Latest news with #alcoholicbeverages
Yahoo
a day ago
- Business
- Yahoo
Here's What to Expect From Brown-Forman's Next Earnings Report
Louisville, Kentucky-based Brown-Forman Corporation (BF-B) manufactures, distills, bottles, imports, exports, markets, and sells a variety of alcoholic beverages. With a market cap of $14.6 billion, the company offers its products primarily under the Jack Daniel's, Woodford Reserve, Old Forester, Gentleman Jack, Herradura, el Jimador, Fords Gin brands. BF.B is slated to release its Q1 earnings on Thursday, Sept. 4. Ahead of the event, analysts expect BF.B to report a profit of $0.37 per share, down 9.8% from $0.41 per share reported in the year-ago quarter. It has exceeded analysts' earnings estimates in two of the past four quarters while missing on two occasions. More News from Barchart Warren Buffett Warns Inflation Turns Business Into 'The Upside-Down World of Alice in Wonderland' But Weeds Out 'Bad Businesses' Why GOOGL Stock May Be the Market's Next Big Winner Alphabet Posts Lower Free Cash Flow and FCF Margins - Is GOOGL Stock Overvalued? Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. For the current year, analysts expect BF.B to report EPS of $1.67, down 9.2% from $1.84 in fiscal 2024. However, analysts expect its earnings to surge 3% year-over-year to $1.72 per share in fiscal 2026. Over the past year, BF.B shares declined 31.3%, underperforming the S&P 500 Index's ($SPX) 18.3% gains and the Consumer Staples Select Sector SPDR Fund's (XLP) 4.9% returns over the same time frame. Shares of Brown-Forman fell 17.9% following the release of its Q4 2025 earnings on Jun. 5. The company posted revenue of $894 million in the period, which fell short of Street forecasts. Moreover, its adjusted EPS for the quarter amounted to $0.31, which fell short of consensus estimates by 13.9%. The consensus opinion on BF.B stock is skeptical, with an overall 'Hold' rating. Out of the 17 analysts covering the stock, opinions include three 'Strong Buys,' 11 'Holds,' one 'Moderate Sell,' and two 'Strong Sells.' The mean price target of $32.49 indicates a 4.9% upside potential from current price levels. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
5 days ago
- Business
- Yahoo
Trade bodies welcome Ireland alcohol health warning labels delay
The local and European drinks trade has reacted positively to Ireland's delay of implementing health warnings and calorie information on alcoholic beverages. Reports emerged last week indicating the government's intention to delay putting the legislation into force. Two senior government officials told Politico the move was being made due to fears of US tariffs affecting Ireland's drinks exports. In a statement to Just Drinks yesterday (23 July), the Department of Health said: "Following the Government's decision to defer the implementation of alcohol labelling requirements from 2026 to 2028, the Department of Health will arrange for the necessary amendments to the relevant regulations." National drinks trade body Drinks Ireland welcomed the delay. It said the move brings "much-needed relief" for producers, "and allows our exporters to focus their resources and efforts on market diversification and indeed, survival of their businesses". The Irish drinks sector is already facing "major trade uncertainty, new tariffs on product[s] entering our most important export market, the US, and threats of further tariff escalation", the association said, adding while Irish producers are focused on exports, they also require a "strong, competitive domestic marketplace". The country passed the legislation in 2023. It required alcohol producers to include health warning labels on drinks labelling information for alcoholic beverages. The labels were intended to highlight the risks of drinking alcohol and include information on a product's calorie content. They were supposed to come into effect from May next year. The labelling law which was to be implemented "as a unilateral national measure" would have seen packaging and labelling costs go up "by some 35%", according to Drinks Ireland. The trade body argued that the law should be implemented at the EU level "to maintain the integrity of the EU Single Market and avoid additional costs on Irish businesses versus our competitors". "Pushing through this unilateral change would have resulted in some businesses forgoing the Irish market, would have driven up the price of doing business for all drinks producers and would have impacted on the cost and choice for consumers." EU wine trade body Comité Européen des Entreprises Vins (CEEV) also welcomed the Irish government's decision, describing it as "an important opportunity to re-align regulatory efforts with EU law and the principles of the Single Market". 