Friday, January 28, 2011

What's going on in the world of brewing for 1/28/11?

  • BUD: $56.47
  • SAM: $89.76
  • TAP: $46.51
Well, this certainly was a rough week for me with the stock prices of my three companies in the beer industry. First off, on a positive note, Anhueser Busch (BUD) started making a comeback in there stock prices amidst last weeks prices of $55.70. BUD made a rise to $56.47 for today's closing prices showing a 1.4% increase from last week. Meanwhile, both The Boston Beer Company (SAM) and MolsonCoors LLC (TAP) didn't look so impressive. SAM's prices dropped from $91.21 last week to $89.76 this week showing a decrease of 1.45%, while TAP's prices dropped from $48.78 down to $46.51 which was an unsettling decrease of 2.27%. Things aren't looking very good right now, but I am certainly trying to stay optimistic for what the future holds for these three companies.

On a better note, news this week in the beer industry is revolving around a couple key stories. The first of which is Anheuser-Busch's recent decision to use Facebook to help build interest in their Super Bowl XLV(45) ad's and to help build brand awareness to fans all over. Their hopes with this campaign is to try to use the popularity of these social networking sites to target consumers and to help pick up much needed sales after what has been a slump in demand for their flagship beer Bud Light. The Facebook ad's are inviting people to view images and small portions of the upcoming commercials in an effort to encourage increasingly more popularity for "the big game" and the entertaining commercials/advertisements of their's that will accompany it.
The second story on the table today is about a Czech brewing company by the name of Budvar. Budvar is making astonishing growth right now and reported that their exports are at record highs right now. Their exports rose and astonishing 4.3% to the point that they exported 15.98 million gallons ( 604,791 hectoliters) to over 58 countries over the course of the year. With a 4.7% increase in Germany, their most important market, and a 4% increase in the U.S., through a distribution deal with their archrival Anheuser-Busch, they have made amazing progress. Now, the key is going to be whether or not they can keep that momentum going. Many industry analysts have high doubts and some have forecasted Budvar's exporting could decrease by roughly 12% . This certainly will be another case where time tells all.

Next, Diageo, the world's leading premium distilled spirits, beer and wine company, is on the road to a greener future with its fleet of more efficient corporate vehicles.Diageo is the world's leading premium drinks business with an outstanding collection of beverage alcohol brands across spirits, beer and wines. These brands include Johnnie Walker, Guinness, Smirnoff, J&B, Baileys, Cuervo, Tanqueray and Captain Morgan. Diageo is a global company, with its products sold in more than 180 countries around the world. The company is listed on both the New York Stock Exchange (DEO) and the London Stock Exchange (DGE). The company announced today that it achieved carbon neutral status for its North American corporate fleet in 2010, a milestone in company efforts towards improved sustainability. In recognition of this accomplishment, Emkay's GoGREEN program recently granted Diageo North America its "Green Fleet" status. During the past year, the company's fleet of 346 vehicles drove more than 7 million miles and increased its average MPG by 1.5 miles to 22 MPG.  Over the past five years, Diageo has improved its average MPG from 17.5 MPG to 22 MPG, representing a 26% improvement. Additional improvements in 2011 will include replacing remaining six-cylinder vehicles wherever possible with four-cylinder cars with greater fuel efficiency, as well as optimizing the effects of fleet hybrid vehicles and reducing the count of older, non-Hybrid vehicles within the fleet in areas where this improves efficiency.  As Diageo continues these activities, Emkay predicts that the company's average MPG will improve from 22 MPG in 2010 to 25 MPG in 2011.  These efforts in their "greener" operations should allow them to save drastically on costs incurred and show a great deal of better earnings statements as the months go on.
 Well, until next week, I take a quote from the Dos Equis commercials when I say " stay thirsty my friends!"

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