Replies to post #122 on Anheuser Busch Companies (BUD)

[FUNMAN]

Bud Light returns to UK with big marketing support

24 February
10:57

This could turn out to be very good. They have a chance to go from ZERO to whatever.

Bud Light, the best-selling beer in the US, is returning to the UK market after a 16-year gap with the backing of a £10m-plus marketing campaign by brewing giant AB InBev.

Nick Robinson, marketing director at AB InBev UK, said: “We think it’s the biggest thing we have done in the beer market in the last 10 years.”

He said Bud Light has a “strong foundation” to start with as almost two-thirds (63%) of the target 18- to 24-year-old drinkers were aware of the brand through holidays in the US and from watching films and TV shows.

Bud Light, which is being brewed in the UK, is 3.5% ABV, compared to the 4.2% ABV product in the US, where the brand accounts for one in five of every beer purchased. Robinson said it was decided to brew at a lower ABV because a majority of younger drinkers wanted to moderate their drinking.

He said there was now greater consumer understanding of ‘light’ beers than when Bud Light first appeared on the UK market. Coors Light is now a well-established brand in the market.

Bud Light will be available in the convenience sector in 4x440ml cans, £5.49 price-marked 4x500ml cans and 10x440ml cans.
The brand was promoted before the launch on social media and launch support will include TV, out-of-home, print and digital advertising and PR and social media activities.

“Our intention is to invest significantly this year and beyond,” said Robinson. “We know it taps into what consumers are looking for in beer in terms of calories, taste and alcohol.”

In-store, he said, he expected Bud Light to bridge the gap between standard and premium lagers.

[FUNMAN]

If you didn't know about their debt issues, this article makes BUD sound like the best thing since sliced bread.



Best Dividend Stocks in Beverages
(the other is Starbucks)

Looking to boost your investment income? Then check out these two dominant beverage companies.

Joe Tenebruso (TMFGuardian)
Sep 19, 2017 at 3:30PM

What's more important to you as an investor: current yield or dividend growth?

No matter your answer, the beverage industry can help you find what you're looking for. Read on to learn more about two of the best dividend stocks available in the market today -- including one that offers a sizable current yield and another that should continue to rapidly increase its payout in the years ahead.


The beer king

Anheuser-Busch InBev (NYSE:BUD) is the 800-pound gorilla of the beer industry. After its $100 billion acquisition of its former rival, SABMiller, AB InBev now controls nearly 30% of the global beer market. The combined company has a portfolio of more than 500 beers including seven of the top 10 global beer brands and 18 brands that generate more than $1 billion in retail sales.

AB InBev is the world's first truly global brewer, with leading market positions in virtually every major beer market. And while beer consumption growth has recently been tepid in developed markets such as North America, the merger with SABMiller gives AB InBev a stronger position in high-growth developing regions, particularly in Africa.

Moreover, AB InBev doesn't require much in the way of volume growth to deliver higher revenue and profits in the coming years. The company's "premiumization" strategy -- in which it more aggressively promotes its higher-priced brands -- is leading to increases in average selling prices; revenue per hectoliter rose 3.2% in the second quarter, even as total volumes increased only 1%. Additionally, the company captured $335 million in synergies and cost savings related to its merger with SABMiller in Q2, and it remains on track to realize its long-term goal for achieving $2.8 billion in total cost synergies.

In turn, higher prices and a lower cost structure are helping to drive margin expansion; Second-quarter EBITDA margin improved by 238 basis points, to 37.7%. Management is committed to passing on these rising cash profits to shareholders in the form of a bountiful 3.2% dividend. Importantly, the $3.90 per share that the company expects to payout to investors should be well-secured by the $4.14 analysts expect it to generate in earnings per share in 2017 and the $5 it's projected to deliver in 2018.

All told, investors can buy shares in this dominant beverage company today at a forward price-to-earnings ratio of 24 based on analysts' estimates for 2018 -- a relative bargain considering its nearly 22% projected EPS growth rate over the next half-decade.

[FUNMAN]

If you can't beat 'em, join 'em may not work out perfectly

Should Craft Brewers Be Frightened of What This New Survey Says?
Actually, the results are quite hopeful.

Rich Duprey (TMFCop) Sep 21, 2017 at 7:33AM

Who cares who makes your beer? So long as it tastes good, that's what's important. That's pretty much the argument Anheuser-Busch InBev (NYSE:BUD) makes when scooping up a craft brewery, and it's the case being made by analysts at UBS (NYSE:UBS) following a survey of 1,200 beer drinkers.

