MGPI

MGP Ingredients Inc

Industrial/Transportation, Consumer


Presented:01/12/2016
Price:$22.76
Cap:$0.39B
Current Price:$80.15
Cap:$1.76B

Presented

Date01/12/2016
Price$22.76
Market Cap$0.39B
Ent Value$0.30B
P/E Ratio14.97x
Book Value$6.55
Div Yield0.26%
Shares O/S17.16M
Ave Daily Vol110,533
Short Int4.84%

Current

Price$80.15
Market Cap$1.76B
MGP Ingredients, Inc. is a holding company which operates through its subsidiaries: MGPI Processing, Inc. and MGPI of Indiana LLC. It produces certain distillery and ingredients products derived from corn and other feedstock including rye, barley, barley malt and milo and ingredient products which are derived from wheat flour, primarily to serve the packaged goods industry. The company operates its business through following segments: Distillery Products, Ingredient Solutions and Other. The Distillery Products segment consists of food grade alcohol, along with ethanol and distillers feed, which are co-products of distillery operations. The Ingredient Solutions segment consists primarily of specialty starches, proteins, commodity starches and commodity vital wheat gluten. The Other segment is comprised of plant-based biopolymers and composite resins produced and sold for use in the manufacture of eco-friendly products. Its business roots back to 1941 when it was started by Cloud L. Cray, Sr. and was founded in 2011 and is headquartered in Atchison, KS.

Publicly traded companies mentioned herein: MGP Ingredients Inc. (MGPI) and Brown-Forman (BF.B).

Highlights

The presenter describes MGP Ingredients as the largest distiller you’ve probably never heard of. Based in Lawrenceburg, Indiana, home to many top whiskey and rye brands, the company is the largest rye whiskey producer in the country with about 70% share. MGPI is also a major player in white spirits, with about 65% share of the gin market. Originally founded by Cloud Cray, the company historically has been a poorly run family business. Although the family continue to own about 20% of the company, and control more than half the votes, they are seen as very hands off at this point. MGPI is the largest white label supplier to the emerging craft whiskey movement, with Millennials showing a strong interest in specialty brown spirits in continuation of a trend first seen with craft beer brewing. Additionally, the company will now pursue a branded strategy.

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