Whole Earth Brands (FREE) – “A World of Goodness”

Company:                                 Whole Earth Brands (FREE)

Sector:                                     Consumer Staples – Packaged Foods

Price/Market Cap:                     $13.40/$500M

Target Price/Implied Upside:     $25.00/85%

Thesis

Undervalued, consumer packaged goods company engaged in consolidating the “Better for you” sweetener market. Led by industry veterans, Whole Earth’s strategy is supported by strong brands, global tailwinds, and a long-established customer base. The business leverages an asset lite model ideal for scaling newly acquired brands.

Avoiding the Institutional Imperative

“Faced with the choice between changing one’s mind and proving there is no need to do so, almost everyone gets busy on the proof.“ – John Kenneth Galbraith

We continue to experience a K-shaped recovery.  Many of us (and most likely those reading this post) live in a way that limits insight to the challenges that many still face.  A narrow segment of the population is flush with cash having had limited spending outlets over the past year. As vaccine roll out becomes more widespread and faster, mask mandates begin to be lifted. Consequently, local economies open and an accelerated return to normalcy takes place filled with individuals eager to repeat the “Roaring 20s.”  Conversely, another segment of the population is having an entirely different experience that isn’t part of the “roaring re-opening” narrative.