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The alcoholic beverages industry is expected to have a better year in 1999 than it did in 1998, and brewers especially should see an increase in both volume and price. Consumption levels have been flat or declining in the Japanese, Western European, and American markets for distillers, but there should be growth in earnings due to new market penetration and better management, and wine makers should see a upward trend as well. These stocks will advance with the market in 1999, but several have growth potential through the years 2001-2003.

The long-term prospects for the brewing industry are improving due to the new emerging markets, although Anheuser-Busch Companies and others have suffered a competitive pricing environment in early 1998. The outlook for distillers is also positive from efficiency gains and foreign developing markets, and many in the industry are expanding their brand choices. Several of these stocks have potential for investors through the years 2001-2003.

The domestic beer industry in the US is still feeling the effects of the price war begun in 1997 by Miller, but this is expected to improve in the 2nd six months of 1998. Consumption levels in the mature markets of the US, Western Europe, and Japan are also forecast to be flat or declining for the distilling industry, but some new markets may be emerging. These stocks are more attractive for the years 2001-2003 than for 1998 and 1999.

Profit margins for the beer industry in the US are expected to increase during 1998 after the pricing war in 1997 through lower discounts and other measures to increase revenue. Distillers are expected to have good sales in coming years, especially in the global markets, and the Grand Met-Guiness merger is a long-term positive asset, also. The industry will be flat in 1998, but several of these stocks will perform well through 2000-2002.

Many companies in the brewing industry have been pinched by competitive pricing although overall industry volume in consumption has risen 4% since Sep 1997. Some markets for distillers, such as Japan, Western Europe, and North America are also facing flat or lower consumption, but several wine producers have expanded margins due to a good 1997 crop. The industry has several good stocks, although it is expected to lag the market in 1998.

The alcoholic beverage companies will continue to face sluggish domestic growth and competitive pressures that will make the industry a market performer through August 1998. The long-term prospects for this industry are good, although companies that best penetrate emerging markets will have the strongest growth. Prospects for beer manufacturers, winemakers and distilled spirit suppliers are discussed.

The alcoholic beverage industry faces several challenges in 1997, but longterm prospects are generally favorable. Brewers face price competition and slow domestic volume trends, while distillers are hampered by weak demand in the U.S. and in crucial European markets. However, brisk expansion in overseas markets boosts longterm prospects. The short-term profit outlook for the industry is disappointing, but prospects improve over the next three to five years.

The market for the alcoholic beverage industry is competitive both abroad and in the US. However, profits for brewers are being maintained by positive pricing, and the profit margins for distillers are rising. Revenue and volume gained for several wineries in the 1990s with increased demand, and many distillers and brewers will see gains by the year 2000. Individual stocks are good investments, although the industry will underperform the market.

Increased competition and a poor domestic market have made short term investments in the alcoholic beverages and brewing industries as a whole unattractive but the 3-5 year long range possibilities for some individual companies deserve consideration. The domestic brewing industry has managed to sustain profitability largely through price increases. The fast growing number of mini-breweries have cut into the giant breweries market share.

The alcoholic beverage industry reported respectable earnings in 2d qtr 1996, but consumption is declining in the US, Europe and Japan. Exports to developing countries are rising as demand grows by about 5% a year. The stocks of distillers and large brewing companies such as Anheuser-Busch Cos. should perform well over the five-year period up to 2001. Earnings for 1996-1997 are not expected to rise significantly.

The alcoholic beverages industry, while generally profitable, has experienced small growth as an entity and while a few companies have shown considerable growth in sales and profits, many others have shown flat or declining growth. The industry is expected to underperform in 1996 although some companies may perform well as they push for growth in the international market. Investors should consider individual companies rather than rely on the industry as a whole.

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.

Unfavorable weather, California's weak market, and higher raw material prices are lowering brewing industry profits, with reduced discounting and higher prices the major responses. Premium brand consumption and increased business in Asia and Latin America are two positive factors for distilled spirits companies. Alcoholic beverage stocks will underperform the market in 1995 and 1996, however, and investors should be cautious.

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.

Nearly all alcoholic beverage makers will register higher earnings in 1994, but there are clouds on the horizon for brewers. Aluminum prices could rise by as much as 30% in 1995, boosting packaging costs, especially for sub-premium beers. Distillers, on the other hand, should do well, especially in export markets. The tremendous growth of the Mexican brewing industry makes it a favorable investment venue. The group as a whole is recommended to long-term investors.

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.

The beverage industry securities should only appeal to an investor who is interested in a long term investment, although this group will improve in 1994. Brewers will benefit from recovering economies in Europe and the US, and will prosper in the Latin American and Asian/Pacific markets. Ice beer, a new drink category, will help boost sales, and firms will benefit from cost reductions and other financial cuts.

A maturing domestic market for alcoholic beverages makes those companies that are expanding overseas the best bet for potential investors in the industry. Distillers Seagram and Brown-Forman are in an especially strong international position, while brewers Labatt, Coors and Anheuser-Busch plan to expand their international presence. A trend towards value products during the recession made premium brands lose some of their prestige as well as sales.

The alcoholic beverage industry stocks are not expected to do well during 1993-1994, due to the recession and low inflation around the world. Consumers are buying fewer premium brand products and more lower-priced brands. As a result, profits are below the high levels of the 1980s. However, the Clinton administration has yet to propose an excise tax on alcoholic beverages, and the industry outlook is expected to improve over the long term. In addition, Asian, Latin American and other foreign markets are increasing in size, as consumers buy more American products.

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