As food prices soar, food companies are trying to steer consumers toward cheaper, high-margin products, in hopes of raising profits and delivering a nice side effect to related exchange traded funds (ETFs).

The latest advertising strategy comes from three companies, Kellogg Co. (K), Kraft (KFT), and Campbell Soup (CPB). Efforts are already evident, as Kraft is advertising Kool-Aid beverage drinks on the radio for the first time in 11 years, reports Julie Jargon For The Wall Street Journal. Meanwhile, Campbell and Kraft are pairing up to promote grilled cheese sandwiches and they will be served with soup, and called a “wallet-friendly meal your family will love”.

This is a big move away from the current tactic of pushing higher-priced premium foods, and moving toward value approach – something that many people can appreciate in times as tight as these. If this push works, some ETFs that could benefit:

• PowerShares Food And Beverage (PBJ): down 9.6% year-to-date; Kellogg is 5.4%
• PowerShares Dynamic Consumer Staples (PSL): down 6% year-to-date; Kellogg is 2.7%; Kraft is 2.6%; Campbell is 1.5%
• Vanguard Consumer Staples (VDC): down 3.9% year-to-date; Kraft is 3.4%; Kellogg is 1.1%
• Consumer Staples Select Sector SPDR (XLP): down 3% year-to-date; Kraft is 3.9%; Kellogg is 1.3%

Tags: Consumer Staples, PBJ, PSL, Retail, Sector ETFs, VDC, XLP