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Alcoholic beverage industry stocks should be evaluated individually for investment purposes.

The alcoholic beverage industry faces a different set of challenges in 1996 than what it faced in 1995. Increased beer prices and lower packaging prices are positives for brewing companies, but consumer demand is difficult to forecast. Germany and Japan will also be difficult markets, especially for distillers. These stocks will underperform the market in the next six to 12 months, but there is three to five year potential in the overseas market.

The alcoholic beverages industry is changing through retrenchment and diversification. Anheuser-Busch is divesting Eagle Snacks and Campbell Taggart, while Seagram has purchased an 80% interest in MCA Inc. Beer industry shipments declined .3% in the first nine months of 1995, but the market is improving and spirits will have a healthy 1996. The industry will underperform the market in 1996, but has potential for the future.

High earnings are anticipated for the alcoholic beverage industry in 1995. Costs for packaging, such as aluminum and corrugated box board, is the main impediment to profit growth for small brewers. New products are also seen after the 1994 introduction of iced beers. China, Brazil, and India are generating a larger market share at the international level. Anheuser-Busch is the best investment for the next three to five years.

The alcohol industry is expected to post weak gains through Aug 1995 but should have good prospects through the 1997-1999 period. The industry's growth improved from 1993 to 1994, part of which was the result of the introduction of ice beers. Many of these brewing companies have shown strong global expansion strategies, which should benefit them if the US economy slows. Companies such as Seagram Co and Anheuser-Busch Companies Inc should experience strong growth by the 1997-1999 period.

Dispelling the notion that the beverage alcohol industry is recession proof, leaders of the spirits, wine and beer industries, representing all three tiers of the alcohol distribution system, shared their [...]