International
Top Beer Stocks for the Recession Proof Portfolio (BUD, KEGS, SAM, TAP, STZ, DEO, ABEV, HEINY)
The US Federal Reserve continued with its steep tightening agenda for monetary policy in the United States on Wednesday, raising the policy rate by 75…

The US Federal Reserve continued with its steep tightening agenda for monetary policy in the United States on Wednesday, raising the policy rate by 75 basis points to 150-175 bps. (1)
As the Fed ratches up its clear agenda to stamp out inflationary pressure in the world’s biggest economy, pundits have increasingly been sounding the recession alarm. (2)
In fact, Bank of America’s monthly Fund Manager Survey (which came out Tuesday evening of this week) showed an all-time low in investor optimism on global growth potential among large money managers, with expectations of corporate profits falling to its lowest levels since September 2008, when Lehman went under. (3)
In other words, folks in the know are in the basement in terms of sentiment, with the real economy in focus.
Given the pandemic reopening process, which is pushing rising business for bars and pubs, alcohol may have an extra tailwind during this period. As such, stocks in the alcohol space may have multiple reasons to outperform over the near term. (4)
We take a look at a few of the most interesting names in the alcohol and spirits space below.
Boston Beer Co. (NYSE:SAM) engages in the production of alcoholic beverages. Its brands include Truly Hard Seltzer, Twisted Tea, Samuel Adams, Angry Orchard, Hard Cider and Dogfish Head Craft Brewery.
Boston Beer produces alcohol beverages, including hard seltzer, malt beverages, and hard cider at company-owned breweries and its cidery, and under contract arrangements at other brewery locations.
Boston Beer Co. (NYSE:SAM) recently announced the Canadian debut of ‘TeaPot’, a new line of cannabis-infused iced tea beverages. Developed and formulated alongside Boston Beer’s cannabis subsidiary BBCCC Inc., and Windsor-based Peak Processing Solutions (“Peak”), TeaPot is BBC’s first infused beverage offering which will be available in select Canadian provinces commencing July 2022.
“We congratulate our partners at The Boston Beer Company on the exciting launch of TeaPot – a unique iced tea crafted with natural flavours and infused with our most distinguished cultivars that we expect will land as the best cannabis-infused beverages in Canada,” said George Scorsis, CEO and Executive Chairman, Entourage. “The BBC team has a storied history and pedigree for producing some of the most beloved craft beverages in North America and we’re thrilled to be introducing yet another consumption method for the canna-curious consumer and growing self-care market. Together, our consumer-savvy, quality-driven approach to product development has made for a complementary collaboration alongside Peak, our processing and bottling partner, ensuring every beverage is prepared with the highest care and excellence. TeaPot will be an instant hit this summer as it debuts in select provinces starting in July, with eventual nationwide distribution expected throughout the year.” (5)
While this is a clear factor, it has been incorporated into a trading tape characterized by a pretty dominant offer, which hasn’t been the type of action SAM shareholders really want to see. In total, over the past five days, shares of the stock have dropped by roughly -10% on above average trading volume. All in all, not a particularly friendly tape, but one that may ultimately present some new opportunities. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -16%.
Boston Beer Co. (NYSE:SAM) managed to rope in revenues totaling $430.1M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of -21.1%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($15.8M against $245.5M, respectively). (6)
1812 Brewing Co. Inc. (OTC US:KEGS) bills itself as an operator of and investor in companies in the craft beer industry. The company expanded its production capacity significantly over recent quarters after moving its original equipment and making additions to its capacity, driving an 83% expansion in production potential. It also took advantage of underpricing in the industry during the pandemic to acquire a second brewing system that was more than 4.2x larger than its original system and added additional fermentation tanks, driving its capacity another 1,000% higher.
