In this article, we will navigate through the prevalent snacking behaviors, market dynamics, and the 10 best cookies and crackers stocks to buy.
The Global Cookie and Cracker Market
The global cookie and cracker market was valued at $100.2 billion in 2023 and is expected to grow to $122.45 billion by 2030, growing at a compound annual growth rate of 3.7% during the forecast period between 2024 and 2030. Region-wise, North America dominates the market with the United States and Canada as its top markets. With significant markets in the United Kingdom, Germany, and France, Europe follows. Simultaneously, Asia Pacific is depicting rapid growth with significant market expansion in countries such as China and India.
What is the Global Snacking Industry Looking Like?
According to Mondelēz International’s annual State of Snacking Report 2023, consumers continue to snack strong as 6 in 10 global consumers surveyed for the last 5 years have been consistently of the opinion that they tend to eat many small meals throughout their days instead of few large ones while young people look forward to the snacks in their day, more as compared to the meals. Younger consumers tend to snack once or more a day. Across all ages, the majority have ritualized snack time as they consume a snack at a special moment or time of the day.
Consistent snack spending is evident from the fact that two-thirds of consumers have not made significant changes to their spending on snacks although they are more conscious of price. Recently, consumers have cut back spending on non-essential items which has negatively impacted sales for Starbucks and McDonald’s. However, the threat doesn’t seem major to the snacking industry as snacking giants still see snacking as a large, attractive, and durable category that continues to grow in importance with consumers.
A piece of important news surfacing in the market just before the year’s end, as reported by CNBC, is that the Oreo maker has made a preliminary takeover approach for Hershey according to those familiar with the matter. The company had previously made a takeover bid for Hershey in 2016 which Hershey’s board unanimously rejected. The acquisition, if it takes place, is going to result in one of the biggest confectionery companies globally. While the combined business could be a huge deal, the question about it competing against the recent Mars’ acquisition of Kellanova which is expected to materialize in the coming year, is circulating all around. This acquisition is a great deal in the global snacking market as well since it ranks among the top 10 global food and beverage mergers and acquisitions since 1995, as revealed by Dealogic.
With that being said, let’s move to the 10 best cookies and crackers stocks to buy.
Pixabay/Public Domain
Our Methodology:
In order to compile a list of the 10 best cookies and crackers stocks to buy, we went through stock screeners, relevant ETFs, and media reports to make a list of relevant stocks. Moving on, we shortlisted the top 10 stocks from our list which had the highest number of hedge fund holders. The 10 best cookies and crackers stocks to buy have been arranged in ascending order of their hedge fund holders, as of Q3.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10. Nestlé S.A. (OTC:NSRGY)
Number of Hedge Fund Holders: 4
Nestlé S.A. (OTC:NSRGY) is a leading food and beverage company with its products selling in 188 countries across the world. The company has a portfolio of over 2000 brands across coffee, cereals, water, dairy, and drinks among other categories. A world-class portfolio of powerful brands in attractive and high-growth categories within the food and beverage industry, a global reach, and industry-leading R&D are some of the core strengths of Nestlé S.A. (OTC:NSRGY).
While the food giant has been struggling with slowing sales growth and sluggish consumer demand, the newly appointed CEO Laurent Freixe remains ambitious to get the company back on track. The CEO reiterated the Nestlé uniqueness as follows:
“Nestlé is a strong company with global reach, exceptional demand generation and in-market capabilities. We have a diverse and strategically well-positioned product portfolio. Our iconic brands and innovative products connect with people every day, at every stage of their lives. These strengths give us a unique advantage and position us to win in the marketplace. We will now invest further in our brands and growth platforms to unlock the full potential of our products for our consumers and our customers.”
In November, Nestlé set out a new action plan at its Capital Markets Day for investors and analysts, dedicated to improving market share performance and advancing category growth within the multinational food giant. Actions include targeted investments in winning brands and growth platforms, addressing underperformers, and more focused innovation activities to drive greater impact. Under this plan, Nestlé’s waters and premium beverages activities are to become a global standalone business, as of January 1, 2025.
