Following a strong performance by the Beer segment in the first half of fiscal 2017, Constellation Brands (STZ) expects the segment’s net sales for fiscal 2017 to grow 16%–17%.
In fiscal 2016, which ended on February 29, 2016, Constellation Brands’ beer business accounted for 55.3% of the company’s sales, up from 52.9% in fiscal 2015.
US corporates dominated the primary market for high-grade bonds in 1Q16 ended March 31, 2016. US corporates made up 32.2%, or $147.7 billion, of all issues.
Altria Group is set to release its 4Q15 and 2015 earnings on January 28, 2016. MO’s earnings were in-line with Wall Street analysts’ expectations in 3Q15.
Anheuser-Busch InBev (BUD) issued $46.0 billion in high-grade bonds rated A2/A- rated on January 13. This was the second largest high-grade bond issuance on record.
Constellation Brands is ramping up its beer production capacity in response to rising demand. The company’s beer brands are quite popular with US consumers.
On October 7, Anheuser-Busch InBev announced a formal cash bid of 42.2 pounds per share to SABMiller’s board. This was the third offer rejected by SABMiller.
ABI could leverage ~$50 billion through debt financing. As of June 30, its total debt was ~$51.5 billion, with a total-debt-to-total-assets ratio of ~35.9%.
ABI is a leading company in the consumer staples sector. It has had a strong record of integrating acquisitions and delivering synergies ahead of target.
ABI has been one of the most active companies in the acquisition of other beer firms. The Belgium-based company itself came from a prior $52 billion deal.
The top five beer brewers accounted for nearly 52% of the total global sales volume in 2014. ABI is the leader worldwide with 20.8% of the market share.
