Anheuser-Busch (NYSE:BUD) is about to release earnings. Ponder the Bear Case Scenario to see if This Bud is For You:
The signature Brand of Beer namely Budweiser is facing very strong head winds from US-based craft beers, other wines and spirits and persistent unemployment or low wage jobs preventing olde school blue-collar purchases.
European market is much more fragmented than the US market. Consolidation of pubs and other drinking establishments may results in reduced margins as pubs and bars discover negotiating power or get drawn into a competitors orbit.
Large exposure in Latin America
may will hurt earnings as Brazil and other countries flounder economically and their currencies devalue. Does anybody remember why being a global giant was so important.
George Gutowski writes from a caveat emptor perspective.