What We’re Reading —

Is AB-InBev a Good Investment for You?

Seasoned investors remember the old Anheuser Busch Company as a staple of 70’s and 80’s growth and income portfolios, a reliable company right there with IBM, General Mills, Procter & Gamble and the other golden oldies. Times change and so did Anheuser Busch, morphing into today’s Anheuser Busch InBev SA/NV (NYSE:BUD) – what a mouthful – a sponsored ADR! The Clydesdales aren’t even American anymore!

More significantly, BUD faces a significant challenge in that, as measured by volume of beer consumed globally, the beer industry is in a slow protracted decline.  Read more here, from Seeking Alpha.

 

Is Boston Beer Really on the Road to Recovery?

Is it investors or management that’s wearing the beer goggles? History would suggest the latter.

Boston Beer has been saying for some time that its business is moving in the right direction and it’s looking to return the company to growth. While that may be so much boilerplate and putting on a brave front, investors shouldn’t give much credence to the outlook.

The craft brewer has thrown a lot out there over the past few years in an attempt to turn the business around, from updating its packaging to glomming onto trendy fads in brewing, such as a New England-style IPA that eschews a beer’s clarity in favor of a decidedly cloudy look. Nothing has worked, and though management says it’s encouraged by how trends are faring in the first quarter, with year-to-date depletions through Feb. 10 running about 6% higher than a year ago, it must be remembered that the first quarter of 2017 was marked by a double-digit decline in depletions. It’s a very low bar for Boston Beer to step over.  Read more here, from The Motley Fool.

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