Inflation has eased slightly to 32.11%, but with food prices still running at 35.45% and housing and utilities up 45.14%, your everyday budget may feel as tight as ever. These pressures do not hit all companies in the same way. Some food and beverage stocks can pass higher costs through to shoppers, while others may see demand soften as households adjust spending. This article looks at 3 stocks from our Consumer Staples screener that appear positively exposed to this mix of stubborn food inflation, high living costs and small relief in transport, and is intended to help you decide which opportunities might deserve a closer look.
Village Farms International (VFF)
Overview: Village Farms International operates greenhouses that grow tomatoes, bell peppers and cucumbers, while also running cannabis businesses across Canada, the U.S. and the Netherlands, and a small clean energy segment. The company supplies major supermarkets, fresh food distributors and licensed cannabis channels, including coffeeshops in the Netherlands.
Operations: Village Farms International currently reports its revenue mainly from its Cannabis Canada segment, which generated about US$174.2 million, alongside a segment adjustment of roughly US$52.3 million.
Market Cap: US$227.4 million
Village Farms International sits at the crossroads of essential food supply and higher margin cannabis, which could be an interesting mix when food inflation is high and consumers still prioritise staples. Recent results show the company moving from losses to profit, supported by cannabis capacity expansions in Canada and the Netherlands, new product formats and a history in controlled-environment farming that can help manage cost pressures. At the same time, heavy reliance on external funding, regulatory risk around international cannabis exports and potential oversupply in key markets mean the story is not without real downside. If you are weighing whether this smaller stock can justify its current valuation gap, understanding the full picture of its growth plans, risk profile and analyst expectations becomes critical.
Village Farms International sits at the junction of essential food supply and cannabis, yet the real story may be how its outlook, risks and valuation fit together in the full narrative for Village Farms International
MGP Ingredients (MGPI)
Overview: MGP Ingredients produces distilled and branded spirits such as bourbon, rye, tequila and vodka, alongside specialty wheat starches and proteins that go into packaged foods and other consumer products worldwide.
Operations: MGP Ingredients currently generates about US$229 million from Branded Spirits, roughly US$162 million from Distilling Solutions and around US$130 million from Ingredient Solutions.
Market Cap: US$362.8 million
MGP Ingredients sits at the crossroads of inflation resistant consumer staples, selling both spirits and ingredients into packaged food supply chains, while its stock trades at a discount to some estimates of fair value despite recent pressure on earnings and a sharp Q1 2026 loss of US$134.8 million. Investors are weighing a mix of potential upside from eventual profitability, premium spirits launches such as Remus Lou Gehrig Reserve Bourbon, and a 2.83% dividend yield, against real concerns including high debt, weak dividend coverage, insider selling and a relatively new board and management team. For anyone tracking Consumer Staples stocks that could benefit from persistent food inflation and recalibrating distilling capacity, the fuller story on MGP Ingredients, including how its risks stack up against that valuation gap and earnings outlook, is where things get interesting.
MGP Ingredients looks like a classic valuation mismatch, with spirits growth potential and ingredient exposure sitting alongside that Q1 loss and leverage. Use the 2 key rewards and 3 important warning signs to see whether the recent hit is masking a more interesting twist in the story.
Andersons (ANDE)
Overview: Andersons is an agricultural and renewable fuels company that buys and sells major crops like corn, wheat and soybeans, supplies farmers with plant nutrients and fertilizers, and operates ethanol and other biofuel businesses across the United States, Canada, Mexico and internationally.
Operations: Andersons generates about US$8.2b from Agribusiness and roughly US$2.8b from Renewables, with most revenue coming from the United States alongside smaller contributions from Canada, Mexico and other markets.
Market Cap: US$2.27b
Andersons gives investors rare, direct exposure to the food supply chain at a time when food inflation is reported at 35.45%. The business also connects to ethanol and renewable feedstocks that analysts and recent index inclusions indicate are receiving fresh attention. The company has been working to focus on higher margin grain processing and renewables. An integrated model and tax credits linked to low carbon fuels feature prominently in many analyst discussions of potential earnings outcomes over time. On the other hand, slim 1.2% net margins, meaningful debt from recent investments and heavy reliance on volatile commodity markets and policy for ethanol all contribute to risk. These factors can make a deeper look at Andersons important when deciding how it might fit into a Consumer Staples focused watchlist.
Andersons looks like an inflation era wildcard, tying crop trading with renewables and tax credits. However, the real twist may sit inside the 5 key rewards and 2 important warning signs (1 is major!)
The three stocks covered here are just a starting point, as the full Consumer Staples (Food & Beverage Producers/Retailers) screener highlights 26 more companies with equally compelling Consumer Staples stories that could reshape how you think about food and beverage exposure. Use Simply Wall St to identify, filter and analyze the specific catalysts and narratives that matter to you so you can focus on the highest conviction ideas in this space.
Take Control of Your Investment Journey
If Village Farms International or any of these companies sound like a great opportunity, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value the ideal entry point. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.
Seeking Fresh Alternatives Before They Fly?
Fresh ideas can move quickly, and the stocks sitting quietly today may become notable stories in the future. Consider reviewing opportunities before broader market attention increases.
- Identify less-followed candidates with stable fundamentals by scanning curated companies with resilient cash flows using the list of solid balance sheet and fundamentals (46 results).
- Explore potential income opportunities by reviewing hand picked high yield candidates in the 7 dividend fortresses.
- Review companies involved in electrification and related projects by checking those powering infrastructure needs via the 35 power grid technology and infrastructure stocks.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com