Untapping global brewers

Beer was on the menu for Wall St overnight as talks of the potential merger between SABMiller (+19.89%) and AB Inbev (+6.41%) flooded the airways…We cover Brewers as one of our global sectors and also published a related report in August… Our overall continues to be relatively sanguine however we observe different themes across regions... We see upside in the UK as volumes continue to show improvement however margin pressures are evident due to rising costs (chart 1)…German brewers are subject to falling volumes (chart 2) and rising costs leading to poor sales (chart 3)… Our coverage of drinks processors in France, Spain and Japan point to weaker volumes in the first 2 and quite strong volume growth in the latter…Overall this spells out a positive view on the composite of sectors we map to SAB (chart 4) and we also get a good read on AB Inbev (chart 5)…Whilst the new entity should experience gains from scale/volume growth, we would caution that margin pressures experienced at the sector level could downplay any benefits to both firms.


QMG provides insights into global markets that traditional research does not and has an innovative and data-driven approach as its foundation. The unique model we use analyses large quantities of information and produces monthly observations...

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