Will Starbucks' Beer & Wine Menu Benefit These Companies?

The Seattle-based coffee chain, Starbucks SBUX told on Monday that it will begin selling beer, wine, and premium foods at a small number of its stores in Atlanta and Southern California. The company already serves alcoholic drinks at some of its Seattle and Portland stores. Following its expensive taste for premium coffee, the company is also serving premium beers and wines that should satisfy the most demanding customers. Starbucks spokesperson told Benzinga that the beer and wine lists will be different in each city and that they will be selected to match local customers' tastes and preferences. For example, Starbucks' stores in Pacific Northwest serve Hefeweizen beer by local Widmer Brothers Brewing, which is owned by Craft Brew Alliance HOOK. On the other hand, Starbucks also serves a Belgian Stella Artois lager, which is a part of Anheuser-Busch InBev's BUD global portfolio. If Starbucks' beer and wine experiment turns out to be successful, the company could consider expanding these new menu options to all of its stores across the U.S. This would significantly benefit local winemakers, breweries, and even the large beer companies that have specialty beers in their portfolios. Craft Brew Alliance is one of the stocks that could go higher in the long run, if Starbucks starts selling its beers more broadly. Because Widmer Brothers Hefeweizen is already served at six Starbucks locations, it could make sense for other Starbucks store locations to offer the beer as well. The shares of Craft Brew Alliance are currently trading 13.6 times its trailing 12 month earnings and is up 4.65% year-to-date. The company's spokesperson told Benzinga that Craft Brew Alliance's portfolio of craft beers is aligned with Starbucks' preference for microbrews. He also stated that the company is constantly evaluating different retail opportunities, and if the right opportunities arise, Craft Brew Alliance will pursue them. Another American beer brewer that could benefit from Starbucks' push to add craft beers to its menu is Boston Beer Company SAM. The company is known for its Samuel Adams craft beers and especially its seasonal beers could match Starbucks customers' tastes. After all, it is important to note that while these companies have potential to benefit from Starbucks' new product additions, the benefit will not be substantial unless Starbucks decides to make this new product initiative nationwide. Thus, it is important that the investors keep their eyes on Starbucks' future announcements. You can follow me on Twitter @TuomoKallio.