News that one of the world's largest companies has blamed hipsters for falling revenues may surprise some, but the owner of Gillette razors, The Procter and Gamble Company (NYSE: PG), has reportedly said the fashion for facial hair is hurting its bottom line. Even the charity event, Movember, is now adding to the razor sales slide.
The unshaven joie de vivre was perhaps first eulogised by William Shakespeare, who wrote: "He that hath a beard is more than a youth, and he that hath no beard is less than a man." Proctor and Gamble is large enough to survive this new found following for the dramatist though, with almost every household in Australia likely to contain some of its products, such as Fairy, Olay, Pampers, Oral B, Head & Shoulders, Pantene and Max Factor.
It's possible that some of the money hipsters are saving on shaving is being spent on the products of Freedom Foods Group Ltd (ASX: FNP). It produces organic foods and is bang-on-trend with its range of food products free from gluten, nuts, wheat, dairy, yeast, egg or fructose among other things. Shares have more than tripled in value in the past year and the group's market capitalisation is now $390 million. FY 2013 operating EBDITA was $11.6 million, with the group intent on further expanding its Freedom Food products range into the lucrative North American market. In the U.S. the gluten-free food market alone is estimated to be worth US$3.4 billion.
Better diets will create the somewhat frightening prospect of ageing hipsters, who may find their hearing is not what it was after a youth spent listening to loud music through headphones. That's where companies like Cochlear Limited (ASX: COH) may see exponentially increasing demand for their hearing-aid devices. It's a truly global business with more than 90% of sales coming from outside Australia. An industry-leader in a huge market, its key challenge is to stay ahead of the competition, the gauntlet having been thrown down by low-cost competitors.
The marriage of health and technology looks made in heaven and e-health business Global Health Limited (ASX: GLH) is a micro-cap business specialising in developing software applications to support the connectivity of health professionals. Ageing Australians will also continue to fuel the growth in self managed superannuation with companies like Challenger Ltd (ASX: CGF) perfectly positioned to benefit from the long-term trend of greater demand for its annuity and other financial products.
If you've noticed your energy bills rising then one solution may be to quit moaning and start investing – in power companies like Origin Energy Limited (ASX: ORG) or the environmentally friendly Mighty River Power Ltd (ASX: MYT). Most of the power this formerly state-owned Kiwi company generates comes from base load renewable sources, geothermal and hydro, with the added bonus of giving you exposure to the fast-growing New Zealand economy.
Foolish takeaway
Thematic investing has become a fashion in itself recently, popularised by fund managers trying to attract institutional and retail investors with their investment insights. There's no substitute for old-fashioned research though, that's the way to identify the best companies, including one below.
