This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Beer Market Still Flat

Stocks in this article: BUD TAP.A

The Associated Press

The U.S. beer market still hasn't gotten that fizz back, according to one UBS analyst.

Beer makers have seen their domestic sales volume slump for some time as the tough economy took an added toll on its core customers. That key market of men 21-34 years old has been hard hit by high unemployment that have cut into their buying power.

Companies have raised prices to offset slower sales and the market will eventually recover, said analyst Jason DeRise. But beer makers need that volume recovery for long-term survival. And right now it's not there: U.S. domestic beer shipments fell 2.7 percent in May, compared to the prior year.

In a note to investors, DeRise said he expects Anheuser-Busch's U.S. sales volume to fall for the year and to be flat in 2011. However, he reiterated a "Buy" rating on the parent company's stock as he sees it as undervalued.

Shares of Anheuser-Busch Inbev SA have traded between $47.65 and $64.77 during the past 52 weeks and were trading at $55.91 in afternoon trading Friday.

DeRise also lowered sales volume forecasts for MillerCoors for 2011 and 2012. He now expects volume declines of 0.8 percent and 2.1 percent for the respective years, down from earlier expecations of 1 percent growth in 2011 and flat volume growth in 2012. He lowered his earnings expectations for its parent company Molson Coors Brewing Co. to $3.71 per share for the year, down from $3.76 and 2012 estimate to $4.13, down from $4.20.

Beer sales should pick up in 2012 while those higher prices stick, DeRise said, which would drive strong profit growth.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs