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The ad, which ends with the tagline "In the real world, taste is what matters," is meant to show that while Bud Light lives in a fantasy world, people in the real world drink Miller Lite, according to Miller Lite vice president Anup Shah.
The company said it would deconsolidate RBH from its financial statements, and it cut its full-year 2019 diluted earnings per share forecast to at least $4.90 at prevailing exchange rates, from at least $5.28 in the forecast it made on March 4, shortly after the ruling in Quebec.
Constellation Brands (STZ) closed the most recent trading day at $169.18, moving -0.12% from the previous trading session.
Dual-class stocks to buy are in the news again. Lyft, the ride-hailing app, is looking to go public. On March 18, the company filed an amended preliminary prospectus with the SEC that suggests it will offer almost 31 million of its Class A shares between $62 and $68 a share, valuing it at $23 billion or more.It's very popular with investors, already oversubscribed with a week left until it officially starts trading. People can't get enough of Lyft stock. However, many institutional investors aren't happy about the company's dual-class share structure, sending a letter to Lyft asking that it include a sunset clause in its IPO regulatory filings. Under a sunset clause, the company would designate a future date at which time the dual-class share structure would convert into a one share, one vote scenario. InvestorPlace - Stock Market News, Stock Advice & Trading TipsThese institutional investors don't like the fact that the company's two founders will control 60% of the votes with just a 7% economic interest. They're especially frustrated because Lyft currently operates a one share, one vote structure as a private company. Love them or hate them, dual-class share structures will always be attractive to entrepreneurs who worry that the short-termism that's so prevalent in Wall Street companies is harmful to a company's long-term success. * 7 Beaten-Up Stocks to Buy as They Reverse Course I happen to believe that dual-class share structures, in the hands of good corporate stewards, can deliver above-average rewards, then companies without them.To demonstrate what I mean, here are seven dual-class stocks to buy now. Dual-Class Stocks to Buy: Brown-Forman (BF.B, BF.A)Source: Shutterstock George Garvin Brown IV is the chairman of Brown-Forman (NYSE:BF.A, NYSE:BF.B), the Louisville distiller behind Jack Daniel's and other whisky brands. The Brown family control more than 50% of the company's Class A shares. The Class B shares do not come with votes providing the family with a built-in succession plan. It's the ultimate family business. When George Garvin Brown became chairman in 2007, he went to work with former CEO Paul Varga -- Varga retired December 31, 2018, after 15 years in the top job -- to create a "family engagement" committee to keep all the Brown family members, most of whom didn't work at the company, engaged and informed, so that a dual-class share structure wasn't the only thing keeping it in the familial hands. "It's their biggest asset; it's what makes them unique," said Professor Lloyd Shefsky in 2015. "But there has to be something more for people to go through the extra effort, and sometimes trauma, of continuing family ownership of the business. … Families generally don't work on that enough."Since Brown IV has been chairman, Brown-Forman stock has appreciated by 493%, or 16.7% annualized. Not bad considering he took over at a time when the economy was ready to collapse, and nobody was drinking whisky. Boy, have times changed. Constellation Brands (STZ, STZ.B)Source: Shutterstock Lost in the excitement of Constellation Brands' (NYSE:STZ, NYSE:STZ.B) multi-billion-dollar cannabis investment is the fact that the company has a dual-class share structure, with Class A shares getting one vote per share while Class B shares get 10 votes each. Brothers Rob and Richard Sands control the company by owning almost all of its Class B shares. Overall, they have 59% of the all the votes, which translates into a 16% economic interest in Constellation Brands.Recently, Rob Sands stepped down as CEO, to become executive chairman, with the COO, Bill Newlands, stepping into the top role. Rob Sands was the driving force behind Constellation Brands making a $4 billion investment in Canopy Growth (NYSE:CGC). As executive chairman, he'll oversee the company's investment including its push into cannabis-infused drinks. Whether you're talking about its bold move to buy the Modelo beer business in