According to Business Insider, "Craft beer's argument for not selling out is totally flawed," and after reviewing the UBS survey's results, it says mega brewers like Anheuser-Busch and Heineken (NASDAQOTH:HEINY) "can win in craft with M&A." The problem is, the takeaway by the analysts and BI is completely wrong.

A mighty thirst for beer

Big Beer has been on a crusade to buy its way into virtually the only sector of the beer industry that's shown real, consistent growth. Anheuser-Busch is the most obvious example of it, buying 10 craft brewers over the past year, but Heineken also bought Lagunitas, Constellation Brands (NYSE:STZ) bought Ballast Point Brewing for a shocking $1 billion and then just doled out a presumably much smaller sum for Funky Buddha Brewing, and recently Japanese beer giant Sapporo bought original craft brewer Anchor Brewing.

After years and years of enjoying double-digit growth rates, the craft beer segment saw growth shrivel to 6% as millions of barrels of beer were removed from the equation. To be considered craft, the Brewers Association requires a brewery produce 6 million barrels a year or less, be independent, and use only traditional ingredients and adjuncts in the brewing process. Once A-B or Constellation acquires you, your production is no longer counted toward the total.

Craft brewers have long been a tight-knit group that has fought alongside one another to get distribution and has their beers showcased on store shelves or on tap at bars and restaurants. But what was once a unified front has become frayed as the biggest brewers in the industry began writing checks with lots of zeros on them.

Suddenly, once stalwart opponents of Big Beer buyouts were now signing away their breweries in a bid to cash in.

There is certainly nothing wrong with these brewers selling out to their big rivals. They've put plenty of financial and sweat equity into their labor of love, and now they have a chance to profit handsomely and bring their beer to more people.

But that's a far cry from saying beer drinkers don't care who makes their beer. In fact, the UBS survey proves just the opposite.

It really is more than just about taste

The figure UBS and Business Insider touted was that 45% of the respondents didn't think it mattered who made their beer, which was then ratcheted up to "In other words, almost half of Americans don't care at all if a trendy craft beer is owned and produced by AB InBev, the maker of Bud Light, or a small craft brewer completely independent from industry giants."

However, what they're ignoring is a majority of beer drinkers do care who makes their beer, with 30% actually passionate about it, saying it was an extremely important issue.

That's what the Brewers Association is tapping into with its new label program to help craft brewers identify themselves to the 56% of beer drinkers who say it's at least somewhat essential that a beer purported to be craft actually be made by a craft brewer.

In fact, Anheuser-Busch InBev is beginning to recognize that who owns the brewery does matter. After having bought out so many craft brewers, the beer giant just reorganized its high-end craft beer division and fired 90% of the sales force. Ostensibly some of that is the result of having acquired so many sales people from so many brewers that they became redundant, but it also stems in part from the blowback being received by the very beer drinkers who supposedly don't care.

On the outs

Bars and restaurants are removing labels of brewers who sell out, festivals are dropping sponsorships from breweries that were once mainstays of the circuit, and people are switching beers to those that remain true craft. Constellation Brands recently had to write down the value of its Ballast Point acquisition after realizing negative trends in the beer.

Indeed, the reverberations have been such that Anheuser-Busch says it's not going to be buying any more craft breweries and will instead work on achieving organic growth with the portfolio it's assembled.

Forty-five percent of beer drinkers not caring who makes their beer is a large percentage, but it's not half, and saying AB or Heineken won't suffer if they ignore what the majority of beer lovers are saying certainly seems a misguided and dangerous takeaway.

[FUNMAN]

BUD - Here's why BUD dominates the American beer market. Not only do they have the best selling domestic brands, BUD also has the best selling imports too.

Domestic Bud products in the top 20.
1. Bud Light
3. Budweiser
5. Corona Extra
6. Natural Light
7. Busch Light
8. Michelob Ultra
9. Busch
11. Modelo Especial
15. Bud Light Platinum
17. Bud Light Lime
18. Bud Ice
20. Bud LIght Lime StrawberRita


Here are the 16 Best Selling Imported Beer Brands in US in 2017

Published on October 3, 2017 at 8:11 pm
by ALEXANDR OLEINIC in Lists,News

The top 16 best selling imported beer brands in US in 2017 amass the largest share of the imported beer in the US, which is the second-largest behind domestic beer, though trailing it by a wide margin. According to the Brewers Association, in 2016, there were 196.75 million barrels of beer sold, with domestic beer amassing 139.28 million barrels, followed by imported beer with 33.37 million barrels. In 2016, imported beer saw the largest growth, of 6.8%, followed by craft beer, which registered a 6.2% increase in sales.

