Alcohol Industry

[winston]

No shelter for traders as speculation mounts that China’s regulatory storm is heading for baijiu distillers next

Kweichow Moutai tumbles 4.4 per cent, while rival Wuliangye Yibin sinks 7.3 per cent

Government notice saying the State Administration for Market Regulation had summoned baijiu distillers for a meeting on Friday stokes rumours

Source: SCMP

https://www.scmp.com/business/companies ... tory-storm

[winston]

China: Brewers
Beer volume growth likely to improve hoh in 2H24F

We expect overall industry beer sales volume to decline by mid-to-high-single-digit yoy in 1H24F due to a high base and weak catering recovery.

With more sports events in summer, we forecast beer demand to improve from Jun onwards and the industry sales volume growth to be yoy positive in 2H24F.

The average imported barley price fell by 30% yoy in 4M24. We expect lower barley
price to boost beer companies’ GPM in FY24F.

Reiterate Overweight on beer sector, as we expect beer sales volume to gradually improve from Jun onwards and the premiumisation trend to continue in 2H24F.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... 8DFA74C6EF

[winston]

Alcoholic drinks like beer and wine should carry warnings of their links to cancer, the US’s top doctor said.

Evidence of links between drinking and cancer has been rising for decades, yet fewer than half of Americans recognize that it raises their chances of developing several cancers, Surgeon General Vivek Murthy said Friday.

Alcohol causes about 100,000 cases of cancer and 20,000 related deaths each year in the US, far more than the 13,500 alcohol-associated annual traffic fatalities.

Adding a cancer warning would highlight severe health concerns for products that more than 70% of US adults consume at least once a week, with some $260 billion in 2022 nationwide sales.

Shares of drinks makers declined after the announcement.

Source: Bloomberg

[winston]

These Stocks Could Be Sharply Higher in the Weeks and Months Ahead

by Jeff Clark

The older generations are still boozing it up.

Anheuser-Busch InBev (BUD) were trading at $66 last October. They hit $46 in January.

Constellation Brands (STZ) was trading above $250 per share five months ago. It traded as low as $150 earlier this month.

And Molson Coors Beverage (TAP) traded above $63 in November, but dipped below $53 in January.

It looks to me like booze stocks have bottomed, and we’re in the early stages of an alcohol-related rally. If that’s true, alcohol stocks could be sharply higher in the weeks and months ahead.

Source: Jeff Clark Trader

https://dailytradealert.com/2025/02/26/ ... ths-ahead/