This article is part of our Rising Stars Portfolios series.
Economist John Maynard Keynes coined the term "animal spirits" to describe the emotions that sway human actions. But in the 21st century, the phrase is taking on a whole new meaning. Consumers' increasing concern for the spirits of actual animals -- for the ways in which the critters they eat are raised and slaughtered -- has begun to drive a growing economic trend in the food industry.
Whole Foods Market
Today, Whole Foods' focus on the humane treatment of animals seems to be spreading to the mainstream. The McClatchy-Tribune news service recently reported that conventional grocers Safeway
According to a 2009 poll, about 3% of adult Americans are vegetarians; that may not sound like much, until you realize that translates to 6 million to 8 million people. Meanwhile, there are lots of "flexitarians," or people who greatly limit their meat consumption, and are likely very interested in animal welfare standards for the infrequent occasions when they do consume meat.
Chicago food research firm Technomic says that more than half of consumers point to animal welfare as one of the most important social issues in the food business. The American Farm Bureau released survey results showing that 89% of consumers think companies that require farmers to step up animal care "are doing the right thing."
A brighter spotlight on the ugly, often brutal nature of factory farming can only help this new attitude. The documentary Food Inc. painted big agriculture companies like Monsanto
Whole Foods and Chipotle both belong in the universe of stocks that can be considered for my Rising Stars portfolio, which emphasizes socially responsible stocks. Both companies lead the market in accounting for multiple stakeholders in the course of their business, and they often exhibit progressive, forward-looking policies.
In other words, companies like Whole Foods and Chipotle have vision. And whether you're interested in socially responsible investing or not, you should already know that the most visionary companies can foster tremendous growth. Being ahead of the curve is often what a truly great investment's all about.
Whole Foods Market is a Motley Fool Stock Advisor selection. Chipotle is a Motley Fool Rule Breakers pick and a Motley Fool Hidden Gems recommendation. The Fool owns shares of Chipotle, Monsanto, and SUPERVALU. Try any of our Foolish newsletter services free for 30 days.
Alyce Lomax owns shares of Whole Foods Market. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.