Published Research and Articles on the Clean Living Theme

Each week Team Tematica consumes a voracious amount of content as we look to stay on top of the latest data and mine it for tailwind and headwind signals for our 10 investment themes.

Each week Team Tematica consumes a voracious amount of content as we look to stay on top of the latest data and mine it for tailwind and headwind signals for our 10 investment themes.

New research points to the size of the global electric vehicle (EV) hitting more than 50 million units by 2025, up from 11.3 million in 2020, before going on to top more than 144 million units by 2030. What’s interesting about this is the call that every third new car sold is anticipated to be […]

Each week Team Tematica consumes a voracious amount of content as we look to stay on top of the latest data and mine it for tailwind and headwind signals for our 10 investment themes.

Each week Team Tematica consumes a voracious amount of content as we look to stay on top of the latest data and mine it for tailwind and headwind signals for our 10 investment themes.

As the Global Food industry continues to evolve is it time for agriculture to embrace this next wave of technology? Hydroponics, or growing plants in nutrient rich-water without using soil, is a practice that has been around for decades but has only been used in relatively small-scale applications. This is beginning to change. Source: World Reimagined: Can […]

Each week Team Tematica consumes a voracious amount of content as we look to stay on top of the latest data and mine it for tailwind and headwind signals for our 10 investment themes.

Each week Team Tematica consumes a voracious amount of content as we look to stay on top of the latest data and mine it for tailwind and headwind signals for our 10 investment themes.

One of the wonderful things about thematic investing when it is done right, is the number of recognizable and relatable points of confirmation to be had once an investor has fine-tuned their focus, or as we at Tematica like to say, strapped on your thematic lens. The traditional investor analyzes and assess a variety of […]

To say 2020 was a year unlike any other is an understatement on several fronts but despite all of it, equities finished the year higher and once again the major indices were bested by several of Tematica Research’s thematic indices. That includes several of them topping the outsized (but fairly narrowly driven) 43.6% return for […]

The plant-based meat market is expected to grow enormously in the coming years given the shift in consumer preferences for sustainable. Barclays predicting the market will grow by more than 1,000% over the next 10 years to reach $140 billion by 2029. It comes as no surprise to us then that companies would look to […]

After over 920 years, Oxford University has been prompted to make a bold step forward in making menu changes that will not only benefit the environment (assuming more institutions follow suit) but also help their students lean towards a healthier diet. No word on the fate of the “traditional English breakfast” – yet. BURGERS and […]

In as much as hydroponic farming was an agriculture curiosity in the 1980’s (and quickly relegated to growing “Hydro Weed”) that technology coupled with some clever algorithms and space planning has given rise to crop yields that would make Thomas Malthus himself throw up his hands in frustration. 95% less water. 99% less land. 400X […]

A confluence of factors weighed on equities in October including the resurgence of the coronavirus that resulted in fresh restrictions late in the month, scuttled fiscal stimulus talks in Washington, renewed US-China trade tensions, the continuation of Brexit talks, and the lead up to the final innings of the contentious 2020 US presidential election. The […]

Not content to simply offer alternatives to beef production and consumption, Impossible Foods announces goal to “Eliminate Animal Agriculture” With a mission to reverse global warming and halt catastrophic biodiversity collapse, Impossible Foods is replacing the world’s most destructive technology – the use of animals to transform plants into meat, fish and dairy foods. Source: […]

Indoor gardening gets a boost from both agri-tech and regular tech as well. There’s a jungle in my kitchen. Pass the ranch. Source: Gardyn review: Building a wall of salad is easy with smart hydroponics

Equities continued to swoon during February as investors came to grips with the expanding impact of the coronavirus. Amid a growing sea of corporate warnings that led investors to question earnings forecasts for the current quarter as well as all of 2020, all the major stock market indices finished February down 6.4%-10.1%. The hardest hit […]

The Tematica Research Cleaner Living Index, which captures those companies benefitting from the shift to better for you products and services, cleaned up in 3Q 2019 compared to all the major US stock market indices.

On this episode of the Thematic Signals podcast, Tematica’s Chris Versace breaks down the latest trade developments (including why he doesn’t think a two-step deal is likely) and discusses the European Central Bank rate cut before shares his thoughts on the continued plight of brick & mortar retail as Forever 21 is slated to file […]

In this week’s issue we dig into Apple’s 2019 iPhone event (yeah it was largely expected, but there were a few positives too), why we think Elliot Management is wrong about AT&T’s media play, how Volkswagen is about to disrupt the electric vehicle market, why a new California law could wreak havoc on Uber and Lyft, and why it’s likely game over for GameStop.

On this week’s podcast, you’ll learn how many chemicals dwell inside your home and where there they tend to be most prevalent. You’ll also learn about the varying degrees of what is considered green, with some surprises along the way as we talk about Degree of Green’s proprietary green rating system. If you’re looking to Clean up your existing home or a new one, this is a podcast you won’t want to miss.

On this episode of the Thematic Signals podcast, we’re digging into the July Retail Sales and quarterly earnings results from Walmart as both confirm the hard-blowing tailwinds associated with our Digital Lifestyle, Middle-Class Squeeze, Aging of the Population and Cleaner Living Investing themes.

