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FUNMAN

05/13/18 1:23 PM

#386 RE: pack10 #385

Sanford C. Bernstein Reiterates “$122.00” Price Target for Anheuser-Busch InBev (BUD)
Posted by Joyce Ramirez on May 13th, 2018

https://ledgergazette.com/2018/05/13/sanford-c-bernstein-reiterates-122-00-price-target-for-anheuser-busch-inbev-bud.html

Sanford C. Bernstein set a $122.00 price target on Anheuser-Busch InBev (NYSE:BUD) in a report published on Thursday morning. The firm currently has a buy rating on the consumer goods maker’s stock.

Several other brokerages have also recently commented on BUD. Jefferies Group set a $134.00 target price on shares of Anheuser-Busch InBev and gave the stock a buy rating in a report on Thursday, January 11th. Zacks Investment Research upgraded shares of Anheuser-Busch InBev from a strong sell rating to a hold rating in a report on Friday, January 12th. Deutsche Bank upgraded shares of Anheuser-Busch InBev from a hold rating to a buy rating in a report on Wednesday, January 17th. JPMorgan Chase reduced their target price on shares of Anheuser-Busch InBev from $106.68 to $98.72 and set an underweight rating for the company in a report on Thursday, February 15th. Finally, ValuEngine cut shares of Anheuser-Busch InBev from a hold rating to a sell rating in a report on Monday, April 23rd. Four analysts have rated the stock with a sell rating, two have issued a hold rating and nine have issued a buy rating to the stock. Anheuser-Busch InBev currently has an average rating of Hold and a consensus price target of $122.79.

FUNMAN

05/13/18 3:20 PM

#387 RE: pack10 #385

I view this great dividend payer as a growth opportunity.

Now that the PPS dropped under $100, I think it's a good buy. U.S. sales are dropping, but all U.S. beer companies are feeling the pinch.

BUD's purchase of SAB ensures it's world-wide dominance. The international growth is outpacing the U.S. decline. So much so that the dividend is growing nicely, even with a debt load larger than most countries have.

A look at the chart shows BUD experienced a big PPS drop when concerns about the debt arose.

I believe the recent PPS is an over reaction to the U.S. revenue decline without putting it in context of it being a world-wide company selling in more than 50 countries.

The following story about India represents a great opportunity in a country whose population dwarfs the U.S.A.'s.



Global brewing giant A-B InBev sees opportunity in India

From the Ties that bind: Exploring connections between India and the U.S. series

By Edward McKinley, Ellen Cagle and Maiankini Bose
Special to the St. Louis Post-Dispatch


At the Boozy Griffin bar in Marathahalli, India, Shrikant Raj enjoys one of his favorite beers: Budweiser.

Raj, 28, who works at an analytics firm, enjoys its “clean and crisp taste,” he said. “After, a hard day at work, it really rejuvenates me.”

The scene — familiar in the United States, where Budweiser has been produced since 1876 — is now becoming commonplace in this Asian nation of more than a billion people.

Beer’s popularity has exploded in India, and Budweiser maker Anheuser-Busch InBev has taken advantage by aggressively marketing it as a high-quality drink to millennials throughout urban areas — a process Ben Verhaert, A-B InBev's president in India, called “premiumization.”

“India holds a significant long-term growth potential due to the profound change in the beer-drinking culture,” Verhaert wrote in an email.

India’s beer market grew from 500 million liters in 2011 to 2.4 billion in 2015, and by the end of last year it was estimated to have grown to over 400 billion liters — almost a thousand-fold increase in seven years. Indians are even starting to adopt an American-style craft beer culture.

Why? India’s fast-growing economy motivated a cultural change, experts said. More people can afford beer, and more are interested in drinking it.

The country is also urbanizing rapidly, and its demographics are shifting — two factors that increase beer-drinking, Verhaert said. More than 19 million Indians each year become old enough to drink legally, he said. And disposable income is on the rise.

Still, there’s lots of room for expansion. India’s current ratio of pubs to people is about one to 16,500. India has only one pub for every 100 in China, despite having a population nearly as large.

