Friday, April 22, 2011

The Final Chapter in Brewing News......4/22/11

  • BUD: $61.44
  • SAM: $91.97
  • TAP: $48.03


So, we have reached the finale. It's the end of the semester and this is my last blog regarding all the news that is the brewing industry. News stories were limited this week, so I decided that I am going to use the majority of this weeks blog to recap some of the major stories that have affected the industry over the course of the semester and where things stand with these different issues and what we may be looking forward to as far as stock prices for the remainder of the 2011 year.
First off, the big bad Anheuser-Busch InBev, this industry's top dog, has seen some extreme ups and downs over the semester. Some of the things that greatly affected the public perception of Anheuser-Busch and caused a great deal of fluctuation in stock prices for this company involved the speculation revolving around the NFL lockout from the NFL Player's Union. This news caught this nation by storm as this country's primary form of entertainment is professional football and it certainly caught the investors of A-B and those with a vested interested in the company off guard. Because A-B is the primary sponsor of the National Football League, the truth of the lockout that has taken place has forced the fear of dramatic sales decreases on the company as they receive an incredible amount of sales from those attending the games as well as from those who support their team from the comfort of their living room's with a 12 pack by their side every Sunday. In my opinion, I believe the National Football League and the Player's Union will have to come to some sort of agreement before this fall because there is way too much revenue at stake, not only for those in the brewing industry like A-B who is the primary sponsor of the NFL, but also for those who sell everything from groceries to team memorabilia. I think that when this is all said and done and things get back on track to where they should be it will allow the stocks at Anheuser-Busch to flourish like the should be, even if the company did sell out to Belgium's own InBev.
The next big series of events over the course of the semester revolved around those at Boston Beer Company. Boston Beer has been having a rough time living up to the forcasted increases in stock prices many people felt this company would have over the course of the year as a whole. Much to the disappointment of the public, as well as myself, craft beer has seen some growth but not nearly the growth the investors and board members of these companies had projected. A lot of the reason that these companies, like Boston Beer have seen such hard times is due in whole or in part to the fact that the cost of nearly all the supplies needed in the brewing industry have suffered the pain of inflation. Everything from glass to hops has gone up a great deal in price forcing many of these brewers to tighten up on spending and try to be much more frugal. Along with cutting down on unneeded expenses, some of these companies have been forced to raise prices to compensate for the costs they are being dealt by their suppliers, and this price jump has caused many people to steer towards "the cheap stuff" again rather than the craft beer flavors they know and love. At least for Boston Beer, their rise in volume from years prior has allowed them to better weather these tough times than many of their smaller allies in craft brewing. Also, Boston Beer has tried to take a stance not only to continue to offer their great craft beer at the reasonable prices we all hope for, but they have also tried to use what resources they can to help keep many of the nation's smaller brewers afloat. I think prices will stabilize again and things will get back to normal, at least i certainly hope they do because I am certainly one of the brewing industry connoisseurs who prefers the taste of craft beer over the watered down and rather tasteless mainstream beers.

In conclusion, over the course of this semester, through mergers, acquisitions, good and bad times, stock prices have stayed relatively the same. this plateau of prices gives me faith that no matter how hard times get the brewing industry will continue to remain relatively recession proof and for those who have investments in these companies....rest assured, beer and brewing is an American past time and something many Americans can't and won't live without so you will always have a stable investment with little chance for losing your hard earned money you have invested. .......As always........................................."stay thirsty my friends!!!!!!!!!!!!!!"

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