The firm has increased advertising and marketing investment to 9% of sales by the end of 2025 under the plan to bolster Nestle’s brands while it will be generating the investment needed from cost savings and growth leverage. Nestlé aims to deliver incremental cost savings of at least CHF 2.5 billion by 2027’s end, with work already taking place on key initiatives across procurement, commercial investments, and structural costs. Previously, the firm announced Organizational and Executive Board changes, meant to result in a leaner Executive Board structure and close collaboration of the leadership team at the headquarters thereby increasing simplicity, enhancing decision-making, and solidifying the momentum behind global initiatives.
Nestlé S.A. (OTC:NSRGY) is an important player in the global cookie market since Nestlé Toll House’s Original Chocolate Chip Cookies have served as a true classic and a go-to recipe for all occasions. Nestlé Toll House is a household name in many countries, synonymous with chocolate chip cookies. The iconic brand continued to pursue innovation and later revived the childhood dreams of many as it introduced its edible cookie dough.
9. J&J Snack Foods Corp. (NASDAQ:JJSF)
Number of Hedge Fund Holders: 15
J&J Snack Foods Corp. (NASDAQ:JJSF) offers branded snack foods to food service and retail supermarket outlets across the United States. The firm’s products include the iconic SUPERPRETZEL and ICEE, fan favorites like LUIGI’S Real Italian Ice, The Funnel Cake Factory Funnel Cakes, and Hola Churros, as well as a variety of other products spanning baked goods, frozen beverages, and frozen novelties categories.
The firm serves as a leader and innovator in the snack food industry. It has evolved from a humble facility and eight employees into a family of 4,200 with locations across the US and products in every supermarket nationwide. The firm continues to bolster its strong brand portfolio. In April, J&J Snack Foods Corp. (NASDAQ:JJSF) made a strategic move with the acquisition of the Thinsters, a brand known well for its thin, crunchy cookies made from simple, real ingredients. This strengthened the firm’s position as a leader in the American snack food market. Regarding the move, Dan Fachner, the firm’s President and CEO, commented:
“This acquisition is a natural fit for us, complementing our already vast offering of cookies and baked goods. Thinsters’ dedication to using high-quality, wholesome ingredients resonates perfectly with our growing customer base. We look forward to leveraging our strengths to expand distribution and introduce Thinsters cookies to a wider audience.”
The important aspect of this move was that J&J Snack Foods Corp. (NASDAQ:JJSF) has priorly completed over 30 transactions that have successfully integrated niche brands into beloved American snacks, some of which include SUPERPRETZEL, ICEE, and DIPPIN’ DOTS. It is indeed through organic growth and strategic acquisitions that the firm is now positioned as a billion-dollar diversified food company that is a major player in the snack food industry.
The growth has translated into strong financial results for the company as it closed a promising fiscal 2024 with net sales increasing 1% to a record $1.57 billion. It posted double-digit growth in adjusted EBITDA led by 80 basis points improvement in gross margins to 30.9%. With a diverse portfolio of beloved brands, the firm looks forward to a bright fiscal 2025 crowded with numerous growth opportunities.
8. TreeHouse Foods, Inc. (NYSE:THS)
Number of Hedge Fund Holders: 15
TreeHouse Foods, Inc. (NYSE:THS) is a leading private brands snacking and beverage manufacturer in North America. The company’s portfolio includes cookies, crackers, non-dairy creamer, hot cereal, pretzels, and unique candy products among others. The firm is in a good position across attractive snacking and beverage growth categories fueled by strong consumer demand trends.
THS serves as the supply chain for North America’s biggest and best grocery, club, and e-commerce brands since it is a private brands manufacturer. Private brands are a significant element of grocery retailers’ strategies and enable grocers to drive loyalty among consumers and differentiation across the retail landscape. Thus, TreeHouse Foods, Inc. (NYSE:THS) is pursuing growth across private brands which remains a long-term fact because private brands’ dollar share of consumer packaged goods has been rising over the years. Although the operating environment has recently been challenging for the firm, the compelling opportunity for private brands growth, which continues to benefit from enhanced retailer investment and consumer tailwinds, is intact.
