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.
