Premium Brands owns a range of specialty food manufacturing and differentiated food distribution businesses with operations in Canada and the United States. As of 2017 approximately 60% of revenue was from food distribution, and 40% was from food manufacturing [21 Significant products include sandwviches (25% of revenue), processed meats (20% of revenue), beef (14% of revenue), and seafood (10% of revenue). 21 The company estimates it has about 50% of the packaged sandwich market in Canada, and 5-10% of the American market [6] It has sandwich manufacturing facilities in Columbus, Ohio, and Reno, Nevada, as well as two plants in Canada. [6] The Company's brands and businesses include Audrey's, B&C Foods, Belmont Meats, Bread Garden GO, Buddy's Kitchen, C&C Packing, Centennial Foodservice, Concord Premium Meats, Conte Foods, Country Prime Meats, Creekside Bakehouse, Diana's Seafood, Deli Chef, Duso's, Fletcher's US, Freybe, Frandon Seafood, Gloria's Best of Fresh, Gourmet Chef, Expresco, Grimm's, Harlan's, Harvest, Ready Seafood, Hempler's, Multi-Task Cold Storage Inc, Hub City Fisheries, Hygaard, Interprovincial Meat Sales, Isernio's, Island City Baking, Larosa Fine Foods, Leadbetters, McSweeney's, Maximum Seafood, Oberto Brands, Ocean Miracle, OvenPride, Partners, Piller's, Premier Meat Packers, Quality Fast Foods, Raybern's. Shahir, Shaw Bakers, Skilcor Food Products, Stuyver's Bakestudio, SK Food Group, The Meat Factory, Westcadia and Yorkshire Valley Farms. 4

Required

A. Explain what you understand by cyclical and Defensive Industries and determine which of these two classifications Premium Brand belong

B. In addition, explain how Premium Brand will perform in high inflationary environment with increasing interest rates.