At the heart of our investment themes here at Tematica we tend to find a structural change underway. There are several embodied by our Cleaner Living investing theme with one of the more recognizable happening in the auto market as consumers look for non-gas powered solutions. This began with hybrid models, which in hindsight were […]

Tematica Research’s Cleaner Living index chugged higher in July, adding to its year to date gains, as consumer continued to shift to natural, organic and better for you, your home and the environment products and services. With EPS growth for the index constituents poised to significantly outperform the S&P 500 in the coming quarters, the index is positioned to weather near-term market headwinds.

Dr. Roy Speiser of CWR Environmental Products joins this week to discuss the environmental abuse, industrial greed and governmental neglect that has led to the harsh reality that our water supply is not as clean or as safe as we think it is.

We are just back from vacation and hitting the ground running during arguably one of the busiest weeks of the year. In addition to the usual end of the month, start of the month economic data, we’ve got more than 1,000 companies reporting quarterly earnings; the Fed’s next FOMC meeting; and the next Democratic presidential […]

A look at the thematic outlook we can piece together from the flow of earnings reports we’ve received thus far, including what’s moving Amazon (AMZN), Apple (AAPL), International Airlines Group (ICAGY), IBM (IBM), Netflix (NFLX), Skyworks Solutions (SWKS) and the impact of spending on cybersecurity.

Little girl selects diapers in supermarket

  This story about a new line of Huggies disposable diapers came across our desk because of the headline: Huggies Launches Partially Plant-Based Diaper.  On the surface, it appears that this type of product could fall into the Tematica Cleaner Living theme, with the potential for Huggies owner Kimberly-Clark (KMB) to start making its way towards […]

On this episode of the Thematic Signals podcast, Tematica’s Chris Versace gets investors and corporate leaders ready for what Fed Chairman Powell may do at this week’s semi-annual testimony in front of the House Financial Services Committee.

Basic economics teaches us about the dynamics between supply and demand, so it should come as no surprise that given the rise of plant-based alternatives, including pea protein, that are a part of our Cleaner Living investing theme and the Tematica Research Cleaner Living Index, farmers would pivot their plantings to account for that pick-up […]

Chris Versace digs into what investors should be watching in the month of July, in particular, the potential for the Fed to NOT cut interest rates at its July monetary policy meeting, and for earnings guidance to be softer than Wall Street is expecting.

The latest economic data and shares his growing concern over earnings expectations for the second half of 2019 as we get ready for the June quarter earnings season. Plus, an introduction of the Tematica Research Cleaner Living Index

The New Tematica Research Cleaner Living Index

Announcing the launch of the Tematica Research Cleaner Living Index (CLNR). The index is a thematic approach to ESG investing that looks to capture those companies that are riding the tailwinds of Tematica Research’s Cleaner Living investment theme, which focuses on the shifting consumer preference for food, beverages, personal care and beauty items, home cleaning and lifestyle products and services that are deemed to be better for you, your body, your home, workplace and the environment.

One of the dangers investors is looking at the world with blinders on because it means missing the larger picture. For example, if we were to look at the recent stock price success of Beyond Meat, a new constituent in the Tematica Research Cleaner Living index, and chatter over the expanding reach of Impossible Foods, […]

Today we have Fed Wednesday and all eyes will be watching not only what the Fed says but how it says it when it comes to what’s next for monetary policy. Odds are the Fed will wait until it knows the fallout from the G20 summit, but investors are already bracing for an ugly next few weeks. This is prompting us to revisit stop loss levels for the Thematic Leaders.

The main ingredient in many insect killers is a chemical called “Bifenthrin”.  Does Bifenthrin work at killing the creepy crawlers around your house?  Oh yeah. Ortho Home Defense list of bug it is effective for use on is a mile long.   Bifenthrin is also a “Class C” carcinogen according to the U.S. EPA and […]

It seems that a day doesn’t go by that a company is announcing its intent to overhaul its food, beverage or snack offering to capture the shift in consumer preference that is at the heart of our Clean Living investing theme. We’ve seen a number of companies looking to pivot their offerings and while there […]

Near-term bad news is good news for the stock market but we run the risk of the market over pricing in a Fed rate cut in the near-term. The key the Fed will likely be watching will be the upcoming trade meeting. Also, with GDP expectations coming down, we see more risk in EPS expectations that have yet to really follow that move lower. As the streaming video market is poised to get more competitive in the second half of 2019, we are adding a stop loss to Netflix shares.

