US Staples: US Staples Mid-Year Update: Top Durable LT Ideas to Navigate the Sluggish Shelf

Research evidence excerpt

US Staples: US Staples Mid-Year Update: Top Durable LT Ideas to Navigate the Sluggish Shelf

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June 5, 2026 09:45 AM GMT

Morgan Stanley & Co. LLCMUS Staples | North America Dara Mohsenian, CFA

Equity Analyst

US Staples Mid-Year Update: Dara.Mohsenian@morganstanley.comEric A Serotta, CFA +1 212 761-6575

Eric.Serotta@morganstanley.com +1 212 761-2370

Top Durable LT Ideas to Megan Alexander Clapp, CFA

Megan.A.Clapp@morganstanley.com +1 212 761-3715

Navigate the Sluggish Shelf Patty Kanada, CFA

Patty.Kanada@morganstanley.com +1 212 761-1019

Heading into H2, we detail our preferred plays that provide Josh Haubenstock

durable alpha in the face of a still low growth CPG environment. ResearchJosh.Haubenstock@morganstanley.comAssociate +1 212 761-1059

Our preferred OWs in rank order are KO/PM/MDLZ/CL/MNST/ Kenneth Tan

FRPT/HSY, with beverages our preferred sector. Key UWs with ResearchKenneth.Tan@morganstanley.comAssociate +1 212 761-4954

secular challenges remain GIS/KHC/BFB. Darryl Scott Butler Jr

Research Associate

Preferred OW-Rated Stocks: We continue to focus foremost on companies that Darryl.Butler.Jr@morganstanley.com +1 212 761-0672

offer durable LT OSG in a muted-growth CPG topline environment. Our top seven

picks share common characteristics that we are focused on, including sustained

share gains, strong pricing power, outsized innovation, and greater exposure to

higher-growth international markets (FRPT is more domestic), as well as relatively

favorable pricing vs cost risk post higher costs related to Iran. We see alpha

opportunity at these names as significant and durable enough to manage through

market volatility, and we also see catalysts specifically as we look to the back half of

the year.