Top 10 Beverage Stocks To Own For 2015

Top 10 Beverage Stocks To Own For 2015: Beam Inc (BEAM)

Beam Inc. (Beam), incorporated on October 1, 1985, is a premium spirits company that makes and sells branded distilled spirits products in markets worldwide. The Company's principal products include bourbon whiskey, tequila, Scotch whisky, Canadian whisky, vodka, cognac, rum, cordials, and ready-to-drink pre-mixed cocktails. The Company's portfolio consists of brands the Company identifies as Power Brands, Rising Stars, Local Jewels and values Creators. The Power Brands are the Company's core brand equities, with global reach in premium categories. Rising Stars are smaller premium brands. Brands identified as Local Jewels act as Power Brands in local markets. Value Creators include a variety of brands. The Company's three reportable segments are the geographic regions, which consists of North America, Europe/Middle East/Africa (EMEA), and Asia-Pacific/South America (APSA). Each segment is engaged in the manufacture and sale of distilled spirits products. In May 2012, the C ompany acquired the Pinnacle vodka and Calico Jack rum brands and certain related assets (Pinnacle assets) from White Rock Distilleries, Inc. In January 2012, Beam acquired Cooley Distillery plc (Cooley), an Irish whiskey producer.

The Company's Power Brands include Jim Beam Bourbon, Maker's Mark Bourbon, Sauza Tequila, Courvoisier Cognac, Canadian Club Whisky, Teacher's Scotch and Pinnacle Vodka. Beam's Rising Stars brand includes Laphroaig Scotch, Knob Creek Bourbon, Basil Hayden's Bourbon, Kilbeggan Irish Whiskey, Cruzan Rum, Hornitos Tequila, Skinnygirl Cocktails and Sourz Liqueurs. The principal markets for the Company's spirits products are the United States, Australia, Germany, Spain, the United Kingdom, and Canada, and the Company continues to invest in emerging markets such as India, Brazil, Mexico, Russia, Central Europe, Asia, and other geographies.

!

During the year ended December 31, 2012, Power Brands, Rising Stars, and combined Loc al Jewels/Value Creators (including non-branded sales) repre! sent approximately 60%, 15%, and 25%, respectively, of the Company's net sales. Approximately 55% of its consolidated net sales were generated in the United States (based on country of destination) during 2012. In the United States, the Company sells its products either to wholesale distributors for resale to retail outlets or, in those states that control alcohol sales, to state governments who then sell them to retail customers and consumers. In the Company's other global markets, the Company uses a variety of route-to-market models, including third party distributors, global or regional duty free customers, other spirits producers and its joint ventures with The Edrington Group Ltd.

The Company competes with Bacardi Limited, Brown-Forman Corporation, Constellation Brands, Inc., Davide Campari Milano-S.p.A., Diageo PLC, Pernod Ricard S.A. and Remy Cointreau S.A.

Advisors' Opinion:

• [By John Udovich]

  Suntory Beverage & Food Limited. A soft drinks company with an integrated platform in four key regions (Japan, Europe, Oceania and Asia), Japan based Suntory Beverage & Food acquired Beam Inc (NYSE: BEAM) for $16 billion (a 25% premium) earlier this year (the sixth-largest ever in the beverage industry) to form the world's third largest premium spirits company. Beam Suntory's brands or products include the flagship Jim Beam bourbon and Yamazaki Japanese whisky, as well as world renown premium brands including Maker's Mark and Knob Creek bourbons, Hakushu and Hibiki Japanese whiskies, Teacher's, Laphroaig, and Bowmore Scotch whiskies, Canadian Club whisky, Courvoisier cognac, Sauza tequila, Pinnacle vodka and Midori liqueur. Beam Suntory generates annual worldwide sales of approximately $4.6 billion (excluding excise taxes). The deal was made in part because of Japan's aging population means! Japanese! companies need to look overseas for growth while a strong Yen last year has helped to fuel acquisitions. It should be noted though that while Suntory Beverage & Food Limited's stock does trade on the OTC in the USA, volume over the past two months has ranged from a low of 9,740 shares to a high of 761,630 shares. On Tuesday, Suntory Beverage & Food Limited rose 1.42% to $19.33 (STBFY has a 52 week trading range of $15.25 to $19.43 a share) for a market cap of $11.78 billion plus the stock is 18.9% since the start of the year and up 13.7% since October 2013.

• [By Joseph Gacinga]

  Another notable case is the spinoff of Fortune Brands Home & Security (NYSE: FBHS  ) from Beam (NYSE: BEAM  ) in 2011. Fortune Brands Home & Security shares have climbed at a much faster clip than Beam's shares since then.

source from Top Stocks For 2015:http://www.topstocksblog.com/top-10-beverage-stocks-to-own-for-2015.html