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Publicly Traded Craft Breweries

Discussion in 'Beer Talk' started by Ohsaycanyoubeer, Jan 31, 2013.

  1. The use of an ad hominem description of those who disagree with you hardly furthers your argument.

    I could just as well say it's naive to think there's some sort of nobility in privately held breweries or that those breweries are less concerned with getting rich and maximizing profits, or that publicly traded breweries have no ethics save the bottom line.

    To your suggestion that privately held breweries "sometimes sacrifice profit/value for fun/[passion/eccentricity" I could easily counter with the often repeated complaint on these forums about high prices of beers from private breweries. And to your other accusation that publicly traded breweries only care about the "bottom line" I can point to BBC that does many altruistic projects including its seed money program for entrepreneurs and its homebrewing competition to name just two.

    And, oh by the way, do you sacrifice profit in your job for the sake of the product you provide to your consumers?
     
  2. leedorham

    leedorham Champion (835) Washington Apr 27, 2006

    LOL

    I didn't say anything about nobility. A private ownership's agenda isn't necessarily noble.

    I didn't say anything about privately held companies not being able to do anything altruistic.


    You clearly don't know me very well if you think that sort of rhetoric strikes a nerve at all. I give zero fucks about the things that keep most business people up at night.
     
  3. Dont you spend enough of your budget on craft beer already?

    If you want to invest by a 12 pack instead of a 6 pack. Better ROI.
     
  4. "In my opinion, if a craft brewery does _(insert anything)__, they aren't 'craft' anymore"
     
    5thOhio likes this.
  5. Blanco

    Blanco Advocate (510) Pennsylvania Oct 11, 2008

    IRRC, Tenth & Blake owns less than 25% of Terrapin.
     
  6. Walkercf

    Walkercf Initiate (5) Oct 9, 2013

    OTC NCNE Appalachian Mountain Brewery ! HOTR Hooters Mgmt involved.
     
  7. pixieskid

    pixieskid Advocate (660) Germany Jun 4, 2009

    I kick myself every time I hear about how well they are doing...I had an business math class several years ago and chose to do the comparison/prediction of SAM and BEER and my predictions were right. Their stock has gone way up in the last 4 years. But then again, I could have put what little money I had into gold and that would have been a good choice as well...
     
  8. pixieskid

    pixieskid Advocate (660) Germany Jun 4, 2009

    You happen to have any similar info for European craft breweries? Better yet, would you let me know if there is a particularly quick way to go about finding out such information (or are you just an encyclopedia and/or master of Googling)?
     
  9. blue-dream

    blue-dream Moderator (895) Illinois Aug 22, 2013 Staff Member

  10. Harnkus

    Harnkus Savant (395) New York Oct 31, 2013

    Totally fair point
     
  11. spicoli00

    spicoli00 Champion (760) Indiana Jul 6, 2005

  12. blue-dream

    blue-dream Moderator (895) Illinois Aug 22, 2013 Staff Member

  13. drtth

    drtth Champion (955) Pennsylvania Nov 25, 2007

  14. spicoli00

    spicoli00 Champion (760) Indiana Jul 6, 2005

    that's not what the prospectus says.

    can't buy from the u.s. but if you have an offshore account it's not an issue.
     
  15. I tried to tell you guys about GrowLife Inc. and nobody wanted to hear it.
    *shrug*
    Back to beer stocks i guess. Actually SAM didnt do half bad this year. I wouldnt touch it now but..
     
    blue-dream likes this.
  16. drtth

    drtth Champion (955) Pennsylvania Nov 25, 2007

    Thanks for that information. That's a sublety I'd not been aware of having just read the part saying as a resident of the US you were not eligible for purchase.
     
  17. C_Roetting

    C_Roetting Savant (250) Kentucky Aug 28, 2013

  18. You are correctly segregating business practices from brewing but even though a "business practice" may deal mainly with marketing, etc., it can also have an effect on brewing. For example, using cheaper or less ingredients that don't necessarily change the taste of the beer for the majority of drinkers in order to maximize profits.
     
  19. Publicly traded / craft brewery. An oxymoron if I ever saw one.
     
  20. draheim

    draheim Poobah (1,050) Washington Sep 18, 2010

    Bump.

    I was going to post this same thread but then, using the handy search function, found this one already in existence.

    To add to the conversation, have any new publicly traded breweries come on the market since December 2013 (date of the last post in this thread prior to mine)? Is this viewed as a growing trend as more breweries grow and expand distribution? Pros? Cons?
     
    kojevergas and blue-dream like this.
  21. Ranbot

    Ranbot Advocate (535) Pennsylvania Nov 27, 2006

  22. Lazhal

    Lazhal Aficionado (210) Michigan Mar 13, 2011

    No, I'm not talking about buying beer.

    I'm talking about buying ownership in big name craft breweries. Average investors, like me, do this every day with publicly traded companies (stock) and mutual funds.

    Craft beer market share has been gaining on big beer for some time now. Take a company like Founder's. They have a significant foothold in craft beer. Targeting most of the popular styles. Their product line "All Day IPA" is specifically targeted at major products like Bud Light, Miller Lite, etc. Its clever! I think there is a lot of potential for a company like this.

    It's the type of investment where I'm interested in putting money. But I can't buy stock in Founder's! I'm also wary of buying stock in a big beer player like AB Inbev or SABMiller. They are losing market share and their portion of business in craft isn't large enough.

