I don’t know about you but come summer my ice bucket gets awfully full and it’s hard deciding what belongs and what doesn’t. To make matters easier, I’ll limit my selections to the top brand for each company in our Rock Your Stock Ice Bucket portfolio. Further, the brands listed will be in descending order, based on that company’s total market capitalization. Once done, I hope I've whet your appetite for both the products and the stocks.
Pepsico - $103.52 billion – Pepsi cola
John Belushi always would say “Pepsi, no Coke” in the Saturday Night
Live skit taken from the famous Billy Goat Tavern in Chicago. It was a
funny. Anyway, most people who drink soda are either one or the other.
We side with John Belushi.
Diageo Plc - $55.51 billion – Smirnoff vodka
The biggest alcoholic beverage manufacturer in the world, Smirnoff is
the largest selling vodka in the world with 21.9 million cases in 2006.
Vashé zdorov'ye!
Anheuser Busch - $39.59 billion – Budweiser beer
Who hasn’t had a Bud at some time in their adult life? Anheuser Busch
sells more of the brand than any other beer in the world. The Clysdales
might be nice, but the beer is nicer.
Fomento Economico Mexicano S.A.B. de C.V. - $13.42 billion – Tecate beer
Tecate beer is the company’s #1 brand, brewed since 1954. While its
sales can’t compete with Grupo Modelo’s Corona, the company is making
strides at meeting the increasing beer consumption of Mexicans in
general.
Fortune Brands - $12.05 billion – Jim Beam bourbon whisky
Jim
Beam is the #1 selling bourbon in the world. Often compared to Jack
Daniels, while both brands are whiskies, only James Beam is bourbon.
Molson Coors Brewing – $8.43 billion – Coors beer
While Molson
is the older and better maker of beer, Coors is the more well known of
the two companies that came together in 2005. Which would I choose
between Molson Canadian and Coors? The Canadian, eh!
Brown-Forman Corp. - $7.87 billion – Jack Daniels Tennessee whisky
JD is the world’s #1 selling whisky with over 1 billion individual
consumer transactions in 2006. Although commonly referred to as
bourbon, which it isn’t, is charcoal mellowed for ten days before
bottling.
Constellation Brands - $5.06 billion – Robert Mondavi wine
Constellation
bought the famous winemaker in 2004 and has been on an acquisition
binge ever since. Mondavi is part of their fine wine business, the most
profitable segment in the company.
Central European Distribution Corp. - $1.19 billion – Absolwent vodka
This little-known but very profitable American company has practically cornered the booze market in Poland both as a manufacturer, distributor and retailer. If you visit, chances are good you’ll be buying Absolwent, the #1 selling vodka in Poland.
Boston Beer Company - $479.40 million – Samuel Adams Boston Lager beer
While
this is the smallest of the beer companies in our portfolio, it also
has the best product. Sam Adams made its debut in 1985 and the nectar
of the gods has been pleasing beer lovers ever since.
After writing about the best brands in our Ice Bucket portfolio, I’m getting thirsty. Is it noon yet? To my editor, should he read this, the previous sentence was only a joke. Seriously, though, every company in our portfolio if held long-term (i.e. five years or longer) should beat the indexes. I’ll drink to that.