Dividend Drive • 16 Comments
Timberwolf Equity Research
Nov. 29, 2015, 11:03 AM
- Anheuser-Busch InBev (NYSE:BUD) is aiming to head off European regulatory concerns over its proposed acquisition of SABMiller (OTCPK:SBMRY) by putting the Peroni and Grolsch labels that it would gain up for sale.
- No price for the brands has yet been indicated, but according to the Sunday Times, the sale would fetch billions of pounds.
- Potential buyers include Heineken (OTCQX:HEINY), Molson Coors (NYSE:TAP) and Ireland's C&C Group (OTCQX:CCGGY), makers of Bulmers and Magners ciders.
- Previously: AB InBev, SABMiller seal MegaBrew deal (Nov. 11 2015)
Nov. 11, 2015, 11:07 AM
- There are some gentle gains across the beer sector after Anheuser-Busch InBev (BUD +1.1%) and SABMiller (OTCPK:SBMRY +2.2%) formalize their merger plan.
- Heineken (OTCQX:HEINY +1.6%), Molson Coors (TAP +0.7%), Ambev (ABEV +0.9%), Carlsberg (OTCPK:CABGY +5.9%), Craft Brew Alliance (BREW +1.8%), and Boston Beer (SAM +0.2%) are showing increases of varying degrees.
- Most analysts think the beer giants will make the necessary concessions to appease regulators in the U.S. and China. On SA, Chris DeMuth says the deal will extend the reach of the best operators in the business.
- Molson Coors in particular is widely identified as a winner in the deal through its pickup of a full stake in MillerCoors. Still to play out is what beer company makes a bid for SABMiller's position in CR Snow in China. China Resources Beer Holdings (OTCPK:CRHKY, OTC:CRHKF) is the 51% owner of the alluring JV.
- Previously: Molson Coors sees huge synergies down the road from MillerCoors deal (Nov. 11 2015)
- Previously: AB InBev, SABMiller seal MegaBrew deal (Nov. 11 2015)
Sep. 16, 2015, 9:56 AM
- Beer stocks are in party mode with Anheuser-Busch InBev (BUD +6.9%) closing in on making an offer for SABMiller (OTCPK:SBMRY +20.5%).
- Consolidation within the industry is seen supporting pricing and raising the M&A profile of large and smaller players alike.
- Gainers: Heineken ADRs (OTCQX:HEINY) +3.7%, Diageo (NYSE:DEO) +2.9%, Molson Coors (NYSE:TAP) +14.5%, Carlsberg (OTCPK:CABGY) +3.7%, Craft Brew Alliance (OTCPK:CABGY) +3.7%, Constellation Brands (NYSE:STZ) +0.8%, Boston Beer (NYSE:SAM) +1.6%.
- Previously: AB InBev prepping offer for SABMiller (Sep. 16 2015)
- Previously: Molson Coors pops with A-B circling SABMiller (Sep. 16 2015)
Aug. 24, 2015, 11:33 AM
Apr. 13, 2015, 8:11 AM
Feb. 14, 2015, 10:13 AM
- Craft soda is starting to become a trend to watch closely, according to industry insiders.
- Though still accounting for only ~1% of the total U.S. soda market, major retail chains have increasingly been willing to bet on local craft brands in store aisles.
- The craft craze is old news for the beer industry where coming-of-age millennials buy craft/local beers at a 50% higher rate than brand-loyal older generations. Fading stars such as Budweiser and Bud Light are testament to the impact of the millennial paradigm.
- The craft influence in coffee hasn't been lost on Starbucks which has strategically deployed trucks on college campuses in an effort to win over students.
- Despite the progressive reputation of Starbucks, analysts think new upstarts such as Craft (subscription) and Cups (app) have a shot of gaining influence with the Indie-minded millennial crowd on "customization" and pricing.
- What to watch: An increase in M&A activity in the beverage sector is expected as major companies strategically pick off more local craft brands to incubate.
- Craft beer watch: BUD, OTCPK:SBMRY, TAP, OTCQX:HEINY, SAM, BREW, STZ, OTC:BIBLF, OTCPK:BRBMF.
- Craft coffee watch: GMCR, SBUX, JVA, SJM, KRFT, DNKN, QSR, MCD.
- Craft soda watch: PEP, KO, MNST, COT, DPS, OTCQB:JSDA, REED, SODA, FIZZ.
