CNBC’s Sara Eisen and other participants on the Fast Money show discussed a number of food-stocks that they think stand a better chance to benefit from buyout deals in the industry. Some of the interesting names in the food industry include Annies Inc (NYSE:BNNY), Kellogg Company (NYSE:K), Mondelez International Inc (NASDAQ:MDLZ) and WhiteWave Foods Co (NYSE:WWAV).
According to Eisen, Annies Inc (NYSE:BNNY) is a leading player in the crackers category and on that note she said, “You get a lot of attention there when it comes to the deals chatter.” However, she also observed that the stock is down nearly 20 percent this year, and it is also struggling on EPS guidance. Nonetheless, she noted that the company is also seeing sales growth and its brands are resonating with the consumers.
“It will be a great buyout opportunity for a bigger company that wants to get into organic,” she observed.
As to whether the CEO John Foraker, who is also a co-founder of the company, might be interested in a takeover deal, Eisen said that in a conference call in May the CEO appeared to leave options open for a deal if it makes sense for the shareholders.
“This company could really benefit according to the analysts for being with a bigger company that already has a streamlined manufacturing.”
Kellogg Company (NYSE:K) is another food company that buyers such as 3G Capital are showing interest after acquiring H.J. Heinz & Co. last year. According to Eisen, the company is having issues “because of cereal consumption decline.” However, the company has strong brands and on that Eisen observed that, “It could benefit from cost cutting and increased spending on new products.”
Eisen said Mondelez International Inc (NASDAQ:MDLZ) falls in the same category as Kellogg as both companies are eyed by 3G Capital.
Finally, the CNBC experts discussed WhiteWave Foods Co (NYSE:WWAV). Eisen said the company has made many deals on its own. However, it doesn’t appear to be dominating the buyout chatter as the aforementioned peers.