Additionally, TreeHouse Foods, Inc. (NYSE:THS) is successfully pursuing its long-term strategy to build capabilities in its higher-growth, higher-margin categories. Recently in December, the firm strengthened its competitive positioning in the fast-growing tea category as it decided to acquire certain subsidiaries that operate the private brand tea business of Harris Tea, a leading US private brand tea manufacturer.
7. Flowers Foods, Inc. (NYSE:FLO)
Number of Hedge Fund Holders: 25
Flowers Foods, Inc. (NYSE:FLO) is one of the largest producers and marketers of packaged bakery foods in the United States with 2023 sales of $5.1 billion. The company produces a range of baked goods, including cookies under its Mrs. Freshley’s brand which entered the vending market with a focus on baking fresh, tasty products in 1994.
Flowers Foods, Inc. (NYSE:FLO) is a leader in the US baking industry. The firm’s 45 highly efficient bakeries offer various delicious bakery foods under trusted, best-selling brands like Nature’s Own, Dave’s Killer Bread, Wonder, Canyon Bakehouse, and Tastykake. With a presence in 19 states and most of the firm’s products being distributed by a network of independent distributor partners which covers approximately 85% of the US population, the position of Flowers Foods in the US packaged bakery foods market is clear and dominant.
This dominant position has been the outcome of a long journey for Flowers Foods, Inc. (NYSE:FLO), a history of growth and evolution spanning over 100 years, from one family-owned bakery in Thomasville to the current leadership position. The firm ensures a diverse product line across the baked foods spectrum offering something for everybody, from gluten-free breads, bagels, buns, and English muffins to snack cakes, pies, and donuts. The majority of the firm’s business comprises faster-growing, higher-margin branded retail products.
6. Conagra Brands, Inc. (NYSE:CAG)
Number of Hedge Fund Holders: 26
Conagra Brands, Inc. (NYSE:CAG) is one of North America’s leading branded food companies. The firm has a portfolio of iconic and emerging brands that continue to evolve to cater to the needs of its consumers. Conagra’s brands include Birds Eye, Duncan Hines, Healthy Choice, Marie Callender’s, Reddi-wip, Slim Jim, and Angie’s BOOMCHICKAPOP among others. The firm’s Glutino brand is a leader in the gluten-free snacks category and offers a diverse range of gluten-free cookies as well as crackers.
The business is over 100 years old since it began as a Midwestern flour-milling company and entered other commodity-based businesses later, eventually positioning itself as a strong branded, pure-play consumer packaged goods food company. The firm has grown its food businesses through innovation that helps deliver great-tasting food across both its iconic and emerging brands, organic growth of its brands, and expansion into adjacent categories, including through acquisitions. The firm generated fiscal 2024 net sales of more than $12 billion.
Conagra Brands, Inc. (NYSE:CAG) continues to strengthen its impressive portfolio of industry-leading brands. Back in June, the firm debuted its dynamic collection of new products, including arrivals in single-serve and multi-serve frozen meals, frozen vegetables, and snacks. Among the new lineup were six delicious new sandwich cookies and pretzels from Glutino.
Simultaneously, the firm continues to efficiently navigate a challenging consumer environment. The business successfully returned to growth in the second quarter of fiscal year 2025 as it drove volume improvement, organic net sales up 30 basis points over the prior year, and market share gains. It is worth noting that 67% of Conagra’s portfolio held or gained volume share in the second quarter, marking the fifth consecutive quarter of share gains. The share performance was so good that Conagra outperformed its closest peer by 24 percentage points. Although the top-line momentum is expected to continue in the second half, the profitability will be impacted by two headwinds which are higher-than-expected inflation and unfavorable foreign exchange rates.
