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Bottoms up: Finding sustainable growth in a global value chain

June 27, 2022 - 3 min read

Loomis Sayles Growth Equity Strategies Team’s global approach to tapping quality companies across sectors

Loomis Sayles’ Growth Equity Strategies Team analyzes the big business of beer and the beverage industry’s global value chain to identify what areas and businesses hold the most value potential for its long-term focused portfolios.

For example, from the agricultural suppliers, all the way through to the brewers, the distributors and the retailers, beer has many moving parts. A link that has a smaller share of the revenue could command the largest share of profits, believes the Growth Equity Strategies Team. To find out who captures the greatest value in any global value chain, the Team’s proprietary investment process uses an approach called global profit pool analysis to help determine:

  • Competitive rivalry within an industry, which ultimately provides insight into how an industry works.
  • How an industry creates value.
  • Who captures that value.

Be sure to watch the video to find out what link in the beer industry’s value chain appears to be the most profitable today.

This material is for informational purposes only and should not be construed as investment advice.

All investing involves risk, including the risk of loss. The views and opinions expressed may change based on market and other conditions. They are subject to change at any time based on market and other conditions. There can be no assurance that developments will transpire as forecasted. Past performance is no guarantee of future results.

Unlike passive investments, there are no indexes that an active investment attempts to track or replicate. Thus, the ability of an active investment to achieve its objectives will depend on the effectiveness of the investment manager.

Intrinsic value is the value of a company, based on the net present value of forecasted cash flows such as future earnings or dividends.

Value investing carries the risk that a security can continue to be undervalued by the market for long periods of time.