Hope it helps.
All alcohol stocks are about "brands" - wine is from jugs to vintage etc. You can pay $4 for a bottle of cheap wine, and $1000.00 for a bottle of a French Bordeaux that's from a well-respected winery. The key to marketing wines or spirits has to be positioning the "brands" into the markets - national and international where they are well-received. I was told the Japanese love Scotch and the Chinese in Hong Kong adore Cognac. In a poor economy, consumers are going to switch to cheaper brands but in a booming economy, people are prepared to pay for the premium bands. Look at where the advertising dollars go - what events are sponsored by spirits and wine producers. You don't run ads for Bud Light in the Oscars - the audience is female - and you don't run ads for Single Malt Scotch in the Superbowl - you save that for golf coverage.
Look how Flavored Vodkas are all the rage now - that's all marketing. Why does Grey Goose cost twice as much as the cheaper brands?
Marketing spirits and wine as about making the consumer think that purchasing your product is a benefit to their image with friends and others.
I am trying to do a project for my personal finance class in college. We need to do a sector analysis on a sub-sector of our choice. I chose Distillers & Vintners, with my 4 stocks - Beam Inc., Diego, Brown-Forman, and Constellation Brands Inc.. Half the paper is on the macro environment and how it impacts the 4 stocks we chose. I understand some of the impacts, such as GDP, Inflation, Unemployment and how they apply to the stock market in general, but I am struggling with finding what effects these particular stocks.
Does anyone have any sites they could suggest for sources? Or any info at all would be greatly appreciated. I just cant wrap my head around this part.
THANKS!