'Introducing a unilateral and disproportionate health warning on all alcoholic beverages sold in Ireland would have imposed significant costs and administrative burdens, especially for small and medium-sized wine producers, while undermining the integrity of the EU Single Market and legal framework," said Marzia Varvaglione, president of the CEEV. "Public health objectives must be pursued in a legally sound and coordinated way. Fragmentation only leads to confusion for consumers and unnecessary costs for producers,' she added. The CEEV filed a complaint to the European Commission on Ireland's new labelling laws when they were announced two years ago, it said, stating that the legislation went against "the Union's legal framework". 'This pause shall be more than just a delay, it is a much-needed chance to rethink how we ensure consumers are well-informed, while also safeguarding the legal and economic coherence of the European market,' Ignacio Sánchez Recarte, the secretary general of CEEV, said. 'Wine producers and consumers deserve rules that are balanced, evidence-based, and applied consistently across the EU.' Delay with "real-life consequences", says charity Local charity Alcohol Action Ireland however said it was "disappointed" by the delay, arguing that the legislation was a crucial part of Ireland's Public Health (Alcohol) Act (2018), which looks to reduce the negative effects of alcohol, and cut down national consumption. Dr Sheila Gilheany, the CEO of Alcohol Action Ireland, said: 'To say that this delay is a blow for public health in Ireland is an understatement. It is a failure of leadership and of democracy. "It's not just that Irish people are being denied their right to information regarding some of the facts about alcohol so that they can make informed decisions. It's not just that the government is allowing its own groundbreaking legislation to be undermined by the very industry it is designed to regulate. "This delay will have real-life consequences that will be felt by ordinary Irish people every day." "Trade bodies welcome Ireland alcohol health warning labels delay" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
22-07-2025
- Business
- Yahoo
Boston Beer is back to growth !
After a tumultuous 5 years which saw bubble highs and new lows, premium brewer Boston Beer Co. (NYSE:SAM) now looks like it's got its groove back. Boston Beer has carved out a economic moat based on its brands, strong distribution and leadership in on-trend alcoholic categories like malted beverages, hard seltzer and ciders and premium beers. Here are the top five Boston Beer Company brands, organized by category: Beer: Samuel Adams The flagship craft beer line, featuring Boston Lager, seasonal releases, and specialty brews. Malt Beverage: Twisted Tea A popular hard iced tea malt beverage available in a variety of flavors and alcohol strengths. Hard Seltzer: Truly A leading hard seltzer brand with a wide range of fruit flavors. Hard Cider: Angry Orchard A well-known hard cider brand offering both classic and seasonal varieties. Vodka-Based Ready-to-Drink (RTD): Sun Cruiser A ready-to-drink hard iced tea and lemonade made with real brewed tea and premium vodka. These brands showcase Boston Beer's most prominent offerings across beer, malt beverages, hard seltzers, hard cider, and ready-to-drink cocktails. Boston has recently launched a new product under the brand Sun Cruiser; it is a vodka spiked iced tea made with real brewed tea and premium vodka. It contains no malt or malted grains, but instead combines iced tea or lemonade with vodka, resulting in a gluten-free, 4.5% ABV alcoholic drink with a smooth, refreshing taste and a hint of sweetness. The launch is showing good results. Boston Beer Company's notable acquisitions include Dogfish Head Brewery in 2019 and the Oregon Ale and Beer Company in 1997. The Dogfish Head deal, valued at around $300 million, was intended