John Kershaw & team, BofA Merrill Lynch Global Research

The BofA Merrill Lynch Global Research crew, which advances one level to second place, is “a strong team with excellent insight on the strategic levers on food retail,” according to one portfolio manager. The London-based group of five follows 14 stocks, and leader John Kershaw says investors would do well to favor the smaller-format retailers with convenient store locations and a limited product range that appeals to multiple market segments. “Ticking all those boxes is difficult, but it informs our top picks,” he says. Current favorites include Portuguese food distributor Jerónimo Martins SGPS and U.K.-based Wm. Morrison Supermarkets. The researchers are cautious on big-box food retailers such as Germany’s Metro and France’s Carrefour.