the U.S. a few years ago or its efforts to add a platform for growth beyond beer, spirits, and wine, there's a good chance none of this happens if the Sands' brothers didn't have the ability to look well into the future. * 10 Stocks on the Rise Heading Into the Second Quarter Institutions might hate the idea that someone with 16% ownership, controls the business, but when you consider how much effort the family has put into the company -- father Marvin founded it in 1945 -- I wouldn't want anyone else other than the Sands calling the shots. They dream big, and shareholders will be rewarded over the long haul for allowing them to do so. Dual-Class Stocks to Buy: Brookfield Asset Management (BAM)Source: Shutterstock If you're not familiar with the alternative asset manager that recently acquired 62% of Los Angeles-based Oaktree Capital (NYSE:OAK) for more than $4 billion, Brookfield Asset Management (NYSE:BAM) is now about the same size as Blackstone (NYSE:BX) in terms of assets under management. Brookfield CEO Bruce Flatt got a new platform for growth in credit and distressed debt while adding to the company's bench -- Oaktree co-founder Howard Marks will remain at Oaktree for the foreseeable future -- and more importantly, making Brookfield a full-service asset manager. "Brookfield is a leading player in infrastructure, real assets and real estate," David Fann of TorreyCove Capital Partners said about the deal. "Oaktree is a dominant distressed debt player. After this deal, Brookfield will become a major global provider of alternative investments with offerings that work in both up and down markets."Again, I'll make my point. The dual-class share structure is only a problem in the absence of talent and vision. Bruce Flatt has plenty of both. Estee Lauder (EL)Source: Shutterstock 2018 wasn't a great year for long-time Estee Lauder (NYSE:EL) shareholders; its stock delivered an annual total return of 3.5%. That's okay. As bad as that might seem, it was still 787 basis points higher than the S&P 500. And besides, it's up 24.5% year to date, and if it can hold those gains this is the fifth year in the past decade with an annual total return more than 20%. If you invested $10,000 in Estee Lauder stock a decade ago, today you'd have more than $145,000.Led by CEO Fabrizio Freda, who has been in the top job since 2009, the executive chairman's role is held by William Lauder, who was CEO for a short time before Freda joined the company. The Lauders, who control the company with 87% of the votes, have four board seats out of a total of 16, ensuring that the business goes where they want it to go. I first recommended Estee Lauder stock in April 2013. Since then, I've suggested it on several occasions into 2019. * 5 Cloud Stocks to Help Your Portfolio Fly As consumer stocks go, I like it as long as the Lauder family has a control position in the company. They know how to exert influence without getting in the way. Nike (NKE)Source: Shutterstock Whenever you read about Nike (NYSE:NKE), it's rare that you see anything that talks about Phil Knight's baby having a dual-class share structure, but it surely does, although not in an obvious way. It has Class A and Class B shares, but there's no 10:1 ratio in terms of votes, or 20:1 in the case of Lyft. No, it uses a more subtle form of control. If you dig into the proxy, you'll see that Class A shareholders elect 75% of the board members and Class B shareholders to elect the rest. Currently, there are 12 directors with nine voted on by the Class A shareholders and three voted on by the Class B shareholders. Care to guess who one of the Class A shareholders is? None other than Travis Knight, Phil Knight's son. Another thing you'll notice is that Swoosh LLC holds 78% of the Class A shares ensuring that Nike's board is stacked with people the founder can trust. It's a slightly different take on the dual-class share structure, but it ultimately is intended to ensure that the company maintains the vision of its founder. As successful as Nike has been, what's not to like? Square (SQ)Source: Via SquareJack Dorsey is CEO of both Square (NYSE:SQ) and Twitter (NYSE:TWTR). Square went public in November 2015; Twitter IPO'd two years earlier in November 2013. Interestingly, Twitter chose to issue only one class of shares, but Square decided to issue two classes. Why is that?Well, a Wall Street Journal article in August 2015, before the company went public, used an interesting analogy with Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG), then known as Google, that might provide a clue. "From a governance perspective, investors could view 