Welcome to the Thematic Signals podcast, where we look to distill everyday noise into clear investing signals using our thematic lens and our 10 investing themes.  On this episode, host Chris Versace discusses the sharp June rebound in the stock market that is being fueled by “bad news is good news” with return of Fed […]

Let’s get this out of the way before we get started with this signal by saying that we here at Tematica love pizza. We may be part of the herd on this one, but what can we say – we love it. And it seems we are far from alone, given that it seems pizza […]

When a company the size of Proctor & Gamble, a company with dozens of trusted brands are trusted in millions of living rooms, kitchens, laundry rooms, and bathrooms, makes a move it can have a pronounced impact. A recent example was the shift from powders and liquids in dish detergent and washing machine usage to […]

Glass containers are seeing a resurgence on grocery store shelves, as more and more food manufacturers return to the packaging material that used to be the mainstay until plastics took the pole position in the 1970s. The catalyst behind this movement back towards glass bottles and jars ties into our Cleaner Living Investment theme as […]

We continue to see the market expansion for CBD products, some of which tie into our Cleaner Living investing theme while other hemp-related derivatives fall into our Disruptive Innovators theme. There is little question that a CBD infused ice cream from former hippies Ben & Jerry would be part of our Guilty Pleasure investing theme. Candidly, we […]

We’re pretty sure that almost everyone would agree that from the crust to the sauce, the cheese and the toppings pizza is a Guilty Pleasure, largely because it tastes so good. Yes, there can be bad pizza but that tends to be far and few between. Yet even the pizza market is looking to tap […]

A record 13.3 gigawatts of new capacity from wind producers came online in 2012, which no so coincidentally coincided with an expiring tax credit program for that year. This year, 2019, the projection is for 12.7 gigawatts of new capacity to come online. Obviously, consumer demand for alternative energy, part of our Cleaner Living investment […]

  The prototypical image most folks have when it comes to recreational vehicles (RVs) is that of the massive, bus-like, gas-guzzling vehicle motoring down the highway — oftentimes, it seems, to be riding in the left-hand line doing 10 miles under the speed limit. That last part might be an exaggeration, but you get the […]

The market has embraced a new round of uncertainty as US-China trade took a route few were expecting just a few weeks ago. New rounds of tariffs have amped up trade talk tensions while leading investors to once again question growth expectations for the economy and earnings.

The world of bottled water has been a major focus for beverage companies from the likes of McDonald’s (MCD) and Pepsi-Co (PEP) and others in recent years as consumers’ taste for sugary beverages wains.  Of course, like any consumer trend, what begins as a simple trend morphs into a feature-rich battle, even when it comes […]

News coming out of Bentonville, AR this week details a series of store enhancements and renovations to 500 Walmart stores in the coming years. As we read through the discount retailer’s plans, the “ding” buttons were going off in our heads as many of them directly touch upon our investment themes. At a reported total cost of $11 billion, these plans are set to have a major impact on both store operations and the customer experience of shoppers. Here is a quick rundown of what we learned.

Earlier this week we posted a Signal that highlighted the change underway at the deli counter in the grocery store as part of our Clean Living investing theme. We are seeing another company respond to the changing landscape that is the shift to better for you, healthier foods as Burger King, which is owned by Restaurant Brands […]

At the heart of many of our investment themes is a structural change that forces companies to respond to the changing landscape. We’ve seen that in full force with beverages, both hot and cold, as consumers look for healthier, better for you alternatives. We are now seeing that expand to the deli counter, and it […]

The tailwinds from the offshore wind power initiatives run deep into our Cleaner Living theme, obviously. This article also shows the impact it’s having on our Disruptive Innovators theme as well.

When technology, regulatory mandates and consumer behavior all come together and work in concert with one another, it’s at that point that we often see hockey stick like growth charts, like we’re seeing in the Clean Energy space, which is part of our Clean Living investment theme.

Grocery and fresh food distributor SpartanNash has introduced a Clean Ingredient Initiative for its Our Family and Open Acres private label brands that focuses on simpler products with reduced ingredient lists and clean, easy-to-read labels. SpartanNash is joining a growing movement among private label product companies to tap into our Clean Living investing theme and to […]

Examining revenue growth at chicken-producing companies such as Tyson Foods and Sanderson Farms shows a surge in chicken consumption over the last several years. Some of this has to do with the consumer shift to healthier eating and alternative low-carb lifestyles that focus on protein consumption as well as rising demand associated with our New […]

Some of the issues that electric vehicle owners and potential ones have had to wrap their heads around have included contending with the maximum distance their electric vehicle can travel on a full charge, the amount of time to fully charge the vehicle and where to charge it. Even as Tesla is ramping its fast […]

This past week, the Coca-Cola Company announced six new products to its beverage lineup, a lineup that has seen quite the evolution over the past decade as the company has shifted its strategy towards including more “healthy” and “natural” options to its brand portfolio. The proof of that transformation can be seen simply in the […]

Last week’s economic data confirms the global economy continues to slow, and for now, the US remains the best economy on the block. Through the first two months of 2019, the domestic stock market has been on fire even as earnings expectations and dividends continue to be cut. As earnings season fades, time to watch insider selling activity to gauge what lies ahead. Following last week’s earnings report and subsequent drop, we’re doubling down on a Digital Infrastructure Thematic Leader.

In this week’s issue, we dig into the latest shareholder letter from Warren Buffett, examine the growing number of dividend cuts and other factors make the year to date melt up in the stock market something of a head-scratcher. That best performance in 20+ years hinges on a successful trade deal with China, but there are other factors that we need to examine so we don’t fall prey to a “buy the rumor, sell the news” scenario. We recap the sharp move in Universal Display shares following its latest earnings report and touch on favorable news emanating from Mobile World Congress 2019 for Nokia.

