Despite economic uncertainties, the food and beverage industry continue to demonstrate strong growth potential. Hence, investors could scoop up shares of fundamentally stable food and beverage stocks, Ajinomoto Co., Inc. (AJINY), Molson Coors Beverage Company (TAP), and Ingredion Incorporated (INGR).
Even amid a 0.4% hike in the Consumer Price Index for food in January 2025, food and beverage sales have been soaring. Consumers are less concerned about the slowly creeping rate of inflation and are showing a great forward-looking mentality. For the month of January, food and beverage stores got a 5% sales boost to $84 billion.
At the same time, growing consumer concerns about gluten, dairy, sugar, and GMOs have fueled a surge in healthy eating, driving the organic food market's expansion. The rising demand for plant-based proteins and non-GMO ingredients is further propelling growth in the dynamic food ingredients industry.
According to a report by The Business Research Company, the food and beverages market is forecasted to reach $9.42 trillion by 2029, growing at a CAGR of 6.2%. This growth showcases the ample number of investment opportunities present in the industry.
Now, let us dive deep into the fundamentals of three innovative food and beverage stocks, starting with #3.
Stock #3: Ajinomoto Co., Inc. (AJINY)
Based in Tokyo, Japan, AJINY specializes in seasonings, frozen foods, and healthcare products. Its popular brands include AJI-NO-MOTO®, HONDASHI®, Cook Do®, and Ajinomoto KK Consommé. The company also offers instant noodles under the Knorr® Cup Soup and YumYum® brands, catering to diverse consumer preferences.
On September 19, 2024, AJINY announced a global strategic partnership with Danone to reduce multiple sources of greenhouse gas emissions from the milk supply chain. The partnership will utilize AJINY’s AjiPro® -L, an innovative and world-leading lysine formulation, to reduce emissions from milk production.
This could enhance AJINY’s brand value, drive demand for its products, strengthen industry ties, and unlock new revenue opportunities in the sustainable food solutions market.
For the fiscal 2024 third quarter that ended December 31, 2024, AJINY’s sales increased 7.8% year-over-year to ¥1.15 trillion ($7.59 billion). Its operating profit rose 11.5% from the year-ago value to ¥130.94 billion ($863.13 million).
Additionally, the company’s profit and EPS grew 7.4% and 9.7% from the prior year’s quarter to ¥91.10 billion ($600.48 million) and ¥163.08, respectively.
Analysts expect AJINY’s revenue for the fiscal 2025 fourth quarter (ending in March) to increase 8.8% year-over-year to $2.60 billion. Furthermore, the company has surpassed the consensus revenue in three of the four trailing quarters.
AJINY’s stock has surged 2.2% over the past month and 6% over the past six months, closing the last trading session at $40.08.
AJINY’s POWR Ratings reflect its sound fundamentals. The stock has an overall rating of B, translating to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
AJINY has an A grade for Stability and a B for Growth and Quality. Within the B-rated Food Makers industry, it is ranked #15 out of 74 stocks.
Click here to access AJINY’s Value, Sentiment, and Momentum ratings.
Stock #2: Molson Coors Beverage Company (TAP)
TAP manufactures, markets, and sells beer and other malt beverage products. The company provides flavored malt beverages, including hard seltzers, craft, spirits, and energy, and ready-to-drink beverages under the Blue Moon, Coors Original, Five Trail, and Hop Valley brands.
On January 30, 2025, TAP announced a strategic partnership with Fevertree Drinks PLC (FV8.F), the world’s leading supplier of premium carbonated drinks and mixers. The partnership allows TAP to sell Fever-Tree’s award-winning lineup of tonics, ginger beers, cocktail mixers, and more in the United States and expand its non-alcoholic portfolio.
For the fiscal 2024 fourth quarter that ended December 31, 2024, TAP’s sales amounted to $3.24 billion. Its operating income rose 94.7% from the year-ago value to $388.10 million. Moreover, net income and net income per share attributable to TAP grew 178.6% and 189.6% from the prior year’s quarter to $287.80 million and $1.39, respectively.
The consensus revenue estimate of $11.64 billion for the fiscal year ending December 2025 reflects a marginal year-over-year increase. Its EPS for the same period is expected to rise 6.3% year-over-year to $6.34. The company has surpassed the consensus EPS estimates in all four trailing quarters, which is impressive.
The stock has surged 8.9% over the past month and 11.3% over the past six months, closing the last trading session at $60.14.
TAP’s fundamentals are mirrored in its POWR Ratings. TAP has a B grade for Value and Quality.
Within the B-rated Beverages industry, TAP is ranked #12 out of 31 stocks. To access TAP’s Momentum, Sentiment, Growth, and Stability ratings, click here.
Stock #1: Ingredion Incorporated (INGR)
INGR manufactures and sells sweeteners, starches, nutrition ingredients, and biomaterial solutions gathered from wet milling and processing corn, and other starch-based materials. The company’s offerings include starch products, cornstarch, specialty paper starches, as well as starches for the textile and pharmaceuticals industry.
On February 4, 2025, INGR announced investments of more than $100 million to increase efficiency, modernize equipment, and also install an energy cogeneration system at its Indianapolis facility. The project aims to expand the company’s capabilities to deliver texture innovations to growing end markets.
On November 14, 2024, INGR announced a long-term collaboration with Lantmännen, a Northern European agricultural cooperative, to meet the European market’s needs for competitive, sustainably sourced, and high-quality pea protein isolates and various facets of sales, product innovation, and process enhancement. The partnership could help expand INGR’s footprint in the European market.
For the fiscal 2024 fourth quarter that ended December 31, 2024, INGR’s net sales amounted to $1.80 billion. Its non-GAAP adjusted operating income rose 22.2% from the year-ago value to $248 million.
Moreover, non-GAAP adjusted net income and non-GAAP adjusted EPS attributable to INGR increased 34.4% and 33.5% from the prior year’s quarter to $176 million and $2.63, respectively.
Street expects INGR’s EPS for the fiscal 2025 first quarter (ending in March) to increase 17% year-over-year to $2.43. In addition, the company exceeded the consensus EPS estimates in each of the four trailing quarters, which is noteworthy.
Looking forward, INGR’s EPS for the fiscal 2025 second quarter (ending in June) is expected to increase marginally year-over-year to $2.89.
INGR’s stock has surged 6.1% over the past nine months and 11.2% over the past year to close the last trading session at $126.91.
INGR’s POWR Ratings reflect its sound fundamentals. The stock has an overall rating of B, translating to a Buy in our proprietary rating system.
INGR has a B grade for Value and Quality. Within the Food Makers industry, it is ranked #13 out of 74 stocks.
In addition to the POWR Rating highlighted above, you can check INGR’s ratings for Sentiment, Growth, Stability, and Momentum here.
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AJINY shares were unchanged in premarket trading Thursday. Year-to-date, AJINY has declined -1.45%, versus a 4.58% rise in the benchmark S&P 500 index during the same period.
About the Author: Aritra_Gangopadhyay
Aritra is a financial journalist dedicated to breaking down complex financial topics into simple, actionable insights. Holding a Master’s degree in Economics, he uses his analytical expertise to help investors uncover unique opportunities for long-term success.
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