From 2005 to 2021 the Craft Beer industry grew by more than 300%. The Craft Beer industry continues to grow faster than the economy with growth anticipated to outpace US economic growth by 100% over the next five years. The beer industry writ-large is extremely recession-resistant, as per capita alcohol consumption rarely abates and has even increased during difficult economic times. The Craft Beer industry is highly fragmented, with over 8,000 craft breweries nation-wide. Any players looking to consolidate the industry will have that opportunity. (7)
1812 Brewing Co. Inc. (OTC US:KEGS) just put out an interesting shareholder update: “I am pleased to address shareholders at this critical time to take inventory of our progress and accomplishments to date, as well as look forward towards what we hope to accomplish. KEGS is an operator of and investor in companies in the craft beer industry. The Company seeks to build a nation-wide network of craft breweries to develop and foster respective brand growth at the local, regional, and national level. KEGS looks to build a network wherein certain economies of scale can be shared across it such as production, distribution expansion, inter-member contract brewing, new product development, sharing of best brewery practices and scale logistics and transportation. The network is to be built through investment by 1812 Brewing Company while maintaining the members’ respective local and regional uniqueness, brand autonomy and direct involvement with its consumers. The Company seeks to be an “incubator” of growth for its holdings in the industry.” (8)
Key catalysts include: KEGS recently acquired a high speed bottle labeling and filling station that is now producing at a rate of 1,500 bottles per hour. The company expects productivity to increase by another 100%, with progress dialing into the equipment’s maximum output that is progressing well. According to its release, continued progress will be the key to releasing other bottled products in its portfolio.
KEGS will also aggressively pursue restructuring the Notes of KEGS’ two largest convertible note holders. Management is committed to eliminating these Notes. As stated previously, KEGS is seeking a major acquisition or series of acquisitions. To help accomplish this, KEGS engaged Tully & Holland, a highly regarded Mergers and Acquisitions investment bank specializing in advising consumer products companies such as breweries.
KEGS has also begun early-stage discussions with a number of breweries – both small and large – for potential acquisition and/or investment. Management hopes to consummate a transaction in the coming weeks. That could be huge news for the stock.
1812 Brewing Co. Inc. (OTC US:KEGS) Chairman and CEO, Tom Scozzafava, continued on to state, “Our desire is to up-list KEGS to NASDAQ. The most likely scenario under which this would happen is through the acquisition of a significantly larger microbrewery and a simultaneous NASDAQ up-listing. We will aggressively pursue this strategy.”
Constellation Brands Inc. (NYSE:STZ) engages in the production, marketing, and distribution of beer, wine, and spirits. It operates through its Beer, Wine and Spirits, and Corporate Operations and Other, and Canopy segments.
The Beer segment includes imported and craft beer brands. The Wine and Spirits segment sells wine brands across all categories-table wine, sparkling wine, and dessert wine-and across all price points. The Corporate Operations and Other segment comprise costs of executive management, corporate development, corporate finance, human resources, internal audit, investor relations, legal, public relations, and information technology. The Canopy segment consists of canopy equity method Investments.
Constellation Brands Inc. (NYSE:STZ) recently announced that Joseph Suarez will assume leadership of the company’s investor relations function effective July 1, 2022. Suarez will serve as a member of the company’s corporate communications and finance leadership teams and will have oversight responsibility for all aspects of Constellation’s investor relations strategy development and execution. Patty Yahn-Urlaub, who has served as Constellation’s investor relations lead for the past 15 years, will retire on July 22, 2022, and will work closely with Suarez over the coming weeks to ensure a seamless transition of responsibilities.
“On behalf of our entire Constellation Brands family and all those who had the pleasure of working with her, I want to thank Patty for her contributions to our company and our investment community over the years, and wish her the absolute best in her retirement,” said Mike McGrew, Executive Vice President and Chief Communications, CSR & Diversity Officer at Constellation Brands. “We look forward to the continued success of our investor relations function under Joseph’s leadership. Joseph brings a well-rounded set of leadership experiences in commercial operations, governance, finance, and investor relations to this role. His strategic orientation and understanding of capital markets will serve both our company and investors well in the years to come.” (9)
While shares have been sinking with the market, STZ has a track record that includes a number of dramatic bounces. In addition, the company has seen a growing influx of trading interest.
