Food and beverage stocks slump amid fuel price concerns

[Interior of a large grocery store]
Luis Alvarez

Food and beverage stocks swung lower on Monday as investors focused on the potential impact of rising oil prices. The food sector could see freight, packaging, and other operating costs move higher to squeeze margins. The sector could also be impacted if gas prices in the U.S. remain at an elevated level to cut into spending trends and take away the pricing power of food sellers.

Leading the decline was Conagra Brands (CAG [https://seekingalpha.com/symbol/CAG]), which fell 5.4% after the company also announced a CEO transition. Other food names trading lower included General Mills (GIS [https://seekingalpha.com/symbol/GIS]) -3.3%, Seneca Foods (SENEA [https://seekingalpha.com/symbol/SENEA]) -3.2%, Westrock Coffee Company (WEST [https://seekingalpha.com/symbol/WEST]) -3.1%, JBS N.V. (JBS [https://seekingalpha.com/symbol/JBS]) -3.1%, Kraft Heinz (KHC [https://seekingalpha.com/symbol/KHC]) -3.0%, Post Holdings (POST [https://seekingalpha.com/symbol/POST]) -2.5%, J.M. Smucker (SJM [https://seekingalpha.com/symbol/SJM]) -2.5%, Nomad Foods (NOMD [https://seekingalpha.com/symbol/NOMD]) -2.4%, and Campbell's Company (CPB [https://seekingalpha.com/symbol/CPB]) -2.2%. In the beverage sector, Vita Coco (COCO [https://seekingalpha.com/symbol/COCO]) -5.2%, Celsius Holdings (CELH [https://seekingalpha.com/symbol/CELH]) -3.4%, Keurig Dr Pepper (KDP [https://seekingalpha.com/symbol/KDP]) -2.2%, and Coca-Cola (KO [https://seekingalpha.com/symbol/KO]) -1.8% were underperforming broad market averages.

Analysts warned that the companies may be cautious with their full-year guidance during the upcoming earnings season due to the geopolitical uncertainty.

MORE ON THE FOOD SECTOR

* Gen Z Is Threatening The Alcohol Industry [https://seekingalpha.com/article/4879029-gen-z-is-threatening-the-alcohol-industry]
* Food phenomenon: GLP-1 usage is forecast to hit 15% of the U.S. population [https://seekingalpha.com/news/4573010-food-phenomenon-glp-1-usage-is-forecast-to-hit-15-of-the-us-population]
* Meet Wonder: The company that wants to be the Amazon of mealtime [https://seekingalpha.com/news/4569913-meet-wonder-the-company-that-wants-to-be-the-amazon-of-mealtime]
* Seeking Alpha’s Quant Rating on Invesco Food & Beverage ETF [https://seekingalpha.com/symbol/PBJ/ratings/quant-ratings]
* Dividend scorecard for Invesco Food & Beverage ETF [https://seekingalpha.com/symbol/PBJ/dividends/scorecard]