses. This segment also processes value-added ingredients, such as cocoa liquor, butter and powder, sunflower kernel, oil and cakes, sesame seeds, and avocado oil; and produces consumer-packaged juice products, including private label orange juices, lemonades, and functional waters through third-party manufacturers.
• The Plant-Based Foods and Beverages segment provides plant-based beverages, and liquid and dry ingredients that utilizes almond, soy, coconut, oat, hemp, and other bases, as well as broths, teas, and nutritional beverages. This segment also packages dry- and oil-roasted in-shell sunflower and sunflower kernels, as well as corn-, soy-, and legume-based roasted snacks; and processes and sells raw sunflower inshell and kernel for food and feed applications.
• The Fruit-Based Foods and Beverages segment offers individually quick frozen (IQF) fruits, such as strawberries, blueberries, mangos, pineapples, blends, and other berries for retail; and IQF and bulk frozen fruits, including purées, fruit cups, and smoothies for foodservice, and custom fruit preparations for industrial use. This segment also provides fruit snacks comprising bars, twists, ropes, and bite-sized products.

The company was formerly known as Stake Technology Ltd. and changed its name to SunOpta Inc. in October 2003. SunOpta Inc. was founded in 1973 and is headquartered in Mississauga, Canada.

7. Simply Good Foods

The Simply Good Foods Company develops, markets, and sells branded nutritional foods and snack products in North America and internationally.

It markets nutrition bars, ready-to-drink shakes, snacks, and confectionery products under the Atkins, SimplyProtein, and Atkins Endulge brand names. The company is headquartered in Denver, Colorado.

8. Bridgford Foods Corporation

Bridgford Foods Corporation, together with its subsidiaries, manufactures, markets, and distributes frozen, refrigerated, and snack food products in the United States.

It operates in two segments, Frozen Food Products and Snack Food Products.

The company primarily offers biscuits, bread dough items, roll dough items, and dry sausage and beef jerky products.

It provides approximately 140 frozen food products to food service and retail customers through wholesalers, cooperatives, and distributors; and approximately 120 snack food items to supermarkets, and mass merchandise and convenience retail stores through customer owned distribution centers, as well as a direct store delivery network.

The company was founded in 1932 and is headquartered in Anaheim, California. Bridgford Foods Corporation is a subsidiary of Bridgford Industries Incorporated.

9. The Wendy’s Company

The Wendy’s Company, together with its subsidiaries, operates as a quick-service restaurant company. It operates through three segments: Wendy’s U.S., Wendy’s International, and Global Real Estate & Development.

The company is involved in operating, developing, and franchising a system of quick-service restaurants specializing in hamburger sandwiches.

As of December 29, 2019, it operated approximately 357 company owned restaurants; 5,495 franchised restaurants in the United States; and 936 franchised restaurants internationally.

The company also owns and leases real estate properties. As of December 29, 2019, it owns 512 and leases 1,248 properties, which are leased or subleased primarily to franchisees. The company was formerly known as Wendy’s/Arby’s Group, Inc. and changed its name to The Wendy’s Company in July 2011. The Wendy’s Company was founded in 1969 and is headquartered in Dublin, Ohio.

10. B&G Foods, Inc.

B&G Foods, Inc. manufactures, sells, and distributes a portfolio of shelf-stable and frozen foods, and household products in the United States, Canada, and Puerto Rico.

Its products include frozen and canned vegetables, oatmeal and hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, hot sauces, wine vinegars, maple syrups, molasses, salad dressings, pizza crusts, Mexican-style sauces, dry soups, taco shells and kits, salsas, pickles, peppers, tomato-based products, baking powder and soda, corn starch, cookies and crackers, nut clusters, and other specialty products.

The company markets its products under various brands, including Ac’cent, B&G, B&M, Back to Nature, Baker’s Joy, Bear Creek Country Kitchens, Brer Rabbit, Canoleo, Cary’s, Clabber Girl, Cream of Rice, Cream of Wheat, Davis, Devonsheer, Don Pepino, Durkee, Emeril’s, Grandma’s Molasses, Green Giant, JJ Flats, Joan of Arc, Las Palmas, Le Sueur, MacDonald’s, Mama Mary’s, Maple Grove Farms of Vermont, McCann’s, Molly McButter, Mrs. Dash, New York Flatbreads, New York Style, Old London, Ortega, Polaner, Red Devil, Regina, Rumford, Sa-són, Sclafani, SnackWell’s, Spice Islands, Spring Tree, Sugar Twin, Tone’s, Trappey’s, TrueNorth, Underwood, Vermont Maid, Victoria, and Weber and Wright’s.

It also sells, markets, and distributes household products under the Static Guard brand. B&G Foods, Inc. sells and distributes its products directly, as well as through a network of independent brokers and distributors to supermarket chains, food service outlets, mass merchants, warehouse clubs, non-food outlets, and specialty distributors.

The company was formerly known as B&G Foods Holdings Corp. and changed its name to B&G Foods, Inc. in October 2004. B&G Foods, Inc. was founded in 1996 and is headquartered in Parsippany, New Jersey.