The beverage industry encompasses a significant shift as consumers move away from sugary sodas and juices and towards healthier alternatives such as water, ready-to-drink teas, and functional drinks. This has led to a rise in demand for the best beverage stocks, especially those that produce non-alcoholic beverages. Investors can capitalize on this trend by investing in companies selling, selling, or distributing drinks. While there are many different options to choose from, here are some of the best beverage stocks to invest in right now.
Coca-Cola Femsa (KOF)
## Coca-Cola Femsa (KOF)This cola giant is one of the best beverage stocks to invest in. It has a strong brand portfolio that includes Dasani, Fanta, and Sprite and produces other popular drinks such as vitamin water, Powerade, and Minute Maid. Coca-Cola Femsa has a strong presence in both developed and developing markets. For the fiscal year ending March 2020, the company expects an earnings increase of 8% compared to FY19. This is due to higher sales volume, pricing, and a slight reduction in the company’s cost of goods. Coca-Cola Femsa has a strong balance sheet with a debt-to-equity ratio of 0.29. The company has returned significant cash to shareholders through share repurchases and dividends. Coca-Cola Femsa pays a quarterly dividend of $0.63, which translates to an attractive dividend yield of 3.8%. The company has a dividend-raising history and has increased its dividend yearly since 2010.
Constellation Brands (STZ)
Constellation Brands is one of the best beverage stocks to invest in. The company is one of the most extensive beer and wine producers in the world, with a portfolio of premium brands such as Corona, Modelo, Pacifico, and Ballast Point. Constellation Brands is also a significant producer of non-alcoholic ready-to-drink beverages. The company has a strong presence in the U.S. and Mexican beer markets, and a growing presence in the wine and non-alcoholic beverage markets. Constellation Brands has a strong track record and an increasing company in the non-alcoholic beverage market with brands such as Bavaria, Soma, and Northern Harvest Tea.
Brown-Forman is one of the best beverage stocks to invest in. The company produces and distributes alcoholic and non-alcoholic beverages in the U.S. and abroad. It has a broad portfolio of brands that includes Jack Daniel’s, Finlandia, Woodford Reserve, and Herradura. Brown-Forman’s Jack Daniels brand is one of the most recognizable spirits in the world. The company has a strong presence in mature markets such as the U.S. and Europe. Brown-Forman is one of the best beverage stocks to invest in because it is well-positioned to take advantage of the growing trend toward non-alcoholic beverages. The company recently acquired the Bai beverage brand and plans to increase its presence in the ready-to-drink tea market.
National Beverage (FIZZ)
National Beverage is one of the best beverage stocks to invest in. The company produces, distributes, and sells non-alcoholic sparkling and natural coffeemaking beverages. National Beverage’s portfolio includes brands such as Bai, Bubly, Nantucket Nectars, and the ready-to-drink coffee brand Mi Cafecito. The company has a strong presence in the non-alcoholic sparkling beverage market with its flagship brand Bai. National Beverage’s other non-alcoholic sparkling beverages include Bubly, Nantucket Nectars, and Fruit Society. The company also has a strong presence in the ready-to-drink coffee market with Mi Cafecito. National Beverage is one of the best beverage stocks to invest in because it is well-positioned to take advantage of the growing trend toward non-alcoholic beverages.
Good Times Ahead for Guinness
Guinness is one of the oldest names in the alcoholic beverage industry. Arthur Guinness first produced this iconic Irish beer brand in Dublin in 1759. The company’s signature stout beer has been brewed in Dublin since its inception. In recent years, the popularity of Guinness has fallen as consumers have shifted away from dark beer and towards lighter and more refreshing brews. In response to this trend, Guinness has launched a lower-calorie stout. The company also plans to launch a non-alcoholic version of its beer.
This industry shift towards healthier and more wholesome beverages has increased demand for the best beverage stocks. Investors can capitalize on this trend by investing in companies that produce or distribute non-alcoholic beverages. There are many beverage stocks to choose from, but here are some of the best beverage companies to invest in. Coca-Cola Femsa has a strong brand portfolio and a growing presence in the non-alcoholic beverage market. Constellation Brands is one of the largest beer producers in the world, and Guinness is an iconic Irish beer brand.