Consumer Non-Cyclical Sector by Better Trades

The Non-Cyclical Consumer Goods and Services industry involves companies engrossed in fishing and farming operations, the processing and production of food, beverages and tobacco, manufacturers of household and personal products and providers of personal services. This sector is classified as any business that is minimally affected by the directional flow of the markets and the economy.

As a leader in the sector with more than $123B worth of market cap, the Household Products industry involves 18 companies engaged in the manufacturing of non-durable goods such as cleaning products, detergents, disinfectants, brooms, mops, towels and rags, disposable plates and cutlery. Non-durables are defined as any product that has an operating life of less than three years and is most often used immediately.

Companies operating within the Household Products sector include Ecolab Inc. (ECL), Newell Rubbermaid Inc. (NWL), The Clorox Co. (CLX) and Proctor & Gamble (PG).

One of the most controversial segments within this sector is the Tobacco industry, which consists of nine companies engaged in the farming, processing and manufacturing of tobacco products. With more than $47B in market cap, the Tobacco sector includes such names as Altria Group Inc. (MO), Philip Morris International Inc. (PM), British American Tobacco PLC (BTI) and Reynolds American Inc. (RAI).

Within the Retail industry, the Drugs sector is comprised of nine companies participating in the operation of pharmacies. The industry also includes retail drug operations with auxiliary food and household good product lines available as well. Companies within in this industry include CVS Caremark Corp. (CVS), Medco Health Solutions Inc. (MHS), PetMed Express Inc. (PETS), and Rite Aid Corp. (RAD) and Walgreen Co. (WAG) among others that have a combined market cap of $31.3B.

As one of the leading sectors within the Non-Cyclical industry, the Food Distribution and Convenience Stores segment is made up of 24 companies participating in the operation of grocery, convenience, liquor and specialty food stores. It has a combined market cap of $44.2B. Included in this sector are such well-known companies as Safeway Inc. (SWY), Sysco Corp. (SYS), Supervalue Inc. (SVU), Kroger Co. (KR), Whole Foods Markets Inc. (WFMI) and Winn-Dixie Stores Inc. (WINN).

Also related to culinary consumables is the Food Processing industry, which consists of 93 companies working in the processing and packaging of produce, meats, fish, animal feeds, fruit juices and dairy products. With a market cap of $28.2B, the industry also includes grain milling, crop cleaning, grading and packaging, animal slaughtering and packaging operations, canning operations, seafood processing, freezing, juice, tea, coffee, and diary manufacturers. With a diverse group of companies involved in the sector, some names include Campbell Soup Co. (CPB), ConAgra Foods Inc. (CAG), Dean Foods Co. (DF), Del Monte Foods Co. (DLM), General Mills (GIS), H.J. Heinz Co (HNZ), Kellogg Co. (K), Kraft Foods Inc. (KFT), Hershey Co. (HSY) and J.M. Smuckers Co. (SJM).

Another sector within the non-cyclical industry is the Non-Alcoholic Beverages group that entails 27 companies in the manufacturing of non-alcoholic beverages, such as water, fruit drinks, soft drinks, iced coffee and tea, as well as other flavored beverages. With a market cap of $74.2B, this sector includes such blue-chip stocks as Coca-Cola (KO), PepsiCo (PEP), along with other players like Fomento Economico Mexicano SAB de CV (FMX), Dr. Pepper Snapple Group Inc. (DPS) and Hansen Natural Corp. (HANS).

With two other segments within the Beverages industry, one being the Brewers sector is comprised of six companies operating in the manufacturing of beer and malt liquors. With a combined market cap of $19.8B, major Brewers include Molson Coors Brewing Co. (TAP), Compania Cervecerias Unidas S.A. (CCU), Companhia de Bebidas Das Americas (AMBEV) (ABV) and the Boston Beer Co. (SAM).

The last segment within the Beverages sector is the Distillers and Wineries industry, which involves 12 companies with a market cap of $19.4B. The companies work in the manufacturing of wine, champagne and sparkling wine, as well as distilled alcoholic beverages, such as whisky, gin, vodka, brandy and other malt and blended alcoholic beverages. Brown-Forman Corp. (BF.B), Constellation Brands Inc. (STZ), Diageo PLC (DEO) and Fortune Brands Inc. (FO) are the major players within the industry.

The remaining segments relate to Personal Products and Personal Services. The Personal Products industry has 32 companies dealing in the manufacturing of toiletries, personal hygiene and birth control products. The companies involved in this industry provide personal products including mouthwash, perfumes, cosmetics, deodorants, hand and body soaps, sunscreen lotion, burial caskets and other personal products. Companies invested in this industry include Avon Products Inc. (AVP), Colgate-Palmolive Co. (CL), Revlon Inc. (REV), Estee Lauder Co. Inc. (EL) and Alberto-Culver Co (ACV) with a cumulative market value of $19.1B.

Lastly, the Personal Services segment is made up of 55 companies encompassed in accounting, counseling and rehabilitation, legal services, automotive repair, lawn maintenance, funeral and daycare services. The industry also involves personal enrichment services, such as dance classes and online colleges, along with rental services for tuxedos and gowns, consumer electronics, movies and games. With just over $5B worth in market cap, this sector is the smallest of all non-cyclicals and includes such companies as DeVry Inc. (DV), Career Education Corp. (CECO), Apollo Group Inc. (APOL), H&R Block Inc. (HRB), Jackson Hewitt Tax Services Inc. (JTX) and Strayer Education Inc. (STRA).

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