Ralcorp Holdings, Inc. (NYSE:RAH)
The Company is primarily engaged in the manufacturing, distribution and marketing of store brand food products in the grocery, mass merchandise, drug and foodservice channels.
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In a struggling economy, people buy the store brands. period
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RAH's claim to fame is store brand food products. The company is definately in a position to take advantage of people who are feeling a financial squeeze. The company is actively pursuing acquisitions that complement its various divisions and in theory this will increase growth & profits, as consumers turn to store brand rather than more expensive, designer label foods. What is yet to be seen is how the company copes with higher production costs. If it can improve its efficiency and improve its net profit, RAH will be much more desirable for investors.
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This is an outstanding company and is aggressively going after business that relates to their companies. They are the number one company for private label.
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As I heard on CNBC today, "People still eat in a slow economy". RAH is the king of the store brand food labels that I perfer to buy at the grociery stores. This stock should outperform especially in a slowing economy where the consumer is painfully price aware and will tend to buy the cheaper (store brand) food product vs. the "name brand".
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Relatively new company whose products seemed to be all over my pantry. Doesn't say much for my eating habits, but a clue it might be worth following.
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