Core Insights - The article emphasizes the importance of conducting personal in-depth research and due diligence before making investment decisions, highlighting the inherent risks involved in trading [3]. Group 1 - The analysis is intended solely for informational purposes and should not be interpreted as professional investment advice [3]. - There is a clear disclaimer regarding the lack of any stock, option, or derivative positions in the companies mentioned, indicating a neutral stance [2]. - The article expresses the author's personal opinions and does not reflect the views of Seeking Alpha as a whole [4].

Constellation Brands (STZ -1.34%) and Anheuser-Busch InBev (BUD 0.01%) both sell alcohol. The former produces beer, wine, and spirits, and the latter is the world's largest brewer by volume. Typically, alcohol companies do well in good and bad times. Of course, these remain uncertain times, particularly given economic policies such as tariffs. That makes it challenging to figure out how consumers will react. Still, investors should concentrate on the long term. Which of these two alcoholic beverage companie ...

Core Insights - The article highlights Steven Cress's role as VP of Quantitative Strategy and Market Data at Seeking Alpha, emphasizing his contributions to the platform's quantitative stock rating system and analytical tools [1][2] - Cress is dedicated to removing emotional biases from investment decisions through a data-driven approach, utilizing sophisticated algorithms to simplify investment research [2][4] - His background includes founding CressCap Investment Research, which was acquired by Seeking Alpha in 2018, and previously running a proprietary trading desk at Morgan Stanley [3][4] Company Contributions - Seeking Alpha's Quant Rating system, created by Cress, is designed to interpret data for investors and provide insights on investment directions, saving time for users [1][2] - The Alpha Picks tool, co-managed by Cress, aims to assist long-term investors in building a high-quality portfolio [1] Professional Background - Cress has over 30 years of experience in equity research, quantitative strategies, and portfolio management, positioning him as an expert in various investment topics [4] - His previous roles include founding a quant hedge fund and leading international business development at Northern Trust, showcasing a strong background in finance and investment [3][4]

Core Insights - The article highlights Steven Cress's role as VP of Quantitative Strategy and Market Data at Seeking Alpha, emphasizing his contributions to the platform's quantitative stock rating system and analytical tools [1][2] - Cress is dedicated to removing emotional biases from investment decisions through a data-driven approach, utilizing sophisticated algorithms to simplify investment research [2][3] - With over 30 years of experience in equity research and quantitative strategies, Cress is well-equipped to address various investment topics [4] Company Overview - Seeking Alpha has integrated Cress's quantitative analysis and market data capabilities, enhancing its investment research offerings [3] - The platform features a systematic stock recommendation tool called Alpha Picks, aimed at helping long-term investors build superior portfolios [1][2] Professional Background - Prior to joining Seeking Alpha, Cress founded CressCap Investment Research, which was acquired in 2018, and also established the quant hedge fund Cress Capital Management [3] - Cress has extensive experience in proprietary trading at Morgan Stanley and international business development at Northern Trust [3]

Core Insights - AB InBev is focused on investments to drive growth and diversify its portfolio of global, international, and craft specialty premium brands [1] - The company plans to invest $300 million in its U.S. manufacturing operations in 2025 to enhance training, recruitment, and local production [2] - This investment follows a nearly $2 billion investment in U.S. facilities over the past five years, aimed at boosting the economy and sustaining jobs [3] Investment and Operations - The investments are intended to improve internal systems at U.S. manufacturing facilities, enhancing brewery efficiency and economic prosperity [4] - AB InBev reported mixed first-quarter 2025 results, with strong earnings performance but soft sales, driven by diversified operations and demand for megabrands [5] - Revenues from megabrands increased by 4.4%, particularly benefiting from the strong performance of the Corona brand [5] Digital Transformation - The company has been rapidly growing its digital platforms, with B2B digital platforms contributing approximately 72% to revenues in Q1 2025 [6] - The omnichannel ecosystem generated $275 million in revenues during the same period [6] Beyond Beer Portfolio - AB InBev's Beyond Beer portfolio saw a revenue increase of 16.6%, driven by double-digit growth in brands like Cutwater and Nütrl in the U.S. and Beats in Brazil [7] Stock Performance - Over the past three months, AB InBev's shares have increased by 25.5%, outperforming the industry growth of 18.9% [8]

Core Viewpoint - Anheuser-Busch announces a $300 million investment in U.S. manufacturing facilities, reinforcing its commitment to job creation and economic prosperity [1][5][12] Group 1: Investment and Economic Impact - The company has invested nearly $2 billion over the past five years and plans to invest an additional $300 million in 2025 [6][7] - This investment aims to create and sustain manufacturing jobs, enhance operations, and meet evolving consumer demand [7][12] Group 2: Workforce Development - Anheuser-Busch is expanding its Technical Excellence Center model, which has benefited over 1,200 employees since 2022, with a new facility in Columbus, OH [8][9] - The company is partnering with local trade schools to provide access to technical training for students and educators, thereby developing a talent pipeline for manufacturing careers [9][10] Group 3: Support for Veterans - Anheuser-Busch is leading the industry by adopting a new digital credentialing system to help veterans transition into manufacturing careers [10][11] - More than 10% of the company's workforce consists of veterans, with a nearly 100% retention rate [11]

