Big Rock Brewery is making a bold move into Sleeman's home turf. BR has tremendous brand recognition in Alberta and along the west coast but has been unable to penetrate that elusive Ontario market. BR hopes that its new alliance with Guinness PLC will give it the gunpowder necessary to grow in that market. Big rock is trading at conservative multiples right now as the market is waiting to digest an upcoming equity issue. Furthermore, I believe the market is taking a wait and see approach to whether or not the company will be able to use its new brewing capacity effectively.
I believe that BR's innovative marketing tactics and strong brand recognition will capture market share in the east. I also believe a 15 to 20% growth rate in the earnings of the company over the next 5 years is attainable.
Anyone out there, paricualrly from Eastern canada, have any thoughts |
