A rundown of the 10 best alcohol stocks to invest in this year.
Since time immemorial, alcohol has been the one beverage mankind has turned to mark an occasion. Whether it be to celebrate or mourn -- enjoy a special occasion, cope with negative scenarios, or just socialize with friends and family -- alcoholic beverages have been there as an indispensable facilitator. They have been around for thousands of years and are likely to still be consumed for the foreseeable future.
Even when there was war, restrictions, and all kinds of calamity that can befall a society, the production and sale of alcoholic drinks have been strong. Love it or hate it, there's no denying that it has a commodity, alcohol represents an investment that is guaranteed earnings no matter what. Incorporating it into your portfolio as a long-term investment haven is always a good idea. Not only will it provide returns regularly over the years, but it can also serve as a hedge against your short-term, more volatile stocks.
But which are the best stocks out of them all? Which stocks have the highest growth potential and should be taken advantage of as soon as now?
The Best Alcohol Stocks of 2022 (Top 10)
Well, we have taken the liberty of doing the research for you and, now, present you with the best alcohol stocks to buy this year:
1. Boston Beer (NYSE: SAM)
Market value: $7.9 Billion
Like many companies that deal in the making of alcohol, this company has a long and storied past. Founded in the 1980s by James Koch, Boston Beer is somewhat of a high-end crafter of beer, hard cider, and hard seltzer. It's the proud owner of several alcoholic beverages brands with the main ones being Samuel Adams, Twisted Tea, Angry Orchard, and Truly Hard Seltzer.
Benefiting from the shift in consumers towards less commercial brands of wines and spirits, Boston Beer has benefited from the trend with revenues reaching $1.25 billion in 2020. Investors are also pleased with their earnings per share of $9.17 too.
2. Craft Brew Alliance (NASDAQ: BREW)
Market value: $276.5 Million
As stated, there is a shift in the market for less factory-made alcohol, meaning more things like crafted beer. The Portland-based company is a maker of beers and ciders under a plethora of brands including its brands include Kona, Redhook, Cisco, pH Experiment, Widmer Brothers, Wynwood Brewing, Omission, Square Mile Cider, and the Appalachian Mountain Brewery.
More is on the horizon for this up-and-coming company with a nearly complete acquisition by Anheuser-Busch InBev. Earnings per share of the company are at $0.55 and revenues at the end of 2020 exceed $200 million.
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3. Willamette Valley Vineyard (NASDAQ: WVVI)
Market value: $31.6 Million
Based in Oregon, as the name would suggest this company is a producer of wine and related beverages. Their extensive selection includes Pinot noir, Dijon clone Chardonnay, Pinot Gris, and Riesling grapes. They also have the distinction of being the first crowdfunded winery in the USA as well as being a pioneer of Oregon-made wines.
Investing in the company is an investment in their potential growth in the coming years. Earnings per share are at $0.37 so far and, in 2020, they garnered revenues of $26.3 million which is exceptional when considering a company of this size.
4. Anheuser-Busch InBev (NYSE: BUD)
Market value: $92.5 Billion
Making both beers and soft drinks, This Belgian company has under its belt over 400 brands of drinks which include notable brands like Budweiser, Corona, Stella Artois, Hoegaarden, and Leffe. Definitely one of the larger companies on this list, this kind of stock is veering more towards the blue-chip stock territory.
Another great source of income for the company in its partnership with Pepsi. Pepsi, Gatorade, and 7UP are the brands that are distributed under these agreements -- giving the company earnings in the non-alcoholic drinks sector.
Investors also enjoy a healthy dividend yield of 2.62%.
5. Constellation Brands (NYSE: STZ)
Market value: $34.5 Billion
This is a New York-based company that produces everything. Constellation Brands have all sorts of beers, wines, and spirits under their best and ships products worldwide. With over 100 brands, some of their most notable holdings include wine brands like Robert Mondavi, Opus One, Wild Horse Winery, Ravenswood Winery, and Clos du Bois.
In terms of beer, the company also owns brands like Corona, Modelo Especial, and Pacífico. Financially, the company is doing quite well for itself with an operating free cash flow increase of 138% in 2019 and a revenue of over $9 billion by the end of 2020.
