Citi broke down in a new note which consumer staples companies have the largest sales exposure to Russia and Ukraine as the attack on Kiev and Kharkiv in particular continues to intensify.
The list of companies with more than 2% exposure include PepsiCo (NASDAQ:PEP) at 4.5%, Mondelez International (NASDAQ:MDLZ) at 3.5%, Brown-Forman (NYSE:BF.A) at 3.5%, Inter Parfums (NASDAQ:IPAR) at 2.6%, (NYSE:HLF) at 2.6%, Coty (NYSE:COTY) at 2.5%, Kimberly-Clark Corporation (NYSE:KMB) at 2.3% and Monster Beverage (NASDAQ:MNST) +2.1%.
Consumer staples stocks have outperformed the S&P 500 Index this year as investors have turned to higher-quality, dividend-paying stocks, but concerns over the Ukraine invasion and commodity inflation have made the gains uneven.
Last month Loft Capital Management made the case that XLP was a strong defensive play for tomorrow's market.
"XLP is a great defensive play for investors who are looking to mitigate risk. Besides, the Consumer Staples Sector has outperformed the S&P 500 during the past three recessions," read part of the update.