Stubborn UK inflation at 2.8% in May 2026 and a prolonged squeeze on living standards are reshaping how households spend on everyday essentials. For investors, that mix of higher food and energy costs, pressure on lower incomes, and uneven sectoral inflation can create both cushions and cracks in Consumer Staples. This article spotlights 3 stocks from a recent screener that appear positioned to respond in different ways to the current cost of living backdrop. It is intended to help you think through where pricing power, demand resilience, or balance sheet strength might matter most before you decide what belongs in your portfolio.

Bega Cheese (ASX:BGA)

Overview: Bega Cheese is an Australian food company that collects milk and other ingredients, then manufactures and distributes branded everyday products like cheese, yoghurt, milk drinks, spreads and juices across supermarkets, foodservice and export channels.

Operations: Bega Cheese generates about A$3.1b in Branded revenue and A$1.1b in Bulk ingredients, partly offset by A$583.4m of inter segment eliminations.

Market Cap: A$1.7b

Investors looking at Bega Cheese in the current cost of living squeeze are getting a business built around staple brands on Australian shelves. It is also one working through restructuring, volatile input costs and a low current net margin of 0.2%. The appeal lies in its sizeable branded portfolio, supply chain improvement efforts and a modest P/S of 0.5x, set against funding that leans heavily on external borrowing and earnings that have been hit by one off items. Management is talking openly about inflation still flowing through energy, labour and packaging, and also about offsetting some of that through efficiency programs. The key question is how much of that potential improvement is already reflected in the price and future expectations.

Bega Cheese looks like a restructuring story hiding inside everyday staples, with a modest P/S of 0.5x and thin margins that could shift quickly as efficiency programs bite. See how the 1 key reward and 2 important warning signs might be framing one crucial twist investors often overlook

Alico (ALCO)

Overview: Alico is a US agribusiness and land management company that owns and leases farmland and native pasture, earning income from citrus and sugarcane production, cattle grazing, hunting leases, conservation activities and rock mining royalties.

Operations: Alico generates about US$12.4m from its Alico Citrus segment and US$4.0m from Land Management and Other Operations, all from customers in the United States.

Market Cap: US$299.2m

In a world where food and basic commodities remain essential regardless of the cost of living squeeze, Alico offers pure exposure to agricultural land and citrus production in the United States. The company is currently loss making, with return on equity in the red and revenue forecast to decline. Analysts also expect very strong earnings growth and a shift into profitability over the next few years. Recent quarterly figures already show a move from a large loss to reported net income, although funding relies entirely on external borrowing rather than customer deposits. For investors, the mix of core food exposure, a recent dividend, and a sizeable gap between price and estimated cash flow value raises some important questions about how to weigh potential upside against these funding and earnings risks.

Alico’s land backed story, recent dividend, and shift from a large loss to net income hint at a potential turning point. Get the context behind those swings in the DCF valuation analysis for Alico investors may be missing.

United Natural Foods (UNFI)

Overview: United Natural Foods is a large distributor that supplies grocery chains and retailers across the United States and Canada with natural, organic, specialty and conventional food and non food products. It also operates its own Cub Foods and Shoppers retail stores and provides technology and marketing services to help stores run and grow.

Operations: United Natural Foods generates about US$16.9b from its Natural segment, US$13.3b from Conventional, and US$2.2b from Retail, partly offset by US$1.1b of eliminations.

Market Cap: US$3.1b

United Natural Foods sits at the heart of essential food retailing, supplying everything from budget staples to higher margin organic brands at a time when households are cutting back but still have to stock the pantry. The company is working to lift margins and cash flow through warehouse automation, network optimisation and digital services. Recent quarters highlighted better profitability and debt reduction even as sales were soft. Analysts expect earnings to improve from current losses and see room for profit growth if these efficiency gains stick, helped by structurally higher food prices and steady demand for natural and organic products. The flip side is real, with funding heavily reliant on borrowing and interest coverage still tight, so the payoff depends on how quickly those profit gains come through.

United Natural Foods’ margin rebuild, warehouse automation and debt reduction story is still taking shape, and the analyst forecasts for United Natural Foods reveal how that effort could reset what investors think is possible next

The 3 Consumer Staples stocks in this article are only a starting point, with the full Consumer Staples Sector screener uncovering 29 more companies that pair essential products with equally compelling investment narratives. Use Simply Wall St to identify and analyze the specific catalysts, pricing power and balance sheet traits that matter most so you can focus on the highest conviction ideas in this sector.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.