Sunday, February 02, 2014

Will Drone Delivered Beer Help Beer Stocks?

There is a microbrewery called Lakemaid Beer that provided an interesting service to its customers. It has delivered beer to fishermen on ice in the northern states using a drone. Check out the following video. However, the FAA has put a stop to the delivery for now.

If this idea does take off and the FAA eventually approves, will it help beer companies? Do beer companies really need help, as beer is receiving a lot of positive publicity, such as the research showing that beer can help you lose weight and treat diabetes.

Anheuser-Busch InBev (BUD) is a major producer of beer, with such brands as Budweiser, Stella Artois, Beck’s, Leffe, Hoegaarden, Bud Light, Michelob, Skol, Brahma, and Antarctica. It has a trailing price to earnings ratio of 11.5, a forward PE of 17.9. Earnings for the latest reported quarter were up 28% on a 14% rise in revenues. The stock pays a decent yield of 1.4%.

Boston Beer Company (SAM) make the popular Samuel Adams beer. SAM trades at 41 times trailing earnings and 32 times forward earnings. Earnings for the latest reported quarter were up 24% on a 30% boost in revenues. The stock does not pay a dividend.

Molson Coors Brewing Company (TAP) pays one of the highest yields of the group at 2.4%. It trades at 19.5 times trailing earnings and 13 times forward earnings.

Even if beer drones don't take off (no pun intended), beer drinkers will continue to drink beer.

To access a free list of all the beer stocks, five of which pay dividends, go to

Disclosure: Author owns SAM. 


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