'Alphabet less as a public company than a public-private company hybrid,'" the Journal's Emily Chastan stated at the time, quoting corporate governance expert John Wilson. "Because the company has an unequal voting structure, the founders of Google are uniquely able to take risky bets on new technology, while simultaneously growing the company's mature search and advertising business."So, it's possible that Dorsey and company felt that Square needed greater oversight and control, protecting it from the short-term nature of most investors. We'll probably never know for sure. However, what we do know is that Dorsey has 45% of Square's voting power, but only 16% of its equity, whose shares are worth $4.9 billion. Over at Twitter, he has 2.4% of the equity, worth $586 million. Considering Square's market cap is 32% greater than Twitter's, it seems Dorsey made the right call. Dual-Class Stocks to Buy: Berkshire Hathaway (BRK.A, BRK.B)Source: Shutterstock If it weren't for unit investment trusts, you might not be able to buy Class B shares of Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) today. Warren Buffett introduced a second class of shares in May 1996 in response to regular investors seeking a backdoor by buying units of these trusts to get a piece of the Class A shares, which were trading around $22,000 at the time. Baby B's would be worth 1/30th the value of the Class A shares and 1/10,000th the voting rights. "As I have told you before, we made this sale in response to the threatened creation of unit trusts that would have marketed themselves as Berkshire look-alikes. In the process, they would have used our past, and definitely nonrepeatable, record to entice naive small investors and would have charged these innocents high fees and commissions," Buffett wrote in the company's 1996 shareholder's letter. How about that, even back then, the Oracle of Omaha was railing against high fees in the mutual fund business. Almost 15 years after issuing the B shares, Berkshire Hathaway split them 50-to-1 so that Burlington Northern shareholders could share in the company's future success. Today, the B shares are worth 1/1,500th of a Class A share while the voting rights have stayed the same. If not for Warren Buffett's stand on fees a long time ago, a lot fewer people would likely own the company's stock. That would be a bad thing. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks That Will Continue to Rebound in 2019 * 5 Stocks To Buy for the Happiest Employees * 7 ETFs for a Millennial Portfolio Compare Brokers The post 7 Dual-Class Stocks That Will Outperform appeared first on InvestorPlace.
The Chicago-based brewer is trying to force Anheuser-Busch to stop airing a Bud Light corn-syrup ad campaign. Not gonna happen, says A-B.
Boston brewer Sam Adams is dedicating a new beer to Justice Ruth Bader Ginsburg, named after one of the liberal judge's comments about gender and the court.
Cannabidiol (CBD) is emerging as a red-hot category of the marijuana industry. CBD includes compounds in the cannabis sativa plant that do not produce a high. In fact, over the years, CBDs have been shown to have powerful therapeutic effects.Now it looks like the U.S. market could open up in a big way for this type of cannabis and several CBD stocks are gaining traction. The reason: In December, Congress passed the 2018 Farm Bill, which declared that CBD would no longer be treated as an illegal substance.So how big could this opportunity be? Well, according to research from the Brightfield Group, the market in the U.S. could hit $22 billion by 2022.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 10 Best ETFs to Buy in the Second Quarter No doubt, this could move the needle for marijuana stocks -- and here's a look at seven that stand out: Cronos Group (CRON)Cronos Group (NYSE:CRON) operates a vertically integrated cannabis platform, with a presence across five continents. In terms of the CBD opportunity, the company recently struck a strategic partnership with Gingko Bioworks, which has raised $430 million. The company's founder, Tom Knight, is known as the "father of synthetic biology" and his innovations -- such as with software to print DNA -- should allow for the creation of cannabinoids at a massive scale. This is critical because it can be difficult to produce pure forms that are cost-effective and precise.CRON also has the advantage of substantial financial resources to commercialize its cannabinoids. Last December, Altria (NYSE:MO) invested $1.8 billion into the company for a 45% stake. The deal is certainly a validation of CRON but it will also allow for much broader