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.

Beer = American

Anheuser-Busch InBev SA/NV - 90.27
Molson Coors Brewing Company - 44.64
The Boston Beer Company - 106.68

Dow Jones Ind. Ave. - 13,610.15
S&P 500 - 1,460.93
NASDAQ - 3,136.19

         In the past three years we have seen an overall decline in beer shipments in the U.S. In the first eight months of 2012 the beer shipments have increased 1.9% in the US. Beer is becoming more and more popular and climbing back to where it was before our country's economic decline. With more and more new brews coming out and different seasonal beers by craft brewers beer is more versatile as ever. Fall season is underway and we are seeing an increase in most stocks of the brewing industry. Everywhere you look you see some aspect of beer and/or its industry. But off all the brewing company's, the best buy right now is the domesticated beer companies (Ex. BUD and TAP) The craft company's simply with the expectation of the rising prices due to "craft" making, the price of stocks are high, but there are not paying much or even in SAM's case paying $0 in dividends. My predictions for this week, stock value continually increase in all brewing industries. This is due to aspects such as football, Oktoberfest, and seasonal brews.

    

Oktober Is Here

Anheuser-Busch InBev SA/NV - 85.91
Molson Coors Brewing Company - 45.05
The Boston Beer Company - 111.97

Dow Jones Ind. Ave. - 13,437.13
S&P 500 - 1,440.67
NASDAQ - 3,116.23

    

In this past week, we have seen a decrease in stock prices of the brewing industry. This is part due to an increase in demand for beer. With football, Oktoberfest, and other fall activities, the price of producing beer is increasing. This is what drives the price higher in your nearest supermarket, or gas station. It is the simple law of supply in demand. However, with this slight decline in stock prices, now is the time to buy!! The Boston Beer Company, known for its craft beers, would be a good company to invest in because of a recent increase in popularity of craft brews. I can still predict an increase in stock prices of the craft beer breweries. New seasonal beers are just hitting the market this week as we step into October. Also let’s not forget about Oktoberfest. We should see an increase in stocks also due to the millions of liters of beer being consumed.

Craft is Coming!

Anheuser-Busch InBev SA/NV - 87.01
Molson Coors Brewing Company - 45.60
The Boston Beer Company - 107.79

Dow Jones Ind. Ave. - 13,579.47
S&P 500 - 1,460.15
NASDAQ - 107.79

     

            The brewing industry has been changing more and more in recent years. It has seen a significant increase in craft beers and breweries. There are now more than 2,100 American breweries, compared to less a hundred only a few decades ago. Each year around the season change, you see more and more seasonal beers from a variety of companies. Also, each year these beers become more and more popular with consumers. The fall season I believe has the most activity in these craft beers. Oktoberfest and other Harvest related beers pop up of shelves in stores near you. From all of this we should see stock increases with the craft brewing companies throughout the rest of the fall season. As a result of everyone buying the limited time seasonal craft beers, we should see a slight decrease in the domestic beer companies. This is due to consumers buying the craft beers, rather than others. After some time has passed from there release we should see a decline then is the craft beers. It is like the Christmas music effect, most people listen to Christmas music throughout and leading up to Christmas, but as soon as it strikes 12 o’clock on December 26^th nobody wants to listen to Christmas music or even think about it, till the next year.

 

 

 

 

Source: Internet article. Can Investors Tap Craft Brewers.

Can Investors Tap Craft Brewers

Record Highs!

Anheuser-Busch InBev SA/NV - 85.37

Molson Coors Brewing Company - 45.87

The Boston Beer Company - 109.19

Dow Jones Ind. Ave. - 13,306.64

S&P 500 - 1,437.92

NASDAQ - 3,136.42

My last week prediction that stocks would increase due to the season opening for football. And with the exception of BUD, they did. I assume that the stock prices for the brewing industry will quietly increase, or stay relatively the same in the coming months. I still insist for the brewing companies on putting money into promotional items, and sponsorships for the NFL.

Other news this week has happened in the Molson Coors Brewing Company. They have been recognized for being named to the Dow Jones Sustainability North America Index (DJSI) for the second consecutive year. TAP being one of the 140 companies to be on the North America Index. The DJSI is an assessment of certain criteria including the economic, social, and environmental successes. The price for TAP stock has also hit a 52-week high. I can only see from here, that the stock price keeps rising throughout the year.

 

Introduction of Beer

Anheuser-Busch InBev SA/NV - $86.95
Molson Coors Brewing Company - $45.54
The Boston Beer Company - $103.46

Dow Jones Ind. Ave. - 13,306.64
S & P 500 - 1,437.92
NASDAQ - 3,136.42

         

         Nothing like sitting back, watching some football while cracking open a cold one. Football season has arrived! The NFL kicked off their season today, and college football last week. The brewing industry should be wide awake for this year. With last year’s NFL lockout, the companies didn't get off to the start they hoped for. This year bring new promises and also a few new products. With new promotions for the NFL, Bud Light, product of BUD, is calling this year’s season "the year of the fan". Bud Light is sponsoring a fantasy football league, and also promises that during each commercial break of games, there will be at least 2 Bud light commercials. Other companies are also jumping into their football promotions. Due to incoming football season, I can assure that stockbrokers are ready to be buying more and more shares during the coming weeks. I think that companies should be puting money into promotional items for football games if they want there stocks to increase. Football is big in this country, and there is no way that beer will not be included in the fan festivities.