The popularity of beer looks strong based on the latest polls as well. According to Gallup, in 2017, 40% of alcohol consumers prefer beer, followed by 30%, which prefer wine, while 26% prefer liquor. In 2016, a similar Gallup poll showed that 43% of alcohol consumers chose beer, while wine and liquor was picked as the preferred beverage by 32% and 20%, respectively.

Since the colonial times, beer has been the favorite alcoholic beverage among Americans, with estimates for an average American amounting to around 28 US gallons. Due to the domination of the British and the Dutch in the early American colonies, beer was the primary alcoholic beverage, outranking wine. The first commercial brewery in the US was opened by the Dutch West India Company in 1632 in Lower Manhattan.

First beers in America were based on the British brewing style and included mostly ales. Later, in the 19th century, German immigrants brought technologies for their own lager styles, which quickly gathered popularity due to their longer shelf-life as the hops in lager had preservative qualities. In fact, even Budweiser, one of the most popular domestic beers in the US, was developed after Adolphus Busch (who created Anheuser-Busch after taking over the company following the death of his father-in-law, Ebernard Anheuser) had toured Europe and discovered the Bohemian lager.

In this way, given the history, it’s not surprising that beer has always been popular in the US, with the exception of the Prohibition era, although beer was the first beverage to be legalized after it ended. During the Second World War, the beer industry in the US saw a spectacular growth as Prohibition led to the closure of many breweries and only large companies managed to stay in business.

Due to the large quantities of beer that were produced by domestic breweries, imported beer wasn’t very popular in the US. However, things changed in 1980s, when companies like Heineken and Diageo plc (ADR) (NYSE:DEO) (which makes Guinness), as well as other companies from Germany, Belgium, and many others with deep beer brewing roots, started to conquer the US beer market. However, the country that stood to win the most from the US beer market is Mexico. The US imports 75% of all the beer that Mexico exports.

With this in mind, let’s take a look at the top 16 best selling imported beer brands in US in 2017. Due to the fact that the US imports large quantities of beer from Mexico, it’s not surprising that many beer brands come from there. Constellation Brands, Inc. (NYSE:STZ), is one of the biggest sellers of imported beers, with its Corona brand leading the top. Anheuser Busch Inbev NV (ADR) (NYSE:BUD) is another big player in the US import space, due to the fact that it owns the breweries that manufacture many of the top imported beer brands in the US.

The list was compiled using data from Statista and the VinePair.com infographic of the 20 most popular imported beers in America.


1. Corona Extra

Corona Extra is a brand of Mexican beer produced by the Grupo Modelo, which is owned by Anheuser Busch Inbev NV (ADR) (NYSE:BUD). In the US, Corona Extra is imported by Constellation Brands, Inc. (NYSE:STZ) and generated sales of $1.71 billion last year. The beer is a pale lager and has a 4.5% alcohol by volume. Corona Extra is one of the best selling brands of the beer worldwide.

2. Modelo Especial

Modelo Especial is another brand of beer manufactured by the Anheuser Busch Inbev NV (ADR) (NYSE:BUD)-owned Grupo Modelo and imported in the US by Constellation Brands, Inc. (NYSE:STZ). In 2016, Modelo Especial generated sales of $1.22 billion in the US alone. Modelo Especial represents a rich, full-flavored Pilsner-style lager.


3. Heineken

Heineken is a Dutch beer made by the Heineken International. It represents a pale lager with a 5% alcohol by volume. In the US, Heineken beer is imported by the local subsidiary of the Heineken International, Heineken USA. Last year, Heineken USA sold $749.8 million worth of Heineken beer.


4. Dos Equis XX Lager Light

Dos Equis XX Lager Light is made by the Cervecería Cuauhtémoc Moctezuma, a large Mexican brewery headquartered in Monterrey, Nuevo León, Mexico. The brewery operates several plants across the country and is a subsidiary of Heineken International. In the US, Dos Equis XX Lager Light is imported by the Heineken USA subsidiary of Heineken International and registered $347.8 million in sales last year.


5. Stella Artois Lager

Stella Artois is a Belgian pilsner with an alcohol content between 4.8% and 5.2%. It is manufactured by the Interbrew International B.V., which is a subsidiary of the Anheuser Busch Inbev NV (ADR) (NYSE:BUD). Anheuser Busch Inbev NV (ADR) (NYSE:BUD) also imports and distributes Stella Artois in the US. In 2016, Stella Artois registered sales of $323.8 million.


