9 Alcohol Stocks To Invest In 2022
If you’re looking to diversify your portfolio by investing in companies that pay dividends and generate solid profits, alcohol stocks might interest you. Essentially, these companies produce and sell various alcoholic beverages, like beer, wine, and liquor.There are plenty of ways to invest in alcohol – there’s more to it than just the most well-known companies. One of the main reasons investors keep an eye on alcohol stocks is because they’re relatively resistant to the impact of recessions and other economic downturns, making them an easy way to diversify your portfolio.
Of course, not all alcohol stocks are created equal, and some have performed better than others in recent years. That’s why Vint has listed six of our top alcohol stocks to watch in 2022.
##1. Boston Beer (SAM)
Boston Beer Company was founded by James Koch in Boston, MA, in 1984. It specializes in craft beer, hard seltzer, and hard cider. Most known for Samuel Adams, which emerged as one of America’s first craft beers, Boston Beer produces other popular brands like Angry Orchard, Truly Hard Seltzer, and Twisted Tea.
Besides offering more than 60 beer varieties, Sam Adams also has several taprooms in and around Boston. In other words, investing in this company comes with varied revenue streams and potential expansion opportunities, and there is much more market share to be won.
Boston beer is one company that you may want to watch in 2022 if you’re interested in beer stocks. Below are some key details to know about them.
PE Ratio (TTM): 52.60 Earnings Per Share (TTM): $7.97 Market Cap: $5.146 billion
2. Craft Brew Alliance (BREW)
Craft Brew Alliance is parented by Anheuser-Busch and produces an array of beer and ciders. With the rising interest in craft beers, this company continues to appear on watchlists for alcohol investors. Its most popular brands include Redhook, Omission, Widmer Brothers, Kona, Cisco, pH Experiment, Wynwood Brewing, Appalachian Mountain Brewery, and Square Mile Cider.The Craft Brew Alliance brands will soon merge with Anhesuer’s craft division, Brewer’s Collective. The division holds Goose Island, Wicked Weed, and Elysian.
PE Ratio (TTM): N/A Earnings Per Share (TTM): N/A Market Cap: $276.316 million
3. Willamette Valley Vineyard (WVVI)
Willamette Valley Vineyards was founded in Oregon by Jim Bernau in 1983, and it is one of the smallest companies on the list. It produces renowned Pinot Noir, Pinot Gris, Dijon Clone Chardonnay, and Riesling varieties. This winery was the first crowdfunded of its kind in the U.S. It has been an Oregon winemaking pioneer for many other reasons.As with so many other companies, Willamette Valley experienced a stock price dip in the height of the pandemic, but its stock is steadily recovering.
PE Ratio (TTM): 33.92 Earnings Per Share (TTM): $0.26 Market Cap: $44.631 million
4. Constellation Brands (STZ)
Constellation Brands is a behemoth out of New York. The Fortune-500 company controls more than 100 beer, wine, and spirits brands and because of its acquisitions, Constellation Brands can identify growing market sectors to buy into.Constellation’s most well known brands include Corona, Modelo Especial, Pacifica, Robert Mondavi, Clos du Bois, Opus One, Svedka Vodka, High West Whiskey, and Casa Noble Tequila. The brand also owns 38.6% of Canopy Growth (a major cannabis company).
Constellation has a track record dating back more than 75 years, and given its uncommon versatility, you can expect it to keep up with evolving tastes. It’s a key company that we’re watching in 2022.
PE Ratio (TTM): N/A Earnings Per Share (TTM): -$0.28 Market Cap: $44.503 billion
5. Molson Coors Beverage (TAP)
Molson Coors Beverage Company was formed when Canadian Molson and U.S.-based Coors merged in 2005. Considering alcoholic beverage sales by volume, it is the second-largest beer company in the U.S. (only behind Anheuser-Busch). Popular Molson Coors brands include Coors Light, Molson Canadian, Coors Banquet, Blue Moon, Hop Valley, and Crispin Cider. It also has a few craft beers in its portfolio.According to MarketWatch, the company is positioned to hold its pricing power and maintain steady margin growth for the foreseeable future.
