Top Consumer Stocks To Watch Right Now

Top Consumer Stocks To Watch Right Now: Compania Cervecerias Unidas S.A. (CCU)

Compa帽ia Cervecerias Unidas S.A., through its subsidiaries, produces, bottles, sells, and distributes beverages primarily in Chile, Argentina, and Uruguay. It offers super-premium, premium, medium-priced, and popular-priced brands of alcoholic and non-alcoholic beer under 12 proprietary brands and 4 licensed brands, such as Royal Guard; Royal Light; Heineken; Budweiser; Paulaner; Austral; Kunstmann; D'olbek; Cristal; Cristal Cero 0掳; Cristal Black Lager; Cristal Light; Escudo; Morenita; Lemon Stones; and Dorada brands. The company also produces and markets ultra-premium, reserve, varietal, and popular-priced wines under the brand families comprising Vi帽a San Pedro Tarapac谩, Vi帽a Santa Helena, Vi帽a Misiones de Rengo, Vi帽a Mar, Vi帽a Alta茂r, Bodega Tamar铆, Finca la Celia, and Vi帽a Leyda. In addition, it offers cider and spirits under the brand names of Real, La Victoria, Saenz Briones 1888, and El Abuelo; pisco, rum, and ready-to-drink cocktails under the Control C , Mistral, Campanario, Sierra Morena, Pisco Bauz谩 and Havana Club, Chivas Regal, and Absolut Vodka brand names; and home-made sweet snacks products under the Calaf, Natur, and Nutrabien brand names. Further, the company produces and sells tea; sports and energy drinks; carbonated beverages, including cola and non-cola, as well as non carbonated beverages; fruit juices; mineral water, sparkling and still water, purified water, and home and office delivery water products; and nectars. It serves small and medium sized retail outlets; retail establishments, such as restaurants, hotels, and bars for on-premise consumption; wholesalers; and supermarket chains. Compa帽ia Cervecerias Unidas S.A. also exports its products to Europe, Latin America, the United States, Canada, and others. The company was founded in 1850 and is based in Santiago, Chile. Compa帽ia Cervecerias Unidas S.A. is a subsidiary of Inversiones y Rentas S.A.

Advisors' Opinion:

• [By fedezaldua]

  After a couple of capital increases and what looks like a weak strategy for its growth in different South American countries, Chile's beer king Compania Cervecerias Unidas (CCU) – most commonly knows as CCU - is selling at a steep discount to its peers. In other words, being down by 23% year to date, I think it might be the time to start thinking of buying CCU's shares.  

• [By Patricio Kehoe] s largest brewer (with about 80% of the markets share) and No. 2 in the Argentine market, behind Quilmes, which owns 75% of that market. With investment gurus Jim Simons (Trades, Portfolio) and Manning & Napier Advisors buying the companys shares this past quarter, I believe this companys business model is worth a deeper look.

  Running the Market

  As the only brewer in Chile with a nationwide distribution network, United Breweries benefits from significant economies of scale, in addition to its brand power. The companys product portfolio not only features the Cristal beer brand, but also includes wine, spirits and company-owned non-alcoholic beverages. In addition to this, the firm benefits from licenses to sell PepsiCo Inc. (PEP) and Heineken beverages, while also importing Anheuser Busch Inbev SA (ADR) (BUD)s Budweiser beer to Chile and Argentina. This strong market position has allowed the firm to generate excess returns on invested capital above 20%, making it an attractive investment.

  Furthermore, United Breweries business model is focused on market expansion, and in 2013 the company raised 15% of its market capital (CLP 340 billion) in order to fun acquisitions in Paraguay and Argentina. This latter country has been particularly endorsing the firms growth, boosting 2006s 16% market share to 23% in 2012. This raise is probably due to the CLP 27 billion that the brewer spent on capital expenditures in Argentina. Looking forward, the company is set on expanding its core businesses by targeting t! he non-al! coholic Argentine market, the Chilean snack and dairy industry, as well as expanding into nearby markets of Peru, Uruguay, Colombia or Ecuador. And although the risk of an overpayment for acquisitions remains, I believe the companys cost advantage in serving the Southern region of Chile will allow for margins to stay intact.

  Valuation and Risks

  Nevertheless, United Breweries market dominance in Chile t

source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/top-consumer-stocks-to-watch-right-now.html