Investors Can Imbibe in These Publicly-Traded Alcohol Companies
Publicly-traded alcohol companies are all over Nasdaq and the NYSE. Here's information on Constellation Brands, Brown-Forman, and more of the major players.
Feb. 22 2021, Published 11:58 a.m. ET
Uber stock (NYSE:UBER) spiked on Feb. 2 after the company announced its plans to acquire the alcohol delivery service Drizly. Investors' interest likely extends to beer, wine, and liquor companies. Drizly isn't public, but there are plenty of publicly-traded alcohol companies you can invest in.
According to Sure Dividend's Bob Ciura, alcohol stocks often perform well during economic downturns like the one spurred by the COVID-19 pandemic. “Consumption of alcoholic beverages will stay steady—and could even increase—in a recession,” Ciura wrote. “A sustained recovery from the coronavirus would be a major benefit for the biggest alcohol manufacturers.”
Alcohol companies that trade on the stock market.
Ciura adds that investors “looking for companies that generate strong profits and pay dividends should take a closer look at the major alcohol stocks.”
Many big companies trade on the NYSE and Nasdaq including Anheuser-Busch InBev, Boston Beer Company, Constellation Brands, and Diageo.
Which beer companies are publicly traded?
Boston Beer Company (NYSE:SAM) boasts a lineup of brands including Samuel Adams, Angry Orchard, Twisted Tea, and Truly Hard Seltzer. Anheuser-Busch InBev (NYSE:BUD) also has recognizable brands including Budweiser, Stella Artois, Corona, and Hoegaarden. Molson Coors Beverage’s (NYSE:TAP) selection includes Molson Canadian, Coors Light, Blue Moon, and Crispin Cider.
In a showcase of the “top beer stocks for Q1 2021,” Investopedia spotlights Molson Coors as one of the best value beer stocks. Boston Beer Co. is one of the beer stocks with the most profit growth or least profit decline (and as one of the beer stocks with the most momentum).
Publicly-traded liquor companies
In terms of harder alcohol, some of the big players are Diageo (NYSE: DEO), which owns Crown Royal, Johnnie Walker, Smirnoff, Captain Morgan, Ketel One, and Baileys; Brown-Forman Corporation (NYSE: BF.B, BF.A), which owns Jack Daniels; and Constellation Brands (NYSE: STZ), which owns Svedka Vodka.
A recent InvestorPlace.com analysis declared liquor stocks “a safe place to park your capital” as “one of the more recession-resistant industries,” noting Dwayne Johnson’s success with the record-breaking Teremana Tequila.
Publicly-traded wine companies
According to VinoVest, the global wine market is predicted to grow with a 5.8-percent CAGR (compound annual growth rate) between 2019 and 2024. The website also cites studies that have shown that total wine consumption has increased since 2005.
Some of the companies above have wine offerings alongside their other alcohol products. Constellation Brands has 7 Moons, Ruffino, and Meiomi, while Brown-Forman Corporation has Korbel and Sonoma-Cutrer. Another competitor in the field is Willamette Valley Vineyards (NASDAQ:WVVI).
How to invest in alcohol
Investors can buy alcohol stocks like any other stock, although Investopedia does offer a note of caution. The site says that booze might not be the “consumer staple” some people say it is.
“Alcohol may also considered by some to be a luxury good, and therefore, part of consumers’ discretionary spending,” the site adds. “Depending on someone’s personal circumstances, they may decide to stop buying their weekly bottles of wine or beer, or stop going to the local bar if they can’t afford it.”