Constellation Brands Inc. (NYSE:STZ) has a significant war chest ($199.4M) of cash on the books, which must be weighed relative to about $2.7B in total current liabilities. One should also note that debt has been growing over recent quarters. STZ is pulling in trailing 12-month revenues of $8.8B. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 7.7%. (10)
Other key names in the alcohol space include Anheuser-Busch InBev S.A. ADR (NYSE:BUD), Molson Coors Beverage Co. (NYSE:TAP), Diageo PLC ADR (NYSE:DEO), Ambev S.A. ADR (NYSE:ABEV), and Heineken N.V. ADR (OTC US:HEINY).
References:
- https://www.cnbc.com/2022/06/15/fed-hikes-its-benchmark-interest-rate-by-three-quarters-of-a-point-the-biggest-increase-since-1994.html
- https://www.forbes.com/sites/jonathanponciano/2022/06/15/fed-authorizes-biggest-interest-rate-hike-in-28-years-as-experts-worry-its-fight-against-inflation-will-spark-recession/
- https://www.bloomberg.com/news/articles/2022-06-14/stagflation-fears-surge-and-sentiment-is-dire-in-bofa-survey
- https://www.nasdaq.com/articles/3-beer-stocks-that-provide-shareholders-with-recession-proof-dividends
- https://finance.yahoo.com/news/entourage-health-announces-canadian-debut-114000940.html
- https://www.marketwatch.com/investing/stock/sam?mod=search_symbol
- https://www.globenewswire.com/Tracker?data=MAHUoZhLpRNz_k5jWSe0ddxkT4wHZnv290m5aOod8tNxGMxGS4tqygZvLEgFpMWDhVYo-dgYJXS2u1vFIJfxooWJYyExwCaxwCntZjXTIcFSAmgUWddY4OLd3T8AT5VrFDI8CaAnqNB8du-bFQWNYR1EN9sl9PVGyQhLEUq1Wev1SGIsObzX9daLWuKHSVYbut7TsB1vIKSE-ByCMB0QnA4wX9PP1eMoJ-VoLcdp9ENDiSw5ogR0_-tGbzJ2rQdf
- https://www.otcmarkets.com/stock/KEGS/news/1812-Brewing-Company-Inc-Releases-Shareholder-Update?id=361384
- https://finance.yahoo.com/news/constellation-brands-announces-joseph-suarez-213000717.html
- https://www.marketwatch.com/investing/stock/stz?mod=search_symbol
Please make sure to read and completely understand our disclaimer at https://www.wallstreetpr.com/disclaimer. While reading this article one must assume that we may be compensated for posting this content on our website.
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recession pandemic economic growth reopening global growth nasdaq stocks monetary policy fed federal reserve otc recession canadaInternational
US Sent Billions in Funding to China, Russia For Cat Experiments, Wuhan Lab Research: Ernst
US Sent Billions in Funding to China, Russia For Cat Experiments, Wuhan Lab Research: Ernst
Authored by Mark Tapscott via The Epoch Times…

Authored by Mark Tapscott via The Epoch Times (emphasis ours),
Hundreds of millions of U.S. tax dollars went to recipients in China and Russia in recent years without being properly tracked by the federal government, including a grant that enabled a state-run Russian lab to test cats on treadmills, according to Sen. Joni Ernst (R-Iowa).
Ernst and her staff investigators, working with auditors at the Government Accountability Office (GAO) and the Congressional Research Service, as well as two nonprofit Washington watchdogs—Open The Books (OTB) and the White Coat Waste Project (WCWP)—discovered dozens of other grants that weren’t counted on the federal government’s USASpending.gov internet database.
While the total value of the uncounted grants found by the Ernst team is $1.3 billion, that amount is just the tip of the iceberg, the GAO reported.
Among the newly discovered grants is $4.2 million to China’s infamous Wuhan Institute of Virology (WIV) “to conduct dangerous experiments on bat coronaviruses and transgenic mice,” according to a May 31 Ernst statement provided to The Epoch Times.
