Investing in Food and Beverages – An Overview

Investing in food and beverages has been one of the oldest and most well-known types of investment opportunities that exist.  From pork bellies to Coca Cola, there are plenty of investment choices in the food and beverage world.  If you’re trying to figure out just where to place your money, taking a closer look at these opportunities could be worthwhile.  They might deliver just the right level of diversification and security that you’re looking for.  There are a few factors to consider when investing in food and beverages, and knowing the basics can help you pick the perfect investment opportunities.

Most who are thinking of investing in food and beverages will start by looking at the major corporations – those with restaurants or distribution activities around the world.  While these are viable options, buying shares of these companies is an expensive purchase that not all of us can make.  Smaller food and beverage organizations may be a better call, and it’s important to consider that the prices of things like oil, wheat, and soy will all have an impact on the price of stock when investing in food and beverages.  An increase in oil will drive up the price of food, for instance.

Another thing to look at if investing in food and beverages is something that interests you is to check overseas options.  Places like New Zealand and Australia are emerging as some of the best locations for investors in food and beverages since they are able to produce a wide range of livestock and crops.  And no matter what branch of food and beverages you’re considering, you’ll have to think globally anyway since global supply and demand will have a profound impact on your overall investment returns.  If you’re already thinking globally, why not consider investing globally as well?

There are a few main areas of this industry that are worth considering.  When investing in food and beverages, the main options will be distribution, farming, and processing.  Distribution will include grocery store chains and restaurants, processing will include major manufacturers and processors of foods – soft drink companies or cereal companies, for instance.  And obviously farming will include the groups that actually grow, harvest, and provide the various raw foods for the other subgroups.  All of these branches are worth considering, and all may provide you with some very real rewards.  As always, do some smart research and you’ll be able to select the company that’s right for you to invest in.

About Richard Wilson