Top Dairy Stock in the World

Saputo Inc. (TSX:SAP) operates in a wonderful industry and has some pretty significant competitive advantages.

| More on:
sad concerned deep in thought

Image source: Getty Images

Saputo (TSX:SAP) produces, markets, and distributes a wide array of dairy products of the utmost quality, including cheese, fluid milk, extended shelf-life milk and cream products, cultured products, and dairy ingredients. Saputo is one of the top ten dairy processors in the world, a leading cheese manufacturer and fluid milk and cream processor in Canada, the top dairy processor in Australia, and the second largest in Argentina.

Top three cheese producers and the largest manufacturer of branded cheese

In the United States of America, Saputo ranks among the top three cheese producers and is one of the largest producers of extended shelf-life and cultured dairy products. In the United Kingdom, Saputo is the largest manufacturer of branded cheese and a top manufacturer of dairy spreads.

Strength and resilience of a global platform

Fiscal 2021 appears to have been a pivotal year in Saputo’s history. While Saputo certainly felt the effects of the COVID-19 pandemic, the company’s performance reflects the strength and resilience of a global platform. Amidst an atmosphere of uncertainty, Saputo stood firm in the company’s values and never wavered in the company’s resolve to do the right thing for all stakeholders.

Prioritizing employee well-being with programs and initiatives

In addition, Saputo’s employees appear to be the heartbeat of the company and the company always seems to prioritize employee health. In addition to enhancing Saputo’s already robust safety protocols, Saputo maintained the company’s commitment to no layoffs due to COVID-19 and prioritized employee well-being with programs and initiatives designed to offer peace of mind and recognize the critical role the company’s workforce plays.

Rallying to supply high-quality products

As an essential provider, Saputo’s teams rallied to supply the high-quality products the company’s communities rely on. Employee contributions helped drive Saputo’s business forward and reinforce the vitality of the company’s culture every single day. Saputo also appears to consider patron farmers as valued members of the extended Saputo family, supporting them with additional services and resources to help alleviate the mental and physical impacts of the pandemic.

Turning challenges into opportunities

In addition, Saputo also worked with local community organizations to help those most vulnerable, mainly to ensure food security. To date, Saputo’s COVID-related financial and product donations have reached over $10 million and counting. Saputo has turned challenges into opportunities as the severity of the pandemic and corresponding government-imposed restrictions evolved throughout the year.

Leveraging the brand power of the company’s retail portfolio

Further, Saputo has had to contend with fluctuating shifts in consumer demand, impacting all the company’s sectors to varying degrees, as well as a significant amount of volatility. Saputo appears to have been able to capitalize on the business upswing by leveraging the brand power of the company’s retail portfolio and by engaging with retail customers to tailor the company’s offering to match rapidly-changing consumption patterns.

Overall, Saputo operates in a wonderful industry and has some pretty significant competitive advantages. This is a great stock for all millennials and retirees to own over the long term.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

The Motley Fool has no position in any of the stocks mentioned. Fool contributor Nikhil Kumar has no position in any of the stocks mentioned. 

More on Investing

Investing

High-Yield Heavyweight: 1 REIT That Packs a Punch

SmartCentres REIT (TSX:SRU.UN) is a yield king with a long-term growth plan that could benefit from much lower rates!

Read more »

Where to Invest?
Investing

Yes, You Should Buy U.S. Stocks!

I strongly believe that every Canadian investor should overweight U.S. stocks. Here's why.

Read more »

Dice engraved with the words buy and sell
Bank Stocks

TD Bank Stock: Buy, Sell, or Hold Now?

TD is out of favour with bank investors. Is this a contrarian opportunity?

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

How Much to Invest to Get $500 in Dividends Every Month

Are you looking for dividends each and every month? This stock is the right "choice" for you, providing stable passive…

Read more »

HIGH VOLTAGE ELECRICITY TOWERS
Dividend Stocks

Dividend Investors: Top Canadian Utility Stocks For June

Here are three of the top Canadian utilities stocks long-term investors may want to consider as portfolio staples moving forward.

Read more »

data analyze research
Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

Two stocks paying monthly dividends are excellent options for income-focused investors looking to increase their passive-income streams.

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

Invest $7,000 in This Dividend Stock for $519 in Passive Income

A $7,000 investment in this top dividend stock could generate over $519 annually in passive income.

Read more »

Group of people network together with connected devices
Tech Stocks

3 Canadian AI Stocks That Are Minting Coin in 2024

AI stocks like Kinaxis Inc (TSX:KXS) are outperforming the TSX.

Read more »