One of the key differences between a trend and a theme is seen when a company extends or pivots its business model in a response to changing behavior be it on the part of consumers or other businesses that it serves. In recent years we’ve seen consumers migrate away from dairy milk toward nut milks […]

  One of strongest Thematic Signals we have been tracking as a proof point of the tailwinds behind our Clean Living investment theme has been the spree of acquisitions in the space.  Whether it’s the mainstream food production companies or consumer packaged goods companies, the list of take-outs of companies that have been serving the consumer […]

One of the central aspects of our investment themes is the ensuing change in consumer behavior that can lead to a company changing its strategy or how it operates in order to attract that cohort of consumers. While it may not appear to be a big deal, Samsung changing the packaging on its products from […]

We are seeing yet another shift in consumer products at the intersection of our Clean Living and Disruptive Innovators investing themes wherein the world’s biggest consumer brands are looking to provide their products to consumers in refillable containers so as to reduce waste. This creates a tailwind behind those providing the containers and the refilling […]

One would think that with the explosion of the craft beer market would have driven overall beer consumption higher. Nope, that’s not what the data is showing us as wine consumption continued to its impressive string of more than 20 years of consecutive growth while beer consumption fell. What we are seeing is a change […]

As Americans drink less booze adult beverage companies are being forced to get creative with their product offerings.

Earlier this week, we discussed how Pizza Hut will be digging deeper into our Guilty Pleasure tailwind by expanding its offering to include the delivery of beer. Today, we have Domino’s Pizza sharing that it looks to deliver significant growth as it expands its footprint. The details are below, but with expansion in India and […]

While Baby Boomers are shifting their spending habits across many categories, one “old habit” isn’t going anywhere and that’s their leadership role in the clean eating movement.

With Volvo, Daimler, Tesla and others testing electric trucks, before too long the move to electric vehicles is set to move beyond the car market driving demand for a number of newer technologies and solutions.

McDonald’s joins the growing number of restaurant companies that are banning antibiotic usage in beef, which is in keeping with our Clean Living investing theme.

With its acquisition of Primal Kitchen, Kraft Heinz is joining other companies, such as Hershey and Kellogg, using M&A to transform their offerings to ride tailwinds associated with our Clean Living investment theme.

This shift in preference for healthy, natural products and the eschewing of artificial chemicals, sweeteners, sugar and other synthetics in all aspects of our lives is one of the basic building blocks for Tematica Research’s Clean Living investing theme. The Clean Living movement isn’t restricted to what foods we put in our bodies, but our pets now too . . .

Looking to jumpstart its business and brand, Harley-Davidson is joining the ranks of electric vehicles and attempting to tap into our Clean Living investing tailwind.

The power of disruptive technology leads to down dog taking down those trusty Levi 501s.

While the retirement from the workforce by Baby Boomers will have a profound impact on leisure activities and travel, what about those that simply can’t afford to support themselves for 20 to 30 years with only passive income?

Mondelez often floats to the top of the conversation whenever we dig into our Guilty Pleasures investment theme — Cadbury Creme Eggs, Oreos,  Nutter Butters, Toblerone . . . these pieces of heaven here on earth are all part of the Mondelez empire and are perfect representatives of those products and services consumers will buy no matter what the economic environment. But at the same time, the snacking giant focuses its business around a core concept of “empowering people to snack right by offering the right snack, at the right time, in the right way” and that is why this new initiative announced by Mondelez caught our attention because it taps into three more of our investment themes

Mastercard is looking to set the agenda for moving plastic credit and debit cards to another, more environmentally friendly material.

As costs increase, Guilty Pleasure company Hershey Co. is boosting its candy prices to maintain margins good for shareholders but not so good for Middle-class Squeeze consumers.

We are seeing more restaurant companies tout Clean Living ingredients in their marketing materials, but do they all have Clean products?

Consumers are embracing aspects of our Clean Living investing theme, which is putting pressure not only on sugar demand but forcing companies to alert their formulations while preserving taste and making M&A moves to better position their product portfolio.

More and more manufacturers are turning to juices from fruits and vegetables as “alternatives” to artificial flavors, colors and sweeteners, which demonstrates the power of the movement we call Clean Living and why it is emerging as such a powerful investment theme.

In Puerto Rico, we are seeing the phenomenon of Disruptive Innovation play out in the area of renewable energy as residents struggle to get back on their feet following Hurricane Maria. What was once a savings or clean energy advantage, solar power is almost becoming a necessity for safety and security.

Cannabis is catching a lot of attention this week following the news that even Coca-Cola is considering cannabis-infused drinks. While Coca-Cola isn’t the first company to consider tapping into the increasingly legal market, much like the tobacco company Altria (MO), home of Marlboro cigarettes, it is facing a waning market for its core sugary and […]

PepsiCo’s (PEP) recent acquisition of SodaStream (SODA) is but one of a long string of acquisitions in the “Natural” space as of late. J.M Smuckers, General Mills, Mondelez . . . they’ve all stocked their “pantries” with strategic acquisitions, not to mention recrafting of mainstay brands with updated versions that are Non-GMO, free of artificial flavors […]

Following several bullish data points from last week, including ones found in the August Retail Sales report, we are adding to our position in Del Frisco’s Restaurant Group (DFRG). The August Retail Sales report was also positive for our Amazon, UPS, Costco Wholesale and McCormick & Co. shares.

