The Rising Influence of Rising Affluence

[DewDiligence]

Good data for such companies as HNZ and PEP:

http://online.wsj.com/article/SB10000872396390444443504577602872706580532.html

Spending by China's urban households in the first half was up 12% from a year earlier. Spending growth by rural households was even stronger at 16%. The average household is still not spending much relative to its counterparts in the West. But with hundreds of millions of families increasing consumption, the aggregate amounts are significant [no kidding].

The main beneficiaries are sellers of everyday products like instant noodles, soft drinks and shampoo. Sales of food, beverage, and liquor in the first seven months of 2012 were up 17% from a year earlier. Sales of cosmetics were up 16%.

HNZ reports FY1Q13 results next week.