Inflation is making a comeback in the US economy. The latest figures showed prices grew 5% in May according to a journal article yesterday. It is not just used cars, fuel, services and other items that are increasing in prices basic necessities such as food is also going up in prices. Unlike other products, people will have to eat and its unlikely food can be avoided despite higher prices. Consumers may switch to cheaper food products but still people that value quality and lack of changes in purchase behavior is likely to benefit food producers. Though higher costs are passed on to customers in higher prices, it is possible for some firms to earn higher profits. From the journal article:

More companies also have started passing on to consumers the higher costs they are facing for raw materials and wages.

Food makers said their costs are climbing at an alarming rate, prompting them to raise some prices.

“The inflation pressure we’re seeing is significant,” General Mills Inc. Chief Executive Jeff Harmening said at a recent investor conference. “It’s probably higher than we’ve seen in the last decade.”

He and his peers point to transportation, commodity and labor costs all increasing at the same time. They expect the trend to continue for at least the rest of this year. As a result, General Mills, Campbell Soup Co. , Unilever PLC, J.M. Smucker Co. and other big food companies are raising prices. Some increases are already visible on supermarket shelves, and more are coming this summer.

Source: U.S. Inflation Is Highest in 13 Years as Prices Surge 5%, WSJ

So what are some of the public food companies in the US?

Some of the 10 large food companies that investors can consider for further research are listed below:

1.Company: Kellogg Co (K)
Current Dividend Yield:

2.Company: General Mills Inc (GIS)
Current Dividend Yield: 3.28%

3.Company: Mondelez International Inc (MDLZ)
Current Dividend Yield: 1.99%

4.Company: Campbell Soup Co (CPB)
Current Dividend Yield: 3.22%

5.Company: ConAgra Foods Inc (CAG)
Current Dividend Yield: 2.95%

6.Company: Kraft Heinz Co (KHC)
Current Dividend Yield: 3.72%

7.Company: The Hershey Company (HSY)
Current Dividend Yield: 1,86%

8.Company: J M Smucker Co (SJM)

Current Dividend Yield: 2.65%

9.Company: Post Holdings  (POST)
Current Dividend Yield: N/A

10.Company: Hormel Foods Corp (HRL)
Current Dividend Yield: 2.03%

Disclosure: Long GIS