Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

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 Fool.com 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.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.