The stocks of companies that manufacture and distribute alcoholic beverages are known as alcohol stocks. They include shares of companies that produce and sell beer, wines, and other liquor. Many alcohol companies have been well-established over multiple decades and have a history of steady cash flow, high and regular dividends, and attractive returns to shareholders.
The alcohol industry has been well-settled in the US for the past over 85 years. With so many options for purchasing alcoholic beverages such as grocery stores, restaurants, or online ordering, the demand for liquor keeps on increasing steadily. In the past few years, the growth in demand has slowed down slightly, owing to the introduction of new alternative beverages. However, alcohol companies and alcohol stocks are here to stay and offer excellent investment opportunities.
Best Alcohol Stocks
Ticker | Company Name | Last Price | 1-Year Return | Market Cap |
|---|---|---|---|---|
| DEO | Diageo plc | $125.44 | -10.81% | 69.6B |
| STZ | Constellation Brands, Inc. | $219.17 | -13.56% | 39.7B |
| MGPI | MGP Ingredients, Inc. | $36.61 | -61.32% | 794.2M |
| WVVI | Willamette Valley Vineyards, Inc. | $3.50 | -34.58% | 17.4M |
| EAST | Eastside Distilling, Inc. | $0.85 | -30.33% | 3.9M |
| WVVIP | Willamette Valley Vineyards, Inc. | $3.45 | -26.60% | 17.4M |
| THST | Truett-Hurst, Inc. | #N/A | #N/A | #N/A |
| BUD | Anheuser-Busch InBev SA/NV | $49.03 | -24.60% | 88.0B |
| ABEV | Ambev S.A. | $1.84 | -32.85% | 30.6B |
| FMX | Fomento Economico Mexicano, S.A.B. de C.V. | $83.92 | -34.26% | 29.1B |
| TAP | Molson Coors Brewing Company | $55.58 | -11.50% | 10.9B |
| SAM | The Boston Beer Company, Inc. | $275.35 | -18.40% | 3.2B |
| CCU | Compania Cervecerias Unidas S.A. | $11.51 | -6.65% | 2.2B |
| WTER | Alkaline Water Company Inc. | $0.04 | -85.71% | 582.6K |
| REED | Reed's Inc | $0.71 | -61.83% | 21.8M |
| STBFY | Suntory | $15.22 | -6.74% | 1492.8B |
- Ambev S.A. (ABEV) – A Brazilian company involved in the brewing, bottling, and selling of beer, soft drinks, and other beverages. Some of its popular brands include Skol, Brahma, and Antarctica.
- Anheuser-Busch InBev SA/NV (BUD) – A Belgian multinational drink and brewing company, known for managing a portfolio of more than 400 beer brands including Budweiser, Corona, and Stella Artois.
- Compania Cervecerias Unidas S.A. (CCU) – A Chilean multinational beverage company, with operations in Chile, Argentina, Bolivia, Colombia, Paraguay, and Uruguay. CCU is the largest beer brewer in Chile and the second-largest in Argentina.
- Diageo plc (DEO) – A British multinational alcoholic beverages company. Diageo is the world’s largest producer of spirits and a key producer of beer and wine. Its popular brands include Johnnie Walker, Crown Royal, J&B, Buchanan’s and Windsor whiskies, and Guinness.
- Eastside Distilling, Inc. (EAST) – An American company that produces, acquires, and markets craft spirits. Eastside Distilling’s line of products includes bourbon, American whiskey, vodka, and rum.
- Fomento Economico Mexicano, S.A.B. de C.V. (FMX) – Also known as FEMSA, this Mexican multinational beverage and retail company operates the largest independent Coca-Cola bottling group in the world and the largest convenience store chain in Mexico.
- MGP Ingredients, Inc. (MGPI) – An American company producing premium distilled spirits, and specialty wheat proteins and starch food ingredients. MGP is one of the largest suppliers of premium bourbon aging in barrels.
