An even better way to play a construction boom in Mexico & an in depth analysis of Tequila manufacturer Jose Cuervo. Anyone interested in Chemical stocks? please comment.
Looking a bit more into spirit manufacturers. It is not a pretty sight.
I guess all industries are cyclical to some degree. I learned once that industries with long lead times (think of putting whisky in a barrel for 20 years) are more cyclical than industries with short cycles. Demand is just a lot harder to predict 10 years out than 1 month. Misjudgments lead to a gap between demand and supply, which creates cycles.
Anyone an insight into how these cycles in the industry develop?
Or maybe a good book recommendation on this topic?
Spirits have been taking share from wine and beer. Plus historically returns on alcohol companies have been great. Tequila is one the fastest spirit categories, which sounds particularly interesting. In the end it is all about demand & supply though.
Looking a bit more into spirit manufacturers. It is not a pretty sight.
I guess all industries are cyclical to some degree. I learned once that industries with long lead times (think of putting whisky in a barrel for 20 years) are more cyclical than industries with short cycles. Demand is just a lot harder to predict 10 years out than 1 month. Misjudgments lead to a gap between demand and supply, which creates cycles.
Anyone an insight into how these cycles in the industry develop?
Or maybe a good book recommendation on this topic?
Spirits have been taking share from wine and beer. Plus historically returns on alcohol companies have been great. Tequila is one the fastest spirit categories, which sounds particularly interesting. In the end it is all about demand & supply though.
(look at the article for more details)
Good read