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.
This is a staple business and one that is pretty good through a lot of different economic environments. The yield is not that attractive. He usually likes to see yields in the 3%-5% range. This is off about 40% since the middle of last year, and he wonders why. When a stock this big gets…
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.
(A Top Pick Jun 18/18, Up 1%) Still likes it. It's well-run. They're growing their brands and they have a big opportunity to get into cannabis beverages which will be legal in Canada in October 2019. BRB is well-positioned for this and this market could be very large.
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.
(A Top Pick Nov 18/18, Down 8%) They made acquisitions and markets got ahead of themselves. Now things have settled down. It is a nice stable company and the dividends should increase over time. Stay with it.
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.
Brewery. Tough for them to compete. Have a strong following in Alberta but his concern would be if their product has a strong enough niche to compete with the big companies.
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.
Their investment into Canopy Growth will likely result in write downs. They are pretty expensive on the valuations as well -- 19 times EBITDA and 21 times PE. This is a short for them presently.
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.
She likes the beverage sector. We maybe missed this opportunity. It has gone down so much, but it is still 25 times earnings. She likes it cheaper. Buy at $100 a share. It is too rich to be taken out.
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.
Molson Coors vs. Kraft Heinz She owns neither. Kraft Heinz has pulled back a lot; 3G Capital bought them and they're famous for cutting and not reinvesting, which limits product innovation. There's little growth in North American staples; the space is very mature and highly competitive. Molson Coors: She doesn't own any beer companies, because…
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.
The beer business is a nice steady business, and the consolidation in the industry is where the money has been made. There are a couple of monster brewers out there that own a lot of the breweries. However, underneath that, there are a lot of craft brewers that are taking market share. He wouldn’t have…
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.
It has been a controversial stock because it has been losing market share. It was trying to get its Asian subsidiary public. People hoped a really good valuation on their Asian assets would help. They took a lot of debt on.
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…