Beer has been brewed for thousands of years, but the contemporary variety is a crucial component of any economy.
Beer is among the world’s most popular drinks, with consistent consumer demand during good and bad economic times.
Unlike other sectors, this one lacks the tiny, rapidly expanding businesses that would appeal to the ordinary investor in the stock market. However, stocks in breweries may provide steady growth over time, making them an attractive investment for people interested in the consumer staples industry.
Here are the five finest beer stocks in value, growth, and performance.
Molson Coors Brewing Co.
American, European, and Asian markets are all served by Molson Coors Beverage’s brews. In addition various beer types, Molson Coors also sells canned wine, sparkling drinks, and cider. Molson Coors released their first quarter 2022 financial results on May 3.
Year-over-year, net income and net sales for Molson Coors Brewing Company rose by 80.1%. (YOY). A combination of higher prices, more profitable products, and more sales led to the corporation’s expansion.
By a wide margin, AB InBev is the biggest brewery in the world. It owns a wide variety of well-known beer labels in the United States, including Budweiser, Stella Artois, Beck’s, Leffe, and several purchased artisan breweries. Anheuser-Busch, based in the United States, merged with InBev, based in Belgium and Brazil, in 2008, and SABMiller, based in South Africa, was acquired by the business in 2016.
The mega-beer experiment got off to a good start, but shifting consumer tastes and the slow expansion of big beer labels have been a drag on AB InBev’s bottom line in recent years. Although the S&P 500 has increased by over 380% since the new company was formed in 2008, the new company’s stock has only increased by around 50%.
With the market having struck a reset on AB InBev (shares are down over 30% since the start of 2020), the business now trades more like the value stock it is, with prices reflecting sluggish but stable sales and continuous sales profitability and a little dividend for income investors. Nonetheless, there are better beer investments than AB InBev, especially considering how the mega-beer merger hasn’t gone as expected.
Ambev is a Brazilian corporation that manufactures and sells beer. The business also produces and sells nonalcoholic beverages, such as carbonated and noncarbonated soft drinks.
The corporation claimed a 29.1% year-over-year increase in profits and a substantial rise in net sales in its results for Q1 2022, delivered on May 5 of that year.
In addition, Ambev reported robust expansion in virtually all of its markets, with Canada being the lone notable exception.
Diageo is a British corporation that produces alcoholic drinks. The company’s product range includes not just beer but also vodkas, whiskeys, tequilas, and gins under their respective brand names.
On May 10, Diageo announced that they had sold the Picon brand of flavored liqueur to the Campari Group. The total amount was $127.3 million (around 119 million euros).
Constellation Brands Inc.
Constellation Brands is an international beverage company with factories in the United States, Mexico, New Zealand, and Italy. Constellation announced in mid-April that it would debut Next Round Cocktails, a line of ready-to-drink boxed wine cocktails.
The premium boxed wine industry is nearing $1 billion, while the pre-mixed cocktail business is projected to be above $696 million.