Plus, beer fills a need that many other alcoholic drinks do not, said Ignazio Cabras, an economic researcher at England’s Northumbria University and vice president of the Beeronomics Society:

India’s weather is hot, and a cold beer is thirst-quenching and refreshing.

Baseball games and music festivals

India’s own Kingfisher still wears the crown for the most popular beer in the country — with a market share over 40 percent. But that share has fallen sharply from 55 percent in 2014.

Until recently, there were few other beer options, said Arun George, director and co-founder of the popular Toit Brewpub in Bangalore. Budweiser now offers a choice that comes with an international flair.

Verhaert said Budweiser has grown in India at a rate four or five times faster than its competitors in recent years. Its market share in India rose from about 1 percent in 2011 to about 5 percent today, according to Euromonitor data.

That growth is largely thanks to backing from its parent: A-B InBev, the world's largest beer company, Cabras said. A-B InBev’s India headquarters are in Bangalore. The company has 10 breweries around the country, multiple sales offices and more than 3,000 employees.

“We are a global company strongly committed to India. We have made significant investments in the country,” Verhaert wrote.

A-B InBev has the resources and manufacturing facilities to provide a consistent, affordable product in large quantities around the country, Cabras said, giving the international brewing powerhouse an edge over regional brewers.

“I think Anheuser-Busch and other big players — they want to target the masses,” Cabras said.

In the U.S., “it's the type of beer that you currently say is for baseball matches. That you go for cheap and that you have at parties where you want to have plenty of people,” he said. But Indians don’t yet have an entrenched view of the brand, so Budweiser has the opportunity to market itself as a premium, American-style beer.

“In the U.S., generations have grown up knowing and consuming our brand,” Verhaert wrote. “But in India our journey is very new.”

A-B InBev has aggressively marketed itself to Indian millennials by sponsoring popular electronic dance music festivals such as Tomorrowland and Electric Daisy Carnival, Verhaert said. The company also organized two platforms for electronic dance music concerts: What’s Brewing and Bud X, which hold performances around the country and promote Budweiser.

Such efforts seem to be wooing customers.

Raj, drinking at the Boozy Griffin, said he prefers Budweiser because he finds Kingfisher “a little strong for daily drinking.”

Verhaert said A-B aims to be the No. 1 beer choice for millennials in India.

Craft beer rising
As America’s King of Beers takes off in India, the U.S. craft beer craze is also making its way slowly to the East.

Craft beer, made by small, local breweries, has grown popular in the United States since the 1970s. IPAs, or India Pale Ales, are among the most popular types of craft beer in the U.S. (Budweiser is a pale lager.)

The IPA got its name when English sailors brought the beer to India, then a colony of the United Kingdom. Paradoxically, IPAs are considered in India as an American variety. When India won its independence and the English colonists left the country, they took their IPAs with them.

English sailors bound for India were forced to travel to the southernmost tip of Africa — the Cape of Good Hope — before looping toward India. Beers with low alcohol content couldn’t survive the long voyage, so brewers added extra hops. The IPA was born, with its signature bitter taste and high alcohol content.

“And that differs from most commercial beers significantly since it’s a bit more bitter, versus the largest selling beer in the world, lager, which is just as close to water as can be,” said Michael Honaker, a bartender at International Tap House, or iTap, in Columbia, Mo.

“People tend to lean towards the IPA just because it’s so diverse,” Honaker said. “Once your palette finally adjusts to it, it’s like drinking... a strong tea or pot of coffee. You get a lot of bitterness in there. And people just kind of flock to it.”

That’s starting to happen in India, too: Microbreweries began popping up in Indian cities seven or eight years ago. Now, locally-brewed craft beers are becoming more competitive in Bangalore.

“As the average Indian and the average Bangalorean travels more and is exposed to different beer styles, he is now a much more discerning customer who recognizes and appreciates a good beer,” George wrote.

Toit makes its own IPA, George said, with less hops than its American counterparts. Unlike in the U.S., where IPAs can be found at most bars or restaurants, only craft beer brewers in India have IPAs on their menus.

