It’s late in the evening and typically I find myself searching for some sort of snack. Tonight, in my mind’s never ending capacity for all things food, I’ve come across a company that you should put on your investing radar. WhiteWave Foods (WWAV) might not sounds familiar, but you’ve probably heard of the company’s brands, particularly if you’re into more of the ‘health’ foods area.
Since it’s inception on the NYSE in the latter part of 2012, WWAV has steadily increased in share price. WWAV has implemented a pretty aggressive acquisition and product development plan from the latter part of the 90′s up until current times. So far things have worked out well.
Here are some very brief observations as an investor looking at WWAV from a 30,000 foot view level…
-The health food trend is very strong. Whole Food, Fresh Market, Sprouts and other similar grocery stores are a reflection to how predominate this trend is throughout society.
-People with money are driving the health food trend. In our current economy, the only area that has shown modest growth is amongst high income earners. Therefore, this group is carrying this trend and has the ability to continue the trend.
-As the Baby Boomers move further into the retirement, they will put a greater focus not only on their health, but in maintaining whatever youth they have. Eating healthy foods will be part of the potion to achieve this goal.
-The observations made above will help WWAV to earn higher margins than your run of the mill food company. While competition will increase, WWAV’s brands have very good exposure and are well established in the market. This will help maintain the company’s momentum and enable WWAV to capitalize on the continuation of the health food trend.
-A company that is successful and well entrenched in a market that is riding an expanding trend may cause WWAV to become a takeover target by a larger company looking to gain exposure in the market.
Put WWAV on your radar, do some research and consider if WWAV is a good fit for your portfolio.
Disclosure: No Position