2 Great Plays for Boozers

Updated

The following video is part of our "Motley Fool Conversations" series, in which consumer goods editor and analyst Austin Smith and technology and media editor and analyst Andrew Tonner discuss topics across the investing world.

Molson Coors recently announced their plan to acquire Eastern European brewer StarBev for a heady $3.5 billion. While many have cheered the move, Austin isn't totally thrilled. Acquisitions can be a potent way for beverage companies to grow brand portfolios, revenue, and earnings quickly. However, in a market where beer consumption is in a steady decline, it may also be the only way to achieve growth, which isn't encouraging. Instead, Austin sees opportunity in one smaller brewer, and one more diversified beverage play. Molson Coors relies heavily on its light beer division, which is one of the softest areas in the alcoholic beverage sphere. Instead, investors looking for a win in this space should check out craft brewer Boston Beer and diversified dividend dynamo Diageo.

One of the greatest reasons to love Diageo is its international exposure. With a heavily branded presence in 180 countries, it is already a global booze powerhouse. That wasn't enough for them to make the illustrious Motley Fool list: "3 Companies Set to Dominate the World." You can learn about these three companies with winning brands and strategies by clicking here.

At the time thisarticle was published Andrew Tonner and Austin Smith have no positions in the stocks mentioned above. The Motley Fool owns shares of Boston Beer.Motley Fool newsletter services recommendDiageo, Boston Beer, and Molson Coors Brewing Co. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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