Consider the last time you warmed up a pre-packed container of mac and cheese. Think about the most recent moment where you anxiously waited next to the microwave, counting down the seconds until your tasty meal was all warmed up. Chances are, you probably said yesterday, today, or even within the past hour. That goes to show just how powerful the pre-packaged food industry really is. Families rely on these quick and easy meals to satisfy their hunger and serve as a simple breakfast, lunch, or dinner on a busy day. They are also great for individual consumption, and single serving sized meals have continued to be a staple in grocery store freezer aisles. I, Sahm Adrangi from Kerrisdale Capital, have a lot of knowledge on this industry that might be surprising.
History of the Pre-Packed Food Industry
The first pre-packaged meals became available as early as the 1910s when the first pre-packaged hotdogs became available for purchase. Unfortunately, it was around this time that trans fats were also created and became a part of the American diet. It was in the 1890s where trans fats even became a part of the vocabulary of the industry, and foods began to be littered with these components. While working at Kerrisdale Capital, I Sahm Adrangi, was particularly surprised by these details as it is truly shocking to know that these trans fats have been around for such a length of time.
Financial Success of the Pre-Packaged Food Industry
Obviously, due to the fact that a large number of people really rely on these sorts of foods, this industry has always been a thriving one. As Sahm Adrangi of Kerrisdale Capital, I have studied this data. Surprisingly, by the year 2027, this industry will have made a whopping 4.89 trillion dollars. The pre-packaged food industry certainly made a dent in the year 2020 as many Americans were forced to stay at home and cook for themselves. Since restaurants were closed, shoppers relied on foods from the freezer aisle or other shelf-stable sections of the store to get them through the pandemic.
The Packaged Food Industry and the American Diet
Did you know that processed and pre-processed foods make up almost seventy percent of the American diet? Most dietitians and other experts have expressed concern with the amount of these items that people in the United States consume. Most doctors remind Americans that these foods are relatively safe to eat because as with everything, when eaten in moderation, they can become an acceptable part of any eating routine. My team and I at Kerrrisdale Capital have reviewed this information and would echo what these professionals have said, and would suggest monitoring the amount of processed foods eaten on a single day to ensure a healthy and successful weight loss regime.
About Sahm Adrangi
As the founder and Chief Investment Officer of Kerrisdale Capital, Sahm Adrangi’s work has been focused heavily in industries like biotechnology, telecommunications, and mining. Sahm Adrangi first became well-known for outing fraudulent Chinese companies and bringing on reform from the SEC. Kerrisdale Capital participates in short activism by conducting and publishing research on the companies that they short.
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