- Reed’s Inc (REED) – An American company best known for its line of natural, non-alcoholic Reed’s Ginger Brews and Virgil’s Root Beer.
- The Boston Beer Company, Inc. (SAM) – An American company known for producing beer under the Samuel Adams brand name. The company also manufactures hard cider and hard lemonade.
- Suntory (STBFY) – A Japanese brewing and distilling company group known for producing beer, whisky, and other beverages. They are famous for their Yamazaki and Hibiki Japanese whiskies.
- Constellation Brands, Inc. (STZ) – An international producer and marketer of beer, wine, and spirits. Constellation is the largest beer import company in the US, with Corona, Modelo Especial, and Pacifico in its portfolio.
- Molson Coors Brewing Company (TAP) – A multinational brewing company, formed in 2005 by the merger of Molson of Canada, and Coors of the United States. It is the world’s seventh-largest brewer by volume.
- Truett-Hurst, Inc. (THST) – A wine company based in California, USA. Truett-Hurst includes wine production, direct-to-consumer sales, and other related wine industry businesses.
- Alkaline Water Company Inc. (WTER) – An American company that produces, distributes, and markets bottled alkaline water for retail consumers. The company’s flagship product is a line of drinking water with added minerals and electrolytes called Alkaline88.
- Willamette Valley Vineyards, Inc. (WVVI & WVVIP) – An American winery located in the Willamette Valley of Oregon. The company produces and sells premium, super premium, and ultra-premium wines, including the Pinot Noir, Chardonnay, and Pinot Gris varietals.
About the Alcohol Industry
The alcohol industry is a diverse and multi-billion dollar industry that produces and sells a variety of alcoholic beverages such as beer, wine, spirits, and other alcoholic beverages. The industry is characterized by a relatively stable and inelastic demand, which means that the consumption of these products is relatively consistent regardless of economic conditions.
The beer segment is the largest in the industry, accounting for the majority of the overall market share. The segment is dominated by a small number of large multinational corporations such as Anheuser-Busch InBev, Heineken, and Carlsberg. The wine segment is also a significant part of the industry and is characterized by a large number of small and medium-sized producers, as well as a few large international companies such as Constellation Brands, Diageo, and Pernod Ricard.
The spirits segment is the third largest in the industry and is characterized by a wide variety of products, including whiskey, vodka, rum, and tequila. The segment is dominated by a small number of large multinational corporations such as Diageo, Pernod Ricard, and Brown-Forman.
The industry is highly regulated, with different regulations and taxes in each country. This can make it difficult for new companies to enter the market and can provide a significant barrier to entry for new competitors.
In recent years, the industry has seen a shift towards premiumization, with consumers willing to pay more for high-quality, premium products. This trend has been driven by factors such as an increasing focus on health and wellness, and a growing interest in craft and artisanal products. The alcohol industry is a relatively stable and profitable industry, with strong brand loyalty and a relatively inelastic demand.
Factors to Consider Before Investing in Alcohol Stocks
Alcohol stocks do not experience much volatility and follow a low-risk high-reward profile. The consolidation in the alcohol industry has delivered further solid investment opportunities for investors. Yet, investors must consider the financial strength and efficiency of alcohol stocks before investing in them.
Investors must analyze the past five, three, and one-year returns, dividend yield, P/E ratios, earnings per share, cash flow, and other fundamental aspects before investing in alcohol stocks. At the same time, alcohol stocks are largely influenced by government policies, regulations, mergers & acquisitions, new trends in the industry, and raw material costs. Therefore, a thorough analysis of the macroeconomic factors is also recommended.
Which Alcohol Stocks Should I Buy?
Among the top alcohol producers and distributors, we have selected the best alcohol stocks for investors to pick from. Alcohol stocks form excellent avenues of investment for investors looking for strong profits and regular dividends.
Investors must select alcohol stocks with a stable track record, high operating margin, healthy cash flow, and optimum valuation. The impact of government regulations on pricing power, tax rates, and transportation costs must also be taken into account before making the selection.
