Emerging markets discovering a thirst for Molson Coors they didn’t know they had

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In a recent Financial Times interview, CEO Peter Swinburn of Molson Coors ( TAP , quote ), disclosed that India, China, Ukraine and Russia are attractive markets for the Canadian beverage giant.

"Beer is proof that God loves us and wants us to be happy"

When asked how important emerging market exposure was to the company, Swinburn replied, "It's a longer-term build. We went into India this year, which is the fastest growing market in the world. We concentrated on China, which is the biggest market in the world. We've done very well in Ukraine, which is the fastest growing market in eastern Europe. And Russia would be the other one that we would look at."

Molson Coors is putting its money where its mouth is, spending $3.46 billion to acquire the eastern European beer maker Starbev .

The Canadian beer maker's global consumer strategy offers an ideal way for investors to gain from emerging market growth through a single blue chip stock. The financials of the company offer solid growth. The price-to-book ratio is 0.97, meaning the stock is selling for less than the worth of its assets. The dividend yield is 3.11%, significantly higher than the average stock.

Molson Coors is more than a value play, though. The company has a healthy profit margin of 19.19%. Its price-to-earnings ratio is projected to fall to 10.45 over the next year, well below the S&P 500 average of 15. On a quarterly basis, both sales growth and earnings-per-share growth are increasing in double digits.

Molson Coors allows investors to profit from the emerging market growth of the consumer class through a stock that is appealing as a growth, income and value equity. That deserves a toast!



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , International , Stocks

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