Good Bacteria

“Maria Branyas Morera was the oldest living person on earth and since she died in August 2024, she has been the focus of scientific interest. Researchers from Barcelona, Spain, have studied her gut microbiome and published a paper on their findings.

The study suggested Ms Morera had an exceptionally healthy gut and had cells that functioned as if they were 17 years younger than her age. Researchers say her microbiome was “anti-inflammatory” and contained high levels of bifidobacteria – a genus of gastrointestinal bacteria, also known as gut microbiota, that resides in our digestive tract.

Before she died, Ms Morera told an interviewer that the secret to her longevity was avoiding smoking and alcohol, going on daily walks, following a diet rich in fruit and vegetables and eating three yoghurts a day.”

Healthy eating is growing in popularity, and a particularly interesting strand of that is the microbiome, the vast community of microbes that live in and on our bodies. The fermentation of healthy bacteria to produce food is both historic and a promising investment opportunity, with the global precision fermentation market growth being driven by demand for sustainable, alternative proteins and breakthrough bioprocessing technologies.

Traditional fermentation is a natural process where microorganisms like yeast and bacteria consume sugars to produce alcohol or acids, creating distinctive flavours and preserving food. Lactic acid bacteria, such as Lactobacillus, break down sugars into energy and lactic acid, which is key in making yoghurt, cheese, and fermented vegetables. This process simplifies food at a molecular level, enhancing taste and digestibility.

Our growing understanding of the human microbiome has revealed the crucial role these friendly bacteria play in maintaining health. The microbiome supports digestion, immune function, and even mental well-being. Fermented foods, such as yoghurt, kombucha, and kimchi, are rich in probiotics—the “good” bacteria that help maintain a healthy microbial balance—and are growing in popularity.

Our next recommendation has been harnessing traditional fermentation for over a century, making it a market leader. It is also pushing the boundaries to stay at the cutting edge. With strong brands, good management, and a powerful tailwind, it is well set to succeed long into the future.

This is our fourth stock, on the way to building the Quality Portfolio over the next year, when we plan to have approximately 24 stocks. Following the correction in quality stocks in general, we believe this is a good time to be building a portfolio of long-term winners.

To understand what the service looks like, please see our maiden note on Diageo.