Guzzle Profits With Foreign Beverage Companies

Editor's note: This column was submitted by Stockpickr member Martin Guerrero.

With the U.S. suffering a credit crunch, people are suggesting that investors get out of financials and into consumer staples and companies with international exposure, such as Kraft (KFT Quote) or Procter & Gamble (PG Quote).

While that is a good idea, another good play would be to play sectors that have a very low correlation to the financials. Why not invest in international food and beverage companies that are more levered to the economies they serve?

Here are three interesting international food and beverage stocks:

1. Central European Distribution (CEDC Quote) is the largest vodka producer in Poland by value, and produces the Absolwent, Zubrowka, Bols and Soplica brands, among others. CEDC currently exports Zubrowka to European and Asian markets. CEDC imports many of the world's leading brands to Poland, including Remy Martin, Jim Beam, Sauza Tequila and Evian.

CEDC is also benefiting from a strong Polish economy, which is growing at a good 6.4% rate in the second quarter of 2007. It is even getting Russian exposure, as it recently announced its intent to acquire a significant majority interest in a Russian company that owns the No. 1 premium vodka brand in Russia, Parliament Vodka.

This $1.65 billion company has a forward price-to-earnings ratio of 20.48, and a five-year estimated growth rate of 17.5%, which comes out to a reasonable PEG of 1.17. It's near its 52-week high, and there are currently only five analysts covering the stock.