In this article, we will take a look at the 5 vegan stocks billionaires are purchasing. If you want to read our detailed analysis of the industry and its growth prospects, go to the 10 Vegan Stocks Billionaires Are Loading Up On.
5. Conagra Brands, Inc. (NYSE:CAG)
Number of Billionaire Investors: 12
Dollar Value of Billionaire Holdings: $228,368,369
Number of Hedge Fund Holders: 34
Conagra Brands, Inc. (NYSE:CAG) is a Chicago, Illinois-based food company that owns and operates a variety of brands. The company produces a diverse range of food items, including frozen meals, snacks, canned goods, and condiments.
Some of the company’s brands, such as Healthy Choice, Gardein, and Earth Balance, offer vegan options and products that are specifically designed for plant-based diets. The sales of the meat-substitute Gardein brand have risen from $40 million in FY19 to $151 million in FY22. Click here to read Conagra Brands, Inc.’s (NYSE:CAG) earnings call transcript for Q3 2023.
4. Archer-Daniels-Midland Company (NYSE:ADM)
Number of Billionaire Investors: 12
Dollar Value of Billionaire Holdings: $433,158,136
Number of Hedge Fund Holders: 39
Archer-Daniels-Midland Company (NYSE:ADM) is a Chicago, Illinois-based food processing and commodities trading corporation. The company is involved in various aspects of the food industry, including the sourcing, processing, and distribution of agricultural commodities and ingredients.
Archer-Daniels-Midland Company (NYSE:ADM) has specialized in the field of plant-based dairy alternatives through its PurelyNature pea protein brand. The company invested $300 million to increase its production capacity to meet the growing demand for alternative proteins as it sees a $125 billion market for these products by 2030. The expansion project will be completed by 2025. Click here to read Archer-Daniels-Midland Company’s (NYSE:ADM) earnings call transcript for Q1 2023.
3. Hormel Foods Corporation (NYSE:HRL)
Number of Billionaire Investors: 13
Dollar Value of Billionaire Holdings: $309,775,684
Number of Hedge Fund Holders: 30
Hormel Foods Corporation (NYSE:HRL) is an Austin, Minnesota-based food company that produces and markets a variety of meat and food products. Hormel Foods Corporation (NYSE:HRL) has expanded its product portfolio in recent years to include plant-based and vegetarian options. One of the company’s brands, Happy Little Plants, offers a line of plant-based protein products. These products are specifically designed to cater to consumers seeking vegan or vegetarian alternatives.
Balyasny Asset Management raised its stake in one of the best vegan stocks by 79% during Q1 2023.
2. Tyson Foods, Inc. (NYSE:TSN)
Number of Billionaire Investors: 13
Dollar Value of Billionaire Holdings: $414,391,110
Number of Hedge Fund Holders: 38
Tyson Foods, Inc. (NYSE:TSN) is a Springdale, Arkansas-based food company primarily known for its production of meat and poultry products. While Tyson Foods, Inc. (NYSE:TSN) is a major player in the meat industry, it has also expanded its product offerings to include some plant-based and vegetarian options. The company has introduced plant-based protein products under its Raised & Rooted brand. The products of the brand are present online and at 10,000 retail stores across the US.
Here’s what Artisan Partners said about Tyson Foods, Inc. (NYSE:TSN) in its Q4 2022 investor letter:
“Our weakest contributors were Philips, Tyson Foods, Inc. (NYSE:TSN) and already-discussed Blackstone. The largest food processor in North America, Tyson Foods is a marketer and distributor of chicken, beef, pork and prepared foods. Top-line growth has remained strong, but margins have been volatile. The margin issues have been primarily in its chicken and prepared foods businesses as beef margins have benefited from ample cattle supply, global export demand and high US domestic retail prices. In the other segments, inflationary pressures have ranged from higher raw material costs to supply chain constraints and labor availability issues. Some of these factors are out of its control, but the company is making efforts to increase labor availability and shift contract terms toward variable price models that could repair margins more quickly. The business has improved over time—the company has spent years moving away from commodity processing toward a greater mix of higher margin branded products and packaging. This has contributed to solid return on invested capital and free cash flow generation. Additionally, revenue growth has benefited from a natural long-term health and wellness tailwind of protein demand rising in the US and globally as diets improve by replacing processed foods with healthier alternatives like protein.”
1. Kellogg Company (NYSE:K)
Number of Billionaire Investors: 17
Dollar Value of Billionaire Holdings: $369,578,085
Number of Hedge Fund Holders: 40
Kellogg Company (NYSE:K) is a Battle Creek, Michigan-based food company known for its wide range of breakfast cereals, snacks, and other food products. The company offers some vegan options, including certain flavours of cereals, granola bars, and plant-based milk alternatives like almond milk or coconut milk. Kellogg Company (NYSE:K) has secured first place on our list of the best vegan stocks billionaires are purchasing.
Kellogg Company (NYSE:K) has Kashi, MorningStar Farms, and Incogmeato as the plant-based protein brands under its portfolio. The company initially decided to spin off its plant-based business as a separate entity but decided against it based on the long-term growth prospects of the category. Presently, the division represents 2% of the net sales of Kellogg Company (NYSE:K).
Disclosure: None. You can also take a look at the 10 Best Recession-Proof Stocks to Buy Now and the 12 Best Short Squeeze Stocks to Buy Now.