Toit’s most popular beers are its Belgian Wit and Hefeweizens. Customers in Bangalore like the lightness and sweetness of the craft styles, George said, but that’s just among urban citizens.

People in rural areas opt instead for beers that “give you more bang for your buck,” he said.

Experts said Indian beer culture will likely begin to echo America’s — namely, a movement toward craft brewing.

Indian brewers will begin offering beer from other countries, Cabras said. And then customers will flock toward beer with local ingredients.

Cabras predicted Indian microbreweries will run into a problem: “They cannot market themselves all over the country, so they probably will be very local.”

“The craft beer movement ... will grow in India,” Cabras said. “But it will take a lot of time before big players will lose sleep because of the actions of small brewers.”

Goliath player A-B InBev is neither losing sleep nor slowing down.

With more than 400 brands under its umbrella, it’s betting on big growth in India regardless of what small competitors do. It’s even investing in community projects to boost brand loyalty among Indians, such as building roads and providing clean water for rural areas.

“We are here for the next 100 years,” Verhaert said.

Collin Krabbe contributed to this report.

FUNMAN

05/17/18 1:34 PM

#392 RE: pack10 #385

BUD treats workers better than Craft brewers


Craft Beer’s Moral High Ground Doesn't Apply to Its Workers

Written By: Dave Infante

Scott Timms is taking a break from brewing beer. At 35, he’s been at it for 13 years, most recently having worked at Falling Sky Brewing, a popular brewpub in Eugene, OR that regularly appears on “best of” lists in the state.

Brewing beer commercially can be hard, thankless work. “It’s a back-breaking job, lifting a hundred 50-pound bags” of ingredients and carrying them up stairs to be added to the mash, Timms says. And it can be dangerous: “You’re dealing with boiling liquids and pretty harsh chemicals that can definitely injury you…It’s not a safe job by any means.” At small breweries, where OSHA visits are unusual and procedures are unstandardized, the “outlook towards safety” can be “laissez-faire” verging on “lackadaisical,” he says.

For his work as a production manager at Falling Sky overseeing a team of brewers and working up to 65 hours a week, Timms made what came out to a little over $40,000 a year. Frustrated, he quit his brewing job in early 2018, convinced that craft brewers were getting shorted across the U.S. beer industry. “There are people making money here,” he says, “but it’s not us.”

In 2017, Lauren Michele Jackson wrote in Eater about the rise of “craft culture,” a food and beverage market that “fetishizes the authentic, the traditionally produced, and the specific [and] loathes the engineered, the mass-produced, and the originless.” Craft beer—made by brewers like Timms at more than 6,000 small, independent breweries across the country—has been a standard-bearer for this progressively infected, anti-commodity eating and drinking movement for more than two decades. Its staggering economic success has spurred an explosion of products in other food and drink categories marketed to like-minded customers. Walk the aisles of your closest Whole Foods and craft culture surrounds you.

“There are people making money here. But it’s not us.”
But even as sales of craft-culture products steadily rise, the conditions for workers that make and serve those products vary widely. The labor is often physically demanding. Specialized workers are asked to “wear different hats” to make up for understaffing, and gladly answer calls for extra hours because they genuinely care about the products they’re making. Owners, either unwilling or unable to spend on quality executives, take on management responsibilities for which they have no training. The workforces are often small, giving rise to a much-touted familial intimacy that in turn can bring a distinctly familial dysfunction of favoritism and manipulation. Wages and benefits are inconsistent across industries and even within individual companies.

But craft culture is growing, and it’s bringing in a lot of money. No single study or report encapsulates the various industries that make up artisanal food and drink production, but the U.S. specialty food market did $127 billion in sales in 2016, a 15 percent jump since two years earlier, according to the Specialty Food Association. In 2017, U.S. craft brewers saw significant sales growth over the previous year’s figures, despite the fact that the overall U.S. beer industry contracted. In less developed craft categories, the growth has been even more astonishing. According to market-research firm Mintel, U.S. coffee-house sales are up more than 40 percent since 2011, clocking $23.4 billion in 2017 sales. Specialty cheese sales grew more than 10 percent, to about $4.42 billion, over a period of just two years.

