Top Brewers Stocks to Buy in 2019
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.
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.
It was hit hard during the pandemic when restaurants were closed, but are recovering strongly. Recently, have faced higher freight and material costs. Despite those, margins are healthy. Consumers are returning to bars, restaurants and airports. He expects better results in coming quarters.
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.
Given their relationship with Canopy Growth Don't average down. He has little faith in Canopy, but believes in Constellation who delivered a great quarter, but nobody cared. This will change.
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.
It reports Thursday. He expects declining numbers, especially their hard seltzer sales. He prefers STZ for its strong beer brands (which he owns).
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.
It posted a 5% earnings miss today, but offered a far sunnier forecast -- it can raise prices to keep up with ever-rising costs. It reported revenue growth for the first time in a decade. But wait till the conference call--for this and all stocks--because that's where the meat is. Listen for guidance.
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.
Allan Tong’s Discover Picks Ambev doesn’t receive much coverage in this hemisphere, but the stock has beaten or come in line in the past year and pays a 0.77% dividend though is fairly stable at a 1.11 beta. Historic returns have been negative (-34.63% over three years) but are improving at a 4.62% one-year return.…
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.
A great company, but Diageo offers higher margins. With BUD, you're betting on a turnaround story. Heineken or Carlsberg offer higher quality products, though pay skinny dividends. BUD has a debt issue, a product mix that doesn't work among many problems.
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.
(A Top Pick Oct 27/21, Down 11%) August numbers improved, debt down. Higher beta, as it's in EM, so one he tends to trade. Attractively priced at these levels. A bet on rising incomes, tourism, Southeast Asia robust growth profile. Very well run.