6. Corona Light

Corona Light is a low-calorie version of the aforementioned Corona Extra, which is also manufactured by the Grupo Modelo and imported in the US by Constellation Brands, Inc. (NYSE:STZ). Corona Light is a pilsner-style lager and is the most popular imported light beer in the US with sales of $281 million.


7. Tecate

Tecate beer is manufactured by the Cervecería Cuauhtémoc Moctezuma and is imported in the US by Heineken USA. Named after the city where it is brewed, Tecate is a pale lager with a 4.5% alcohol by volume. In 2016, Tecate saw sales of $141.19 million.


8. Pacifico

Pacifico is a pilsner-style beer manufactured by the Grupo Modelo in Mexico and named after the Pacific Ocean, on whose cost is located the city of Mazatlan, where the brewery is located. In the US, Pacifico is imported by Constellation Brands, Inc. (NYSE:STZ). Pacifico generated sales of $93.41 million in 2016.


9. Modelo Especial Chelada

Modelo Especial Chelada is a beer brewed in Mexico, which represents a blend of Modelo Especial with flavors of tomato, salt and lime. The Chelada originated as a drink that consumers were making at home, using beer, lime juice and assorted spices, sauces, and peppers. Grupo Modelo capitalized on that by making the Modelo Especial Chelada in a ready-to-drink can using its own Modelo Especial beer. In the US, it is imported by the Constellation Brands, Inc. (NYSE:STZ) and generated sales of $88.60 million last year.


10. Tecate Light

Tecate Light is a low-calorie version of the Tecate beer made by the Heineken International subsidiary, Cervecería Cuauhtémoc Moctezuma, and imported in the US by Heineken USA. Tecate Light has a distinct and zesty flavor and contains 3.9% alcohol by volume. In 2016, Tecate Light saw its sales amount to $80.75 million.


11. Guinness Draught

Guinness is an Irish dry stout that is made by the Diageo plc (ADR) (NYSE:DEO) and is imported in the US by its subsidiary Diageo Beer Company USA. Guinness is one of the most popular beer brands worldwide, with sales of over 2oo million US gallons. It is brewed in around 50 countries and available in over 120. Diageo plc (ADR) (NYSE:DEO) is currently planning to open a brewery in the US, although it won’t be producing the classic Guinness Draught, but will focus on the new beers developed specifically for the US market. Last year, Diageo plc (ADR) (NYSE:DEO) saw its sales of Guinness in the US amount to $58.9 million.


12. Newcastle Brown Ale

Newcastle Brown Ale is a brown ale beer that is produced at the John Smith’s Brewery in in Tadcaster, North Yorkshire, although it was originally made in Newcastle upon Tyne. The brand is currently owned by Heineken and imported in the US by its subsidiary Heineken USA. Newcastle Brown Ale was the most widely distributed alcoholic product in the UK at the end of the last century, but currently Heineken generates the majority of the sales in the US, where it perceived as a trendy beer preferred predominantly by young people.


13. Heineken Light

Heineken Light is the low-calorie version of the traditional Heineken and contains 98 calories per bottle, compared to 148 calories in the original Heineken. It is brewed by Heineken specifically for the US market and contains 3.3% alcohol by volume.


14. Beck’s

Beck’s is a brand of beer originally produced by the Beck’s Brewery located in the German city of Bremen. Beck’s Brewery is owned by Belgium-based Interbrew, which is a subsidiary of the Anheuser Busch Inbev NV (ADR) (NYSE:BUD). However, Beck’s beer is manufactured also in the US, which a couple of years ago led to a lawsuit claiming that Anheuser Busch Inbev NV (ADR) (NYSE:BUD) misled its customers by making them believe that the beer is actually imported. Beck’s is still considered an imported beer due to its German origins, but it’s most likely that the beer sold in the US was produced in St. Louis, Missouri.


15. Labatt Blue

Labatt Blue is a Canadian beer produced by Labatt Brewing Company Ltd., the largest brewer in the country. Labatt Brewing Company Ltd. is owned by Anheuser Busch Inbev NV (ADR) (NYSE:BUD) via its Interbrew subsidiary, which acquired it in 1995. Labatt Blue is brewed in Canada and imported in the USA by Labatt USA, which is independent from the Canadian company and is owned by the North American Breweries.


