Jefferies Provides Color on Food Sector

Jefferies provided color on the food sector. In a research report published today, Jefferies stressed a possibility that Wal-Mart WMT might put more pressure on its suppliers to maintain its price competitiveness. In the report, Jefferies states, "After packaged food price gaps between Wal-Mart and other grocery retailers have narrowed over the last year our research is hinting that the largest U.S. grocery retailer might start to tighten the price screws on its suppliers again to drive its EDLP (every day low price) strategy." Jefferies also believes that General Mills GIS, Snyder's-Lance LNCE and Kellogg K are the companies with the biggest exposure to Wal-Mart. On Tuesday, Wal-Mart added 0.47% to its value to close the day at $53.29, while Kellogg lost 0.47% to finish the day at $54.99. General Mills ended the day at $38.33 on Friday. Finally, Snyder's-Lance added 3.05% to close the day at $22.33.