Beverage Stocks Under The Spotlight: Top Shelf Brands Holdings Corp (OTCMKTS:DKTS); Compania Cervecerias Unidas S.A. (ADR) (NYSE:CCU) And Ambev SA (ADR) (NYSE:ABEV)

Top Shelf Brands Holdings Corp (OTCMKTS:DKTS) announced a product promotion and distribution agreement with Big Tent Group. The agreement particularly involves the distribution of Besado Tequila that will soon hit the shelves. However, Top Shelf Brands’ other line of alcoholic beverage products will benefit from the partnership. Big Tent Group uses a variety of strategies to drive sales for its partners. Such strategies include celebrities into grab the attention of buyers to increase sales.

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Top Shelf Brands Holdings Corp (OTCMKTS:DKTS) expects to benefit from the arrangement with Big Tent Group for many years to come.

Although the oil industry is currently hard-pressed because of the falling prices, beverage stocks such as Compania Cervecerias Unidas S.A. (ADR) (NYSE:CCU) are expected to register some gains. The idea is that the decline in oil prices is leaving consumers with more disposable income that they can spend flexibily in beverages such as alcohol and soft drinks.

As such, Compania Cervecerias Unidas S.A. (ADR) (NYSE:CCU) is one of the names likely to benefit from an increase in disposable income. The company serves a wide market that includes Chile, Uruguay, Argentina and Paraguay with different alcoholic and non-alcoholic brands.

Ambev SA (ADR) (NYSE:ABEV) is another beverage name that operates through subsidiaries and deals in soft drinks, food and alcohol among others. The company’s presence in multiple consumer sectors puts it in a good position to benefit from the increase in consumer spending because of the improvement in disposable income.

Ambev SA (ADR) (NYSE:ABEV) has a business agreement with beverage and snacks giant, PepsiCo Inc (NYSE:PEP). Under the agreement, Ambev SA bottles, sells and distributes PepsiCo products in markets such as Peru, Argentina and Brazil.

The global alcohol industry is estimated to be worth more than $1.16 trillion a year. Spirit companies are having brisk business opportunities because the millennials love such drinks. Besides the huge market opportunity for the beverage companies, the already mentioned huge drop in oil prices is expected to fuel the sale of beverage.

About the Author

Laurie, a long-time member of the US Markets Daily general assignment reporter who has covered a variety of subjects from breaking news to investigative features, from stock markets to politics, and from neighborhood small business to global warming.

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