Market Overview

5 Liquor Stocks for New Year's Eve

The most enthusiastic partiers have already started the countdown for the year 2012, although the New Year's Eve party is still over a week away. However, before you chill the champagne and make your New Year's resolutions, it is time to look at five liquor stock for New Year's Eve. If the New Year's Eve partiers follow the traditional protocol, these companies might see a nice boost in their sales.

1. Central European Distribution (NASDAQ: CEDC)
Market Cap: 333.51 million
P/E: -

Central European Distribution Corporation is a producer of vodka and the numerous mixed drinks on the New Year's Eve might give a nice boost to the stock that is down 80 percent year-to-date. The competition is tough though, as the consumers have dozens of competing brands to select from.

2. LVMH Moet Hennessy Louis Vuitton (OTC: LVMUY)
Market Cap: 68.79 billion
P/E: 15.5

The French luxury goods company owns a portfolio of premium wines and spirits. Probably the best known brand for the partiers on News Year's Eve is Moet & Chandon that could see higher sales this year, as it is estimated that the champagne consumption will return to pre-recession highs.

The stock is down over 16 percent year-to-date, but the New Year's parties might make it bubble higher.

3. BEAM Inc (NYSE: BEAM)
Market Cap: 7.83 billion
P/E: 45.60

Beam produces and sells branded distilled spirits products worldwide. Its principal products include bourbon, whisky, tequila, scotch, rums, vodkas, cordials, gin, cognac, and ready-to-drink pre-mixed cocktail products. The large product selection ensures that even the pickiest boozers find their drink of choice.

The stock was spun-off from Fortune Brands in September and it is up 12 percent since. The strong year end sales could take it even higher to new all-time highs.

4. The Boston Beer Company (NYSE: SAM)
Market Cap: 1.38 billion
P/E: 24.90

Boston Beer produces malt beverages and hard cider products at the Company-owned breweries. It is widely considered as a premium beer and the consumers are willing to pay a higher price to be able to wash the New Year's Eve snacks down their throats with Boston Lager. The stock has outperformed its competitors in 2011 and is up 14% year-to-date. SAM is trading at its 52-highs and strong year end sales could set a nice trend for the coming year.

5. Molson Coors Brewing Company (NYSE: TAP)
Market Cap: 7.88 billion
P/E: 13.34

Molson Coors is known for the lower end beer brands, such as Coors Light. The New Year's Eve parties have traditionally been the place for more expensive drinks, but the uncertainty over payroll tax cuts might make the consumers scale back. The stock is down 13 percent year-to-date, hence, strong sales would be important for reversing the downtrend.


ACTION ITEMS:

Bullish:
Traders who believe that the alcohol consumption will be high over the Christmas and New Year's Eve weekends might want to consider the following trades:
  • Go long the stocks mentioned in the article.
  • If you want more diversity, iShares MSCI Mexico ETF (NYSE: EWW) offers it with 10% exposure to two Mexican beer companies.
Bearish:
Traders who believe that alcohol consumption will decrase this New Year's Eve may consider alternative positions:
  • Go long Pepsi (NYSE: PEP) or The Coca-Cola Company (NYSE: KO)
  • Take a short position in the beer and liquor companies.
Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.

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