World Leader Increases!

Anheuser-Busch InBev SA/NV - $87.97
Molson Coors Brewing Company - $41.46
The Boston Brewing Company - $112.97
 
Dow Jones Ind. Ave. - 13,025.58
S&P 500 - 1,4161.18
NASDAQ - 3,010.24
 

 
     

In recent weeks AB Inbev has bought out the Mexican beer company Grupo Modelo in a $20.1 billion dollar deal. This expands the already world leading beer maker into the fast growing beer market in Mexico. This is the second biggest beer deal on record in the brewing industry. The deal is still in the making, and is looking to close sometime in the first quarter of 2013. Since speculation of the deal AB Inbev stock has increased from about 83 to the closing price listed above, about 5 percent. All names, employees, and headquarter are said to stay as is, with the exception of 2 Modelo officials being named to the AB Inbev board of directors. In closing of this deal, it will expand AB Inbev mark in the global beer industry, and also add leading imported beer, Corona, to its already impressive line of brands. The company also is looking to increase world distribution of Corona brand outside of North America, due to 85% of shipments being to Mexico and the U.S. This will ramp the annual revenue to something near $47 billion. AB Inbev current yearly revenue from income statement is $39.34 billion. This will increase their earnings close to $8 billion a year.

Other news this week, Molson Coors Brewing Company distributed dividend at a price of 32 cents a share. Also as the doomsday date of December 21, 2012 nears, beer makers are putting out new brews in association of this date. Ex. Shock Top has an End of World Ale out, and a Canadian company is trying to perform a public toast at the stroke of midnight on the 20th.

Seasonal winter beers are already on the shelves and I am expecting a raise in the craft brewery companies in the coming week. I also can say the AB Inbev stock share price will keep rising in coherence with the Modelo deal.

No Blog Posted by 5:00 p.m. on Sunday 11/18

No Blog Posted by 5:00 p.m. on Sunday 11/11

Brewopoly

Anheuser-Busch InBev SA/NV - 83.44
Molson Coors Brewing Company - 43.31
The Boston Beer Company - 116.58

Dow Jones Ind. Ave. - 13,093.16
S&P 500 - 1,414.20
NASDAQ - 2,982.15

 
Big news in the Brewing industry this week. The Anheuser-Busch InBev Company is planning on buying out the Mexican beer maker Grupo Modelo for 1.85 billion dollars. The AB Inbev company would controls more than 47 percent of the market in the U.S. This raises a few complications in the industry. One of these is the fact that the other companies are worried that AB InBev will stop the smaller craft breweries beers flowing to the market, by keeping it off their delivery trucks, due to more brands of beer that BUD will now be distributing. The craft brewery market, which has grown tremendously in last 20 years, this would seriously hurt these companies and we would see cutbacks and chaos in these markets. We would also see a price increase and a less fewer variety in the long run. The Justice department has to look over this deal to actually see if the Modelo deal will hurt these craft breweries. If this deal goes through, all the other companies in the brewing industry will see a set back in there companies. We would see maybe some other deals popping up to try the match BUD huge portion of the beer market. In all I expect to see a big change in the companies in the coming weeks. Managers in these other beer companies should start to motivate their employees to be more efficient and to work effectively to make up some ground if this deal goes through. I can see the share profit in BUD to increase here, due to speculation of the deal.

No Blog Posted by 5:00 p.m. on Sunday 10/28

Blog not posted that was due 5:00 p.m. on Sunday 10/21

Since 2008 Beer Is Still Great!

Anheuser-Busch InBev SA/NV - 86.82
Molson Coors Brewing Company - 44.20
The Boston Brewing Company - 106.85

Dow Jones Ind. Ave. - 13,328.85
S&P 500 - 1,428.59
NASDAQ - 3,044.11

   

Since 2008, when our economic recession started, quantity of beer sold and consumed did not fluctuate as much as people might think. The quantity did not change, the expectation did. The amount of beer companies sell and the price they sell at does not have anything to do with the stock price. Stock price changes because of the anticipation of selling and the current economic dilemma. Yet the stock values of the companies were half of what they are today. An example on July 9th 2009, the closed stock value of the BUD was 40.15. This week’s closed value was 86.82. It has more than doubled. This is due to the state of our great nation’s economy. Since our recession in 2008, beer stocks have seen a steady increase in value since then. As I talked about in my last post, the beer shipment rates have increased. According to the Wall Street Journal, through August of this year beer shipments are up nearly two percent versus a decline of 1.5% for all of last year. Part of this doing is from the increasing popularity of "craft beers". Nearly all of the brewing company's now have a "craft beer brewery" in there company repertoire. I can see this only increasing more with our country bettering its economic state. This goes to show that even if our country economically is failing, beer is still an affordable and high demanding product, which will never be shot down.