Bet against America's love for junk food? Morgan Stanley sees tough times ahead for snack stocks like Hostess

  • 📰 CNBC
  • ⏱ Reading Time:
  • 19 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 11%
  • Publisher: 72%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

J.M. Smucker's plan to buy Twinkies-maker Hostess Brands is a risky move, if Morgan Stanley's latest research is correct.

J.M. Smucker 's plan to buy Twinkies -maker Hostess Brands is a risky move, if Morgan Stanley's latest research is correct. The firm revisited its August call that a new class of weight loss medications would hamper growth at some food and beverage companies . This time it backed up its thesis with additional demographic data about grocery shoppers from Numerator Insights as well as data from the Centers for Disease Control and Prevention. The results aren't rosy for Ding Dongs.

They also assumed at the time that these same consumers were more likely to buy indulgent snacks and packaged foods sold by brands like Smucker, Hostess and others. The new report backs this up. "Across our coverage, Numerator Insights data highlight that most center-store packaged food companies slightly over-index to consumers with obesity," Kaufman said.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in ZA
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Tesla supercomputer could boost EV maker's market cap by $600 billion -Morgan Stanley By ReutersTesla supercomputer could boost EV maker's market cap by $600 billion -Morgan Stanley
Source: Investingcom - 🏆 450. / 53 Read more »

Morgan Stanley strategists tout health stocks in 'late cycle' market By ReutersMorgan Stanley strategists tout health stocks in 'late cycle' market
Source: Investingcom - 🏆 450. / 53 Read more »