6. Diageo (NYSE: DEO)
Market value: $83.6 Billion
Based in London, Diago is one of the largest liquor companies on this list and, indeed, the whole world. It holds the distinction of being the world's second-largest distiller and the largest liquor distributor. The company operates in over 180 countries with production in more than 140 sites globally.
Some of their most notable holdings include such brands like Johnnie Walker, Crown Royal, J&B, Smirnoff, Baileys, Ketel One, and Captain Morgan. These are liquors that appeal to both emerging and developing markets.
The stocks of this company represent a great income and growth investment with high dividends and ever-increasing revenues.
Brown-Forman (NYSE: BF-B, BF-A)
Market value: $31.19 Billion
This company is another one of the titans in the worldwide liquor industry. It has a presence in more than 170 countries and owns such famous brands as Jack Daniels (flagship brand), Herradura, Woodford Reserve, El Jimador, and Finlandia.
One of the main points of attraction with the stocks of this company is the 30 years of sustained dividend growth. Income investors can expect a dividend yield of 1.04% which offers a nice passive income on top of the returns on investment. Revenues for the company were almost $4 billion last year and have proven to be resilient despite recessions, financial crises, and the pandemic.
8. Molson Coors Beverage (NYSE: TAP)
Market value: $7.8 Billion
A relatively new entity, the company is actually formed from a merger of two very old companies: Molson of Canada (founded in 1786), and Coors of the US (founded in 1873). This provides a lot of stuff for the company to work with. Despite its roots in the American continent, the company has the credit of being the 5th largest alcohol company in the world in terms of sales volume. It is also the second-largest brewer by alcoholic beverage sales volume in the United States.
The company garnered over $2 billion in sales at the end of last year.
9. Andrew Peller (Toronto Stock Exchange: ADW.B)
Market value: $429.4 Million
Canada-based and thoroughly Canadian to the very core, the company holds the distinction of owning brands like Trius, Hillebrand, Peller Estates, Thirty Bench, Copper Moon, Calona Vineyards Artist Series VQA wines, Sandhill, and Red Rooster. The company is plainly Canada's leading wine and craft spirits producer.
Not stopping with just premium brands, the company also provides affordable options for a larger consumer base. Their offerings in that department have varietal offerings, craft ciders, and craft spirits like Schloss Laderheim, Hochtaler, Domaine D'Or, and Royal and Sommet.
They provided a dividend yield of 2.6% and earned a revenue of $382.3 million between 2019 and 2020.
10. Corby Spirit and Wine (Toronto Stock Exchange TSX: CSW.A, CSW.B)
Market value: $355 Million
By no means the largest company on this list, investments in this kind of liquor is an investment into their performance over five years as well as their large potential for growth as they expand operations globally. Founded in 1859 in Ontario, Canada, Corby Spirit is 46% owned by Pernod Ricard. Corby's portfolio includes brands like JP Wiser's Whisky, Polar Ice vodka, Lamb's rum, and Guinness liqueurs.
The company also represents brands like ABSOLUT vodka, Chivas Regal, Jameson Irish Whiskey, Glenlivet distillery and Ballantine's Scotch whiskies, Malibu rum, Kahlúa liqueur, Jacob's Creek, Stoneleigh, Campo Viejo, and Wyndham Estate wines. A laundry list of brands indeed.
The dividend yield for the company is upwards of 5% and revenues by the end of 2020 reached over $116 million.
Bottom Line
And those were the 10 best alcohol stocks to invest in this year. Winston Churchill once said, "I have taken more out of alcohol than alcohol has taken out of me".
Indeed, something that should be aspired to by anyone looking to make investments in the stocks of an alcohol-making company. We certainly hope that this article was helpful to you in making your future stock decisions with alcohol.
And as always, practice your due diligence with each stock you plan on investing in. No matter how stable or predictable an investment might seem, there are no guarantees where the market is concerned. There will always be an element of risk whenever you invest.
The only way to minimize this is by doing your part in researching and keeping on top of the relevant market news. If you exercise caution and only make decisions based on the right info, there is no doubt that your returns will be intoxicating.
