MW Follow the smart money to the makers of these favorite snack foods and drinks

By Michael Brush

Insiders are betting the U.S. snack food market still holds strong appeal

Why shares of Utz Brands, Coca-Cola, Hershey and Molson Coors belong in your portfolio.

Shares of some snack food companies sunk to ridiculously cheap valuations.

Snack food companies were due some good news - like the recent round of insider buying at some of the biggest producers.

Investors shunned these stocks due to concerns about the threat from appetite supressing GLP-1 drugs such as Ozempic and Wegovy. These medications reduce cravings for salty snacks, chocolate and sweetened drinks.

Shares of some snack food companies sunk to ridiculously cheap valuations on these fears. That's when insiders swooped in and bought close to $5 million worth of shares across Utz Brands (UTZ), Coca-Cola $(KO)$, Hershey $(HSY)$ and Molson Coors Beverage $(TAP)$.

Insiders are betting the U.S. snack food market still holds strong appeal.

From early November through the end of December insiders at Utz Brands purchased $2.6 million worth of stock between $9.86 and $10.58 a share.

Late last October a director bought $998,000 worth of Coca-Cola stock at $69.87 to $70.31 a share. That purchase was interesting for two reasons. First, this is a large amount. Next, it was Coke's first insider purchase since June 2022.

Two directors collectively bought $450,000 worth of Molson Coors shares in early November between $44.70 to $46.79.

At Hershey, the CEO and two directors bought $445,000 worth of stock in late November at around $186. Most of the buying, $371,000 worth, was by CEO Kirk Tanner - which enhances the signal. The purchases are also bullish because these were the company's first insider buys since 2019.

These bullish insiders are probably making the right move. Research group Circana says that last year 48.8% of consumers snacked three or more times a day, up 2.7 percentage points over 2024. People might be consuming smaller portions, which would explain the soft sales at many - but not all - snack food companies. However, here are four reasons why insiders are betting the worst is over:

1. Snack food companies are fighting back with "healthier" products: They're enjoying growth from "better-for-you" snack brands. Utz Brands, for example, offers its Boulder Canyon line of salty snacks made with avocado oil or olive oil rather than traditional seed oils.

Consumers are going for it. "We feel very good about the momentum on Boulder Canyon," Utz Brands CEO Howard Friedman said in a recent investor presentation. "That business is growing really nicely, and I expect it to continue." Boulder Canyon is the No. 1 potato chip brand in the "natural" snack food channel. The product is one of the reasons why Utz salty snacks sales advanced 3.5% in the fourth quarter, compared to 1.1% growth for the category overall. Utz "power brands" in the category also include Utz, On the Border and Zapp's.

Coca-Cola offers "gut healthy" prebiotic soda and zero-sugar drinks; it also sells a "better-for-you" dairy shake with more protein and less sugar than regular milk, called Fairlife. "We're the largest value-added dairy player in the U.S.," CEO James Quincey said in a recent investor presentation. Coke has also built a presence in water and sports drinks with its Dasani and BodyArmor lines.

Hershey offers low-calorie, baked salty snacks with cleaner ingredient profiles, including Pirate's Booty, SkinnyPop and LesserEvil. And Molson Coors has been moving into nonalcoholic drinks such as ZOA Energy and a premium mixer brand called Fever-Tree.

2. They're using prodigious cash flow to reward shareholders: Snack food companies are cash flow machines. They'll continue using that cash to support growth. One avenue for growth is the purchase of brands and distribution networks to boost market share. At Coca-Cola, Quincey says, "bolt-on M&A will start to come back for us and for the industry."

Last October Utz shelled out for a California distribution network. This should boost growth nicely. That's because Utz has just 1.9% market share in the state, compared to 10% nationally. California is the largest U.S. salty snacks market at $4.1 billion in annual retail sales. A similar purchase in Florida boosted sales in the state significantly.

Hershey, meanwhile, says acquisitions will account for about a third of its projected 2026 4%-5% sales growth.

A year ago, Molson Coors bought an 8.5% stake in the premium mixer company Fever-Tree Drinks. It now owns the company's U.S. division. In late 2024 it bought a majority stake in the energy drink brand ZOA Energy.

These companies also are buying back shares paying out decent dividends.

3. The power brands will power through: Judging by the results of some of the snack companies, you wouldn't even know that GLP-1s are making a dent in consumption of treats. Chalk it up to brand power.

Consumer loyalty brings privileges. In the third quarter, Coca-Cola posted 6% sales growth, thanks to a mix of volume growth and price hikes. Quincey projects medium-term annual sales growth will be 4%-6% - with volume growth and prices hikes contributing equal parts. Consumers put up with the higher prices because they love their Coke.

Hershey's fourth quarter sales advanced 7% to $3 billion compared to the prior year. The company's core brands, including Hershey's, Reese's, and KitKat, continued to show strong growth. Its snacks segment also performed well, with sales growing 8%. Hershey has been cutting costs and raising prices to offset higher cocoa prices.

4. Three insider favorites look arguably cheap: At a recent 0.6 times sales, Utz trades at a 37% discount to its trailing five-year average price to sales ratio. At 0.8 times price to sales, Molson Coors is at a 19% discount. At 2.6 times sales, Hershey trades at a 10% discount to its five-year average.

Discounts on snack stocks that insiders bet will outperform. That's a sweet deal.

Michael Brush is a columnist for MarketWatch. At the time of publication, he had no positions in any stocks mentioned in this column. During the past several years, Brush has suggested KO, UTZ and HSY in his stock newsletter, Brush Up on Stocks. Follow him on X @mbrushstocks.

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-Michael Brush

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February 07, 2026 10:02 ET (15:02 GMT)

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