In pockets of these industries, a labor movement has begun to emerge. In late 2017, cheesemakers at the New York City location of Beecher’s Handmade Cheese (a Seattle company) voted to join the International Brotherhood of Teamsters Local 553. A few months later, this past February, the baristas of Gimme Coffee’s Ithaca, NY location ratified their first union contract, the product of an organizing drive begun a year earlier. The Unionistas, part of Workers United 2833, are apparently the nation’s first barista labor union recognized by their employer.

Craft brewers could be a cornerstone of this artisanal food and drink movement, given their specialized skills, the longevity of their industry, the popularity of their product, and their association with progressive customers. So why, unlike many of their mass-market counterparts, do they remain almost entirely without union representation?

It’s not because brewers are particularly well-paid. In 2017, craft brewing production workers at 6,300 U.S. firms contributed to a record-breaking $26 billion in annual sales, according to data from trade groups like the Beer Institute and the Brewers Association. But the average weekly wages for U.S. brewers has declined by a quarter between 2006 and 2016, according to the Bureau of Labor Statistics.

Bart Watson, chief economist for the Brewers Association, which represents craft breweries, says that with the rise of craft breweries, typical brewery jobs in the U.S. “shifted from being at a large brewery to being at a small brewery.” Brewers at a facility owned by Anheuser-Busch InBev, the biggest brewing company in the country, make “more than people who are brewing at your local brewpub,” he tells me.

There are a lot more craft brewing jobs, which are largely non-unionized, and they don’t pay as well.
Most of those corporate jobs are unionized: The International Brotherhood of Teamsters represents about 5,000 brewery workers at various corporate breweries around the country, including nearly all of those owned by Anheuser-Busch InBev. Those workers have not seen the pay decrease cited in the BLS report, according to a Teamster spokesperson. Given that the Bureau of Labor Statistics doesn’t collect data that discerns between large and smaller breweries, comparing average salaries can be tough. But while Timms made about $40,000, the average salary for a production manager at Anheuser-Busch is listed as between $65,000 and $105,000 a year on Glassdoor.

So there are a lot more craft brewing jobs, which are largely non-unionized, and they don’t pay as well. Or, put another way: “The wages suck for [craft] brewers unless you’re the head guy,” says Charlie Johnson, a brewer who worked in the Pacific Northwest for 15 years before starting Spontaneous Fermentation Project in California last year. Since it’s a desirable beer job, “people just assume that you will work for dirt cheap.”

Compounding that sense of disenchantment: benefits. Sure, there are shift beers. But things like paid time off, 401(k)s, and employee equity programs are hit or miss, say the brewers I spoke to. Not to mention healthcare. “Barely anyone in the brewing industry has health insurance” through their jobs, Johnson says. This is a common gripe amongst craft brewers, even though it might not be categorically true. Like most U.S. employers, breweries with more than 50 full-time employees are required by law to offer health benefits. There are also many smaller breweries that don’t legally have to offer health benefits, but do, anyway. According to an internal survey Watson shared with me, among U.S. craft brewers producing 1,000 barrels or less annually —which is about three-quarters of firms— no more than 25 percent offer some sort of healthcare benefits.

To rationalize the higher prices their beer commands at market, craft breweries across the country actively claim the moral high ground.
The information is based on small sample sizes, Watson cautions. And of course, offering coverage is a quantitative figure; whether the “benefits” are actually any good is a question the data can’t answer. Referring to brewers at macrobreweries, Timms puts it more succinctly: “They have full benefits, and I had shit for benefits.”

(In an email, Falling Sky owner Rob Cohen notes that as an employee, Timms qualified for—but declined—healthcare, dental, and vision benefits through the company. Cohen also says Falling Sky offers an IRA match, two weeks of PTO, and “more sick leave than is required.”)

Still, beyond these individual concerns lies an existential one: To rationalize the higher prices their beer commands at market, craft breweries across the country actively claim the moral high ground. This claim is two-pronged: that craft beer tastes better than its counterparts because it’s made with higher-quality ingredients and more care, and that craft breweries are innately “better”—more wholesome, more ethical, more socially responsible—than corporate ones.

