Anheuser-Busch InBev NV (ADR) (BUD), Boston Beer Co Inc (SAM), Molson Coors Brewing Company (TAP): Beer Sales are Increasing in the United States – A Toast to Five Brewers

Page 2 of 2

The Molson Coors Brewing Company (NYSE:TAP) has had a great run recently and may be a good way to capitalize on the rebound in domestic brewing. However, the company’s performance has been uneven over the longer term and the lack of revenue growth and earnings growth over the previous five-year period is certainly enough to give one pause. At the present time, shares have risen strongly already anticipating an earnings consensus that could be difficult for the company to achieve without considerable strengthening of profit margins.

When considering all of the companies above Heineken appears to be the strongest buy. The recent trend in earnings growth has been robust and is backed by strong revenue growth as well. If this trend continues, the company seems likely to be trading at a lower forward earnings multiple than the consensus expectation. They are making strong strides in emerging markets and should be well situated to capitalize on growing consumption in those regions.

Furthermore, Heineken has the intangible asset of brand recognition that has been built by the company since it was first brewed in 1873. I propose a toast to all of these brewers, but especially Heineken.  The company has outperformed the market over the past year and the past five years and it is expected that this outperformance will continue.

The article Beer Sales are Increasing in the United States – A Toast to Five Brewers originally appeared on Fool.com.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2