    What are the options to get my money into big time craft beer?
     
  23. TCJ0100

    TCJ0100 Aficionado (245) Indiana Oct 9, 2014

    Sam Adams is publicly traded. Other than that you can't most of them are family owned or owned by the employees.
     
    Chaz likes this.
  24. Jacobob10

    Jacobob10 Advocate (620) New Jersey Feb 23, 2004

    I owned stock in Boston Beer Co. (SAM) for a few years and got a pretty nice return off of it. Not sure if it is too large for what you're looking for. The stock price is now much higher than when I bought it. They not only own Samuel Adams but also Angry Orchard Cider and Twisted Tea.
     
  25. Alpha309

    Alpha309 Advocate (575) California Nov 13, 2014

    I would think your best bet would be to invest in a brewery that is just opening and needs cash. You could probably leverage yourself part ownership if you were willing to invest the startup costs.

    The midsized ones I am pretty sure are pretty tightly held.
     
    edd562, SteveB24 and Beervana like this.
  26. Tripel_Threat

    Tripel_Threat Savant (470) Michigan Jun 29, 2014

    What they said. If you're savvy, best to keep an ear out for startups of for a brewer who's looking to expand and is in need of capital. Of course, this also depends on how much you're looking to invest, too. If it's a capital investment rather than just buying stock in a company, you're probably looking at a larger investment if the brewery is going to give you a percentage ownership.
     
  27. TheodorHerzl

    TheodorHerzl Advocate (500) Indiana Mar 30, 2007

    You should do some more research. InBev is doing just fine. They released quarterly numbers today actually. There is still plenty of money to be made off of InBev. They are losing market share in the US but growing elsewhere. Shares are up 14% this year. If you have a 401k with mutual funds in I almost guarantee you own InBev already. All I'm getting at is be an informed investor. In the craft space you need to be an angel investor or buy in at start-up.
     
    Acropora likes this.
  28. Lazhal

    Lazhal Aficionado (210) Michigan Mar 13, 2011

    Thanks for the start-up suggestions. I admit, I'm weary of a startup. It is a lot of risk to stomach. I'm really trying to focus in established places with a lot of growth potential. I'll take a closer look at Boston Beer Co too.

    The reason I don't want AB Inbev isn't because I think they are doing badly. It's because of where I think the greater potential lies. To me, its with a company like Founder's, not AB Inbev.
     
  29. terence

    terence Savant (330) California Mar 18, 2012

    There is also Craft Brew Alliance, Inc. (Ticker Symbol: BREW). They brew a number of beers, including Kona, Widmer Brothers, & Redhook. P/E is very high and very low market capitalization. I wouldn't call this a great investment.
     
  30. TheodorHerzl

    TheodorHerzl Advocate (500) Indiana Mar 30, 2007

    You live Michigan? You can try LocalStake. There is a brewery on there about every week.
     
    TheeWalrusHunter likes this.
  31. Emerging markets my friend. Emerging markets.
     
  32. mikepcarney

    mikepcarney Advocate (570) Ohio Oct 28, 2009

    Kick starter ?
     
  33. It seems everybody is opening a brewery in MI. Find one and review the business plan. If that looks good, plunk down a large chunk of change. Be prepared to wait a long time to see the first return.

    Founders almost went bankrupt, so be prepared to lose money, as not every brewery makes it big.
     
  34. kfordham281

    kfordham281 Savant (250) Georgia Oct 29, 2005

    I'm almost positive you can't sell ownership on Kickstarter.

    For the OP, try BUD, BREW, and SAM; all publicly traded companies.

    Why BUD? Let's be honest, they are going to continue to pour money into craft acquisitions. They pay a decent dividend too. I've actually been looking at buying some shares.

    Why SAM? They are up nearly 300% since 2011. Their P/E is high and they don't pay a dividend (BUD does) however. I personally would probably not put my money there, primarily because I'm not a huge fan of their product.

    Why BREW? Well....not sure I can say why. You can look at the numbers, but I suspect they have underperformed vs the S&P 500 over the last 5 years. Though it looks like revenue growth over the last five years is 10%+ so there is some growth...

    If you want to invest in non-public companies, you need a few things. 1) Decent amount of seed capital; $100K+ 2) Connections to companies looking to grow. 3) Patience

    Food for thought.
     
  35. fredmugs

    fredmugs Poobah (1,055) Indiana Aug 11, 2012

    If you're looking to invest a big sum perhaps you should look into starting a brewery. Here in Bloomington a guy started a craft bar and expanded it into a brewery. He hired the brewer from another state. If you have the funds and some business savvy you can find the right people.
     
  36. Start.ups.
     
  37. rollom

    rollom Advocate (655) New York Jan 22, 2011

    Oh that's what "stock" means....

    If you don't want to invest in the previously mentioned stocks, and don't want to / can't invest (which is understandable) in a non-public brewery, then perhaps forgo the beer nerd angle in this particular part of your life and invest in something else.
     
  38. rabbitguy

    rabbitguy Savant (345) Illinois Jun 18, 2009

    You can try investing in a DRIP ( direct reinvestment program) . Two breweries that have plans are The Craft Brew Alliance, and Boston Beer.
     
  39. beernazi

    beernazi Savant (325) California Dec 5, 2012

    lol, its not about the stock price, its about the predicted earnings per share in comparison to the price of the stock, as well as the industry it is in, and the other companies that do business that can be compared to sam adams