Consumer staples were bid down in Monday trading as investors digested a flurry of news regarding the Russian invasion of Ukraine and far-reaching round of economic sanctions from western superpowers.
Notable decliners included Anheuser-Busch InBev (BUD -6.9%), Philip Morris International (PM -4.1%), Procter & Gamble (PG -2.4%), Coca-Cola Europacific Partners (CCEP -4.6%), B&G Foods (BGS -3.9%), SunOpta (STKL -3.4%), PepsiCo (PEP -3.7%), British American Tobacco (BTI -2.8%), Kellogg Company (K -2.9%), TreeHouse Foods (THS -2.5%)and Mondelez International (MDLZ -2.7%).
Analysts attributed some of the weakness to investor concerns on the impact of higher commodity costs for consumer product giants in certain categories. In general, there is a lag period between higher commodity costs and pass-through price hikes to consumers. Freight costs could also move higher in the sector due to elevated fuel costs.