5. General Mills, Inc. (NYSE:GIS)
Number of Hedge Fund Holders: 30
General Mills, Inc. (NYSE:GIS) is an American food manufacturer that has made food with passion for more than 150 years. The firm’s portfolio comprises more than 100 brands around the world including the iconic Cheerios, Pillsbury, and Häagen-Dazs. These include cookie-related brands such as Pillsbury offering biscuits and Betty Crocker offering cookie mixes. General Mills has a presence in 100 countries across six continents.
General Mills’ Accelerate strategy, which the firm outlined at the Consumer Analyst Group of New York (CAGNY) 2021 Conference, remains the core of its business. This strategy focuses on four pillars to create competitive advantages including boldly building its brands, relentlessly innovating, unleashing its scale, and being a force for good. Most recently, General Mills, Inc. (NYSE:GIS) advanced its Accelerate strategy with the acquisition of Whitebridge Pet Brands’ North American premium Cat feeding and Pet treating business. This move marked the fifth acquisition General Mills has announced or completed in the Pet category and complements the company’s position in the fast-growing U.S. pet food category.
The firm closed a good first half of fiscal 2025 as it accelerated its volume growth and market share trends, including returning its North American pet business to growth. For the second quarter of fiscal 2025, net sales increased 2% to $5.2 billion and operating profit was up 33%. Certain favorable timing items amplified Q2 growth and are expected to reverse in the second half of fiscal 2025, such as a rise in retailer inventory in North America Retail due in part to the Thanksgiving holiday from the final week of Q2 last year to the first week of Q3 this year, and favorable trade and other expense timing.
4. The Campbell’s Company (NASDAQ:CPB)
Number of Hedge Fund Holders: 33
The Campbell’s Company (NASDAQ:CPB) has fulfilled its purpose of making food that is delicious, affordable, and prepared with care for more than 150 years. The firm serves as a focused brand powerhouse with two distinct divisions namely Meals & Beverages and Snacks, concentrated in North America. The firm’s portfolio extends beyond soup to foods such as Pepperidge Farm’s cookies and Goldfish crackers.
With nearly half of Americans consuming at least three snacks a day, legacy food firms such as Campbell are trying to gain a larger share of the rapidly growing snack market. After 155 years, the previously Campbell Soup Company decided to rebrand itself as ‘The Campbell’s Company’. Soup accounts for a smaller portion of the company’s sales despite being an important business for the firm. This was a strategic move considering consumers letting go of ready-to-serve soups and opting for snacks instead
With a name that celebrated soup, the company is so much more than that as it boasts the best portfolio with the best brands. This includes three over $1 billion brands including Goldfish, Campbell’s, and Pepperidge Farm as well as the fourth brand on the horizon, Rao’s homemade. Other than this robust portfolio, the firm has successfully navigated a volatile period in food marked by macroeconomic headwinds and lower consumer confidence. With food overall showing improvement recently with favorable trends such as growth coming from across all income groups and in-home eating being over 80%, The Campbell’s Company (NASDAQ:CPB) is poised to grow.
3. Mondelez International, Inc. (NASDAQ:MDLZ)
Number of Hedge Fund Holders: 51
Mondelez International, Inc. (NASDAQ:MDLZ) is one of the largest snack companies globally. The firm empowers people to snack right in more than 150 countries while it has operations in more than 80 countries. Mondelez owns a variety of popular cookie and cracker brands including Oreo, Chips Ahoy!, Ritz, LU, Wheat Thins, and Triscuit among others.
Mondelez is a snacking leader with global net revenues of approximately $36 billion in 2023. The strong position in key snack markets, leadership in resilient categories, and a compelling footprint are clear competitive advantages for Mondelez International, Inc. (NASDAQ:MDLZ). The company leads the future of snacking with iconic global and local brands. It has the privilege of having the top global position in biscuits (cookies and crackers) and the highest market share among biscuit manufacturers across the globe. Simultaneously, the company is on track to reach the top position in chocolate.
