“Founded in 1904, Beam, Inc. (BEAM) is a major producer of distilled spirits, including bourbon, whiskey, tequila, scotch, rum, vodka, cognac and gin, whose brands include Jim Beam, Maker’s Mark, Sauza, Canadian Club, Courvoisier, Teacher’s, Cruzan, Hornitos and DeKuyper. It recently acquired Dublin-based Cooley Distillery, entering the fast-growing Irish Whiskey category.
“Last fall, the former Fortune Brands sold its sporting goods unit, spun off its home products subsidiary, and adopted the Beam corporate name. Consensus estimates call for it to earn about $2.34 per share this year and $2.58 in 2013, compared with $2.12 in 2011. ... Companies that focus well on what they do best often make great investments because they’ve learned to squeeze out unnecessary expense and maximize the efficiency of their operations. Building the value of great brands is also part of the formula, especially when other valuable brand names can be added to the line-up. Much of that can be lost, however, when a company goes overboard, becoming an unwieldy conglomerate, but once that situation is corrected, the potential for profits and dividends can be quickly restored. Our featured stock this time is a perfect example of that phenomenon and its rebirth is just getting started.”
Vita Nelson, The Moneypaper, 2/16/12
