Top 7 Beer Stocks to Buy in 2022

February 1, 2022

TOP 10 BEER STOCKS TO BUY THIS YEAR

A rundown of the beer stocks with the highest potential for gains this new year

Much like other alcoholic beverages, the great thing about beer is that it has been around for thousands of years and will likely continue to be consumed for thousands of more years to come.

From its early years being brewed as an alternative to water to becoming everyone’s favorite beverage to turn to for occasions and past-time alike, beer is practically a staple good in the market. This means that, when it comes to investment, beer stock is as safe a bet as an investor can make where the stock market’s concerned.

That being said, the beer industry is almost closed-off against new players. Most of the companies on this list have been around for decades, if not centuries, and essentially dominate their sector of the market. Although there is some new blood looking to make a scene, investing in big, established companies isn’t always a bad thing – especially when evolution and dividends are there.

Top Beer Stocks for 2022

Investing in beer stocks should definitely be on your radar for this year, so to help you decide where to invest your money in this timeless industry, here’s a list of the beer stocks with the most chance of earning big this 2022:

1. Anheuser Busch Inbev SA (NYSE: BUD)

Market Cap: $108.77 Billion

Dynamic Stock Chart for TICKER bud

Holding the distinction of being one of the world's largest beer companies, Anheuser Busch Inbev SA has ownership of a plethora of beverages. Among the most notable of their hundreds of holdings include Budweiser, Stella Artois, Beck's, Leffe, and an assortment of acquired craft brewers in the U.S. 

Its size and large portfolio can be in part attributed to its numerous mergers. The company in its current form is a result of a merger of U.S. brewer Anheuser-Busch and Belgian-Brazilian brewer InBev in 2008, as well as the acquisition of South African brewing giant SABMiller in 2016.

Anheuser Busch Inbev SA has had somewhat of a rocky time in the market with stocks decreasing in value by -48.45% over the past 5 years. In fact, since the company’s listing back in 2008,this beer stock companies shares are only up about 50% compared to more than 400% for the S&P 500. Many have speculated the sluggish growth to be caused by changing consumer preferences.

Despite that, the management has hit the reset button and is now looking to pick up some steam in the global arena. Shares are slowly rebounding with gains of 4.04% year-to-date.

Anheuser Busch Inbev SA also offers a nice dividend yield of 1.85% which is sure to attract income investors. At any rate, investors would be wise to hold back a little before placing confidence (and money) into Anheuser Busch.

2. Constellation Brands (NYSE: STZ)

Market Cap: $44 Billion

Dynamic Stock Chart for TICKER stz

Unlike the previous entry, Constellation Brands Inc has had a better few years growth-wise. Despite being around since the mid-1940s, it’s not necessarily a well-known company although it produces some of the most well-known and well-loved beers in the world. Some of these brands include Corona, Modelo, and Pacifico. 

It also gets plus points for having one of the largest and most diversified portfolios of any alcoholic beverages company. Apart from beer, Constellation Brands Inc has several beer wine and spirits under its belt as well as an almost 40% stake in Canopy Growth, a growing marijuana company

Share prices have steadily gained by 6.71% over the past 6 months and by 10.55% over the past 12 months. The company has managed to sustain growth over the past few years, with beer accounting for around 80% of its profits. It also boasts a top free-cash-flow generating ability. 

These numbers, along with a dividend yield of 1.30%, make its stocks very attractive as of the moment. With more plans to diversify in the future, the company is also making all the right moves to adapt to the ever-changing market

3. Molson Coors Beverage Company (NYSE: TAP)

Market Cap: $10 billion

Dynamic Stock Chart for TICKER tap

Considered to be a value stock, a stock that’s underappreciated, investing in beer stocks such as Molson Coors Beverage Company is a bet on the likelihood of its stocks to rebound in price. Over the past 5 years, the share price of Molson Coors went below -50.87%, although it has gained by 853.20% since its going public. 

The parent holding company for Coors, Miller, Blue Moon, Molson Coors Beverage Company is still the 5th largest beer enterprise in the world despite the recent losses. This has led many analysts to believe that a rally for the stocks is underway if the management successfully turns things around.

