Top Stock #2 – AmBev (ABV)
AmBev (ABV), formally known as Companhia de Bebidas das Americas and translated to “the American Beverage Company,” is seeing great growth right now. In fact, ABV plans to boost beer output by 15% in 2010 and invest over $1 billion to bring its capacity up. This is a great move since Brazil’s growing middle class is rapidly getting more expensive tastes when it comes to drinking. What’s more, the prospects of a hot summer and the excitement of World Cup soccer driving football-frenzied Brazilians to the pub should add up to great sales for ABV.
AmBev dominates the Brazilian beer market with brands such as Antarctica, Brahma and Skol. Additionally, the company sells Pepsi brands, Lipton iced tea and other drinks like mineral water and sports drinks. As an emerging middle class in Latin America acquires Western tastes, I expect big things from this company.
I rate AmBev a strong buy.
- Poll of the Day