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Is now the right time to buy breweries?

If you’ve been following the beer trends in the past decade or so, you’ll doubtlessly be aware that craft beers are THE hot item. Every beer drinker wants to enjoy a small batch, brewed-with-love, extra-pricey beer instead of the “all-things-to-all-people” beers like Budweiser and Molson.

But if you think craft beer is too elite, exclusive, and snobby to be a sin stock, think again.

But in an article originally posted on The Motley Fool (link unavailable) and later republished on Business Insider, we learn that craft beer has perhaps peaked in popularity and seems to be on the decline.

A number of factors are at play:

  • Market saturation? (There are a bazillion craft brewers out there)
  • Customer taste? (Maybe people realize that they aren’t the aficionados they were paying higher beer prices to pretend to be)
  • Company shut downs (Hey, brewing beer is expensive and complicated, so some companies are shutting down)
  • Company changes — actually this one is key. Pay attention…

Not surprisingly, the big companies like Budweiser (BUD) and Molson (TAP) have created their own versions of craft beer and they have the money and marketing chops to outpace the grassroots (“real”) craft brewers out there. Or, companies like Constellation Brands (STZ) are buying up craft brewers that have built up a following with great tasting beer.

Want more insight into this shifts in the craft beer market and how they might impact your favorite alcohol sin stocks?

Check out the Motley Fool article posted at Business Insider


Nothing on this site is a recommendation because, hey, I can't read your mind and I don't know what you have in your portfolio, and I'm not a licensed financial advisor. So never EVER trade without doing your due diligence. If you want more information about this fascinating topic, please check out the Sin Stocks Disclaimer page which basically says the same thing but more emphatically.