to combine two innovative craft brewers and strengthen Boston Beer's position in the craft segment, but it has been financially disappointing due to repeated impairment charges and underperformance relative to expectations. The Oregon Ale and Beer Company acquisition in 1997 helped Boston Beer expand its production capacity and market reach, supporting its national growth at the time. Beyond these, Boston Beer has focused more on organic growth and partnerships, such as its current collaboration with PepsiCo for HARD MTN DEW, rather than a series of high-profile acquisitions. Overall, while the Oregon Ale and Beer Company acquisition supported operational expansion, the Dogfish Head acquisition has not delivered the anticipated financial success. I became interested in Boston Beer for two reasons. It recently showed up on a screen close to 52-week lows and 5 year lows. As you can see the stock went into a huge bubble during the pandemic which burst in recent years. As busts typically do, the price may have fallen more than justified hence creating a value opportunity. The company is showing recovery in both revenue per share and operating income per share. This dynamic is evident in the charts given below and constants with the price action. My rule of thumb is that I want to see actual improvement in revenue per share and operating income per share on a TTM basis as well in at least two of the last four most recent quarters. The results given below meets my rule of thumb criteria. This gives me some confidence that the business is turning around. The following 10 year annual chart also shows that revenue has held up pretty well and operating income is now recovering. SAM Data by GuruFocus The company's current price ratio's are much lower than its 10 year median price ratio's across the board indicating significant undervaluation compared to recent history. Price Ratio's - Current 10 yr median Price Ratio's PE Ratio without NRI 18.73 PE Ratio (10y Median) 38.39 PS Ratio 1.1 PS Ratio (10y Median) 2.52 PB Ratio 2.43 PB Ratio (10y Median) 5.01 Price-to-Operating-Cash-Flow 8.93 Price-to-Operating-Cash-Flow (10y Median) 19.32 EV-to-Forward-EBITDA 8.62 EV-to-EBITDA (10y Median) 18.77 SAM Data by GuruFocus Boston Beer has also being buying back stock at a feverish pace which indicates the company realizes that the stock is undervalued. Competitive Analysis These companies compete with Boston Beer across various categories, including traditional beer, hard seltzer, hard tea, cider, and innovative ready-to-drink products. Boston Beer's EV/EBITDA compares favorably to its peers but note that it is much smaller than the global brewers like Anheuser=Busch and Heineken. Ticker Company Market Cap ($M) Operating Margin % Operating Margin % (10y Median) 10-Year Revenue Growth Rate (Per Share) 10-Year Operating Income Growth Rate (Per Share) EV-to- EBITDA EV-to-Forw ard-EBITDA SAM Boston Beer Co Inc 2,173.25 8.32 11.69 12.40 -0.70 7.98 8.62 HEINY Heineken NV 49,591.77 11.69 13.29 4.40 1.80 12.45 9.02 DEO Diageo PLC 57,758.90 28.90 29.42 6.40 7.30 11.98 8.47 STZ Constellation Brands Inc 30,355.96 31.69 30.20 6.10 8.60 92.27 11.02 TAP Molson Coors Beverage Co 10,119.19 15.04 13.69 10.30 13.90 6.65 6.52 BUD Anheuser-Busch InBev SA/NV 131,556.14 25.62 27.64 1.40 -1.20 13.50 9.03 Another issue to note is Boston Beer's relatively lower operating margin as compared to its bigger peers. This is likely due to its higher marketing spend as a percentage of revenue. Gross Margins are also lower due to lower volume. The following table provides U.S. Market Share and estimate volume of beer sold. Company U.S. Market Share (2023) Estimated U.S. Beer Volume (Barrels, 2023) Notes AB InBev (Budweiser) 34% ~65.3 million Industry leader, 2x larger than Molson Coors Molson Coors (TAP) 22% ~42.2 million Clear #2 in U.S. market Constellation (STZ) 15% ~28.8 million Strong, rapidly growing portfolio (Corona, Modelo) Heineken Not top 10 (no official share listed) N/A, but likely <1% of U.S. volume Major global player, but U.S. share is minor Boston Beer () 4% ~7.7 million Largest craft brewer, but much smaller than big three. Boston Beer Company is controlled by its founder, Jim Koch, through ownership of all the company's Class B Common Stock, which carries full voting rights. While the company's Class A shares are