International Beer Day falls on Aug. 6, and for those who are looking to beer brands as a source of investing as well as a source of inebriation, here are five companies that can offer intoxicating possibilities for both trading and long-haul investing.
1. Anheuser-Busch InBev SA BUD: This company came about through a series of multinational mergers: the 1987 union of Artois and Piedbouef into Interbrew, the combination of Brazil’s Antarctica and Brahma in 1999 into AmBev, the 2004 Interbrew-AmBev marriage, and the 2008 addition of St. Louis’ Anheuser-Busch into the mix.
In the U.S., the company’s most recognized brands are Budweiser, Michelob and Rolling Rock. The company recently announced an executive shake-up with Brendan Whitworth promoted from chief U.S. sales officer to CEO of the Anheuser-Busch U.S. operations while his predecessor, Michel Doukeris, became global CEO of AB InBev after the retirement of Carlos Brito.
Anheuser-Busch trades at $61.84, sandwiched between its 52-week range of $51.45 and $79.67.
2. The Boston Beer Company Inc SAM: Founded in 1984, the company’s first brand was named after American Founding Father Samuel Adams, though, oddly the beer features a portrait of Paul Revere on its label.
In addition to its flagship product and the Dogfish Head and Coney Island Brewing Company beers, the company offers other alcohol lines including Angry Orchard hard cider, Twisted Tea malt beverage and Truly hard seltzers. In May, the company announced that it was establishing a Canadian subsidiary to focus on non-alcoholic cannabis beverages.
Boston Beer Company trades at $656.03, closer to its 52-week low of $655.04 than to its 52-week high of $1,349.98.
3. Constellation Brands, Inc. STZ: This company was established in New York’s Finger Lakes region in 1945 in the wine industry and only became part of the beer world in 2013 when it acquired Grupo Modelo’s U.S. beer business from Anheuser-Busch InBev.
Constellation’s beer brands include Corona, Modelo Especial, Negra Modelo and Pacífico, along with the U.S. craft beer producer Funky Buddha. Last month, the company announced it was expanding into the sparkling water sector by acquiring a minority stake in HOP WTR, and it also tiptoed into crypto territory with a travel-related sweepstakes in June with prizes awarded in Triptocurrency, a digital currency designed to be used exclusively for travel bookings through Expedia Group. Inc EXPE.
Constellation Brands trades at $219.51, closer to its 52-week high of $244.75 than its 52-week low of $160.63.
4. Tsingtao Brewery Company Limited TSGTF: This Chinese beer company was founded in 1903 by an English-German company out of Hong Kong.
Tsingtao first became available in the U.S. in 1972, the same year President Richard Nixon made his historic visit to China, and has become a staple at Chinese restaurants across the country. Earlier this year Paulaner USA signed an agreement to become the exclusive U.S. importer of the company’s product line.
Tsingtao has been trading at $8.01, closer to its 52-week low of $7.60 than its 52-week high of $11.52.
5. Waterloo Brewing Company BIBLF: Formerly the Brick Brewing Company, this Canadian operation is notable for opening Ontario’s first modern craft brewery in 2016 and for marketing the first beer exclusively to the LGBTQ community in 1992 with the limited-edition Pride Lager.
Waterloo Brewing has seen a bit of tumult lately with the resignation of Chief Financial Officer David Birch and a C$1.6 million settlement agreement with a creditor impacted by a social engineering cyberattack against the company that occurred in November 2019. But it has introduced a new can line that will increase total can capacity to roughly 4 billion fluid ounces per year.
Waterloo Brewing trades at $5.19, closer to its 52-week high of $7.50 than its 52-week low of $1.50.
Are Beer Companies A Good Investment? During the COVID-19 pandemic, U.S. sales on most alcohol products spiked, ranging from a 39% increase in whiskey sales to a 73% climb in flavored wine sales. However, data from the Brewers Association found beer sales down 3% over the pandemic, with craft brewer sales down 9%.
The National Beer Wholesalers Association reported U.S. retail beer sales fell from $120 billion in 2019 to $100 billion in 2020 because of pandemic-induced closures of restaurants, bars, stadiums and other on-premise venues. Nonetheless, the industry is optimistic that the worst of the pandemic is behind it.
“The beer industry reflects the economy as a whole — both have suffered this past year but are showing resilience in the face of adversity,” said Craig Purser, president and CEO of the National Beer Wholesalers Association. “As our country continues to recover and reopen, Americans will be enjoying beers with friends and family at bars, restaurants, sporting events and other gatherings, supporting the more than two million jobs that rely on the beer industry.
“Beer helps bring people together and it will help drive the activity to fuel our economic recovery,” Purser added.
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