distribution and improved product development.Of course, a company like MO does engage in substantial due diligence before making an investment. In the latest earnings call, CEO Howard Willard said: "We believe the growth opportunities are significant and will extend across the globe as cannabis markets open. Selecting the right partner in this category was critical and we've done just that. Cronos strong management team has built unique capabilities to compete globally across the medicinal, recreational and nutraceutical categories." Aurora Cannabis (ACB)Aurora Cannabis (NYSE:ACB), a Canadian based cannabis producer, has been building up its CBD business. Part of this has been with its investments in industrial hemp production, such as with the Radient facility in Edmonton. It is expected to get as much as 10,000 kilos per day.Next, ACB has been focused on revving up its product offerings. According to the latest earnings call, Chief Corporate Officer Cam Battley, the company is poised "to launch a broad line of CBD based wellness product in the near future."What's more, ACB has been aggressive with its dealmaking. For example, it has increased its equity position in Hempco and purchased Agropro, which is Europe's largest hemp producer. * 10 Stocks on the Rise Heading Into the Second Quarter Something else to keep in mind: Legendary billionaire investor Nelson Peltz has joined the company as an advisor. This is certainly a major vote of confidence. He not only has deep access to investment capital but a strong network of potential partners, especially in the consumer goods industry. Some of his investments include stakes in PepsiCo (NASDAQ:PEP), Procter & Gamble (NYSE:PG) and Mondelez (NASDAQ:MDLZ). Charlotte's Web (CWBHF)The inspiration for the founding of Charlotte's Web (OTCMKTS:CWBHF) was a CNN documentary -- in 2013 -- about Charlotte Figi, whose health was significantly improved because of a hemp extract.Fast forward to today: The company is the No. 1 brand for the hemp-derived CBD market in the U.S. It definitely helps that it has distribution across more than 3,000 retail locations.And yes, growth has been strong. In the latest quarter, revenues jumped by 57% to $17.7 million and adjusted EBITDA came to $5.4 million, up 31%.To better capitalize on the CBD opportunity, CWBHF recently issued $71.5 million in stock. This will be for cultivation and production to meet surging demand. Here's what the company's CEO, Hess Moallem, had to say: "In general, broader consumer awareness of the benefits of cannabinoids, namely cannabidiol (CBD), and whole plant hemp extract is driving increased uptake in both our retail channels and within our e-commerce platform."In other words, it seems like a pretty good bet that the growth will continue for some time. Zynerba Pharmaceuticals (ZYNE)Zynerba Pharmaceuticals (NASDAQ:ZYNE) is a clinical-stage biotech company that develops cannabinoid therapies for a variety of rare diseases. They include: * Fragile X Syndrome (FXS): This is a developmental disability that has been known to cause autism spectrum disorder. FXS impacts 71,000 people in the U.S. and there are no drug indications for it. * Developmental and Epileptic Encephalopathies (DEE): This is an epilepsy syndrome that involves severe cognitive impairment. About 45,000 children and adolescents have this in the U.S. * Autism Spectrum Disorder (ASD): This includes autism and Asperger's syndrome. ASD affects less than 1 million pediatric and adolescent patients. * 7 Retail Stocks That Will Continue to Rebound in 2019 ZYNE's main candidate is Zygel, which is a CBD formulation gel for transdermal delivery. As for the FXS treatment, there is expected to be a pivotal data release in the second half of this year. And if the trial is positive, then the company will file a New Drug Application (NDA) for Zygel in the first half of 2020. Canopy Growth (CGC)Since 2016, Canopy Growth (NYSE:CGC) has been building its CBD business, with a focus on consumer packaged goods. The company has since created a vertically integrated platform for that includes a set of technologies that have pending patents. What's more, the hemp division is expected to yield 7,000 kilos of hemp-derived CBD on an annual basis. Granted, this cannot be used in the U.S. market. Yet CGC is likely to be a solid partner. For example, the company recently struck a deal with Martha Stewart's Sequential Brands Group, so as to develop CBD remedies for pets.It helps that CGC has substantial resources, which came from a mega $4 billion investment from Constellation Brands (NYSE:STZ). STZ has a strong global footprint -- with