US: Beam Inc to consolidate new brands - analyst
By Andy Morton | 4 May 2012
 |
Beam Inc has expanded its portfolio recently |
Beam Inc will focus on developing its brands, after completing a spate of acquisitions that are expected to boost next year's bottom line, an analyst has said.
A positive first-quarter report that followed a US$605m deal to buy Pinnacle Vodka saw Nomura research group push its earnings-per-share estimate for 2013 up by 3%. Beam is expected to complete the Pinnacle purchase in this quarter.
“In addition, this deal raises our [target share price] from $43 to $46,” said Nomura research analyst Ian Shackleton, who also noted that an increase in Beam's advertising and promotions in the first quarter shows the company's commitment to building brands and innovation.
“We see a big focus now on developing existing brands rather than further M&A,” said Shackleton.
Beam bought low-calorie cocktail maker SkinnyGirl in March last year and Irish whiskey distillery Cooley in January.
Shackleton warned that Beam's key Bourbon sector could slow down before the end of the full year. He also said there is no sign of an increase in US price momentum.
Beam released its first-quarter report yesterday (3 May), announcing a 27% jump in like-for-like net profit. In a conference call shortly after the report was released, Beam Inc CEO Matthew Shattock said Pinnacle Vodka is a great strategic fit for the company.
Expert analysis
Beam Inc in Spirits (World)
Following its divestment and spin off of its non-spirits operations, the world’s eighth biggest spirits company Beam Inc has potential to expand, but as a publically listed company is also increasingly vulnerable to being taken over. The profile looks as what it should do to develop its business, as well as who might be interested in acquiring it and its brands.
Sectors: Company results, Spirits
View next/previous articles
Currently reading -
US: Beam Inc to consolidate new brands - analyst
4 May 2012 -
Related research
Beam Inc. (BEAM) - Financial and Strategic SWOT Analysis Review
Beam Inc. (Beam), formerly known as Fortune Brands, Inc, is a premium spirits company. The company offers branded distilled spirits products. The product portfolio of the company consists of bourbon whiskey, Scotch whisky, Canadian whisky, tequila, c...
Following its divestment and spin off of its non-spirits operations, the world’s eighth biggest spirits company Beam Inc has potential to expand, but as a publically listed company is also increasingly vulnerable to being taken over. The profile look...
Global market review of Tequila – forecasts to 2016
Beginning with an Executive Summary, the report scopes out the challenges ahead, how higher qualities might gain, retail value, premiumisation potential, expanding Tequila's horizon, Tequila's versatility, reducing complexity, industry structure, the...
Related articles
US: YTD stays strong for Beam Inc, reaffirms FY target
Beam Inc has reaffirmed its previous estimate for this year's profits, as it reported healthy numbers in the year-to-date.
just On Call - India misconduct review on-going - Beam Inc
Beam Inc has said a review of its operations in India are on-going in the wake of allegations of financial misconduct.
There are currently no comments on this article
Be the first to comment on this article