With sugar under attack as well as the overall shift toward healthier for you foods, snacks, and beverages that are part of our Clean Living investing theme, it comes as little surprise to us that candy company Hershey continues to scoop up companies outside of its bread and butter candy business. The thing is Hershey is […]

I’ve been keeping a close watch on the shares of Chipotle Mexican Grill (CMG. The company was previously part of what we now refer to as our Clean Living investment theme given its use of fresh, high-quality raw ingredients including meats that are raised without the use of non-therapeutic antibiotics or added hormones and none of the ingredients in the food (excluding beverages) in U.S. restaurants contain genetically modified organisms (GMOs). 

When companies ranging from PepsiCo and Coca-Cola add aggressively to their product portfolio it likely means we are at or near an inflection point in terms of consumer preference. That is what we are seeing with flavored seltzers given PepsiCo’s 2018 introduction of its bubly Sparkling Water, its more recent acquisition of SodaStream and Coca-Cola testing its Dasani […]

We have another confirming data point that India is poised to become one of the key economies when it comes to driving global growth. The underlying reason ties with the other data points that point to this – India’s expanding middle-class, which will spur demand for a variety of goods and service. And yes, India and […]

From reducing salt and fats from its snack business to the introduction of Bulby, its own line of flavored seltzer waters, PepsiCo continues to transform its business in line with shifting consumer preferences that are reflected in our Clean Living investing theme. With the acquisition of SodaStream, Pepsico takes several steps forward as it not only […]

According to data published by the NPD Group: Three out of five Americans say they want more protein in their diets; Fourteen percent of U.S. consumers, or more than 43 million people, regularly use plant-based products and 86 percent of them aren’t vegans or vegetarian. These figures are in sync with the growing influence of our Clean Living investing […]

  They say too much information is a dangerous thing, but in the case of consumers, access to information is helping reshape how they are living their lives: According to a recent survey from Label Insight, 39% of U.S. consumers say they would switch from the brands they currently buy to others that provide clearer, […]

When we look at the world of organic, natural, non-GMO foods, brands such as Capri Sun, Oscar Mayer and Jell-O are not what come to mind. Kraft Heinz’s CEO Bernardo Hees explains in a recent Wall Street Journal interview that he and his team are attempting to change that view with such products at the food giant.

First Cold Brew and now kombucha is being added to the beverage fold at Starbucks as it, much like Coca-Cola and PepsiCo, are contending with the increasing consumer preference for healthier beverages, snacks, and food. In other words, less sugar as evidenced by the consumer wane for high calorie, high margin Frappucinos, and sugar soda as […]

As part of our Clean Living investment theme, we’ve seen case volumes of not only sugary beverages but also those laced with artificial sweeteners come under pressure as consumers shift to healthier alternatives, including a variety of waters both still and sparkling. Existing soda giants, such as Coca-Cola have been expanding their beverage offering in […]

The war on sugar has hit companies like Hershey Foods (HSY), forcing it to pivot its snacking M&A strategy to better meet shifting consumer preferences for healthy, natural and organic snacks. We’ve seen a prononced shift for waters and seltzers that is driving companies like National Beverage Corp. (FIZZ), home of LaCroix, and Cott Corp. […]

Fond memories of sipping an ice cold soda after a game or feeling like you’re about to suck your brains out of a straw trying to get that first taste of a milkshake could very well become a thing of the past as single-use, plastic straws come under attack as part of Clean Living. More […]

What we are seeing in the Campbell’s earnings report and decision to undertake a strategic review is yet another company that is grappling with the changes to their business model as consumer preference shifts toward healthier eating and snacking. Some businesses are able to use acquisitions to pivot their businesses more quickly and respond to […]

  Over the last decade, sugary soft drink volumes have been under pressure, but until recently soda companies have seen their case volumes bolstered by diet beverage that incorporate alternative sweeteners to deliver zero calories. With consumers becoming more health conscious as well as preferring healthier and good for you ingredients as part of our […]

  The biggest transaction of 2017 by all accounts was Amazon coming in and sweeping up Whole Foods, and in one move forever transforming the natural / organic market space. But that was just but one move. Amidst a flurry of activity in the space in 2017, yet another acquisition of a company that falls […]

Being a smart investor means knowing when to avoid a troubled stock like this one.

We have shared many a data point on the hidden costs associated with our Fattening of the Population investing theme. Recently the Center for Disease Control and Prevention reminded that us the vast majority of people do not realize the degree to which obesity and being overweight leads to cancer and other healthcare issues. We […]

Amazon’s move bring Whole Foods under its umbrella and this story about Frito-Lay developing organic versions of its snack foods are all part of our Foods with Integrity investment theme.

After visiting several Whole Foods locations, here is our initial view on the Whole Foods-Amazon marriage.

We’ve known for some time the hidden costs of obesity here at Tematica as it’s one of the factors behind our Fattening of the Population investment theme. The fight to limit sugar has led beverage companies to change drink sizes as well as alter formulations, which has stoked demand at flavor companies given the need […]

This week, Amazon sent more than a flare across the bow of newly public meal kit company Blue Apron (APRN) and took one step deeper into expanding its food focused efforts

In this week’s issue, we’re adding a new commodities ETF to the Tematica Select List as part of our Scarce Resources investment theme. Plus updates on AMZN, AMT, OLED, MKC, IFF and BETR.

