Publicly Traded Craft Breweries

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

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  1. 5thOhio

    5thOhio Zealot (506) May 13, 2007 South Carolina

    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 Crusader (701) Apr 27, 2006 Washington


    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. BigCheese

    BigCheese Defender (689) Jul 4, 2009 Massachusetts

    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. StylzMC

    StylzMC Initiate (0) Dec 15, 2012 Yukon (Canada)

    "In my opinion, if a craft brewery does _(insert anything)__, they aren't 'craft' anymore"
    5thOhio likes this.
  5. Blanco

    Blanco Devotee (458) Oct 11, 2008 Pennsylvania
    Beer Trader

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

    ThePorterSorter Meyvn (1,436) Aug 10, 2010 Oregon
    Beer Trader

  7. Walkercf

    Walkercf Initiate (0) Oct 9, 2013

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

    pixieskid Initiate (0) Jun 4, 2009 Germany

    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...
  9. pixieskid

    pixieskid Initiate (0) Jun 4, 2009 Germany

    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)?
  10. blue-dream

    blue-dream Crusader (775) Aug 22, 2013 Virgin Islands (U.S.)
    Beer Trader

  11. Harnkus

    Harnkus Initiate (0) Oct 31, 2013 New York

    Totally fair point
  12. spicoli00

    spicoli00 Zealot (548) Jul 6, 2005 Indiana

  13. blue-dream

    blue-dream Crusader (775) Aug 22, 2013 Virgin Islands (U.S.)
    Beer Trader

  14. drtth

    drtth Poo-Bah (3,375) Nov 25, 2007 Pennsylvania

  15. spicoli00

    spicoli00 Zealot (548) Jul 6, 2005 Indiana

    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.
  16. imbrue001

    imbrue001 Aspirant (216) Aug 6, 2010 Pennsylvania

    I tried to tell you guys about GrowLife Inc. and nobody wanted to hear it.
    Back to beer stocks i guess. Actually SAM didnt do half bad this year. I wouldnt touch it now but..
    blue-dream likes this.
  17. drtth

    drtth Poo-Bah (3,375) Nov 25, 2007 Pennsylvania

    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.
  18. C_Roetting

    C_Roetting Initiate (0) Aug 28, 2013 Kentucky
    Beer Trader

  19. otispdriftwood

    otispdriftwood Defender (637) Dec 9, 2011 Colorado
    Beer Trader

    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.
  20. otispdriftwood

    otispdriftwood Defender (637) Dec 9, 2011 Colorado
    Beer Trader

    Publicly traded / craft brewery. An oxymoron if I ever saw one.
  21. draheim

    draheim Poo-Bah (2,431) Sep 18, 2010 Washington
    Beer Trader


    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.
  22. Ranbot

    Ranbot Devotee (497) Nov 27, 2006 Pennsylvania

  23. Lazhal

    Lazhal Disciple (345) Mar 13, 2011 Michigan
    Beer Trader

    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?
  24. TCJ0100

    TCJ0100 Initiate (0) Oct 9, 2014 California
    Beer Trader

    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.
  25. Jacobier10

    Jacobier10 Poo-Bah (1,828) Feb 23, 2004 New Jersey
    Premium Member

    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.
  26. Alpha309

    Alpha309 Initiate (0) Nov 13, 2014 California

    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.
  27. Tripel_Threat

    Tripel_Threat Poo-Bah (1,996) Jun 29, 2014 Michigan
    Premium Member

    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.
  28. TheodorHerzl

    TheodorHerzl Zealot (518) Mar 30, 2007 Indiana
    Beer Trader

    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.
  29. Lazhal

    Lazhal Disciple (345) Mar 13, 2011 Michigan
    Beer Trader

    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.
  30. terence

    terence Disciple (339) Mar 18, 2012 California

    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.
  31. TheodorHerzl

    TheodorHerzl Zealot (518) Mar 30, 2007 Indiana
    Beer Trader

    You live Michigan? You can try LocalStake. There is a brewery on there about every week.
    TheeWalrusHunter likes this.
  32. TheeWalrusHunter

    TheeWalrusHunter Initiate (0) Aug 23, 2013 Oregon

    Emerging markets my friend. Emerging markets.
  33. mikepcarney

    mikepcarney Zealot (526) Oct 28, 2009 Ohio

    Kick starter ?
  34. hopfenunmaltz

    hopfenunmaltz Meyvn (1,346) Jun 8, 2005 Michigan

    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.
  35. kfordham281

    kfordham281 Initiate (184) Oct 29, 2005 Georgia
    Beer Trader

    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.
  36. fredmugs

    fredmugs Poo-Bah (1,547) Aug 11, 2012 Indiana
    Beer Trader

    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.
  37. brother_rebus

    brother_rebus Crusader (772) Jul 28, 2014 Pennsylvania
    Beer Trader

  38. rozzom

    rozzom Defender (680) Jan 22, 2011 New York
    Beer Trader

    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.
  39. rabbitguy

    rabbitguy Initiate (0) Jun 18, 2009 Illinois

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

    beernazi Initiate (0) Dec 5, 2012 California
    Beer Trader

    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
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