The $4.2 million exposed by Ernst is in addition to previously reported funding to the WIV for extensive gain-of-function research by Chinese scientists, much of it funded in whole or part prior to the COVID-19 pandemic by National Institutes for Health (NIH) grants channeled through the EcoHealth Alliance medical research nonprofit.
The NIH has awarded seven grants totaling more than $4.1 million to EcoHealth to study various aspects of SARS, MERS, and other coronavirus diseases.
Buying Chinese Puppy Parts
As part of another U.S.-funded grant, hearts and other organs from 425 dogs in China were purchased for medical research.
“These countryside dogs in China are part of the farmer’s household; they were mainly used for guarding. Their diet includes boiled rice, discarded raw food animal tissues, and whatever dogs can forage. These dogs were sold for food,” an NIH study uncovered by the Ernst researchers reads.
Other previously unreported grants exposed by the Ernst team include $1.6 million to Chinese companies from the federal government’s National School Lunch Program and $4.7 million for health insurance from a Russian company that was sanctioned by the United States in 2022 as a result of the invasion of Ukraine.
“It’s gravely concerning that Washington’s reckless spending has reached the point where nobody really knows where all tax dollars are going,” Ernst separately told The Epoch Times. “But I have the receipts, and I’m shining a light on this, so bureaucrats can no longer cover up their tracks, and taxpayers can know exactly what their hard-earned dollars are funding.”
The problem is that federal officials don’t rigorously track sub-awards made by initial grant recipients, according to the Iowa Republican. Such sub-awards are covered by a multitude of federal regulations that stipulate many conditions to ensure that the tax dollars are appropriately spent.
The GAO said in an April report that “limitations in sub-award data is a government-wide issue and not unique to U.S. funding to entities in China.”
“GAO is currently examining the state of federal government-wide sub-award data as part of a separate review,” the report reads.

The Eco-Health sub-awards to WIV illustrate the problem.
“Despite being required by law to make these receipts available to the public on the USAspending.gov website, EcoHealth tried to cover its tracks by intentionally not disclosing the amounts of taxpayer money being paid to WIV, which went unnoticed for years,” Ernst said in the statement.
“I was able to determine that more than $490 million of taxpayer money was paid to organizations in China [in] the last five years. That’s ten times more than GAO’s estimate! Over $870 million was paid to entities in Russia during the same period!
“Together that adds up to more than $1.3 billion paid to our adversaries. But again, these numbers still do not represent the total dollar amounts paid to institutions in China or Russia since those numbers are not tracked and the information that is being collected is incomplete.”
Adam Andrzejewski, founder and chairman of OTB, told The Epoch Times, “When following the money at the state and local level, the real corruption exists in the subcontractor payments. At the federal level, the existing system doesn’t even track many of those recipients.
“Without better reporting, agencies and appropriators don’t truly understand how tax dollars were used. We now know that taxpayer dollars are traded further downstream than originally realized with third- and fourth-tier recipients. These transactions need scrutiny. Requiring recipients to account for where and how they actually spend each dollar creates a record far better than agencies are capable of generating.”
Read more here...
International
COVID-19 Testing Resumes In Beijing, Shandong, As Reinfection Cases Surge
COVID-19 Testing Resumes In Beijing, Shandong, As Reinfection Cases Surge
Authored by Alex Wu via The Epoch Times,
China has resumed COVID-19…

Authored by Alex Wu via The Epoch Times,
China has resumed COVID-19 PCR testing in Beijing and Shandong Province amid rising re-infections, while the regime’s top health advisers have warned of a new wave of mass infections.
Since May 29, mainland netizens have posted on Chinese social media platforms that PCR test kiosks in Beijing are quietly back in business.
Mainland media “City Interactive,” a subsidiary of Zhejiang “City Express,” reported on May 30 that one of the PCR testing booths that netizens posted about was in Beijing’s Xicheng District, where the central government and the Beijing municipal government are located.