As it seems like most of the country is on vacation this week, we’re going to use the lull in activity to take a moment to look back at the quarter that was and get our house in order as we enter the back half of the year.

The cyber threats keep coming, which is good news for HACK, and the market seems to be putting an unfair beating on COST, which we’ll use to our advantage this morning by adding to our position.

While we see many favorable aspects to Amazon’s acquisition of Whole Foods Market, we also see the pullback in Costco shares as an opportunity to take another run at the shares of the warehouse retailer.

Is Sugar the New Tobacco? A sale of the Butterfinger and Baby Ruth franchise will decide.By Corinne Gretler June 19, 2017, 7:04 AM EDT DATA: BLOOMBERG RESEARCH; GRAPHIC BY BLOOMBERG BUSINESSWEEK * KEPLER SAYS WORTH AT LEAST 2 BILLION SWISS FRANCSWhat’s a candy franchise worth in an era when sugar has turned into a public enemy? […]

While many have been focused on the retail environment —and we count ourselves among them here at Tematica — we’ve also been watching the painful restaurant environment over the past few months. It’s been one characterized by falling same-store-sales and declining traffic – not a harbinger of good things when paired with rising minimum wages. […]

While May Retail Sale disappointed, it confirmed several of our investing themes as well as positions on the Tematica Select List

At an upscale café in Manhattan, bouquets decorate a candlelit wooden table. Glass jars of rosewater overnight oats and blueberry chia seed pudding, served family-style, sit in the center.This isn’t a normal brunch — it’s a launch party for Yumi, a startup that delivers organic baby food. And everything on the table is technically food for […]

The latest May jobs creation and cuts reports confirms out views on several Tematica Select List positions

We see this next iteration of exercise sitting at the intersection of our Connected Society and Fountain of Youth investing themes, and it sure doesn’t hurt to get a positive endorsement from Mary Meeker! Peloton, a four-year-old startup that sells exercise bikes tied to a live-streamed workout experience, is revving up for expansion armed with […]

    Consumers say they’re happy with service at restaurant chains, but that doesn’t mean they’ll come back.Restaurant service scores rose 10.2 percent in April, according to a new Restaurant Guest Satisfaction Snapshot by White Box Social Intelligence, from the Dallas-based data company TDn2K.But when asked whether they intended to return, consumers were far less […]

As the face of retail morphs in response to several of our thematic headwinds, including Connected Society, Rise & Fall of the Middle Class, Food with Integrity and the Fountain of Youth,  brick and mortar retailers and mall centers are attempting to innovate and improve their in-store experience. We’d note the following trends that per […]

With the Burrito chain’s health scare firmly in the rearview mirror, the question still remains if this Foods with Integrity investment theme company can make the full comeback and overcome a new set of hurdles that sit in front of them. CLICK HERE TO WATCH (forward to the 38 min mark):

Nothing sadder than when a CEO refuses to accept the changing landscape and instead points fingers at other “happenings.” Case in point below, the newly installed CEO of Coca-Cola (KO) is blaming our Connected Society investing theme for hurting soda volumes. While we admit fewer people are going to the mall, there are other headwinds […]

Our Foods with Integrity investing theme is expanding to include more of our loved ones. That’s right it’s moving past family and friends to include our pets as the food with feed them goes all-natural, grain free and includes vegetables and fruits. Just like with people, these good for Rover products are growing faster than […]

James delves into the business of being LeBron in the latest episode of “Kneading Dough,” a series on Uninterrupted, the digital media company founded by James and his business partner Maverick Carter. The series explores the financial issues pro athletes face as told by the athletes themselves. One of the most revealing findings from James’ sitdown […]

Under Chief Executive Officer Indra Nooyi, PepsiCo has been investing heavily to cater to consumers’ increasing preference for healthier snacks such as unsweetened tea and baked chips.PepsiCo said it now gets more than 45 percent of its net revenue from what it calls “guilt-free” products – beverages that have fewer than 70 calories per 12 […]

While the earnings reports we’ve received thus far have been encouraging, in sifting between the headlines there are some reasons to be concerned and as we get the bulk of this week’s reports today and tomorrow, we suspect more concerns will bubble to the top. 

During our downtime last week, we’ve rolled up our thematic sleeves and today we are adding two new positions to the Tematica Select List as part of our Cashless Consumption and Food with Integrity investing themes.

Restaurants stocks are challenged by consumer spending and a shift in eating preferences. That same preference shift bodes very well for two “buy the bullets, not the gun” companies on the Tematica Select List

This Asset-Iite Business Model company is taking steps to win back advertisers, while a Rise & Fall of the Middle Class one holds its annual Investor Day today.

Restaurants stocks are challenged by consumer spending and a shift in eating preferences. That same preference shift bodes very well for two “buy the bullets, not the gun” companies on the Tematica Select List

Spring has brought a different kind of fresh air to the stock market as expectations for both GDP and earnings are starting to be revised lower, and odds are there is more to come. We’ll continue to be patient and focus on thematics, with the intent of using any market weakness to add new positions to the Tematica Select List and scale into existing ones where it makes sense.

