Boston Beer Co Inc (SAM), Anheuser-Busch InBev NV (ADR) (BUD): Summer Time and Beer Go Together

What I like about Craft Brew Alliance Inc (NASDAQ:BREW) is that the company is still small enough to innovate and adapt to changing market conditions. The company just recently launched a beer for the gluten-free market. So far though, the company has not received permission from the Federal government to market the beer as gluten-free. If and when it does receive permission, that will be a big boost for the company as the gluten-free market is rapidly growing and winning new followers every day.

Craft Brew Alliance has two new products to propel growth this year. One is its new beer that it has developed with its partner Buffalo Wild Wings (NASDAQ:BWLD) called “Game Changer Ale.” This new craft beer will be available at all Buffalo Wild Wings’ locations. The second product is the company’s foray into the cider market with “Square Mill Cider.” The cider market is very similar to the craft beer market and the company hopes to have the same success as Boston Beer with its cider offering.

Foolish assessment

My favorite among the three is Boston Beer Co Inc (NYSE:SAM). Even though the stock is up 50% in the past year, I think it’s a great buy on dips. The company has a loyal customer base and growing every day. Anheuser-Busch InBev NV (ADR) (NYSE:BUD) still does not garner much respect from craft beer enthusiasts. The company still dominates the overall beer market, but to attract new drinkers it needs more craft beer brands.

Craft Brew Alliance is the smallest of the bunch and the most speculative. The company’s brands are still not as well known as a Sam Adams from Boston Beer. The company needs to spend a lot more on marketing to attract new customers. With Anheuser-Busch InBev taking a stake, I think it’s inevitable that one day they’ll be bought out.

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

The article Summer Time and Beer Go Together originally appeared on and is written by Mark Yagalla.

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