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Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBernstein's Nadine Sarwat breaks down why Gen Z is shifting away from alcoholNadine Sarwat, Bernstein director and equity research analyst, joins 'Power Lunch' to discuss young Americans moving away from drinking beer.
Persons: Nadine Sarwat, Bernstein
Indeed, studies show that drinking alcohol is less in vogue with younger millennials and Gen Z. Mounting concern around weight loss drugs GLP-1 drugs, which mimic the action of the glucagon-like peptide-1 hormone and stimulate insulin secretion after a meal, lower blood sugar and send feeling of fullness to the brain. What's more, GLP-1 drugs are an overwhelmingly American topic, with most Europeans unaware of them or unwilling to pay high prices. In total, GLP-1 users are only a very small slice of total alcohol consumers, said Spiros Malandrakis, lead alcohol industry researcher at Euromonitor International. The most vulnerable purveyors are those that are trailing the shift in consumption, notably domestic, non-premium beer brands.
Persons: Katie Pell, Pell, wasn't, millennials, Eli Lilly's Mounjaro, Goldman Sachs, Jason English, Nadine Sarwat, Bernstein, Sarwat, Spiros Malandrakis, , BUD YTD, who'd, Mickey Velado, Brian Sudano, Nell Healy, Healy, she's, Malandrakis, Ryan Brigden, Brigden, Sudano, Joseph Gabelli, Gabelli, Z, there's, it's, Garrett Nelson, They've, seltzer, Nelson, Molson Coors, Bud, he's Organizations: Gallup, Drugs, Nordisk's Ozempic, JPMorgan, CNBC, Euromonitor, Anheuser, Busch Inbev, Beverage Marketing, Constellation, Guinness, Corona, Heineken, Athletic Brewing Company, Heineken Holding, Carlsberg, Constellation Brands, Malandrakis, Beverage, Gabelli, Diageo, Molson Coors, Busch InBev, Molson, Anheuser Busch Locations: Brooklyn, U.S, GLP, imbibing, Angeles, Colorado, Washington, California, North Carolina, San Francisco Bay, Europe, British, Brazil, India
Get woke, go broke?
  + stars: | 2023-08-17 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailGet woke, go broke? Nadine Sarwat, Bernstein analyst, joins 'Power Lunch' to discuss social awareness impact on business as Target and Bud Light are under consumer scrutiny.
Persons: Nadine Sarwat, Bernstein, Bud Light
Pot producer Canopy raises going concern doubts, shares tumble
  + stars: | 2023-06-23 | by ( ) www.reuters.com   time to read: +2 min
June 23 (Reuters) - Shares of Canada's Canopy Growth (WEED.TO) fell 6.5% on Friday after the pot producer posted a wider quarterly loss over the previous year and raised doubts about the company's ability to continue as a going concern. Canopy said it identified certain trends in the booking of sales for BioSteel, leading it to launch an internal review. As a result of the review, Canopy said it has let go of several members of BioSteel's leadership team. Sarwat added that Canopy was still burning through cash and including going concern risk in the filing makes Canopy USA's rationale unclear, as cash won't flow back to the U.S. unit without federal legalization. Canopy is eyeing an entry into the U.S. cannabis market through Canopy USA.
Persons: David Klein, Klein, Bernstein, Nadine Sarwat, Sarwat, Sourasis Bose, Pooja Desai Organizations: Reuters Graphics, U.S, Canopy USA, Thomson Locations: Canada, Bengaluru
In the short-term, yes, as Canada goes through growing pains and US legalization efforts are patchy at best," Sarwat said in a Tuesday note to clients. "However, in the long-term we see both meaningful and underappreciated growth in the US (with or without legalization) and continued growth in Canadian cannabis spending," she added. Canada has a total addressable market of C$8.5 billion by 2027, which is more than double 2021's estimate of C$4 billion. Ultimately, she said the buzz is gone for companies on the Canadian stock market but there is some potential in U.S. stocks. She also said Cronos was fairly valued, having strong topline growth due to edibles that counterbalances negative earnings.
Boston Beer has an average analyst rating of hold and 8% downside to the average price target, according to FactSet. "In a recession, beer tends to gain about one percentage point of share from spirits. How to play the space With that mindset, you shouldn't alter your long-term investments because of a potential recession, Sarwat said. Its average price target is buy. Duckhorn also has an average rating of buy, with 30% upside to the average price target.
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