The overall beer volume numbers from Heinken (HINKY) for 2013 weren't outstanding, but a late-year surge in demand in Africa was a bright spot with several big brewers betting heavy on the region.
A positive read from IRI on January beer sales: Retailers reported a 6.75% increase in sales compared to a year ago for the four-week period ending January 26.
Craft beer market share rose to 7.5% in 2013 after standing at 5.5% just two years ago. Many of the large global brewers are turning to new craft brewery acquisitions and craft products in order to stoke demand.
Related stocks: Anheuser-Busch InBev (BUD), Heineken (HINKY), Molson Coors (TAP), SABMiller (SBMRY), Boston Beer (SAM), Craft Brew Alliance (BREW).
Goldman Sachs hikes its PT on Boston Beer (SAM -0.5%) to $233 from $180 and reiterates a Neutral rating.
Goldman is playing catch up, as SAM has climbed 128.8% in the last year and rests above even the firm's new PT. Analyst Judy Hong sees "continued strong growth for Angry Orchard and sustained improvement for [Samuel Adams'] beer portfolio." However, Hong believes the "valuation is already stretched versus other consumer/retail growth peers."
A unit of Boston Beer Co. (SAM) has acquired the rights to the Coney Island Brand from Shmaltz Brewing Company.
Under the terms of the deal, "Shmaltz will produce some of the beer to be sold under the Coney Island brand name" and Shmaltz founder Jeremy Cowan will advise the SAM unit on matters related to the brand for up to two years. (8-K)
SABMiller (SBMRY.PK) thinks the North American beer market is poised for growth after last year volumes grew sluggishly for the beer industry (BUD, HINKY.PK, TAP, SAM). Execs with the brewer say employment trends favor a pickup in beer demand which it hopes translates to positive volume growth for key brands Coors Light and Miller Lite.
Cheers! Goldman admits to "significantly underestimating" the potential of Boston Beer's (SAM) Angry Orchard hard cider which has gone "from not existing to having a 40%+ share of the burgeoning cider segment." As a result, analyst Judy Hong upgrades SAM to Neutral from Sell and raises the price target on the shares to $162 from $141. Ever wondered what SAM is worth on a DCF basis? See SA contributor Valuentum's recent article for the answer.
Boston Beer (SAM) increased sales by over 40% during a four-week tracking period, according to Citi Research. A combination of seasonal specials, higher promotional spending, and attractive pricing helped beer sales shoot up 18% in dollar terms.
Big beer companies including Anheuser-Busch InBev (BUD), Molson Coors (TAP), SABMiller (SBMRY.PK), Heineken (HINKY.PK), and Constellation Brands (STZ) support legislation that they say would take away some of the advantages craft brewers have on excise taxes. While separating the big boys like A-B from smaller local players is pretty easy, things get more confusing when trying to label brewers such as Boston Beer (SAM) and Craft Brew Alliance (BREW) with indy roots. What to watch: Though sluggish beer volume in the U.S. is a major concern, the battle over excise taxes could be just as big for bottom lines.