Joe Walters, manager of the Royal London UK Equity fund, warned that inflation was causing problems not just for these companies’ customers but also within their own supply chains.

“In the past year inflation has risen much higher and the cost of raw materials presents a challenge for consumer goods companies,” he said. 

Star fund managers Terry Smith and Nick Train both invest heavily in consumer goods giants. 

Fundsmith Equity counts cosmetic giants L’Oréal and Estée Lauder in its top 10 holdings. It also has a stake in Unilever, although Mr Smith has criticised the company’s management over its stance on social and governance issues. 

However, last week he told investors at his annual shareholder meeting that he remained confident in the company’s brand power.  “It is the largest, or second largest, consumer goods company in India, Indonesia and Nigeria,” he said. “Also known as very populous parts of the emerging world. This should be a business capable of performing better.” 

The Lindsell Train Global Equity fund counts Diageo as its largest holding and also holds other consumer giants Mondelez, PepsiCo and Unilever. 

But while these managers backed the companies for their “quality” status, David Kneale of the asset manager Mirabaud said this was what had hurt their share prices in recent months. “It’s part of the rotation in investment styles,” he said. “Rising interest rates make expensive quality stocks, such as those found in the consumer goods sector, much less appealing.”