We are always on the lookout for confirming as well as contradicting data points for our 17 investing themes across a variety of sources. It’s always great to uncover one that hits the bullseye and this week the Journal of the American Medical Association (JAMA) did just that with our Foods with Integrity theme. As the […]

Keeping in mind the Fed has a knack for boosting interest rates at the wrong time, and it increasingly looks like Trump’s fiscal policies will take longer than expected to take hold and boost the economy, we continue to tread prudently and cautiously in the near-term.

This Food with Integrity company delivered in-line earnings and guidance as it shrugs off food deflation with continued organic growth and cost savings initiatives.

The last several years have been a dark time for McDonald’s as its domestic same-store sales fell 1.3 percent in 2016. Worse yet, the number of customers its been drawing has been dropping every year for the last four years. After tinkering and tinkering with its menu, what does McDonald’s management think will turn things […]

On this week’s Cocktail Investing, we touch on issues that are plaguing fast food restaurants, better known as quick service restaurants. While some might focus on improving the food or getting in tune with consumers that are shifting their preferences more in line with our Food with Integrity investing theme, some QSRs like Pizza Hut, […]

PepsiCo Inc reported a better-than-expected quarterly profit, as the company benefited from its cost-cutting programs and higher demand for its healthier beverages and snacks in North America.The company’s shares were up marginally at $107.15 in premarket trading on Wednesday.PepsiCo and other processed-food companies are investing heavily to develop products to meet the changing tastes of […]

Aldi on Wednesday announced [PDF] the upgrade plan for its 1,300 stores over the next three years.So far, about 300 locations have already been revamped with sleeker refrigerators doors and windows that bring in more natural light. Other improvements include widening the first aisle, expanding the front of the store, and raising ceilings.With the upgrades, the […]

Conventional thought used to think that using a substitute like aspartame, sucralose and saccharin were worry free ways of cutting back on sugar. That thought has led to an explosion in the number of people – adults and kids alike – consuming sugar substitutes. New research, however, shows those substitutes could actually be tailwind behind our […]

Several of our investment themes have tailwinds that can be polar opposites, while others are complimentary like our Aging of the Population and Fountain of Youth themes. As more people age, more of them try to fight the effects of aging and look younger. That’s been a boon for skin-care products and unsurprisinlgy they’ve been […]

More and more consumers are snubbing packaged food’s sugar, salt and unpronounceable preservatives. Meanwhile, swarms of smaller firms, emboldened by the ease of peddling goods online, are touting supposedly healthier options. From 2011 to 2015 big sellers of consumer-packaged goods, mainly food and drink companies, lost three percentage points of market share in America—a lot […]

One of the reasons people are shifting to organic and natural products is has been the concern of antibiotics usage when raising food-producing animals. Dairy. Beef. Chicken. Pork. And even fish – antibiotics have been used to assist in growing larger animals that yield greater product size. Have you seen the size of some “regular” […]

The only thing we like more than talking about one thematic tailwind is doing so when two or more come together for an even more powerful tailwind. In this case, it’s Food with Integrity meets Connected Society and Cashless Consumption as food that is good for you meets smart vending machines. As we enter 2017 […]

If we were to follow the headlines, which we do and then some given that we know by only digging into things do we learn what is really going on, it sure seems that our Food with Integrity theme is catching fire as we head into 2017. Looking back over 2016, it’s pretty apparent the […]

There is nothing quite like being told “you’re right” and the latest data from Nielsen serves to confirm our Food with Integrity investing theme. We’ve had other data from grocery leader Kroger and compared sales data among other grocery chains and key organic and natural product suppliers, but we always love confirming third party confirmation, […]

When big companies, like General Mills and ConAgra Brands, pivot their product offering to move into the slipstream of our Food with Integrity investing theme we know we’re on the right track. From the removal of dyes to removing chemicals from the food itself or how it’s prepared, companies are recognizing the Food with Integrity […]

The shifting consumer preference toward food that is good for you (protein, natural, organic and others) has resulted in some interesting corporate moves including Hershey’s purchase of Krave and subsequent  dried meat bars. Some companies, like PepsiCo prefer to be more forward thinking and therefore monitor potential new snacks and ingredients. While crickets based protein […]

The assault on sugar continues, with several more cities approving measures to tax sugar-sweetened beverages. Much in the way that a combination of public awareness and heavy taxation was used to take on the tobacco industry, the same attention is being paid to soda — bad news for Coca-Cola (KO), PepsiCo (PEP) and others . . […]

Rising restaurant prices vs. falling grocery prices certainly help explain the continued drop in restaurant traffic as Cash-strapped Consumers flock to grocery stores and eat more at home. Facing higher minimum wages, overtime rules and potentially the end of the tip wage come the 2016 presidential election, it looks like the restaurant labor cost pain is […]

While not quite 100% in tune with our Food with Integrity investing theme, there is no argument that protein based snacking continues to be on the rise. What this tells us is salty-snacks and candy sales are likely to go the way of soda sales… The meat snacks category has been experiencing significant growth for […]

A tough week of negative earnings pre-announcements for the stock market so far, we dig into which companies are finally coming to grips with reality and what it means for our investment themes and holdings

We continue to be prudent with the Tematica Investing Select List: maximizing returns while minimizing risk as we shore up the portfolio ahead of Q3 the earnings storm.