16. Labatt Blue Light

Labatt Blue Light is the low-calorie version of the Labatt Blue Canadian pilsner that is also brewed in Canada and imported in the USA by Labatt USA, part of North American Breweries, which acquired it after InBev and Anheuser-Busch agreed to combine.

[FUNMAN]

Beer Drives Constellation Brands' Profits. But It's Mexican Beer, Not Craft Beer

The moral of this story is I hope BUD stops over paying for acquisitions.

It seems only one part of the brewer's premiumization plan is working out.

Rich Duprey (TMFCop)
Oct 13, 2017
at 8:07PM

Premium beer continues to drive the industry, but the story has been a bit different at Constellation Brands (NYSE:STZ). It was the strength of Constellation's portfolio of Mexican beers under the Modelo brand that drove growth and profits in the recently reported quarter, while pricey U.S. craft beer continued to sink.

High on sales from south of the border

Constellation was smart to acquire the U.S. beer business of Grupo Modelo from Anheuser-Busch InBev (NYSE: BUD) in 2013. Because of the Department of Justice's antitrust concerns about A-B InBev controlling too much of the U.S. market, Constellation was able to pick up not only a popular, quality beer, but also gain full control over the Crown Imports marketing business, the Piedras Negras brewery in Mexico, and the exclusive right to sell Corona beer in the U.S.

In its just-completed second quarter, the Modelo brands of beer were responsible for more than 60% of the growth Constellation enjoyed across its high-end business that spans beer, wine, and spirits. The Modelo brand family saw better-than-20% growth in depletions in the period. Depletions are shipments by distributors to retail customers, and are considered an industry proxy for customer demand. Total beer sales rose nearly 13% in the quarter from a year ago. Constellation reported $2 billion in net sales in the second quarter, up 3% from the year-ago period.

Following last year's election of Donald Trump, many thought Constellation's bet on Mexican beer would run into trouble amid tough talk on foreign trade and the renegotiation of the North American Free Trade Agreement. But those worries were overblown and the stock of the adult beverage distributor has soared nearly 50% from those lows, far outpacing the gains of the S&P 500. In fact, it's been the strength of the Modelo brands that have powered Constellation higher, which stands in stark contrast to how its big craft beer purchase has performed.

Craft beer's lost luster

In 2015, Constellation paid the shocking sum of $1 billion for tiny Ballast Point Brewery, a fast-growing but ultimately regional beer brewer centered around the San Diego area. Craft beer was hot, and with A-B InBev buying up every regional craft brewer in sight, Constellation sought to get in on the action, too.

Yet it was equally true that industry sales were slowing, and it apparently didn't cross Constellation's mind that what played well in California might not win converts elsewhere, so it built a massive 259,000-square-foot brewery all the way across the country in Virginia.

While Constellation used to crow about Ballast Point being the fastest-growing craft brewer in the country, that was based more on it being distributed more widely; sales weren't really following, and last quarter it was forced to write down the carrying value of the brand by $85 million, an admission it overpaid for the brewery.

It doesn't add up

That should've been plain for executives to see from the beginning. In buying the U.S. business of Modelo, Constellation paid $5 billion for a distributor, a brewery with a 10 million hectoliter capacity (about 120 million cases), and a wildly popular beer with a national reputation. Corona Extra alone sold 100 million cases that year, while Modelo Especial moved some 40 million cases.

Fast-forward a few years, and Constellation was willing to pay one-fifth that amount for a niche brand few had heard of that was producing about 4 million cases a year.

Fortunately for Constellation Brands, Mexican beer continues to gain in popularity. According to the craft beer industry's Brewers Association trade group, imports grew 6.8% last year, outpacing the 6.6% growth seen by domestic craft beers.

This past summer, Molson Coors (NYSE: TAP) entered into a distribution agreement with Heineken (NASDAQOTH: HEINY) to bring Mexico's Sol beer, a brand established in 1899, to the U.S. this fall, even though Heineken's Dos Equis and Tecate brands had lackluster results over the first six months of 2017.

Constellation Brands is more than just beer, even though that's the standout star at the moment, and it is gaining from the premiumization that's occurring across all alcoholic beverages. Yet having paid out a princely sum for one craft brewer and recently bought another, Constellation may want to spend its money more wisely by going south of the border instead of buying up regional favorites here.

[FUNMAN]

It's witching hour, #BudweiserFearless is in full effect. Celebrate this Halloween with

It's witching hour, #BudweiserFearless is in full effect. Celebrate this Halloween with @budweiserusa pic.twitter.com/NNeGhNTF78

— AB InBev (@abinbev) October 31, 2017