Core Viewpoint - AB InBev reported first-quarter 2025 results with earnings per share (EPS) exceeding estimates, while revenue declined and missed expectations, indicating mixed performance driven by strong consumer demand for megabrands and a diversified market presence [1][2]. Financial Performance - Underlying EPS was 81 cents, reflecting a 7.1% year-over-year increase, driven by 10.3% EBIT growth and optimized net finance costs, surpassing the Zacks Consensus Estimate of 77 cents [2]. - Revenues totaled $13.63 billion, falling short of the Zacks Consensus Estimate of $13.85 billion and declining 6.3% year over year, although organic revenue grew by 1.5% in half of its markets [3][4]. - Revenue per hectoliter improved by 3.7% year over year, supported by revenue-management initiatives, despite a total organic volume decline of 2.2% [4]. Brand Performance - Premium and super premium beer brands showed strong performance, with the above-core beer portfolio growing by 1.8% year over year, led by Corona's 11.2% revenue increase outside Mexico [5]. - Megabrands revenues increased by 4.4%, primarily driven by the strong performance of the Corona brand [5]. Digital Transformation - AB InBev has focused on digital investments, with B2B digital platforms contributing approximately 72% to revenues in Q1 2025, and the omnichannel ecosystem generating $275 million in revenues [6][8]. Cost and Margin Analysis - Cost of sales decreased by 9.2% to $6.04 billion, while SG&A expenses rose by 5.6% year over year to $4.2 billion [9]. - Normalized EBITDA was $4.9 billion, down 2.6% year over year, but improved 7.9% on an organic basis, with the EBITDA margin expanding to 35.6% [10]. Future Outlook - For 2025, AB InBev anticipates EBITDA growth of 4-8%, with net capital expenditure projected at $3.5-$4 billion [12].

Core Insights - The article discusses the importance of identifying reasonably priced businesses with sustainable long-term competitive advantages in the investment landscape [1]. Group 1: Analyst Background - Vladimir Dimitrov, CFA, has experience as a strategy consultant focusing on brand and intangible asset valuation [1]. - He has worked with major global brands in technology, telecom, and banking sectors during his career in London [1]. - Dimitrov holds a degree from the London School of Economics [1]. Group 2: Investment Philosophy - The emphasis is on finding businesses that are not only reasonably priced but also possess sustainable competitive advantages for long-term success [1].

Core Insights - The collaboration between Jiangsu Agricultural Reclamation Group and Budweiser China has led to the successful cultivation of two high-quality barley varieties, Y131 and Y148, which meet high standards for beer brewing [3][4] - A modern indoor hop cultivation base of 2,200 square meters has been established in Lianyungang, enhancing the production capacity of hops through advanced agricultural technologies [6][7] - An environmentally friendly fertilization model has been developed, aiming to reduce chemical fertilizer usage by 20% while increasing barley yield by 5%-10% by 2025 [4][7] Group 1: Collaboration and Development - Since establishing a strategic partnership in 2016, Budweiser China and Jiangsu Agricultural Reclamation have deepened their cooperation in barley breeding and research [3] - Budweiser China has sourced a total of 230,000 tons of barley from Jiangsu Agricultural Reclamation Group to date [4] Group 2: Technological Innovations - The indoor hop cultivation project utilizes air-source heat pump systems and intelligent lighting technology to optimize key environmental parameters, significantly increasing the frequency of harvests from once a year to three to four times [6][7] - The innovative use of brewery by-products to develop organic fertilizers has replaced traditional fertilizers, contributing to carbon reduction [7] Group 3: Sustainability Initiatives - The partnership has initiated the 100+ Innovation Alliance to promote sustainable agriculture and development, leveraging various stakeholders for innovative technology applications [6][7] - The environmentally friendly fertilization model not only optimizes fertilization plans but also achieves significant breakthroughs in reducing chemical fertilizer use and carbon emissions [7]

Core Insights - Anheuser-Busch Inbev reported a revenue of $13.63 billion for Q1 2025, reflecting a year-over-year decline of 6.3% and an EPS of $0.81, up from $0.75 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $13.85 billion, resulting in a surprise of -1.61%, while the EPS exceeded expectations by 5.19% [1] Financial Performance Metrics - The company’s stock has returned +7% over the past month, compared to the Zacks S&P 500 composite's +11.3% [3] - Anheuser-Busch Inbev holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3] Volume and Revenue Breakdown - Volume in Hectoliters for Middle America was 35,081 KhL, slightly above the average estimate of 35,003.87 KhL [4] - South America reported a volume of 40,891 KhL, exceeding the estimated 38,980.93 KhL [4] - EMEA volume was 20,752 KhL, below the average estimate of 21,367.04 KhL [4] - Total worldwide volume was 136,268 KhL, slightly above the average estimate of 135,732.7 KhL [4] - North America revenue was $3.36 billion, down 6.4% year-over-year and below the estimated $3.46 billion [4] - Middle Americas revenue was $3.78 billion, a decline of 6.6% year-over-year, compared to the estimated $3.81 billion [4] - South America revenue was $2.98 billion, down 7.9% year-over-year, slightly above the estimated $2.94 billion [4] - EMEA revenue was $1.97 billion, below the estimated $2.05 billion [4] - Asia Pacific revenue was $1.45 billion, down 11.3% year-over-year, compared to the estimated $1.50 billion [4] - Global Export & Holding Companies revenue was $86 million, down 21.1% year-over-year, below the estimated $107.91 million [4]