CGR Insights: Consumer Staples Sector Outperforms in Inflationary Environment

Capital Gains Report, a firm providing research for microcap investors, highlights five Consumer Staples companies to begin researching based on recent news events.  Consumer Staples is one of the safest sectors for investors during tumultuous times.  The sector includes companies whose businesses are less sensitive to economic cycles, such as our current inflationary environment. It includes manufacturers and distributors of food, beverages and tobacco and producers of non-durable household goods and personal products. It also includes food & drug retailing companies as well as hypermarkets and consumer super centers.

Two sub-industries in the consumer staples sector to focus on are food, and beverages.

TOP MICROCAP BEVERAGE COMPANIES IN THE NEWS

Gaensel Energy Group, Inc. (OTCMKTS: GEGR) is an international holding company with diversified interests in several rapidly growing industries.  One of which is the Consumer Staples subsector, coffee. GEGR recently acquired Montenapoleone 1838 SRL, (Italy) a holding group with Coffee roasting, retail and fashion-based interests in Milan, Italy.  The Montenapoleone Group, now named Montenapoleone 1838 was founded in 1838 in the heart of Milano. Over the past 150+ years, with several different partnerships, the family owner has been actively operating in exclusive fashion and particularly selected Italian coffee.

Recently, the company announced Montenapoleone is acquiring 70% of the controlling interest of Tiburon Cafe’ Holding SRL. A critical component in the acquisition of Tiburon Cafe’ Holding SRL Gaensel/ Montenapoleone 1838 was the award of an exclusive agreement with Epos Café SRL a premier coffee roasting company in Italy.   Additionally, Montenapoleone 1838 is completing the acquisition of five additional retail coffee outlets in Italy which will be operating under the Gaensel/ Montenapoleone 1838 brand.

This is a great example of GEGR’s acquisition strategy, its subsidiaries roll up smaller companies in their industries, allowing the company to reach economies of scale, and secure a larger market share.

Coffee is just one of GEGR’s many interests.  The company’s holdings are diversified in industries such as Biotechnology, Web 3.0/ Metaverse and Green Renewable Energy to name a few.

The interesting part of GEGR’s story is the company’s fundamental undervaluation. Currently trading under 10 cents, the company’s fundamentals signal a stock that could be trading at $2.80 per share.  

Investors are starting to learn about this which is why the stock is up so much in the past few days.  Start your research on GEGR now, before it’s too late.  

Learn more about GEGR here: https://capitalgainsreport.com/undervalued-holding-company-set-to-breakout/

From one of the oldest consumer staples, coffee, to a relative newcomer, oat milk.   Oatly Group AB (Nasdaq: OTLY) is the world’s original and largest oat drink company. The company creates non-dairy alternatives to milk, ice cream, yogurt, cooking creams, spreads and on-the-go drinks. Headquartered in Malmö, Sweden, the Oatly brand is available in more than 25 countries globally.

Oatly (Nasdaq: OTLY) was in the news recently announcing the introduction of electric-powered, heavy-duty trucks to the Company’s ground transportation in North America. Finding initial success with utilizing electric trucks as part of the Company’s transportation operations in Europe beginning in 2020, Oatly now expands the initiative to include an initial fleet of five electric trucks in the U.S.  Oatly aims to shift to 100% sustainable ground transport for its products and materials by 2029. This new initiative fits the company’s ESG strategy.  

Another healthy beverage company, Reed’s, Inc. (Nasdaq: REED) announced its management team will virtually participate in the Lytham Partners Summer 2022 Investor Conference taking place on June 22, 2022.

Established in 1989, Reed's creates craft beverages under the Reed’s®, Virgil’s® and Flying Cauldron® brand names. The Company’s beverages are now sold in over 45,000 stores nationwide.

TOP MICROCAP FOOD COMPANIES IN THE NEWS

Blue Star Foods Corp. (Nasdaq: BSFC) is an integrated ESG seafood company that processes, packages and sells high-value seafood products.  The Company also owns and operates the oldest continuously operating Recirculating Aquaculture System (RAS) full grow-out salmon farm in North America. 

Blue Star (Nasdaq: BSFC) reached a major milestone announcing that it will be included in the Russell Microcap® Index, effective after the U.S. market opens on June 27, 2022, as part of the 2022 Russell indexes reconstitution.  FTSE Russell determines membership for its Russell indexes primarily by objective market-capitalization rankings and style attributes.

Another microcap food company, RiceBran Technologies (NASDAQ:RIBT) announced the expansion of the Company's Core-SRB facility in Mermentau, Louisiana. The expansion is expected to help RIBT meet the growing demand for North American-sourced ingredients for the companion animal market.

RiceBran Technologies is a specialty ingredient company focused on the development, production, and marketing of products derived from traditional and ancient small grains. The company creates and produces products utilizing proprietary processes to deliver improved nutrition, ease of use, and extended shelf-life, while addressing consumer demand for all natural, non-GMO and organic products. The target markets for its products include food and animal nutrition manufacturers and retailers, as well as specialty food, functional food and nutritional supplement manufacturers and retailers, both domestically and internationally. 

KEY TAKEAWAYS

Investors looking for consistent upside despite current market conditions could do well with these microcap consumer staples plays.  GEGR in particular requires your immediate attention.  As noted above, the company’s fundamentals point to a stock that could be trading around $2.80.  From its current price that would be a massive move.  Start your research on GEGR here: https://capitalgainsreport.com/undervalued-holding-company-set-to-breakout/

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