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Saturday, April 25, 2015

Sewage Water Beer: Will Other Breweries Jump on Board?

Here is a way to help deal with the drought. Make beer out of sewage water. Think it is weird? Well, it is already taking place in the state of Oregon, which has approved the use of water from the sewer to produce beer. Maybe they should call it "drought draught beer."

Oregon’s Clean Water Services created the process for making the beer with wastewater and the Oregon Environmental Quality Commission has approved the process. Will it take off with the major brewers? Who knows? But with over half a dozen states dealing with drought issues, consumers are avoiding drinking tap water and are turning to bottled water and beer as an alternative.

Investors have a few beer companies to choose from, which would benefit from increased consumption. According to WallStreetNewsNetwork.com, there are more than ten publicly traded beer stocks, and many of them pay dividends.

For exampe, Molson Coors Brewing Company (TAP) is a high yielding brewery with a payout rate of 2.3%. It trades at 27 times trailing earnings and 18 times forward earnings. The company has many popular brands, including Coors, Molson, Heineken, Amstel Light, Miller Life, Corona, and several more. It distributes its beverages in the US, Canada, and Europe. The company reports earnings on May 7.

Anheuser-Busch InBev (BUD) is another large brewer, with such brands as Budweiser, Beck’s, Leffe, Bud Light, Michelob, Skol, Brahma, and Antarctica. It has a trailing price to earnings ratio of 22.3, a forward PE of 21.9. The stock pays a yield of 2.0%.

If you are looking for a beer company that is a bit more speculative, check out Craft Brew Alliance, Inc. (BREW), which has the Kona, Widmer Brothers, Redhook, Omission, and Square Mile brands. The stock trades at 86 times trailing earnings and 37 times forward earnings. The company reports earnings on May 6.

Maybe beer stocks can quench your thirst for growth stocks. Don't you just love these great stock ticker symbols these beer companies have? For a free list of all the beer stocks, several of which pay dividends, go to WallStreetNewsNetwork.com.




Disclosure: Author did not own any of the above at the time the article was written. 

By Stockerblog.com

2 comments:

  1. The Trade Master2:01 PM

    I'd be willing to give sewer beer a try

    ReplyDelete
  2. I think I would also. I would like to see a big brewer come out with a specialty beer made with sewer water.

    ReplyDelete