Invest in food and drink companies

Discover popular stocks plus considerations when investing in the food and drink industry.

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Food and drink shares can be quite exciting – you’re investing in brands that you consume everyday or your favourite restaurants. You’ll come across these companies day-to-day — on the high street, in the supermarket and, in some cases, delivered to your front door. Find out some food and drink stocks, why investors choose them and how it’s done.

UK food and drink stocks

If you want to invest in food and drink stocks a little closer to home, there are some UK food and drink stocks that you can invest in, such as:

Investing in global food and drink stocks from the UK

We’ve listed some examples of food and drink stocks with more information about them, and you can see an A-Z list below if you’ve got any in mind.

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Coca-Cola (KO.US)

Coca-Cola is a beverage manufacturer. It manufactures, sells and markets both non-alcoholic and alcoholic drinks, including Coca-Cola, of which it is famous for. Coca-Cola is listed on the New York Stock Exchange.

Compare brokers to buy Coca-Cola shares

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Wetherspoons (JDW.LSE)

JD Wetherspoon (also often referred to as Wetherspoon, Wetherspoons and Spoons) is a national chain of pubs across the UK and Ireland. It has more than 900 pubs, including Lloyds No. 1 bars and hotels. Wetherspoon is listed on the London Stock Exchange and is part of the FTSE 250.

Compare brokers to buy Wetherspoons shares

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McDonald’s (MCD.US)

McDonald’s is a fast food restaurant chain and franchise. It has more than 39,000 outlets worldwide in over 100 countries. McDonald’s is the world’s largest restaurant chain by revenue and is listed on the New York Stock Exchange.

Compare brokers to buy McDonald’s shares

Why invest in food and drink stocks?

Some of these brands are ones that you’ll encounter frequently, maybe even every day. This means that they have the potential to perform well, even in an economic downturn. This is because people still need to eat and drink, even when there’s a recession. Growth may be slower during recessions than in economic booms, and of course there’s the risk that stocks will decline in value.

How to invest in food and drink stocks

  1. Choose stocks to invest in. You can check out some food and drink stocks above and find out more about them.
  2. Choose an investment platform. You’ll need one that lets you invest in the stock exchange that your chosen stocks are listed on.
  3. Sign up and fund your account. You might need to wait for your account to be verified and for your funds to hit the account before you can begin.
  4. Find your chosen stock. You can search its name or ticker.
  5. Review and buy. It’s as easy as that!

The risks of food and drink stocks

With this sector, there are several risks – including those faced by agricultural stocks. The coronavirus pandemic closed thousands of restaurants worldwide, which means that many food and drink stocks made losses in 2020.

There have been several reports of restaurants and supermarkets suffering from supply issues caused by the HGV driver shortage, which has an impact on the share price.

All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.

Bottom line

Food and drink stocks can be great investment opportunities – especially as they are often brands you come face-to-face with all the time. It can be exciting to invest in food and drinks brands that you enjoy.

The main risks of food and drink stocks are that they might not perform as well during recessions and the current supply issues. You might choose to invest in restaurants while we’re in an economic boom, then move them to stocks considered to produce consumer staples in recessions.

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