With the Australian population on the rise, there is a growing number of mouths that need feeding.
This is great news for many of Australia's leading food companies which could be set to enjoy steady organic growth for years to come.
Three quality food shares that I think are worth considering are listed below:
Bega Cheese Ltd (ASX: BGA)
Thanks to the solid performance of its Tatura Milk business and the acquisition of Vegemite and the rest of the Mondelez Grocery Business, I think Bega Cheese is well-positioned to deliver solid earnings growth over the medium term. So with its shares changing hands at a little over 23x estimated forward earnings, I think investors should consider an investment in the company.
Domino's Pizza Enterprises Ltd. (ASX: DMP)
This pizza chain operator will not only benefit from Australia's growing population, but also from growing populations across Europe. Furthermore, with the European market underpenetrated, there is significant room for Domino's to grow its store network in the continent. In fact, the company intends to more than double its store network over the next seven years thanks largely to the European market. If management succeeds in expanding its margins at the same time, then I suspect Domino's could continue to deliver above-average earnings growth for a long time to come.
Freedom Foods Group Ltd (ASX: FNP)
While pizza is still on the menu for a lot of consumers, there's no denying that more and more people are eating healthily. This will be music to the ears of health food supplier Freedom Foods. In addition to this, the company has been experiencing strong demand for its UHT products. This led management to embark on a major project to increase its production capabilities, making Freedom Foods the largest producer of branded and private label UHT milk in Australia. If demand continues to grow as expected, I believe the company will benefit greatly.
