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Because restaurants and bars in the U.S. are almost fully operational now with the easing of COVID-19 restrictions, the sale of beer is expected to increase voluminously this summer. So, established beer companies Anheuser-Busch (BUD) and Ambev (ABEV) should witness increasing demand. But which of these two stocks is a better buy now? Read more to find out.Headquartered in Leuven, Belgium, Anheuser-Busch InBev SA/NV (BUD) produces, distributes, and sells beer, other alcoholic beverages, and soft drinks worldwide. It offers a portfolio of roughly 500 beer brands that include Budweiser, Corona, and Stella Artois. Based in Sao Paulo, Brazil, Ambev S.A. (ABEV) produces, distributes, and sells beer, draft beer, carbonated soft drinks, other non-alcoholic beverages, malt, and food products. Its segments include Brazil; Central America and the Caribbean; Latin America South; and Canada.
The beer industry suffered a setback amid the COVID-19 pandemic as retail beer sales plummeted because stadiums, concert venues, bars and restaurants were closed or operated at limited capacity. However, according to a study by The Beer Institute, the majority of Americans’ beer consumption remained unchanged amid the pandemic. Beer consumption is expected to increase in the coming months with the reopening of bars and restaurants and an increasing demand for new flavors. So, we think both ABEV and BUD should benefit from increasing demand this summer.
ABEV has gained 32.4% over the past year, while BUD returned 31%. Also, ABEV’s 38.3% gain over the past nine months is significantly higher than BUD’s 21.2% returns. Furthermore, in terms of their past three months’ performance, ABEV is the clear winner with 23.1% gains versus BUD’s 6.7% returns.
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