Every portfolio should have exposure to emerging market growth and holdings in Kraft Inc ( KFT , quote ), Nestle SA ( NSRGY , quote ) and Unilever ( UL , quote ) offer a solid foundation, particularly where the middle class in Asia and Africa is concerned.
While it may seem odd that consumer giants from the developed world represent emerging market plays, each company has positioned itself to prosper from growth in these countries.
This is a large part why these stocks are trading near year highs while other sectors -- like oil -- are plunging. Even if economic growth stagnates, there will always be demand for food items, baby formula and household goods.
As detailed in many articles on www.emergingmoney.com such as " Kraft revenue up 40% in India, pleasing Warren Buffett, a major shareholder ," growth in emerging markets is vital to the future of these consumer conglomerates.
In fact, KFT has split into two units so its emerging market team can better focus on growth abroad.
These companies are utilizing very savvy tactics to expand and serve the burgeoning consumer class. A recent article in The Wall Street Journal reported on the many tactics that Nestle (NSRGY) is deploying to brand itself in the many small shops in Africa.
These efforts will pay off in greater sales for the companies and eventually high stock prices for the shareholders.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.