jasperlawler

Big Brewer Shares in Coronavirus Hangover

SPCFD:SPX   S&P 500 Index
168 = Tsingtao Brewery Group
600573 = Beijing Yanjing Brewery
SPX = S&P 500
CARL = Carlsberg Group
HEIA = Heineken N.V
TAP = Molson Coors Brewing
ANH = Anheuser-Busch InBev --- owns Corona beer brand
(This list excludes mixed drink companies like Diageo ( DGE ).)

As can be seen in the chart above, the US and European brands all significantly underperformed the S&P 500 as a benchmark. Only the two China-based brewers have outperformed but like most share prices globally, are still down on the year.

Possible opportunities --

Opportunity A: Corona beer
Whether Corona beers retain popularity or not following the pandemic could determine whether the AB InBev share price is fairly-valued.

Opportunity B: Asia growth
Long term growth potential in Asia could be a factor in the share price performance of China-based brewers.
Asia-Pacific is the largest and one of the fastest-growing market for beer consumption, which accounts for about one-third of the global market share. Business Wire, April 9 2020

Opportunity C: Microbrewery takeovers
The pandemic could mean more microbreweries are acquired by the big brewers, giving brewers more popular brands and reduced competition.
What do you think about the future of beer and the brewing industry? Share your thoughts with your account manager or join a live LCG webinar.

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