Profit from the Demise of "Big Beer"

Drink your way to profits... February 11, 2015 Archives | Unsubscribe     Profit from the Demise of "Big Beer"   Drink your way to profits Why "macro brews" are a thing of the past Plus: My true identity finally revealed...   Greg Guenthner coming to you from Baltimore, MD... Alright, Joe Sixpack-- it's time to put down that can of Bud and grab a bottle of some handcrafted strawberry rhubarb beer. Or maybe some apricot ale... That's because microbreweries are overtaking the old-school breweries by churning out specialty beers appealing to the younger generation. And today, you're gonna see how to make a quick 25%-30% gain from this emerging trend... Of course, Bud tries to poke fun at hipster beer aficionados sipping their fancy microbrew like it's Dom Perignon, 1921. "Let them sip their pumpkin peach ale, we'll be brewing us some golden suds," Bud gloats in a recent commercial. That's fine--I get it. They're trying to peddle their mass-produced beer. But here's the thing... Anheuser-Busch InBev (NYSE:BUD)--Budweiser's parent company--is saying one thing... but doing another. "Anheuser-Busch InBev has been on a microbrewery buying binge," CNN Money explains. "In 2011, the company bought Chicago-based Goose Island. At the time, former Anheuser-Busch president David Peacock said that the company was 'very committed to expanding in the high end beer segment, and this deal expands our portfolio of brands with high-quality, regional beers.'" So why is Anheuser-Busch InBev trying to protect its big brands, while scooping up microbreweries at the same time? Well, management's not stupid. They see the writing on the wall. Source: Brewers Association Microbreweries are taking this $100 billion industry by storm. And these little breweries are sweeping the country right now. According to the Brewers Association, more than 2,800 breweries operated in the U.S. in 2013. That's the highest total since the 1870s--incredible. Oh, and those traditional domestic "Big Beer" breweries? They're losing all their head... According to Anheuser-Busch InBev, almost 45% of 21-27 year olds have never even tried a Budweiser. That's right...an ice-cold Bud has never crossed their lips. Man, I remember chugging my first can of Bud when I was - nah, I'd better not say. My mother might be reading. Anyway... If this story sounds familiar to you, it should. There's s a theme here. I've been bashing McDonalds for the better part of the past year, while at the same time praising upstart "better-fast-food" chains like Chipotle. And I have news for you: Budweiser is the McDonalds of beer. It's running around like a chicken with its head cut off trying to figure out how to compete in a market where tastes are clearly evolving... But the microbrewers are like Chipotle. They're giving the younger customers what they want--and growing market share at a breakneck pace. Now don't get me wrong--I don't think BUD is a god-awful stock heading for that great beer vat in the sky. In fact, it's actually trading pretty damn close to its all-time highs right now. The company is scooping up microbreweries here and there, so it's got a plan. But as far as longer-term plays go, I think you should be searching in the microbrew space--no the macro breweries.         WAIT! Don't File Your Taxes Yet...   There's one simple tax form that could put as much as $2,600 in your pocket by April 15.   A form only three out of 100 taxpaying Americans file every year.   It's so little-known your accountant probably doesn't even know it exists.   You won't believe how easy it is. And it's all 100% legal.   TAKE A LOOK AT THIS...           Rude Numbers Targets, Predictions and Wild Guesses   139 points were added to the Dow Jones Industrial Average yesterday. Another day, another triple-digit move... $2.81 is the price of natural gas this morning. Natty continues to rip higher as freezing temps again bear down on the Northeast... $49.93 buys a barrel of crude today. Oil is once again below $50 after taking a spill yesterday... $1,237 is where you'll find gold futures this morning. The yellow metal is up about $5 in early trading... 2,060 marks the spot for S&P futures before the morning bell. Stocks are looking to pick up where they left off after yesterday's rally...     Rude Trends When to Buy... When to Sell   "If sugar is so bad why don't you lobby the government to stop subsidizing sugar producers?" asks a reader. "As for Coke's projected special milk-- I suspect the market will decide on its value for price-- or are you now opposed to 'free' markets?" Well, I'm not a lobbyist. And I don't know much about sugar subsidies. But I'll take your word for it. But back to the real point of your note--my opposition to free markets. You caught me. I'm actually a North Korean spy. I was sent to the U.S. back in the early 1980s when I was just a boy. My mission was simple: undermine the capitalist pigs and reveal the DPRK's glory to the world! Of course, this was a tricky proposition. So I figured I better know my enemy. That's why I became a trader. The rest is history... But seriously--just because I think Coke's new milk product is dumb idea doesn't mean I'm opposed to free markets. I'm not even sure how you're getting that out of my little rant. Oh well... [Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner]     Ignore At Your Own Peril Today's Must Read Links   World's Most Valuable Tech Companies for 21-Cents? Six Investment Opportunities to Survive Any Market Crash You Won't Believe How Obama Made $9.2 Billion [must see]     BE SURE TO ADD rude@agorafinancial.com to your address book.       Additional Articles & Commentary: Join the conversation! 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