Oct. 13, 2014, 12:34 PM
- Anheuser-Busch InBev (BUD +0.7%) has considered the benefits of a merger with PepsiCo (PEP +0.6%), sources tell Bloomnberg.
- Though no talks between the consumer product giants are in the works, the culture of sector-rattling mergers at A-B keeps PepsiCo on a short list of takeover candidates.
- The most obvious synergy a BUD-PEP combination would create is a shared global distribution network which some analysts think would add more to the bottom line than a SABMiller buyout for the brewer.
Oct. 11, 2014, 11:31 AM
- The legalization of marijuana in Colorado and Washington hasn't had a negative impact on demand for beer as some analysts warned, notes Sanford Bernstein analyst Trevor Stirling.
- Data from the investment firm found that beer drinking on a per-capita basis increased by 50 bps in the ten states where medicinal marijuana is legal.
- The finding starkly contradicts an earlier study by academics which highlighted a crowding-out impact on the beer budget of consumers living where marijuana is legal.
- Stirling thinks the beer vs marijuana decision for consumers isn't an either/or proposition.
- Beer stocks: BUD, OTCPK:SBMRY, TAP, OTCQX:HEINY, SAM, BREW, STZ.
Oct. 10, 2014, 2:05 PM
- There's more consumer staples names to add to the list of out-performers on the day with investors peeling off some tech and momentum favorites.
- The partial list below represents stocks up at least 1% on the day with a dividend yield of over 2%.
- Back in favor: AVP, KO, MO, RAI, BUD, PF, BGS, DPS, CPB, LO, DF.
Oct. 6, 2014, 2:03 PM| Comment!
Sep. 26, 2014, 9:29 AM
Sep. 24, 2014, 12:51 PM
- A majority of respondents in a poll conducted by Reuters think NFL sponsors should sever ties with the league due to the handling of star players accused of domestic abuse.
- It's not a simple call for the consumer-facing companies with ratings for NFL games seemingly unaffected by the issue.
- Though major sponsors such as PepsiCo (NYSE:PEP), Verizon (NYSE:VZ), Anheuser-Busch InBev (NYSE:BUD) have maintained advertising campaigns, Procter & Gamble (NYSE:PG) canceled a Crest promotion and other advertisers have reportedly asked for shifts away from airing ads during times in the coverage when the controversy is being analyzed.
- NBC (NASDAQ:CMCSA) has the TV rights to the Super Bowl this season and will hope that demand and pricing for the highly-priced spots before, during, and after the game aren't impacted.
Sep. 23, 2014, 9:12 AM
- Fitch Ratings says an acquisition of SABMiller (OTCPK:SBMRY) by Anheuser-Busch InBev (NYSE:BUD) that included equity funding would help the combined beer giant keep an investment grade rating.
- The ratings agency notes the tie-up would lead to only a few divestments due to the relatively limited overlap of beer brands.
- Currency risk would be increased for the brewer, notes Fitch, as a majority of the incoming cash comes in from Latin America, Africa, and eastern Europe - while the debit is denominated in euros and dollars.
Sep. 22, 2014, 9:44 AM
- The buzz from bankers at the LPC loan conference in New York City is that financing for a massive M&A deal shouldn't be a major issue in the current environment.
- The development coincides with ongoing speculation that Anheuser-Busch InBev (NYSE:BUD) is lining up an acquisition play for beer rival SABMiller (OTCPK:SBMRY).
- A bridge loan of $75B-$80B by A-B would be needed to swing the deal, according to some bankers.
Sep. 19, 2014, 9:09 AM
- If a mega-merger occurs inside the beer industry, it could advance the debate on the corporate tax law structure in the U.S., reasons WSJ's Ronald Barusch.
- Though Anheuser-Busch InBev (NYSE:BUD), Heineken (OTCQX:HEINY), and SABMiller (OTCPK:SBMRY) are all domiciled outside of the U.S., and any combination wouldn't involve a tax inversion move, Barush notes the heavy influence of the brewers in the U.S. will highlight again the advantage of setting up headquarters outside U.S.borders for global sellers.
Sep. 19, 2014, 8:21 AM
- The boomerang turns around on Anheuser-Busch InBev (NYSE:BUD) after the company was one of the first major NFL sponsors to call out the league for its handling of recent scandals.
- The global brewer has been a target of criticism from some consumer groups and in editorials for being the wrong company to take the moral high ground .
- The Daily Show didn't go easy on A-B (video clip) one little bit.
Sep. 17, 2014, 8:18 AM| Comment!
Sep. 16, 2014, 4:01 PM
- Anheuser-Busch InBev (NYSE:BUD) comes out with the sternest words to date of any of the major NFL sponsors.
- The global brewer says it's not satisfied with the manner the league has handled the recent incidents involving star players.
- Earlier statements from big sponsors FedEx (NYSE:FDX), Verizon (NYSE:VZ), and PepsiCo (NYSE:PEP) were more on the supportive side.
- Procter & Gamble (NYSE:PG) has been relatively quiet, although its CoverGirl Get Your Game Face On campaign was used by protesters to make a strong point.
- In one of the stronger corporate statements on the NFL developments, the Radisson hotel chain broke off its sponsorship deal with the Minnesota Vikings.
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. 15, 2014, 7:28 AM
- Anheuser-Busch InBev (NYSE:BUD) is talking to banks on financing an offer to purchase SABMiller (OTCPK:SBMRY), according to The Wall Street Journal.
- A deal price for the long-rumored combination would be in the neighborhood of $122B.
- Beer watch: Over the weekend, Heineken confirmed it rejected a takeover offer from SABMiller.
- BUD +2.3% premarket to $113.50.
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).
BUD vs. ETF Alternatives
Anheuser-Busch Inbev SA is engaged in the production, marketing, and distribution of beer. Its brand comprises of Budweiser, Corona and Stella Artois. It also manufactures non-alcoholic beverages such as bottle water and Ice tea.
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