The Wine, Beer, and Spirits Folio has been among the top performing sector bets in the past three months. Historically recession-resistant, this group has extra fizz from its broad geographic presence, developing markets potential, product innovation, and some very strong brands. More than a hot-weather rally for a few cool ones, this performance has been building for the better part of a year.
Globally the beer market was $546bn in 2009, an increase of 1.5% over 2008, despite weak US demand. (US volume is down 3% this year according to the Brewers Association, a trade group.) Things are giddier in emerging markets. Those predicted to help future growth include: China, India, Thailand, Nigeria and Vietnam as middle class populations and purchasing power grow and the supply chain catches up. Latin America has been a particular strong market for a number of the largest global beer companies. And the location of some big recent mergers.
For wine and spirits, much of the growth is again expected in newer markets. China is expected to be one of the two best wine markets over the next few years. Last year almost 33 billion bottles of wine were sold around the world. Chin chin.
|Folio||Inception||YTD||1 Yr||3 Yr||5 Yr||Since Incep.|
|S&P 500 with Dividends||1.76%||14.79%||-6.47%||0.32%||–|
|Wine Beer and Spirits||06/06/2003||19.00%||38.42%||11.29%||17.61%||22.35%|