Beer consumption has been rising this year and beer shares
too. In fact, many shares are at new high levels. For an investment in breweries it is not now necessary to go outside WHITBREAD, Which is pursuing its policy of acquiring invest- ments in other brewery companies in spite of much outside criticism. Its 1956 profits were nearly 20 per cent. up and the dividend was in- creased from 21 per cent. to 24 per cent., being covered 1.7 times. At 74s. the 'A' shares yield 6.4 per cent., which is not unattractive. The com- pany's expansion by share acquisitions seems likely to continue, for whenever a brewery com- pany fears an outside bid it offers WHITBREAD a substantial minority interest which would defeat control from outside sources. Provided these offers come from approved companies the shareholders of Whitbread will have no reason to complain.
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