The beverage industry is constantly evolving and innovating. This can be a challenging environment for investors but also creates growth opportunities. As drinking habits change and consumers look for healthier options, the demand for beverages low in sugar, sodium, and artificial sweeteners continues to grow. There are currently three major beverage segments — carbonated soft drinks, juices and nectars, and ready-to-drink teas — with several subsegments. Companies need to offer something unique or different in their product offerings to stand out from the competition. As a result, investors have many beverage stocks to choose from when researching potential investments. Here are some of the best beverages stocks you can invest in right now:
Coca-Cola Femsa (KOF)
Coca-Cola Femsa (KOF) is a beverage company based in Mexico. One of the company’s product lines is Coca-Cola beverages. It also produces non-alcoholic ready-to-drink tea, coffee, water and juice beverage products, and dairy products such as fruit yogurt and flavored milk. Coca-Cola Femsa is one of the top five beverage companies in the world. The company also ranks among the top 10 companies in the world in terms of market capitalization. Coca-Cola Femsa has strong long-term growth potential. The company’s strong brand portfolio and focus on innovation should help it continue to grow. Coca-Cola Femsa has been expanding its product line and is catering to the growing demand for healthier beverages. The company has also been shifting its production to meet the ever-increasing demand for non-carbonated drinks.
Constellation Brands (STZ)
Constellation Brands (STZ) is a beverage company that manufactures and distributes beer, wine, and non-alcoholic beverages. The company owns several popular beverage brands, including Corona, Modelo, Ballast Point, and Svedka. The company’s core business segments are beer, wine, spirits, and nectars. Beer is further divided into the Mexican brands and the craft, core, and other beer segments. Wine includes wine grapes, wine, and wine innovations. The spirits and nectars segment covers Spirits, SVEDKA Vodka, and other spirits and nectars. The company has a strong brand portfolio and a significant presence in the U.S. and Mexican markets. The acquisition of a cannabis company will help Constellation Brands expand its reach. The company gained a substantial competitive advantage by acquiring its cannabis business, which the Canadian government approved in early October.
Brown-Forman (BF.B) is a producer of spirits and wine. Its product portfolio includes Jack Daniel’s, Southern Comfort, Woodford Reserve, and other top-selling liquors. In addition, it owns top-selling wine brands, including Sledgehammer, Heritage, and Fetzer. As a spirit and wine company, Brown-Forman has strong long-term growth potential. The spirits segment has been growing for several years thanks to its focus on the premium segment. The wine segment has also been growing steadily, primarily due to its emphasis on top-quality wines. In addition, Brown-Forman has been investing in innovation to boost its brand portfolio and increase revenue. As a result, the company’s premium brands have been driving its core spirits business. Its wine segment has also been growing thanks to the acquisition of Fetzer Wines.
National Beverage (FIZZ)
National Beverage (FIZZ) manufactures and distributes non-carbonated beverages. The company’s product portfolio includes flavored sparkling waters, ready-to-drink teas, and energy drinks such as Natural Calm and Core Power. National Beverage competes in the non-carbonated beverages market, which is projected to grow at a steady pace. The increasing demand for healthy beverages and the rising health consciousness of consumers will help boost demand for National Beverage’s products. National Beverage has a strong brand portfolio and has been investing in innovation. The company’s core sparkles; the waters segment has been growing steadily. The ready-to-drink tea segment is also increasing as consumers shift away from carbonated drinks.
The beverage industry is volatile, but several stocks seem like suitable investments at the moment. Coca-Cola Femsa, Brown-Forman, and National Beverage have registered solid growth rates over the past several years. In addition, these companies have strong brand portfolios and extensive distribution networks. They also have significant room for growth as they continue to invest in innovation and expand their product offerings. As a result, these beverage stocks are selected to perform well over the long term and should be good stocks to invest in.