Defensive Stocks: Brew And Chew

Today, I’ll continue my coverage of defensive stocks with Molson Coors Brewing Company and Kraft Foods.

Molson Coors Brewing Company (Ticker: TAP) – Beer is often referred to as “recession-proof.” Let’s take a look at Molson Coors and how its stock has performed during the recession.

Photo by Tony the Misfit, courtesy of flickr

Molson Coors has seen its share of recessions. The company was founded in Denver, Colorado in 1873. Some of its popular brands include Molson and Coors, of course, as well as Miller Genuine Draft and George Killian’s Irish Red.

In the past two years, the stock has gained about 6 percent. The Dow and the S&P 500 are both down 30 percent for the same period. (View the 2-year chart of TAP vs. the Dow and the S&P 500)

Kraft Foods (Ticker: KFT) – Kraft manufactures a plethora of brands including Oscar Mayer, Maxwell House, Nabisco (cookies and crackers) and Oreo cookies.

Kraft’s stock is included in the Dow and the S&P 500. While KFT is in the negative for the 2-year period, it still outperformed both indexes. KFT has lost 15 percent of its value versus a 30 percent loss for the Dow and the S&P 500 for the same period. (View the 2-year chart of KFT vs. the Dow and the S&P 500)

So, once again we have one winner and one loser. But both stocks managed to beat the major indices.

Tomorrow, I’ll review Campbell’s Soup and McDonald’s.