The staff of that testing kiosk said that the PCR test there has never stopped, reported “City Interactive”, without being clear how long it had been open.
“We have been doing nucleic acid testing in Xicheng District, but I’m not sure about other districts in Beijing,” a staff member said.
The staff member said the laboratory she works for is mainly responsible for nucleic acid testing within Xicheng District. Currently, there are more than ten testing points outdoors, and one person is on duty for each booth from 9:00 am to 5:00 pm.
Residents get swabbed during mass COVID-19 testing in the Chaoyang District in Beijing on June 14, 2022. (Andy Wong/AP Photo)
A testing kiosk in Chaoyang District, Beijing’s central business district, has been operating since March, reported “City Interactive.” The testing booth staff said it is in the health center near Jinsong Middle Street.
Ms. Wang, a Beijing resident, told The Epoch Times on May 28 that some people have taken the PRC test while others have chosen not to.
She said many people around her, including her child, have already re-infected twice.
“This time, the symptoms seem to include a high fever and then sore throat, very painful,” she said.
“Most people are just resting at home now. Seeing a doctor is very expensive, and now many medicines are paid for by ourselves.”
Gao Yu, a former senior media person in Beijing, confirmed what Wang said. She told The Epoch Times that the relatives around her have been re-infected two or three times, and most are just resting it off at home.
Shandong Resumes Testing
PCR testing booths in Qingdao City, Shandong Province, have also reopened.
A “Peninsula Metropolis Daily” report included a screenshot of an online notice posted by the Laoshan District Health Bureau in Qingdao, which announced that from May 29, the district will conduct COVID-19 PCR testing for “all people who are willing.”
It also listed the working hours of the testing sites, from 7:00 am to 4:00 pm, seven days a week.
Another mainland Chinese media, “Xinmin Evening News,” reported on May 31 that the staff in the district bureau confirmed that the testing has resumed and is for free.
Next Wave
Zhong Nanshan, China’s top respiratory disease specialist, predicted on May 22 that a new wave of COVID-19 infections in China will likely peak in late June when weekly cases could reach 65 million. Then, one Omicron-infected patient will be able to infect more than 30 people, Zhong said, adding that the infection is difficult to prevent.
A security personnel in a protective suit keeps watch as medical workers attend to patients at the fever department of Tongji Hospital, a major facility for COVID-19 patients in Wuhan, Hubei Province, China, Jan. 1, 2023. (Staff/Reuters)
Chinese citizens across the country have said on social media that infections have been swelling since March.
Zhong also said there had been a small peak in infections at the end of April and early May.
Most COVID-19 infections in mainland China are currently caused by the XBB series mutant strains of Omicron. Among the locally transmitted cases, the percentage of XBB series variants increased to 83.6 percent in early May from 0.2 percent in February.
Zhang Wenhong, China’s top virologist and director of China’s National Center for Infectious Diseases, also warned in late April at a conference that COVID-19 infections would reoccur after six months when immunity gained from prior infections has worn out.
Government
Florida ‘freakishness’: why the sunshine state might have lost its appeal
Florida’s image as a safe sun and theme park destination may be threatened by recent political divisions and gun crime.

Florida is known worldwide for its beaches, resorts and theme parks, but has recently made headlines for a different reason. The state has been rocked by political controversies, bitter debates and fatal shootings at odds with its previously laid back holiday destination image.
In his 1947 book, Inside USA, writer John Gunther described Florida’s “freakishness in everything from architecture to social behaviour unmatched in any American state”. If Gunther had been writing today, he might be just as judgemental.
Florida’s recent political turmoil can be attributed to some highly contentious policies. The state has witnessed heated debates and legislative battles on issues including abortion, gun control, education, LGBTQ+ rights and voting rights.
Florida has been derided as “the worst state” in which to live, one of the worst in which to be unemployed or a student, and not a good place to die.
Even Donald Trump, who moved to his Florida Mar-a-Lago home during his presidency, has called it “among the worst states” to live in or retire to. This was an attack on Florida governor Ron DeSantis, who is also running for the Republican presidential nomination.
