It's beer ;D
Essentially branded consumer discretionary purchases. They have decent brands (Molson, Coors) and an established distribution network. It's pretty cheap and was 10% off today.
While the business may go thru ups-and-downs, especially in terms of management's execution (as we are seeing with other CPG's like Kraft-Heinz), I think product demand will remain relatively more steady (compared to say, Tide detergent).
So it's basically, multiple is low, they have scale, brands should have staying power.
Was just curious if there was more than met the eye to the thesis.
In the alcoholic beverage segment, beer is losing market share to spirits and wine. Within the beer segment, TAP’s mass market brands are losing share share to craft beers. I think TAP represents a slow bleeding consumer franchise, somewhere in between a consumer staple and cigarettes, imo.
The bleed is probably slow enough that an investment in equity makes sense at this point, especially since pricing holds up.
That seems to be the consensus, although I've seen conflicting data regarding beer's overall market share. The first chart in the following link indicates that beer popularity has been surprisingly steady over the last 5 years. https://news.gallup.com/poll/238100/americans-favor-beer-alcoholic-beverages.aspx