The shifting landscape of what is and what isn’t “healthy” is difficult one to navigate for consumers these days. In the afterburner of the low-fat craze, consumers are on the hunt for “all-natural”, non-GMO, even gluten-free ingredients. Now, the FDA is stepping in to define for consumers exactly what healthy is now. That should fix […]

In this week’s issue of Tematica Investing, we take another run at Costco (COST) as part of our Cash-strapped Consumer investing theme.

We’ve heard of a number of health & wellness programs being embraced by Corporate America as a way to mitigate rising healthcare costs. Some of these programs have included fitness trackers and other wearables, usually from Fitbit (FIT), but Aetna’s (AET) new program with the much higher priced Apple Watch is likely bringing a smile to […]

In today’s issue of Tematica Investing, we review confirming data points for several of our thematic positions as we, and the rest of the world, wait for Janet Yellen to tell us what we already know.

The stock market is moving a little faster and more volatile over the last few days, far different than what we saw through most of the summer. Inside this issue we recap the drivers for the flip-flopping — it’s a technical term, trust us 😉 — of the market and what’s likely to be on investor radars next.

Compared to the U.S. civilian population, the rate of overweight troops is far smaller at just under 8 percent  compared to roughly  70 percent of the adult American population that is clinically overweight or obese, according to data from the U.S. Centers for Disease Control. While the military may be  reflecting the nation’s broader population, […]

  Soda consumption levels are not trending in the right direction if you are Coke (KO),  PepsiCo (PEP) or Dr. Pepper Snapple (DPS) — falling to a 30-year low in the United States. Changing taste buds, and consumers desire for healthier alternatives have resulted in flavored waters and juices, not to mention the energy drink […]

Driscoll’s is attempting to convince consumers that its strawberries aren’t just any strawberry   “You have to find a way to say this strawberry is different from that strawberry, which isn’t necessarily an easy thing to do,” said Soren Bjorn, executive vice president of Driscoll’s. “But our strawberries actually are different — no one else […]

In today’s issue of Tematica Investing, we adding a new position as we dig into falling food prices (which is a good thing for this company) and the consumer’s move towards Food with Integrity.

If you’ve ever lived in a household of teenagers the only that approaches the demand for data (whether WiFi or cellular) is that for the precious maple syrup to smother pancakes, waffles or the like! And of course, if you’re at all in-tune with our Foods with Integrity thematic, you know the “fake stuff” just doesn’t […]

If Burger King is looking to challenge Chipotle, it’s going to take a lot more than rolling up a Whopper and giving it a new name. Despite Chipotle’s setbacks, it’s claim to fame has been “food that is good for you” and that means Burger King needs to do more than design a new delivery […]

While overall cereal sales are stale, like an old box of Cheerios, sales are up for cereal that advertise sprouted grains, and products that advertise more protein, and gluten-free cereal products. We see this a good for companies like Kasha and Cascadian Farm, but potentially troubling for General Mills, Post Holdings and others. Source: Can […]

When one one of the biggest servers of fast food (or fast casual) as the industry calls it, changes the way it prepares its foods, we view it as a major tipping point for our Food with Integrity investing theme. With the overuse of antibiotics in farms animals — accounting for around 75% of all antibiotics sold […]

To most, the rise of water — in particular bottled water — as America’s go-to beverage is quite extraordinary. But of course, at Tematica, we don’t look at the world quite the same as most investors. Our thematic investing approach that we’ve developed looks at the intersection of evolving economics, demographics, psychographics, and technologies combined with regulatory and […]

Within the United States, sometimes a single law in a single state can impact the entire country. In this case it’s one of the smallest states, Vermont passing a GMO labelling law that is forcing food manufacturers to change their labelling across the entire country   …the Vermont rule is under attack on both the […]

When cities across America have instituted a so-called “soda-tax” — New York City being the most notable — diet soda’s have aways gotten a tax-free pass. Philadelphia might be changing that, as they are looking at all sweetened beverages, whether they contain natural or artificial sugar, as part of its new tax proposal. Philadelphia’s City […]

After an upward move over the last few months, the market is once again seesawing following a growing number of uncertainties and concerns, particularly as even more concern has bubbled up over the Retail sector. On the heels of Gap’s (GPS) gloomy outlook, Macy’s (M) citing slow mall traffic as it slashed full year earnings to $3.15 – $3.40 per share, down from an earlier projection of $3.80 to $3.90 per share.

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What is Thematic Investing

Thematic investing looks to identify pain points by looking at the intersection of shifting economics, demographics, psychographics and technologies, mixed in with regulatory mandates and other forces. Such pain points result in a pronounced secular market shift that shapes and impacts behavior, forcing companies to make fundamental changes to their businesses to succeed.  Read More >>

What We Do at Tematica

Tematica Research provides equity research, economic insights, and investment ideas based upon its proprietary thematic perspective of the world and financial markets. The thematic discipline utilized by Tematica across its research and economic commentary, as well as its index and portfolio construction efforts, is the culmination of the more than 20 years Chief Investment Office Chris Versace spent analyzing industries and companies.  Read More >>