With grocery and gas bills squeezing household budgets, consumer staples stocks are sitting at the center of a crucial affordability story. High inflation at 4.2%, wage pressure, and weakening confidence from 57% of Americans who see the economy as worsening are reshaping how and where people spend. That creates different types of risks and potential opportunities across food, beverage, and household product companies. This article walks through 3 stocks from our Consumer Staples screener that appear especially exposed to these trends and helps you think through which business models might hold up better as everyday costs stay under pressure.

Bubs Australia (ASX:BUB)

Overview: Bubs Australia manufactures and sells infant and adult goat and cow milk formula, organic baby food, cereals, snacks and chilled goat dairy products under the Bubs and Caprilac brands across Australia, China, the United States and other international markets. The company combines branded consumer products with owned intellectual property and trademarks, positioning itself in the premium nutrition segment for babies and adults.

Operations: Bubs Australia generates essentially all of its A$109.5 million in revenue from food processing, with around A$64.2 million from the USA, A$18.4 million from China, A$18.8 million from Australia and A$8.1 million from the rest of the world.

Market Cap: A$76.0 million

Bubs Australia is a pure play on infant formula and premium goat dairy products at a time when parents are unlikely to cut back sharply on essentials, even as grocery and gas costs bite. Analysts expect revenue and earnings growth to run well ahead of the broader Australian market, although the current P/E sits above many food peers and the stock has lagged over the past year. Heavy exposure to the US and China and pending FDA decisions add real regulatory and execution risk, but recent board appointments with deep global FMCG experience indicate a company working to tighten its governance and refine its growth plans.

Bubs Australia sits at the crossroads of premium pricing and essential spending, yet many investors still treat it like a simple formula stock. Before you decide it is too risky or too early, scan the 3 key rewards and 1 important warning sign

Lifeway Foods (LWAY)

Overview: Lifeway Foods produces and sells probiotic dairy products such as drinkable kefir, yogurt, cheeses, butter and sour cream, with lines tailored for both adults and children under the Lifeway, Fresh Made and GlenOaks Farms brands, as well as private label offerings. Its products target consumers looking for everyday, nutrient dense foods that support gut health and overall wellness.

Operations: Lifeway Foods generates all of its US$229.4 million in revenue from cultured dairy products sold in the United States.

Market Cap: US$472.8 million

Lifeway Foods positions itself to appeal to today’s squeezed consumer by offering affordable, probiotic rich kefir and dairy products that customers treat as everyday nutrition rather than discretionary treats, even as grocery and gas prices pinch. The company is seeing solid earnings growth expectations, wider margins and a loyal customer base that, according to management, has kept buying despite price increases. At the same time, some models suggest the stock trades at a level that is well below estimated fair value. Against that, investors need to weigh high insider selling, reliance on external funding and a rich P/E versus the broader food sector, along with fresh governance questions after activist pressure over poison pill protections. Taken together, these factors make Lifeway a potential opportunity that clearly warrants deeper due diligence.

Momentum in earnings expectations and loyal kefir demand makes Lifeway Foods look like a story investors have not fully priced in yet, and the 3 key rewards and 2 important warning signs (1 is major!) hints at one twist that could change how you see the stock

Cobram Estate Olives (ASX:CBO)

Overview: Cobram Estate Olives produces and markets olive oil and related products, running vertically integrated olive farming operations across Australia and California, and selling branded oils, olive leaf teas and refined olive oil internationally under labels such as Cobram Estate and Red Island.

Operations: Cobram Estate Olives generates A$177.6 million of revenue from Australian operations and A$60.8 million from US operations, with A$5.4 million of eliminations and corporate items.

Market Cap: A$1.9 billion

For investors watching how household budgets are squeezed, Cobram Estate Olives offers an essential pantry product that still sits in the premium, health focused corner of the supermarket. The company combines strong recent earnings momentum and an 18% net margin with a fully integrated farming, milling and bottling model that supports product quality and pricing power, even as food and fuel costs climb. At the same time, a high P/E and heavy US growth spending, funded entirely by external borrowing, mean results are sensitive to agricultural yield cycles, cost inflation and demand holding up as expected. If you think the market may be misreading that balance of growth potential and risk, Cobram Estate Olives deserves a closer look.

Cobram Estate Olives looks like growth is accelerating just as investors fixate on its high P/E. To see how that trade off really stacks up, start with the 3 key rewards and 1 important major warning sign

The three stocks in this article are just a starting point, and the full Consumer Staples screener surfaces 23 more consumer staples companies that each carry their own compelling story around pricing power, resilience and everyday demand. Use Simply Wall St to identify and analyze the specific catalysts, balance sheet traits and business narratives that matter most to you so you can focus on the highest conviction ideas in this essential 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.