How to Profit from the World's Sweet Tooth

msnbc
By Maxxwell A.R. Chatsko
updated 5/20/2012 4:43:35 AM ET 2012-05-20T08:43:35

The future is sweet for sugar, which is good news if you are an opportunistic investor. Its use has increased mightily in recent years in two major ways: as an alternative feedstock for chemicals and fuels and as an ingredient in foods and beverages. Analysts and experts have touted an inevitable sugar economy in Brazil as the primary explanation for their bullish views. If the United States ever makes the transition to a true bioeconomy after all, sugar will have a role as powerful as petroleum.

While I am optimistic about sugar’s role as a chemical feedstock, I believe its tremendous growth opportunity as a consumable product is often overlooked. A handful of companies such as Archer DanielsMidland, Cosan Limited, and Bunge Limited realize both trends and are heavily invested in sugar’s future in an economy of any kind. Before investing in something as complicated as sugar we must discuss several trends.

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