Saturday, April 4, 2020

"Coronavirus pandemic spurs a chocolate and frozen pizza sales boom in America: Nestle USA CEO"

That's it, time to dust off the diabetes/retinopathy/dialysis/prosthetics portfolio.
From Yahoo Finance:
The cupboard isn’t just stocked up with Spam as Hormel’s CEO recently told Yahoo Finance, but another comfort food — good old-fashioned chocolate bars, baking ingredients and frozen pizzas.

“I think as you look across all of the categories, we are seeing really big increases,” Nestle USA Chairman and CEO Steve Presley said on Yahoo Finance’s The First Trade. Nestle not only makes candy bars, but also Toll House baking products and DiGiorno frozen pizza. “We have such a broad portfolio in the U.S. we see spikes across all of our businesses really with the exception being the out of home business obviously.”

Presley says Nestle’s data shows a “real surge” in people baking right now, likely as they are unable to go out to eat (or go much of anywhere).

The hard data supports the upbeat claims.
Total U.S. food and beverage sales surged 50.8% year-over-year for the week ended March 22, according to data from IRI. The three categories that drove the biggest early sales increases in March include packaged foods (up 32% year-over-year), frozen foods (up 27%) and dairy (up 26%)....MORE
Earlier today: 

And previously:
I've mentioned the guy who pitched me on kidney dialysis company DaVita back in 2002; and some of the trades implied in Izabella Kaminska's 2016 - 2017 posts on sugar and even earlier: From our Oct. 2, 2012 post "Buffett Bets on the Boomers: End Stage Renal Disease (BRK.B; DVA)":
Around ten years ago a sharp young analyst gave me his five-minute kidneys and dialysis pitch. It made quite an impression on me, I remember it to this day. Unfortunately for him and his firm we were just coming off the Dotbomb crash and everything looked really cheap so I filed the idea under "stuff I'll get to".
Davita is up seven-fold since that day, $103.44 at the close. Fresenius, the largest in the industry is up ten-bagger in ten years, no lost decade there..
CDC Report: 100 Million Americans Either Diabetic or On Their Way
There's an opportunity in here, somewhere. The direct costs of healthcare for diabetics has to be five grand a year per. That gives us a half-trillion dollar market to address. Plus, who really wants a countryside full of blind amputees on dialysis?
Labor Markets: "Rural America Needs Triage"
Some concepts, profound in their simplicity, that policymakers will have to internalize before the human toll of current economics—whether fast suicides by firearms or hanging or slow suicides by opioids, self-medicating with carbohydrates and booze leading to epidemic levels of obesity, cirrhosis and diabetes, from first generation poverty leading to  multi-generational epigenetic DNA methylation of genes linked to depression—the policy wonks have to get the basics down first.