operations in the U.S., Mexico, New Zealand, Italy and Canada -- as well as a set of well-known consumer brands, such as Corona Extra, Corona Light, Modelo Especial, Modelo Negra and Pacifico. All in all, there is quite a bit of synergy for CGC.In the meantime, the company is growing at a staggering pace. In the latest quarter, revenues soared by 282% to $83 million. GW Pharmaceuticals (GWPH)The origins of GW Pharmaceuticals (NASDAQ:GWPH) go back to 1998. It was then that Dr. Geoffrey Guy and Dr. Brian Whittle co-founded the company to focus on developing therapies using cannabinoid formulations to target areas like epilepsy, glioma and schizophrenia.As of today, the lead product is a liquid formulation of a CBD, called Epidiolex, which received FDA approval in 2018 (the expectation is that there will be an approval in Europe in the second quarter). The drug targets the rare conditions of Lennox-Gastaut syndrome (LGS) or Dravet syndrome, which are variations of epilepsy. Furthermore, there are other indications for Epidiolex, such as Tuberous Sclerosis Complex and Rett Syndrome. * 7 ETFs for a Millennial Portfolio But of course, the company has other treatments. Note that GWPH is looking to get approval in the U.S. for Sativex, which is an oromucosal spray for multiple sclerosis. It is currently available in 25 countries. Horizons Marijuana Life Sciences ETF (HMLSF)If you do not want to buy individual CBD stocks, then you can consider an exchange-traded fund, such as the Horizons Marijuana Life Sciences ETF (OTCMKTS:HMLSF). With this, you'll get exposure to companies like Canopy Growth, Aurora, GW Pharamceuticals, HEXO and Tilray (NASDAQ:TLRY).In all, there are 59 stocks in the portfolio and the net assets are about $1 billion (in Canadian currency). The expense ratio is also 0.75%.Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks That Will Continue to Rebound in 2019 * 5 Stocks To Buy for the Happiest Employees * 7 ETFs for a Millennial Portfolio Compare Brokers The post 7 Marijuana Stocks to Play the CBD Trend appeared first on InvestorPlace.
Oh, brewers of Bud Light : you are hereby served notice that you are sued by the Miller Coors kingdom over the medieval corn syrup ads. What Happened MillerCoors, a subsidiary of Molson Coors Brewing Co. ...
Boston Beer (SAM) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
The Legislature passed a bill paving the way for the program in 2017. These are the first significant steps since then.
The ongoing wave of cannabis legalization is good for pot companies, but the trend could be a downer for alcohol stocks, warns DataTrek.
The following are the top stories on the New York Times business pages. Reuters has not verified these stories and does not vouch for their accuracy. - Brewing company MillerCoors sued Anheuser Busch Inbev ...
MILWAUKEE (AP) — A fight between beer giants escalated Thursday after MillerCoors filed a lawsuit against Anheuser-Busch that accused its rival of trying to "frighten" consumers into switching to Bud Light with "misleading" Super Bowl ads.
MillerCoors has filed a lawsuit against Anheuser-Busch Cos. Inc. over Bud Light’s Super Bowl commercials, which attacked MillerCoors' use of corn syrup.
Casino company Las Vegas Sands has notified federal regulators that it settled a 15-year breach-of-contract battle with a Hong Kong businessman, without disclosing terms. A notice posted Wednesday with ...
MillerCoors is suing Anheuser-Busch InBev for its controversial Bud Light Super Bowl ad. The lawsuit is the latest retaliation from MillerCoors for the ad that shamed Miller Lite and Coors Light for using corn syrup during its brewing process. MillerCoors is seeking an immediate halt to the campaign, which it claims is false advertising.
Last year was all strike and no lucky for traditional cigarette makers, and vaping was the major culprit: E-cigarettes may not be terribly helpful when it comes to quitting tobacco, but they are taking greater and greater market share. Juul Labs, which Altria invested in late last year, has prevailed in the U.S. while a rival product from (PM) (PM) languishes without government approval. In fact, “Juul could ultimately be the Marlboro of e-vapor,” she writes, while its international runway looks robust thanks to a strong pipeline of new products.
Ceria Brewing Company releases weed-infused beer. Yahoo Finance's Zack Guzman & Jeanie Ahn, along with Bevel CEO Jessica Schaefer discuss with Fmr. Blue Moon Brewmaster Keith Villa.
MillerCoors has filed a lawsuit against Anheuser-Busch over the controversial Bud Light Super Bowl ad that shamed rival beers for using corn syrup.