🍺 The Boston Beer Company, owner of Samuel Adams, Angry Orchard, the Boston Lager and over 50 other styles of beer, is our biggest Ripper of the week. Shares of $SAM skyrocketed after earnings — up 18.8%. However, if you take a look back at the last six months, $SAM has run up an impressive 194%. This is because revenue growth in $SAM is expected to see “outsized growth from the hard seltzer category,” according to Viven Azer at analyst Cowen.
🍷 Brown-Forman, one of the largest American spirits and wine companies, was also featured on our Rippers list two months ago after impressive Q2 earnings. The maker of Jack Daniel’s, Woodford Reserve and Old Forester has run up a far less impressive 22.4% in the last six months. However, its relative valuation, lower price and dividend might be more attractive to investors. $BF.B also saw double-digit sales growth on liquor sales.
🍸 AB InBev, the Belgian spirits company which owns Anheuser-Busch, also has seen considerable growth. Shares of $BUD are up 30.4% in the last six months. After a paltry first quarter of 2020, InBev bounced back in Q2 with a strong earnings beat, much like their neighboring colleagues. T
here are a lot of reasons for the success of the spirits & wine industry during COVID. But one reason might stand out above all of them: despite the pandemic, the people who consume ‘sin’ products will continue to consume them.
Have a good start to your week, Rippers fam. See you on Tuesday for a look at the early-week trading!