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Anheuser-Busch InBev NV (ADR) (BUD), Molson Coors Brewing Company (TAP): Should You Buy These Brewers?

Molson Coors is expanding globally by introducing three new cider flavors in Central Europe. The company also launched Borsodi Super Dry in Hungary, Carling in Croatia, and Molson Canadian in Ireland. Molson Coors Brewing Company (NYSE:TAP) remains committed to international growth by “investing ahead of the curve in high-opportunity emerging markets behind a solid portfolio of Coors Light, Carling, and Staropramen.”

Closing the cooler

While the beer market has been disappointing the past few years, the market could have better days ahead. As the economy continues to strengthen, consumer spending should increase and that will benefit the beer market. Molson Coors and Anheuser-Busch InBev NV (ADR) (NYSE:BUD) continue to develop new offerings to meet customer preferences and take advantage of the summer season. The companies also remain committed to international growth and exploiting new market opportunities. The seasonal opportunity, international expansion, and dividend yields above 2% make both stocks interesting investments for your portfolio.

Boston Beer Co Inc (NYSE:SAM) is a growth play in the craft beer market. As craft beers continue to grow in popularity, Boston Beer Co Inc (NYSE:SAM) stands to benefit as one of the most recognizable brands in craft brewing. The company may also benefit greatly from a recent decision to start putting some of their beers into cans. This will open the company to new market opportunities and could reduce costs. Several larger craft breweries, including Sierra Nevada, have also embraced the can.

The growth potential is largely built into the stock price at a current P/E ratio of 38.12. While I would not jump at the stock at current price levels, I would view any drop in price as a buying opportunity.

The article Should You Buy These Brewers? originally appeared on and is written by John Timmes.

John Timmes has no position in any stocks mentioned. The Motley Fool recommends Boston Beer and Molson Coors Brewing Company. The Motley Fool owns shares of Boston Beer. John is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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

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