Instead of Oatly shares, I’m buying this plant-based food-maker

first_img Enter Your Email Address Christopher Ruane | Monday, 24th May, 2021 | More on: ULVR Instead of Oatly shares, I’m buying this plant-based food-maker Image source: Getty Images Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Access this special “Green Industrial Revolution” presentation now There has been great excitement around Oatly (NASDAQ: OTLY) shares being listed on the stock market in the US. Investors are enthusiastic about the company’s strong brand. They also like its strategic positioning that capitalises on a consumer shift to vegan food and drinks. I see value in those attributes too – but there’s a company I think can capitalise on them more than Oatly. Oatly and vegan trendsThe company in question is Unilever (LSE: ULVR). Unilever is well known for its portfolio of brands, which include foods such as Hellmann’s and Ben & Jerry’s. The company has identified some of the same shifts that have helped make Oatly popular. That’s why Unilever has set ambitious targets for its plant-based food brands.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Oatly may do well from a consumer shift to plant-based foods and drinks. But I think Unilever has three crucial advantages over it that make it more attractive to me than investing in Oatly shares.Oatly shares and brand-buildingOatly has done a great job building brand recognition for its flagship drink in just a few years. But Unilever is a proven marketing machine. It has over a century of experience under its belt.Its broad portfolio has given it experience of building brands in different market segments, across most countries and throughout the economic cycle. So, for example, if the economy worsens, its consumers can trade down to cheaper brands while staying within the Unilever franchise. Magnum may not be affordable, but Wall’s will be.That allows Unilever to build brands that maintain relevance over decades. It is not dependent on behavioural shifts among higher-spending consumers — one concern I have with Oatly shares. Unilever is rolling out its Vegetarian Butcher brand to more markets. It also plans to increase vegan products under the Hellmann’s, Magnum and Wall’s brands.Distribution networkA second advantage is Unilever’s distribution network.It already has relationships with retailers ranging from global hypermarket groups to small convenience stores. Selling a broad range of products means that it can maintain sales coverage more cost effectively compared to food companies with a narrow range.Demand for plant-based products has grown strongly. But they don’t sell themselves. It’s important to have the right expertise to get them listed in retailers. Selling to a few select outlets in developed markets is one thing. But scaling a brand in mass-markets from Aberdeen to Zimbabwe is a very different task. Unilever has the resources and expertise needed for that.Supply and manufacturing footprintWith its existing food businesses, Unilever is deeply embedded in supply chains from the bottom up. It also has a complex manufacturing operation spanning the globe. Its 40 ice cream factories, for example, stretch from Gloucester to South Africa.That allows it to transform ideas that click with consumers into mass-market success stories. The company is targeting €1 billion of annual sales from plant-based foods by 2027.Unilever risksI find Unilever shares a tasty prospect. But, as with Oatly shares, there are risks involved.Plant-based food has seen rapid growth, but that could turn out to be a limited trend. In that case, the focus on growing plant-based sales quickly could hurt profits due to the costs involved. Additionally, a multinational consumer goods company could lose appeal among more environmentally conscious consumers. That could lead to falling sales. It was released in November 2020, and make no mistake:It’s happening.The UK Government’s 10-point plan for a new “Green Industrial Revolution.”PriceWaterhouse Coopers believes this trend will cost £400billion……That’s just here in Britain over the next 10 years.Worldwide, the Green Industrial Revolution could be worth TRILLIONS.It’s why I’m urging all investors to read this special presentation carefully, and learn how you can uncover the 5 companies that we believe are poised to profit from this gargantuan trend ahead!center_img Our 5 Top Shares for the New “Green Industrial Revolution” Our 6 ‘Best Buys Now’ Shares christopherruane owns shares of Unilever. The Motley Fool UK has recommended Unilever. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Simply click below to discover how you can take advantage of this. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. See all posts by Christopher Ruanelast_img


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