Financial experts downgrade value predictions for Boston Beer Co. and Constellation
Investment consultants Goldman Sachs are predicting a fall in the value of shares in America’s largest craft brewer Boston Beer Company, as well as Constellation Brands, owner of Corona and San Diego’s Ballast Point. Analysis of the drinks market shows that younger drinkers in particular are drinking less, and turning more towards wine and spirits when they do drink. An inverse correlation between alcohol consumption and cannabis use has also been observed.
Beer writer and EBCU Executive member Tim Webb said:
“Goldman Sachs are specifically commenting on the US beer market. While overall beer volumes there continue to fall, home-grown craft beers in the US continue to rise, as do imports, which is good news for European craft brewers.
“Of course millennials will favour shorter stronger drinks such as wine and the less lightweight, more flavoursome types of beer. They are less likely to be doing physical jobs so will be less drawn to low-flavour beers designed in part for rehydration.
“The trend towards drinking less alcohol may favour lighter beers in due course, but only those that pack in some flavour. I think the global brewers are crackers if they think low flavour big brands such as Corona or Bud Light have a future in Europe.”
Further analysis and commentary on the report is available here.