The snacking market dynamics tend to favor the long-term growth potential of Mondelez International, Inc. (NASDAQ:MDLZ) as more consumers have started to snack daily and still prioritize snacks despite being price-conscious. Furthermore, the attractive exposure to high-growth emerging markets and robust developed markets increases growth potential. Mondelez believes in sustaining long-term profitable growth by accelerating and increasing focus on the core of chocolate and biscuits and expanding its presence geographically as well as in high-growth channels.
While accelerating its core business, Mondelez continues to strategically reshape its portfolio. For instance, it recently expanded its partnership with Evirth, a leading manufacturer of cakes and pastries in China. This gave the firm a promising opportunity to further leverage its iconic brands and distribution to create more premium offerings in the fast-growing cakes and pastries space.
2. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 58
PepsiCo, Inc. (NASDAQ:PEP) is a renowned global food and beverage company. The firm offers a complementary portfolio of brands, including Lays, Cheetos, Doritos, Pepsi-Cola, Gatorade, Mountain Dew, Quaker and SodaStream. The firm offers cookies and crackers through its various brands including Grandma’s as well as Gamesa, the leading cookie and cracker Hispanic brand in the US grocery channel.
PepsiCo, Inc. (NASDAQ:PEP) leverages its global scale and reach to spark joy and create more smiles. The firm’s product portfolio includes a wide range of enjoyable foods and beverages, including many iconic brands that generate over $1 billion each in estimated annual retail sales. PepsiCo’s products are enjoyed by consumers over one billion times a day in more than 200 countries and territories across the globe. The global beverage and convenience food market presents the firm with a promising opportunity to further grow.
Despite tough conditions including business disruptions due to rising geopolitical tensions in certain international markets and subdued category performance trends in North America, the firm closed a resilient third quarter of 2024. The quarter was marked with 1.3% organic revenue growth, 110 basis points expansion in core gross margin, and 75 basis points expansion in core operating margin versus the previous year. While consumers remain choiceful and value-conscious due to inflationary pressures, PepsiCo, Inc. (NASDAQ:PEP) continues to accelerate its existing productivity programs by expanding automation at its plants, warehouses, and distribution centers, advancing digitalization across its organization, maximizing labor efficiencies, and minimizing areas of waste.
While a strong pipeline of productivity initiatives is in place, the firm expects inflationary pressures to moderate versus the preceding year. Although the firm has been through multiple challenges since 2019, the long-term resilience of its categories and businesses is evident from the fact its net revenue has grown to more than $90 billion and it remains on track to deliver more than 45 percent core USD earnings per share growth in 2024 versus 2019.
1. Kellanova (NYSE:K)
Number of Hedge Fund Holders: 64
Kellanova (NYSE:K) serves as a leading company in global snacking, international cereal and noodles, plant-based foods, and North American frozen breakfast. Kellanova was launched in 2023 and builds over the strong brand equity and legacy created over the past 117 years as Kellogg Company.
Kellanova remains powered by differentiated brands including Pringles, Pop-Tarts, Kellogg’s Rice Krispies Treats, RXBAR, Eggo, MorningStar Farms, Special K, and Coco Pops. The company owns popular cracker brands including Club Crackers and Cheez-It. 50% of its net sales came from five of the most differentiated brands in the world in 2022, one of which was Cheez-It.
With a majority of sales being driven by global snacks and emerging markets, the company boasts a more growth-oriented portfolio. Kellanova has grown net sales by approximately $3 billion from 2019 to 2022. Alongside a solid portfolio and a track record of growth, the firm benefits from a world-class supply chain and marketing capabilities as well as a rapidly expanding reach across channels.
Kellanova (NYSE:K) is all set to begin its new journey as a part of Mars, the global leader in pet care, snacking, and food. The Mars acquisition of the company is expected to close within the first half of 2025. While the company is rearing for the next chapter, it closed its third quarter on a good note, with earnings per share continuing their double-digit growth momentum and a double-digit operating profit growth sustained.
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