Alcohol Stocks

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by Ticker Table

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Best Alcohol Stocks

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.

Ticker
Company Name
Last Price
1-Year Return
Market Cap
DEODiageo plc$174.49-15.11%80.1B
STZConstellation Brands, Inc.$231.99-2.37%42.8B
MGPIMGP Ingredients, Inc.$96.4626.17%2.1B
WVVIWillamette Valley Vineyards, Inc.$6.20-29.63%30.8M
EASTEastside Distilling, Inc.$0.39-50.00%6.2M
WVVIPWillamette Valley Vineyards, Inc.$5.17-13.40%30.8M
THSTTruett-Hurst, Inc.$0.15-64.29%563.3K
BUDAnheuser-Busch InBev SA/NV$58.73-4.49%95.8B
ABEVAmbev S.A.$2.50-8.09%205.1B
FMXFomento Economico Mexicano, S.A.B. de C.V.$83.2111.09%27.3B
TAPMolson Coors Brewing Company$53.5812.94%10.9B
SAMThe Boston Beer Company, Inc.$395.07-7.04%4.9B
CCUCompania Cervecerias Unidas S.A.$14.92-3.99%2.8B
WTERAlkaline Water Company Inc.$0.24-77.36%34.5M
REEDReed's Inc$4.12-74.43%10.4M
STBFYSuntory$16.84-13.64%1399.8B

Examples of Alcohol Stocks

Alcohol stocks can be a great investment opportunity for those looking to invest in the consumer goods industry. The market for alcoholic beverages is relatively stable and inelastic, meaning that demand for these products is relatively consistent regardless of economic conditions. Additionally, the industry is characterized by strong brand loyalty, which can provide a significant barrier to entry for new competitors.

With that in mind, here are some of the best alcohol stocks to consider:

  • Anheuser-Busch InBev (BUD) – Anheuser-Busch is the largest beer manufacturer in the world and is known for popular brands such as Budweiser, Corona, and Stella Artois. The company has a strong presence in both developed and emerging markets, which allows for steady revenue growth.
  • Diageo plc (DEO) – Diageo is a leading producer of spirits and is known for popular brands such as Johnnie Walker, Smirnoff, and Guinness. The company has a strong portfolio of iconic and premium brands, which allows it to command higher prices and maintain strong margins.
  • Brown-Forman Corporation (BF.B) – Brown-Forman is a leading producer of American whiskey and is known for popular brands such as Jack Daniel’s, Woodford Reserve, and Old Forester. The company has a strong portfolio of premium brands and has been able to increase prices in recent years, which has helped to drive strong revenue growth.
  • Constellation Brands, Inc. (STZ) – Constellation Brands is a leading producer of wine, beer, and spirits and is known for popular brands such as Robert Mondavi, Ruffino, and Svedka Vodka. The company has been able to grow its market share in the U.S. wine market through a series of strategic acquisitions and has a strong portfolio of premium brands.
  • Molson Coors Beverage Company (TAP) – Molson Coors is one of the largest beer manufacturers in North America, and is known for popular brands such as Coors, Miller, and Blue Moon. The company has been able to maintain strong revenue growth in recent years, despite a challenging market environment, through a series of cost-cutting measures and strategic investments.

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.

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