Sector Glance: Alcohol |
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Mon, 12 Nov 2007 22:18
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NEW YORK (AP) - Fortune Brands Inc. shares rose Monday after the company said it would sell most of its wine business, but the news didn't do much for shares of rival Constellation Brands, which bought the business for $885 million.Shares of Constellation Brands, the world's biggest winemaker, fell 39 cents to $22.60. Fortune Brands shares rose 49 cents to $79.66.Constellation Brands said the deal will raise its stake in the U.S. premium wine business. The company will get more than 1,500 acres of vineyards in California and five California wineries in the deal.Goldman Sachs analyst Judy Hong said in a note to investors the deal is a plus for Fortune Brands, which makes a diverse group of liquor brands and consumer products including Jim Beam bourbon, Moen faucets and Titleist golf clubs.Hong said Fortune got a good sale price and the deal will allow the company to 'focus on its core spirits business, which carries higher margins and is less capital-intensive.'Here is how some other key alcohol stocks did Monday:Anheuser-Busch Companies Inc., $49.88, up 7 cents.Molson Coors Brewing Co., $51.67, down $1.20.Diageo PLC, $88.03, down $1.16.Boston Beer Co. Inc., $34.42, down $1.49.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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