Today's Research on Anheuser-Busch and Molson Coors: What is Brewing?

Feb 15, 2013, 08:00 ET from StockCall.com

LONDON, February 15, 2013 /PRNewswire/ --

Brewery stocks are not only dealing with intense competition but are also having tough time adjusting to the changes in consumer preferences. The new trend towards designer beers and microbreweries has deeply hurt the mass brands' demand in the U.S. and Europe. Molson Coors Brewing Company (NYSE: TAP) bears witness to the fact as it reported disappointing figures for its fourth quarter. The beer companies are also moving towards premium branding in order to cash in on the new trend. Another major beer company,Anheuser Busch InBev (NYSE: BUD) is in the process of restructuring its business and is tangle in legal issues. StockCall professionals have completed their technical analysis on Anheuser-Busch and Molson Coors; and these free reports are accessible by registering at

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Anheuser Busch InBev Modifies Deal

Anheuser Busch InBev is currently busy working out its Grupo Modelo deal. The beverage company is running into problems to get the deal approved by U.S. regulators. Under the new agreement, Anheuser Busch will sell a portfolio of Grupo Modelo brands to Constellation for $2.9 billion. The changed terms are likely to assuage concerns expressed by authorities and the deal is expected to get regulatory approval in a modified form. Sign up for the free technical research on Anheuser-Busch InBev at

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Anheuser Busch InBev stock grew 44 percent in the past 52 weeks, providing impressive returns to its investors. At the very same time, it also paid dividend which generated a 1.68 percent dividend yield. Anheuser Busch InBev expects to finalize its Grupo Mondelo deal soon and it will help the company to expand into new markets such as Mexico. It is also expected that the deal will boost Anheuser Busch's bottom-line, providing a fillip to its stock price.

Molson Coors Brewing Company Acquires Craft Brewer

Molson Coors Brewing Company reported a 65 percent decline in its quarterly profits. The company's net profit for the fiscal fourth quarter stood at $60 million, steeply down from $173.2 million seen in the fourth quarter of the previous year. Its adjusted profit per share was reported at 69 cents. Molson Coors Brewing Company, however, pushed its revenue 10 percent up to $1.03 billion. Yet, it still fell short of consensus estimate of $1.07 billion in revenue. Be sure to read our latest technical research on Molson Coors Brewing Company by registering at

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While Molson Coors Brewing Company boosted its global beer volume, its profits were mainly marred by higher taxations. Molson Coors Brewing holds 30 percent share of the U.S. market and is among the top brewers. The company plans to expand into new markets to compensate for the saturation in developed markets.

Molson Coors Brewing stock appreciated 2 percent on a YTD basis. However, it sports 2.91 percent dividend yield to compensate for its soft capital appreciation rate. While its fourth quarter results are not encouraging, the beer company is moving in the right direction and its stock is expected to respond positively to new strategies. The company plans to buy a craft brewery in order to cater to the high end of the market. Molson Coors Brewing Company will acquire Franciscan Well, an Irish craft brewery. Post-acquisition, the company expects to ramp up the production at Franciscan Well. Earlier, Molson Coors collaborated with SABMiller to tap craft beer market.

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