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What Drives the Food and Beverage Sharemarket Sector?

If you are looking for financial planning help in Perth, you may or may not be aware of the many sectors of the sharemarket. Recently, our parent company, AMP Capital, reviewed the food and beverage sector on their website. The article was called, “Part 4 of the ESG Series: Food trends and investor impacts.”

The article was written by Ian Woods, who is the Head of Environmental, Social and Governance (ESG) Investment Research for AMP Capital. He explored some of the industry’s drivers, providing the perspective of an investor. Here are some of the highlights.*

Financial Planning Explores Food and Beverage Industry

Sustainability Drivers in the Food and Beverage Industry

Mr Woods believes that the food and beverage industry is connected to stronger sustainability drivers when compared to other sectors. Here are some of those drivers.*

Asian demographics such as rising income levels and continued population growth.*

Consumer trends such as “healthy living,” affordability and convenience.*

Regulatory changes caused by increased attention to issues such as the environmental and social effects of various food products. Obesity is also garnering increased scrutiny.*

Shrinking natural resources in the face of growing competition: both potable water and arable land are becoming more scarce in many areas of the world.*

Consumers are becoming more and more aware of sustainability and ethical issues. A combination of scrutiny and increasingly complex global supply chains is resulting in a greater demand for stronger supply chain management.*

Climate change: weather trends and patterns affect natural resources and assets.*

What the Obesity Issue Means to Investors

According to Mr Woods, the simplest way to navigate a changing world is to “invest in companies that are changing the world.” According to Mr Woods, investors can avoid buying into the “culprits” and buy into firms which are providing solutions.*

Mr Woods cited that investment firms with high ESG profiles outperform those with lower ESG profiles.

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*AMP Capital. Ian Woods. “Part 4 of the ESG Series: Food trends and investor impacts.” 27 January 2016.