This is the pitch across craft culture, and it tends to work. Customers like to feel as though their purchases of food and drink products they enjoy are doing good, too. Craft, artisanal, local: “There are just these terms that resonate with the consumer in this feel-good way,” says Margaret Gray, an associate professor of political science at Adelphi University who authored Labor and the Locavore, a 2014 book on worker conditions in the local food economy of New York’s Hudson Valley. “There are all sorts of great reasons why we should feel good about craft beer production,” she says, pointing to the premise of quality and the promise of community building. “But to celebrate it while neglecting labor conditions is highly problematic.”

It’s a lot easier to tell if a craft beer tastes good than it is to tell if the brewery that made it is treating employees well. And some craft breweries benefit from the category’s progressive aura without ensuring progressive conditions for their workforce.


Often, this manifests passively, in low wages, understaffing, or unsafe work conditions and equipment. Occasionally, though, that hypocrisy is active. In 2011, Rogue Ales, a nationally distributed craft brewer in Newport, Oregon, allegedly led an anti-union campaign against brewing and bottling employees who were organizing, according to an account published on NW Labor. But the company’s branding has always featured apparent appropriations of Soviet pro-worker propaganda, including red stars and raised fists. (Brett Joyce, Rogue’s current president, says NW Labor’s account of the union drive was motivated by an “obvious agenda” and disputes its accuracy, while allowing that “what happened in 2011 served as a wake-up call.”)

In an exploitative workplace, having your dream job can be a liability.
But that’s just one shop, and it was almost a decade ago. What’s stopping today’s craft brewers from following the organizing examples of their corporate cohorts in macrobreweries, or their kindred spirits in this emerging craft labor movement? Personality might play a role. “The brewing industry draws an odd group of human beings,” Johnson says, and some are more individualistic than others.

Dana Garves, CEO and founding beer chemist of Oregon Brew Lab, a quality-assurance firm based in Eugene, agrees the “lone-wolf mentality” is a factor, but points out a more obvious one. “Brewers honestly believe they have the best job,” she says. “There’s this mentality of ‘I have a good job making beer I love, why rock the boat?’” For craft brewers, like many workers in other creative industries, it’s not just a job on an assembly line—it’s a way of life. And in an exploitative workplace, having your dream job can be a liability. It presents workers with a false choice: do what you love and put up with the bullshit, or be forced to give up the good to escape the bad.

The flip side is that there’s a seemingly endless supply of would-be brewers who want their shot at that dream job. “There’s always an okay or decent homebrewer out there willing to work the exact same job for less money and more beer,” Garves says. It’s not uncommon for fans of a particular craft brewery to volunteer to work for free. This can make the job feel less secure for those who actually do it, and contribute to a chilling effect on organizing. “Why talk unions if they could replace you for significantly less?” Garves points out.

“You’re basically telling your friend, who happens to be your boss and CEO of this tiny company, that you don’t think you make enough money.”
And then there’s the deterrent that’s universal across industries: fear of retaliation. “The fear of backlash is intense,” Garves says. After publishing a 2015 blog post calling on brewers to unionize, she found it was a conversation brewers wanted to have in private, but rarely out in the open. “There’s a very real fear that if a brewer” makes demands for better conditions or tries to organize, “that the administrative side [of their brewery] will just cull them,” she says. Whether that fear is justified, the stakes can feel higher at small breweries. “You’re basically telling your friend, who happens to be your boss and CEO of this tiny company, that you don’t think you make enough money. It can seem greedy, or ungrateful,” she says.


Yet another obstacle to organizing is the relentless job-hopping in the industry. “I love my job, I love serving the community and I love my co-workers,” says Samantha Mason, who organized at Gimme this year. But “a lot of people just hop around from one place to the next thinking that at the next place they’ll find a better boss [and] better conditions.”

