You all know by now my favorite comfort food is chocolate. If my discretionary income is so low I can't buy a good book, then I buy chocolate because it's less expensive and because it makes me feel better about not acquiring the book.

This tidbit might give you a clue about how to approach the food and beverage sector in the markets. Americans have a historic record of comforting themselves with food during times of crisis. This timeframe is no exception. Cora and I both were curious how food and beverage sales were doing right now. What we found was very interesting and highly motivating.

Firstly, food and beverage could also be listed as commodities. Commodities are a different animal altogether, as this consists of investments in bulk raw food sales from within and without the U.S. Since we can't invest in commodities at BUYandHOLD, we'll hold off on this area. Our focus is on current possible investments for the long term. This means we'll look closely at the food and beverage sector at BUYandHOLD.

If you wander over to the research department at BUYandHOLD, you'll find a current alphabetical listing of the ten top-selling equities in the food and beverage sector. Take a good look at the companies, and I dare you to tell me Americans aren't into comfort and convenience foods. Click on each company and look at the snapshots. By the time this article runs, the charts will change, but the information will probably stay the same. We discovered companies listed in the top ten of this sector are a varied lot. The food and beverage industry contains manufacturers, packagers, distributors, storage and transportation businesses, and even one that branches out into household products and underwear.

On the right-hand side of each snapshot, we also found a box containing further information about the company. We discovered how companies view their ranking within sectors. Although these companies are listed under food and beverage, they also list themselves under consumer goods/non-cyclical and services. This is great information for further diversification of our portfolios.

The other tidbit of information available is the number of employees within each listing. One clue to the current well being of each company is to check the number of employees in 2001 or 2002 to the number employed in 2003. You can research this number through the various company websites. Most list current number of employees and other news on their sites. This information could include expansion of branches or sales of the same, and the parties they're courting for both.

One other resource to check at the company website is their media department. Granted, most press releases are geared to make companies appear fluid and prosperous, but we can usually gauge the temperature of a company by the number of press releases and the information contained within and between the lines.

If you find you're not comfortable investing in top tens, don't let that stop you from digging a bit deeper, especially in this sector. One thing Cora and I noticed in this list was a lack of alternative establishments and food/beverage products. I never admitted this, but I don't eat run-of-the-mill chocolate. My preference is found at alternative grocery stores - ones not listed at the top ten, but are available at BUYandHOLD. These stores offer viable stock opportunities.

As you shop for groceries, take a look at the alternative food section in your store. Most major chains have - or are planning to add -alternative food sections to their markets. Why? It's possible alternative foods are making a mark, and these major chains want part of the action. When we did our research, we also looked at the alternative food brands and distributors.

Another way to research this sector is by diseases and allergies. No, I'm not kidding. I have Celiac Sprue, or intolerance to gluten. If you have this debilitating and inconvenient problem, you understand how difficult it is to find a food product in America that doesn't contain gluten. The next time you're at the store, read your labels, and you'll see what I mean. These days, though, you'll find more products available listed as "wheat- or gluten-free" or more use of xantham gum as an alternative to gluten.

Diabetics want sugar-free foods, and lactose-intolerant folks want something other than milk. There are people who can't drink coffee, but are all over coffee substitutes. Let's not forget water. Everyone needs water, and this is an investment possibility, also. Ask your friends and family about their food preferences, and you may find a new avenue to research.

Packing and distribution within this sector is a bit more obscure, but without packaging we wouldn't be able to buy certain foods. If you go to the Food and Drug Packaging website, you can get a heads-up on all sorts of news within this industry. Sometimes going to the source will help us understand how these brands plan to market their various time-honored goods and introduce new products to the public. Just this week, Cora and I found ten articles at this site that spurred us on to further research.

Remember, these ideas are simply jumping-off points for you to begin your own research. Take a look in your kitchen pantry (if you dare), and make lists of places where you and your friends eat. Go a bit deeper into your research and discover how and why these businesses operate. Take a look at food and beverage festivals listings, alternative foods, and focuses on new brands that will take you beyond the ordinary.

Remember - people can't live without food or water, and we don't live on bread alone (especially people who have intolerance to wheat!). The choices might seem daunting, but if you treat this sector like a good five-course meal you'll probably find at least one recipe that will satisfy your portfolio.

Until Next Week,
Linda Goin