Now, the U.S. businesses are really just part of larger global and the role of the US businesses has become generating cash to invest in synergistic acquisitions and emerging markets and that cash generation has been quite extraordinary; I believe ABI tripled the free cash of Anheuser-Busch which was a reasonably well run company when they took it.So these are just world-class managers running the US businesses. They've generated the cash by cutting costs and raising prices in a much more concentrated industry and not by driving volume or share growth. And some of that is I think coming bit to an end because synergies are largely gotten and my guess is they will turn attention in energy to trying to find pockets of growth through an innovation pipeline or small acquisitions like ABI buying Goose Island and then spreading those out through their national distribution footprint.
The Boston Beer Company's Management Presents At Barclays Back To School Conference (Transcript)
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts