Profit on world beer sales growth

Article Excerpt

Beer demand has slowed in Canada and other developed countries, due to high unemployment and the weak economic recovery. However, sales are growing strongly in emerging markets, where rising prosperity is making beer more affordable. Molson Coors is well-positioned to profit from this trend. The company owns some of the world’s top beer brands, particularly Coors Light. As well, it is forming partnerships with local brewers. Teaming up with well-established producers helps cut the risk of expanding in unfamiliar markets. Moreover, the company’s recent mergers continue to save it money. It is using these savings to expand and raise its dividend. MOLSON COORS CANADA INC. (Toronto symbols TPX.A $43 and TPX.B $44; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 187.0 million; Market cap: $8.2 billion; Price-to-sales ratio: 2.2; Dividend yield: 2.8%; TSINetwork Rating: Average; www.molsoncoors.com) is the world’s fifth-largest brewer by volume. Its leading brands include Coors Light, Molson Canadian and Carling. The company gets 63% of its earnings from the U.S., followed by…

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