publicly traded under the ticker "SAM," these shares do not have voting rights, so public shareholders and institutional investorsincluding major holders like Vanguard, BlackRock, and Fidelitydo not control the company's governance. In addition to Jim Koch, Sam Calagione, co-founder of Dogfish Head (acquired by Boston Beer in 2019), is a significant non-institutional shareholder. However, ultimate control remains with Koch due to his exclusive ownership of voting shares. Guru investors holding this stock include Ken Fisher (Trades, Portfolio), Steven Cohen (Trades, Portfolio), Mason Hawkins (Trades, Portfolio). However they hold relatively minor positions. Boston Beer Company is a leading U.S. craft beverage producer best known for its flagship Samuel Adams beer, as well as Twisted Tea, Truly Hard Seltzer, and Angry Orchard cider, among others. The company has a reputation for innovation, quickly expanding into new beverage categories such as hard seltzer, ready-to-drink cocktails, and most recently, cannabis-infused beverages in Canada. Its diversified brand portfolio allows it to adapt to changing consumer preferences, with products ranging from traditional beer to non-alcoholic and cannabis beverages. Despite its strong brand recognition and history of revenue growth, Boston Beer has faced significant share price volatility and underperformance in recent years. Over the past five years, the stock has declined sharply, with a 62% drop, including a 30% decrease in the last year alone. This poor stock performance stands in contrast to steady revenue growth and improving profitability, suggesting that market sentiment may be more negative than the company's fundamentals warrant. The company's price-to-earnings ratio is relatively high, reflecting expectations for future growth, but also highlighting the risk if growth does not accelerate. Boston Beer's recent financial results have been mixed. While it reported strong quarterly earnings and revenue growth driven by product innovation and increased shipments, some core brands, such as Twisted Tea, have struggled with volume growth. The company's strategic investments in advertising and new product lines, including cannabis beverages, indicate a focus on long-term growth and diversification, but these initiatives come with execution risk. Analyst sentiment on the stock is generally neutral, with most rating it a Hold and price targets suggesting potential for recovery if the company can deliver consistent results. Boston Beer is currently debt free, marking a significant improvement from five years ago when the company had a debt to equity ratio of 13%. With no outstanding debt, SAM does not require operating cash flow to cover debt obligations, and interest coverage is not a concern since there are no interest payments to manage. This strong financial position reflects effective debt reduction and prudent financial management. It gives the company flexibility to pursue growth projects. Boston Beer Co Inc has experienced long-term declines in both gross margin and operating margin, with gross margin falling at an average annual rate of 2.1% and operating margin declining by 10.8% per year over the past five years. Despite these margin pressures, the company demonstrates several financial strengths: it maintains comfortable interest coverage with enough cash to cover all debt, a low likelihood of earnings manipulation according to its Beneish M-Score, and valuation ratios (PB, PE, and PS) that are close to multi-year lows, suggesting the stock may be attractively priced. Revenue per share has shown consistent growth, and the company's financial strength is underscored by a strong Altman Z-score and a robust balance sheet. Overall, Boston Beer is low risk, with solid fundamentals and characteristics that support a long-term holding perspective. In summary, Boston Beer's qualitative outlook reflects a well-managed, innovative company with strong brands and a healthy balance sheet, but also one facing market skepticism due to recent stock underperformance and mixed results across its portfolio. Success will depend on its ability to drive growth in emerging categories and revitalize its core brands in a competitive and evolving beverage market. Warning! GuruFocus has detected 2 Warning Signs with SAM. This article first appeared on GuruFocus.
