The second biggest wine company in Canada is also into beer. They recently launched the Wayne Gretzky Craft Beer. They are focusing on marketing and valuation has recently come down. In good times and bad, people will go out for a drink. The company grows by acquisition and the multiple has come down, making it a perfect entry point. A very well-managed, growing company. The legalization of marijuana is not expected to impact wine consumption.
Molson Coors Canada (B) (TPX.B-T)
The well known Canadian brewer has several well-known brands under their wing, including Coor Light and Molson Canadian. They are working together with Hexo in order to start selling marijuana infused beverages in Canada.
Technically there is still a downward trend. Fundamentally, a lot of consumer stocks like this are struggling right now.
Brick Brewing Company Ltd. (BRB-T)
A well-run Ontario based brewery that is growing their brands. They are also looking into cannabis beverages as a big opportunity. They are the second largest craft brewer in Canada. They are well positioned for growth.
What normally happens with the smaller brewers is that they get taken out. He likes the company, but doesn’t follow it closely. A good story with good earnings growth.
Andrew Peller (ADW.A-T)
The second biggest wine company in Canada. They are focusing on marketing and valuation has recently come down. In good times and bad, people will go out for a drink. The company grows by acquisition and the multiple has come down, making it a perfect entry point. A very well-managed, growing company. The legalization of marijuana is not expected to impact wine consumption.
Doesn’t own dual class share companies, but this one has been an amazing growth story. Incredibly successful. If he didn’t have an issue with dual class shares, he might actually buy this. It is unbelievable to him that in an industry which is low growth, they have made some great acquisitions and they cover all…
Big Rock Brewery (BR-T)
An Alberta based brewery that makes premium craft beer and cider. They have a wholesale and retail segment. They have a strong following in Alberta and is trying to expand outside of its home province through wholesale to provincial liquor boards.
Constellation Brands Inc (STZ-N)
An international producer of beer, wine and spirits. They have recently sold lower premium brands in order to invest in cannabis product development. They have major stakes in Canopy. A good defensive play.
He has not had a lot of experience with this company. Their investment in Canopy Growth last October, which makes it hard for him to value the company. It is diversified with alcohol, which is very recession proof.
Boston Beer (SAM-N)
A leading brewer of beer. They’ve won more than 500 awards, and they have a huge market share on the craft beer sector. They recently jumped following a SmarTrend’s Buy recommendation.
Has been a lot of consolidation of beer companies globally and beer is starting to taste the same. They have a good quality product. Own about 20%-25% of the craft beer market. They win a lot of awards. Strong fundamentals.
Molson Coors Brewing Company (TAP-N)
One of the world’s largest brewers. They are entering into the craft beer market, though these are expensive acquisitions. They generate good cash flow and are paying down debt. A concern is the limited space for growth. They are entering into joint ventures with cannabis companies for infused beverages.
The story on brewing companies globally in the last couple of years, has been the consolidation. The industry is not growing. In general drinking, there has been a switch from beer to wine. Acquisitions have become fewer and fewer, and more expensive. He would be a little hesitant going forward.
Ambev S.A. (ABEV-N)
The biggest brewery in Latin America. The stock price jumped recently, folowing a strong second-quarter 2019 results. THe company offers a diverse set of products, including beer, carbonated soft drinks, and other non-alcoholic beverages.
World cup this summer which is good. It has a big dividend and is a good income stock. Thinks this thing should do better as the summer progresses. It is a good income producer for him. They have to, by legislation, payout 35% of income. If he were to sell it would be before the…
Anheuser Busch Companies Inc. (BUD-N)
One of the most well established companies in the sector. Their brands include Budweiser, Corona, and Stella. They are the largest brewing company following a merger with SABMiller.
Molson Coors (TAP-N) or Anheuser Busch (BUD-N) for a 5-10 year hold? He is not long anything in this sector because growth is not that strong, but between the 2 he would probably be more inclined to go with Molson Coors because he thinks you will continue to see more consolidation.
Thai Beverage PCL (TBVPF-OTC)
Thailand’s largest beverage companies, and a leader in Southeast Asia. They are making acquisitions of other beer companies, such as in Vietnam, and also working on their whisky business. It is listed on the Singapore Stock Exchange.
Pan-Asian conglomerate. Have grown there for the last 15 years about 9% per annum. Just bought a Vietnamese beer company. Thinks it's actually on sale here. Likes the exposure to this part of the world. Also a whisky story. A beer company but has the growth of a distilled beverage company. Have some exposure to…