Investors: Consider Bubbles Certain to Burst – Mondelez International Inc (MDLZ)

This investment in R&D to develop better products is proactive behavior on a company’s part. It speaks to investors that they will continue to build on their core strengths. Here, core brand Eucerin has new product innovation within itself.

Pernod-Ricard (NASDAQOTH:PDRDY) makes bubbly champagnes – Mumm and Perrier-Jouët, and major liquor and wine brands. Their consolidated net sales (excluding taxes and duties) totaled €2,203 million for the first three months of the 2012/13 financial year (July 1 to September 30 2012). This compares to €1,987 million in the same period of the year prior. The Company stated in October 2012 that they experienced a strong performance overall for champagnes.

Dynamic, strong brands with aggressive marketing programs focusing on particular niche markets are something for investors to consider in beer/wine/spirits companies. The key element is ensuring you believe that a company knows their target market precisely and has tailored campaigns that speak directly to them. Due diligence in researching these companies involves looking at their brand portfolio, studying how they’re marketing each specific brand, who to, and through what channels. This gives investors an idea if the company is on top of things concerning understanding their audience in the ultra-competitive ‘drinks’ environment.

It may be time to soak with, blow, and raise a glass to bubbles you want to burst. While other investors negotiate the topsy-turvy real estate market, consider leading companies who know how to market bubbles creatively. These companies, with solid consumer brands, often negotiate economic downturns quite well. They can have investors clean, fresh breathed, and maybe even a touch tipsy from bubbles that produce significant ROI.

The article Investors: Consider Bubbles Certain to Burst originally appeared on Fool.com and is written by Michael Ugulini.

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