With Beer so Frothy and Delicious, Why No Beer ETF? | ETF Trends

How can a beer exchange traded fund (ETF) not exist when beer can be so refreshing on a hot summer day? Surely the world’s oldest and most popular alcoholic beverage should have its own ETF.  There is the PowerShares Dynamic Food and Beverage (PBJ) ETF, but it only has 2.8% of Molson Coors Brewing Company (TAP). PBJ is up 0.3% for the year and is currently below its trend line. Fred Fuld for Stockerblog examines some of the tastiest "liquid-bread" performers:

  • Anheuser-Busch (BUD) – owns Budweiser, Michelob, Busch, and Natural brands of beer; pays a yield of 2.7%; also owns several theme parks
  • SABMiller PLC SP ADR (SBMRY.PK) – founded in South Africa in 1895 but is a London-based brewery also known as South African Breweries – Miller; revenues for the year were up 22% for 2007 over 2006; brands include Pilsner Urquell, Peroni Nastro Azzurro and Miller Genuine Draft; one of the world’s largest Coca-Cola bottlers
  • Fomento Econmico Mexicano, S.A.B de C.V (FMX) – Mexico-based brewery; owns the Sol, Dos Equis, Tecate, Bohemia, Kaiser Pilsen and Bavaria Pilsen brands; last week, reported a 19% increase in net income for the second quarter
  • Molson Coors Brewing Company (TAP) – Montreal, Canada-based company; owns Coors Light, Coors, Coors Non-Alcoholic, Blue Moon Belgian White Ale, Blue Moon, Molson Canadian, Molson Dry, Molson Export and Grolsch; distribute Amstel Light, Heineken, Murphy’s, Asahi, Asahi Select, Corona, Miller Lite, Miller Genuine Draft, Milwaukee’s Best, Milwaukee’s Best Dry and Foster’s
  • Boston Beer Co. Inc. (SAM) – Boston-based company; produces and distributes beer under the Samuel Adams brand name

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.