A great sign of this is their recent reinstating of dividend payments, about 2.85% in yield.

There are also plans to tap into the more high-end beer-drinking market with trendy beverages such as sparkling hard seltzer. This is to align itself more with the shift in customer preferences towards the more flavored-kind of beers. 

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4. Kirin Holdings (OTC: KNBWY)

Market Cap: $14 Billion

Since its founding in 1885, Kirin Holdings is Japan’s second-largest beverage brand, behind the Asahi Group Holdings, and its beers have come to be one of the largest consumer staple companies in the country. Though growth has somewhat stagnated over the recent years, due in large part to the effects of the pandemic, sales and profits are looking to make a comeback as Japan regains its footing. 

Another reason why this company became very attractive to investors over the past few months is its exceptionally high dividend payments. At 3.67%, Kiri Holdings offers some of the highest dividends of any company on this list. 

The company also has a health science group whose job is to develop healthier beverage options for their consumers. With the recent push towards more sustainable and body-friendly foods, this division might be one of the company’s breadwinners in the coming years. Kirin is also embarking on digital updates to modernize its operation and increase efficiency, further planting the seeds for eventual expansion. 

5. Boston Beer Company (NYSE: SAM)

Market Cap: $5.6 Billion

Dynamic Stock Chart for TICKER sam

Founded in the 1980s, the Boston Beer Company is one of the smaller beer companies on this list. The creator of the Samuel Adams craft beer label, Truly Hard Seltzer, Angry Orchard hard cider, and several other small regional brewers, the boston beer company makes a name for itself as a supporter of the independent craft beer movement. 

Though it has grown considerably over the last 5 years, its smaller size and localized structure worked against its favor during the pandemic. Hurting initially from the logistical issues, the sharp increase in home consumption of beer turned out beneficial for the company’s sales and is probably what kept it afloat despite the circumstances. Even with that though, the share prices of the Boston Beer Company have been trading at -56.82%. 

With zero debt and consistently double-digit sales, the company is still a favorite among growth investors looking for a worthy underdog. It’ll be interesting to keep track of the company’s growth post-pandemic.

6. Ambev SA (NYSE: ABEV)

Market Cap: $2.83 Billion

Dynamic Stock Chart for TICKER abev

Though this company’s current form is a result of a merger between breweries in Brazil, Ambev SA has a history that dates back to the late 1800s. The company has distribution rights for Pepsi products in Brazil, in addition to its international beer brands, which include Skol and Brahma.

By far the smallest company on this list, it still has the market almost cornered in Brazil when it comes to beer. It is also the cheapest stock to purchase on this list, being priced at just $5 per share. With its becoming a subsidiary of Anheuser-Busch though, the company is likely to receive a larger exposure to global markets, especially when logistics improve post-pandemic. 

7. United Breweries Limited (NSE: UBL)

Market Cap: $433.61 Billion 

Founded in 1915, this company is the largest beer company in India and the surrounding region. They’re the maker of Kingfisher, which is the leading Indian beer in international markets. Other notable beers under this United Breweries belt include Amstel and Heineken.

With only a 0.031% dividend yield, some investors believe that the stocks of this company are too highly-priced for what it’s worth. That being said, growth for United Breweries Limited does not seem to be an issue. Share prices have gained by 4.85% year-to-date, 27.64% over the past 12 months, and 99.18% over the past 5 years. Since going public, the company has provided investors with 967.13% gains on their shares. Certainly not numbers to scoff at considering the performances of the other beer companies on this list.

Bottom Line…

And those were the 7 best beer stocks to consider buying this 2022. Even with the challenges that face the beer industry, like evolving consumer demand and the pandemic, the beer industry is still projected to grow, reaching over $685 billion by 2025. And with many of these companies being over a century old, they’re a stable investment option over the long term

With the right research and careful following of the experts’ advice, there’s no reason not to believe that an investor can earn an intoxicating profit from the stocks of beer companies this 2022. 

About the author 

Jenna Lofton, the founder of StockHitter.com, has been actively trading stocks and investing for nearly 11 years.

She holds an MBA in Finance, and another in Business Administration, and lives in Staten Island, NY.

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