As Inflation Bites, Power Lies Higher Up the Food Chain 

Specialist ingredient companies might have an easier time protecting profit margins from higher costs than food brands or supermarkets

The food companies with the best shot at beating inflation are those that investors are least likely to know.

Food-ingredient stocks such as cocoa seller Barry Callebaut BARN -0.72% are potentially more shielded from such pressures. Their costs are going up, too: Irish ingredients company Kerry Group KRYAY -1.67% reported raw-material inflation of 2% to 3% in its third quarter. However, their customers that turn ingredients into branded food are heavier users of packaging and transport, where prices are spiraling.