The Consumer Staples sector can be divided into ‘Food & Staples Retailing’, ‘Food, Beverage & Tobacco’, and ‘Household & Personal Products’. Like its cousin Consumer Discretionary, the Consumer Staples sector is primarily B2C companies. Products are generally economically inelastic, i.e. less sensitive to the economic cycle.
Marketing and brand recognition are important hallmarks of these companies, though relationships (suppliers and customers) are also keys for success. These companies are generally asset-light. Some companies in this group can require substantial working capital investments where products and materials are purchased in advance and sold at a later stage.
AN Valuations is a strong, experienced and trusted advisor in the Consumer Staples sector and offers services across the spectrum.