PE Ratio (TTM): N/A Earnings Per Share (TTM): -$2.05 Market Cap: $10.386 billion
6. Ambev SA (ABEV)
Ambev SA primarily produces and distributes beer, including Skol, Antarctica, Brahma, Presidente, Labatt, and Quilmes. It also deals in non-alcoholic beverages, such as Fusion and Guarana Antarctica. The company currently operates in 16 countries, with most of its business coming from Latin America, Central America, and South America.Ambev is showing gradual-but-steady growth in the market, making it a company to watch. That said, dividends are distributed in Brazilian reals, meaning that exchange rates will influence payment in U.S. dollars.
PE Ratio (TTM): 14.34 Earnings Per Share (TTM): $0.1890 Market Cap: $44.054 billion
7. Anheuser-Busch InBev (BUD)
Anheuser-Busch InBev is the largest beverage company in the world. Headquartered in Leuven, Belgium, it owns more than 630 brands in 150 countries. Budweiser, Bud Light Stella Artois, Hoegaarden, Leffe, and others fill out the impressive lineup.Some of its non-alcoholic drinks include Pepsi, Gatorade, and 7UP, distributed according to PepsiCo agreements and a merger with Ambev SA. The diversification of Anheuser-Busch’s portfolio helps to limit risk for its investors, but there is always a small amount of risk, just like any of the companies we’ve listed. That said, no company on this list comes close to the revenue Anheuser-Busch InBev generates, and that says something for stability.
PE Ratio (TTM): 24.70 Earnings Per Share (TTM): $2.48 Market Cap: $106.229 billion
8. Diageo (DEO)
Diageo isn’t as quite as enormous as Anheuser-Busch, but it’s still a multinational company operating in more than 180 countries. Based in London, it is the largest liquor distributor and second-largest distiller globally. The company actively manages their portfolio and frequently acquires new, exciting brands, while quickly dropping those underperforming. Thanks to diverse revenue streams, Diageo is not dependent on any single source. Under the Diageo umbrella, brands you might recognize include Captain Morgan, Johnnie Walker, Crown Royal, Smirnoff, J&B, Baileys, and Ketel One. Emerging and developing markets alike are drawn to the company’s wide range of beer and spirits brands, which gives the company the security of not solely relying on a single market to generate revenue.PE Ratio (TTM): 29.17 Earnings Per Share (TTM): $7.03 Market Cap: $119.028 billion
9. Brown-Forman (BF.B, BF.A)
Brown-Forman is another large liquor company, and it operates in more than 170 countries, with its main headquarters in Kentucky. Jack Daniel’s is its flagship brand, though it also controls Woodford Reserve, El Jimador, Finlandia, Herradura, and many other notable brands.This company has experienced exceptional dividend growth over the last 30 years because of its navigation of economic downturns and its robust brand value. And if you’re a fan of investing in American-owned companies, you might find Brown-Forman intriguing.
PE Ratio (TTM): 41.97 Earnings Per Share (TTM): $1.60 Market Cap: $33.342 billion
Should You Invest in Alcohol Stocks?
Investing in alcohol can be rewarding, especially if you want to diversify your portfolio. However, any investment has some risks. It’s best to do your research before you plunge into your first alcohol stock investments. For example, know that not all alcohol companies flourish through economic downturns, so do your due diligence into a stock’s historical data before committing.Moreover, researching the many alcohol companies takes time and energy. However, if you’re looking for a fun and unique way to invest in companies that produce iconic beverages, checking out alcohol stocks like the ones listed above might be perfect for you.
##“Wining” Down Investing in alcohol stocks could be a great move if your goal is to diversify and build long-term wealth through traditional equities. If you choose to go that route, be sure to reference the information above and continue researching alcohol companies to find the right stocks for your situation.
However, know that there are other ways to diversify your portfolio and enjoy steady returns over time. For example, investing in wine and spirits directly through Vint is one of the most accessible investment paths available, and you can start building wealth with little to no experience. Contact us or visit our website today to learn more about our SEC-qualified offerings.
Sources: 5 Tips for Diversifying Your Portfolio | Investopedia Molson Coors Beverage Co. Cl B Stock Quote (US: NYSE) | MarketWatch Is Brown-Forman Stock a Buy? | The Motley Fool