Yahoo
06-07-2025
- Business
- Yahoo
Diageo plc (DEO) Announces Completion of Sale of Its Shareholding in Seychelles Breweries Limited
Diageo plc (NYSE:DEO) is one of the 11 Best 52-Week Low Stocks to Buy Right Now. On July 1st, Diageo plc (NYSE:DEO) announced the completion of its sale of shareholding in Seychelles Breweries Limited to Phoenix Beverages Limited. Diageo plc (NYSE:DEO) completed the sale of its 54.4% shareholding in Seychelles Breweries Limited to Phoenix Beverages Limited, which is a subsidiary of Mauritius-based IBL Group, for approximately $80 million. The transaction was announced on April 2, 2025. The deal reflects the company's strategic move to focus on its portfolio management and high-margin brands while maintaining a strong presence in the Indian Ocean region through licensing agreements. A close-up of bottles of whisky and other alcoholic beverages from a winery. Under the terms of the deal, although Diageo plc (NYSE:DEO) has sold its majority stake, it retains ownership of its key brands produced by Seychelles Breweries, such as Guinness and Smirnoff RTDs. These brands will continue to be produced and distributed in Seychelles under new long-term license and royalty agreements with Seychelles Breweries, ensuring ongoing collaboration. Diageo plc (NYSE:DEO) is a UK-based producer and distributor of premium alcoholic beverages. The company operates a vast portfolio of brands and has a presence in 180 countries. While we acknowledge the potential of DEO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-07-2025
- Business
- Yahoo
Meghan Markle releases As Ever rosé — but you'll have to spend over $100 to get it
Meghan Markle has officially launched her As Ever brand rosé — and with quite a steep price tag. The 2023 Napa Valley Rosé starts at $90 for three bottles, plus $20 flat-rate shipping, meaning you'll have to spend $110 total to try it. Shoppers can also opt for a six-bottle package for $159 or a 12-bottle case for $300. The bottles will begin shipping July 9. However, shipping isn't available in all U.S. states. Those in Alabama, Alaska, Delaware, Mississippi, Rhode Island, and Utah who were hoping to try Meghan's newest product will have to wait. And in Hawaii, shipping is only available to the counties of Hawaii and Kauai. International shipping is also unavailable. Still, the hefty price tag didn't appear to deter shoppers, as the rosé sold out in less than an hour. The rosé marks Meghan's first alcoholic offering. 'With soft notes of stone fruit, gentle minerality and a lasting finish, this bespoke blend is launching just in time for summer entertaining,' a description for the rosé reads. Meghan's foray into alcoholic beverages comes as the company restocked some of its products in June after selling out in less than an hour during the initial April launch. Among those products were $15 Flower Sprinkles, $14 Crepe Mix, $14 Shortbread Cookie Mix with Flower Sprinkles, and $12 Herbal Teas in three flavors: hibiscus, lemon ginger, and peppermint. The teas, however, have since sold out again. As Ever's June re-launch also introduced two new products: a $28 Limited-Edition Orange Blossom Honey and a $9 Apricot Spread. Both products also quickly sold out. While Meghan didn't restock her viral $9 Raspberry Spread, it will be coming back soon, according to As Ever's website. The restocks and new products follow Meghan's public questioning of her brand. A Page Six report from early June revealed Meghan will be adding 'hospitality services in the nature of provision of food and drink' and 'hospitality services in the nature of provision of temporary accommodation' to her business, likely in the form of eventual restaurants and hotels. Only weeks earlier, the Duchess said in an interview with Fast Company that she was planning to take a 'step back, gather data from the launch, and figure out exactly what As Ever could be.' 'I want to really focus on the hospitality angle of As Ever, but as we take the learnings, we can understand what the customer's needs are seasonally,' Meghan told the publication. 'My heart is very deeply in my home. Everything comes from being rooted in the love story of your home and garden, and then you can imagine different verticals coming out of that.' Asked whether she might explore moving into clothing one day, Meghan responded: 'Fashion is a category I plan to explore down the line because I find it to be an intriguing space for me.'
