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Motif of the Week: Time for a Toast

19 October 2015 in Trading Ideas

Beer Mega-Deal Has Liquor Stocks Buzzing

The world’s beer market is becoming a lot cozier. In a $104.2 billion takeover, SABMiller will join forces with Anheuser-Busch InBev, creating a brewing behemoth with $68 billion in global beer sales and 31% of the world market.

While the deal helps both companies expand their geographic reach, it also combines their bankrolls to continue the trend of acquiring faster-growing craft breweries. In the last month alone, small brewers like Lagunitas, Saint Archer, and Golden Road all were acquired by or partnered up with giant publicly traded brewers. Meanwhile, British distiller Diageo just announced it would offload most of its tepidly growing wine business to focus on its core spirits and beer business.

With investors drinking in a swirl of deals, we’re tapping High Spirits as our Motif of the Week. Beginning today through Friday, October 23, you can trade the motif, commission-free.

Bottoms up!

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Saabira Chaudhuri and Shayndi Raice and Tripp Mickle, “How AB InBev Won Over SABMiller,” wsj.com, Oct. 14, 2015.

Rani Molla, “MegaBrew Needs to Think Small: Rani Molla,” Bloomberg.com, Oct. 14, 2015, http://www.bloomberg.com/news/articles/2015-10-14/megabrew-needs-to-think-small-rani-molla.

Jamie Smyth and Scheherazade Daneshkhu, “Diageo sells wine business to focus on spirits and beer,” ft.com, Oct. 14, 2015.

$0.00 commission offer is for trades (buys, sells, rebalances) of the benchmark version of the Motif of the Week. Commission-free buys, sells, and rebalances end 4PM ET October 23, 2015. Commissions for the Motif of the Week that is customized in any way – adjust weighting, add or remove securities will include a $9.95 total commission per motif transaction or pay $4.95 per stock for individual stock/ETF transactions. Regular commissions apply for other Motif-created benchmark motifs and customer-created customized motifs ($9.95 total commission per motif transaction or $4.95 per stock for individual stock/ETF transactions). Other fees may apply. Motif reserves the right to review and amend the commission pricing structure at any time in the future and will notify you in writing of any intended changes. For details on fees and commissions, please click here.