By
Julie Clarenbach
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More Articles
June 14, 2010
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Wags point out that investing in alcohol producers -- wineries, distilleries, brewers, and distributors -- is a safe bet during recessions, when people need to alleviate higher levels of stress.
Although alcohol isn't recession-proof -- higher-end drinks and point-of-sale trends are down -- alcohol usually proves itself to be a steady grower.
Getting into the numbers
Who are the major alcohol companies, and how do they stack up to one another?
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Company
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Market Cap (in Millions)
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Revenue, LTM (in Millions)
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Free Cash Flow, LTM (in Millions)
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CAPS Rating (out of 5)
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Anheuser-Busch InBev (NYSE: BUD )
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$77,351
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$36,888
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$7,411
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***
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AmBev (NYSE: ABV )
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$62,532
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$13,064
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$4,270
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****
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Diageo (NYSE: DEO )
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$39,813
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$13,729
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$2,929
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*****
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Brown Forman (NYSE: BF-B )
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$8,687
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$2,444
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$544
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****
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Molson Coors (NYSE: TAP )
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$8,100
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$3,134
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$777
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*****
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Constellation Brands (NYSE: STZ )
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$3,553
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$3,365
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$295
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***
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Data from Capital IQ, a division of Standard & Poor’s, and the Motley Fool CAPS database.*2009 Q4 results.
It's important to keep track of revenue, but free cash flow gives us a better sense of what the company is doing with that revenue -- and whether it'll have the funds to invest in the business later.
Which alcohol company do you like, and why? Let us know in the comments.