This gig-to-gig mentality is hardly unique to the craft food and beverage industry. It’s one of the most commonly trafficked gripes about millennial workers in the U.S., and there’s some truth to it. But Mason believes issues like low pay and sparse benefits are “structural” to the industry at large, rather than specific to Gimme. It can be overwhelming “once you realize that you can’t really avoid” those ills, Mason says. As one Beecher’s cheesemaker explained to the New York Daily News after the votes were counted: “We love the work we do, but we need this to be a good job, too.”

Can these jobs be good jobs? Of course—even deeply unionized industries were once low-paying and exploitative. Will it be unionization that makes them good jobs? It remains to be seen. Given their mostly progressive ethos, their youthful workforce, and the lucrative demand for their products, the jobs that power craft culture seem like a natural fit for organized labor. But if craft brewers are a litmus test, the unionized future is far from guaranteed.

Next, Timms is headed to Montana, where a buddy from brewing school has asked him to be the head brewer of a new venture that’s still being finalized. “I’m definitely going to have to find work,” he says, “probably bartending or doing something else I don’t really want to do.” In other words, putting up with bullshit for another shot at the dream.

FUNMAN

05/24/18 10:52 AM

#395 RE: pack10 #385

HOP TAKE: AB INBEV IS TAKING OVER BEER IN AFRICA, TOO
Cat Wolinski @beeraffair
HOP TAKE 3 MINUTE READ

https://vinepair.com/articles/hop-take-ab-inbev-africa-beer/

Anheuser-Busch InBev gets lots of attention for its business practices stateside. Buying up formerly independent breweries, say, or taking over tap handles and shelf space.

But let’s not forget, this company is global. This week, AB InBev set its sights on Africa.

According to Reuters, AB InBev has hatched a plan to “lure price-conscious South Africans to its mid-market beers and away from bargain rivals or homebrews,” by pushing the South African brands it acquired in its 2016 purchase of SABMiller, namely Carling Black Label, South Africa’s most popular beer, and Castle, another macro lager.

How will it be doing this? Discounts, of course.

AB InBev’s promotions in areas like Johannesburg have been ramping up big time. One Johannesburg tavern is selling 1-liter bottles of Black Label for 19 rand, or about $1.50. “This is all I drink now,” one patron told Reuters.

At another promotion at a liquor store in Sasolburg, Castle beer was on sale in 18-packs beside a sign reading, “Buy 12 and get 6 extra free.” One shopper said, “It’s a steal.”

As African consumers slurp up promotions for beers like Castle and Carling, AB InBev will be going to work on its premium lager brands, such as Budweiser, Stella Artois, and Corona, in hopes of gaining market share.

Meanwhile, South African beer drinkers’ attention and dollars will be diverted from the local independent brewers in and around Johannesburg. These include Optimum Craft Brewery in Randburg, a family establishment that got its start with a homebrew kit; Inmind Brewing of Kya Sand, helmed by a father-and-son duo; and Oakes Brew House in Modderfontein, the only South African brewery run entirely by women.

“Clearly there’s room for making our products more present. That’s definitely a big part of our efforts here,” Ricardo Tadeu, who oversees African distribution for AB InBev, said. “In comparison to where we have been, these markets are still being developed.”

AB InBev is bigger — way bigger — than Budweiser and the handful of craft breweries it’s snatched up in the States. While we’re worrying about AB InBev’s High End or whining about whether or not Goose Island is still a craft brewery, AB InBev is strategizing on how to get low-wage workers in mining towns to buy more of its cheap beer — to eventually make room for more Budweiser.

Sometimes it’s good to step back and put things in perspective. The beer industry, and AB InBev’s control over it, goes far beyond the U.S.

FUNMAN

06/14/18 10:27 AM

#407 RE: pack10 #385

Today, 50% of our purchased electricity in the US comes from renewable sources. And guess what? We’re just getting started. Learn more:

http://www.ab-inbev.com/better-world/2025-sustainability-goals.html

FUNMAN

06/20/18 1:40 PM

#410 RE: pack10 #385

Anheuser-Busch InBev - Carling Black Label set out to use their influence over South African males to change their attitudes around gender-based violence by spreading the word that there is #NoExcuse for women abuse. Congratulations to the team for winning a #CannesLions Grand Prix!