What was once considered by many to be a purple state – one that could either be Republican or Democrat – is now fiercely Republican. In recent years, the divide between those of different political beliefs has become toxic.
Importance of international image
International tourism and trade is huge business for Florida. In 2022, more than 1.1 million people visited Florida from the UK, the second largest group of international visitors on an annual basis. The UK is also Florida’s eighth largest trade partner with bilateral trade reaching $5.8 billion (£4.6 billion) in 2022. So state leaders might worry about tarnishing its image abroad.
Business leaders are already fretting about a fall in international visitor numbers linked to COVID and negative media coverage of the state. Around US$50 million was invested in marketing the state to tourists in 2023, this is expected to rise dramatically in 2024. The state’s ability to attract workers to keep its tourism and other industries going is weakening, reports suggest.
Heather DiGiacomo, chief of staff at the Florida Department of Juvenile Justice, told Florida senators that applications for jobs at state-run agencies were down and staff retention was down too. “These turnover rates … impacts the number of well-trained staff available to mentor new staff and puts additional strain on current staff without longer shifts in detention.”
Republican governor Ron DeSantis, now a presidential candidate, has been at the centre of Florida’s significant political divisions. The Republican state legislature’s controversial partisan bills, such as the recent redrawing of the electoral map to benefit the Republican party, was signed into law despite intense opposition.
While his conservative policies on taxes, regulation and immigration have won strong support from conservatives, critics argue that he prioritises partisan politics over the needs of all Floridians. His outspoken handling of the COVID pandemic sparked controversy, with accusations of downplaying the severity of the virus and prioritising economic interests.
Florida’s restrictive abortion laws have also attracted national and international attention. In April 2023, the state passed the foetal heartbeat bill, which prohibits abortions once a foetal heartbeat is detected, typically at around six weeks gestation. This law has faced significant backlash from reproductive rights advocates, who argue that many individuals may not even be aware of their pregnancy at such an early stage.
School shootings and gun laws
The Marjory Stoneman Douglas High School Public Safety Act was passed into Florida state law after the tragic Parkland school shooting in 2018, in which 17 people were killed. But it was controversial because it did not place restrictions on gun ownership or introduce background checks before gun purchases, but allowed schools to employ armed “guardians”. Critics argued that it fell short of addressing the root causes of gun violence in Florida.
There were seven mass shootings in Florida in the first two months of 2023. Despite this, the state has just passed a law that will come into effect on July 1 that will allow anyone who can legally own a gun in Florida to carry one without the need for a permit.
Florida’s partisan divide has been exacerbated by the introduction and passage of several laws that discriminate against the LGBTQ+ community. These laws cover areas including adoption, education, and transgender rights.
This year a massive LGBTQ event in a Florida theme park, which typically attracts 150,000 people, is taking out extra security measures, after new “don’t say gay” state laws were introduced in 2022. These rules ban teachers from discussing topics including sexual orientation. More generally, travel advisory warnings have been issued on the risks of travel to the state for LGBTQ+, African American and Latino people. A recent federal ruling overturned municipal bans on conversion therapy.
Although the “don’t say gay” bill was originally only aimed at third grade students and under, the bill has since been extended by Florida’s Board of Education to apply to all school pupils.
DeSantis has also become embroiled in a long legal and political battle with the Walt Disney Company, a major state employer, over the “don’t say gay” legislation. Disney recently announced it was cancelling a US$1 billion office complex project in the state.
Bills that restrict transgender students’ participation in school sports teams consistent with their gender identity have also sparked heated debate.
Meanwhile, changes in voting laws brought in by the state, including stricter identification requirements and limitations on the drop boxes where voters can leave mail-in ballots, have been criticised for making it more difficult for some people to vote.
Florida’s recent political turmoil has thrust the state into the national, and global, spotlight. Its deeply partisan divide, controversial policies and gun laws have created a toxic political climate, which has the ability to significantly damage the sunshine state’s appeal.
Dafydd Townley does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.
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