Oct. 16, 2014, 5:39 PM
- Crown Holdings (NYSE:CCK) entered into an agreement to acquire EMPAQUE (Mexican beverage packaging) from Heineken N.V. (OTCQX:HEINY)
- Segment Revenue - Americas Beverage $570M vs. $583M last year; North America Food $236 vs. 249M; European Beverage $474M vs. 481M; European Food $787M vs. 543M.
- Free Cash Flow $91M vs. $70M.
- Q3 earnings
- Conference Call at 9 am ET tomorrow
Sep. 16, 2014, 9:52 AM
- Shares of Anheuser-Busch InBev (BUD -0.8%) are lower after some of the buzz over a potential merger with SABMiller (OTCPK:SBMRY) wears off. In Europe, shares of SBMRY are also tilting lower.
- Analysis of the combination of the two beer giants is nearly evenly split. Some analysts think the regulatory hurdles are too high to clear, while others maintain that outside of the U.S. and China there's not a huge amount of overlap that would draw in regulators.
- Stifel Nicolaus and Buckingham Research have both raised their price target on BUD, moving to $130 and $137 respectively.
- MillerCoors (TAP -1%) is in a holding pattern. If the mega-merger goes through, the company is nearly assured of a new owner.
- The wildcard: There's also still the chance that A-B could have the rug pulled out from under it if SABMiller improves its offer to Heineken (OTCQX:HEINY) to a level which wins over the controlling family.
Sep. 15, 2014, 9:55 AM
- Shares of SABMiller (OTCPK:SBMRY) are ripping in London trading with reports out that Anheuser-Busch InBev (BUD +3.2%) is talking to banks about coming up with financing for a bid.
- SABMiller is more vulnerable after Heineken (OTCQX:HEINY) rejected its buyout overture.
- A deal between the beer giants would require significant divestiture massaging, possibly including SABMiller shedding its interest in MillerCoors (NYSE:TAP) in the U.S.
- What to watch: A-B has to decide before the end of the year if its wants to renew a soft-drink bottling contract with PepsiCo. If the brewer declines, it could be an indication that it has its eyes on SABMiller's deal with Coca-Cola in Africa.
- SBMRY +12.2%.
Sep. 14, 2014, 10:30 AM
- SABMiller (OTCPK:SBMRF) has been approached Heineken (OTCQX:HEINY) about a merger only to be rebuffed by the controlling Heinken family, reports Bloomberg.
- Another mega-merger within the beer industry has been widely anticipated by analysts in order to line up regional strengths and weaknesses.
- Related stocks: Anheuser-Busch InBev (NYSE:BUD), Diageo (NYSE:DEO), Carlsberg (OTCPK:CABGY), Molson Coors (NYSE:TAP), Boston Beer (NYSE:SAM).
Sep. 1, 2014, 3:30 AM
Jul. 11, 2013, 7:42 AM
Sep. 28, 2012, 3:54 AMHeineken (HINKY.PK) wins full control of Asia Pacific Breweries, in which it already owns 55.64%, after Fraser & Neave shareholders vote to sell its 39.7% in APB to the Dutch brewer for about $6.3B. The vote ends a two-month drama in which Thai billionaire Charoen Sirivadhanabhakdi threatened Heineken's plans. | Sep. 28, 2012, 3:54 AM
Sep. 13, 2012, 5:31 AM
Thai billionaire Charoen Sirivadhanabhakdi offers S$9B ($7.3B) to acquire the 70% of Singapore's Fraser & Neave he doesn't control in what may be an attempt to prevent Heineken (HINKY.PK) from acquiring F&N's 40% stake in Asia Pacific Breweries for $4.4B. Coca-Cola's (KO) may well be watching with interest, as it's reportedly interested in F&N's beverages operations.| Sep. 13, 2012, 5:31 AM
Aug. 3, 2012, 7:03 AM
Aug. 2, 2012, 3:57 AMCoca-Cola (KO) is reportedly considering a bid for the beverage ops of Singapore’s Fraser & Neave, which include F&N’s dairy and soft-drinks divisions and could be worth up to $3B. The speculation comes as a battle between Heineken and Thai billionaire Charoen Sirivadhanabhakdi for Asia Pacific Breweries, in which F&N owns 40%, nears a climax, with F&N set to decide on a $4.1B bid from Heineken for its holding. | Aug. 2, 2012, 3:57 AM | 3 Comments