Sep 20, 2022 17:48
Soon after human civilization emerged, alcohol was discovered. The worldwide alcohol business isn't exactly a fast-growing venture, given its age. However, alcohol stockpiles see consistent rates of consumer use in both prosperous and difficult economic periods.
Massive companies control the alcohol business and the closely connected beer sector. Since most small-batch craft makers are privately held businesses, this sector is mostly devoid of young, rapidly expanding publicly listed enterprises. However, alcohol stocks are a viable option for those looking for long-term growth and dividend income.
Alcohol is a significant industry. Given that the distilling alcohol uses a lot of the local water resources, there is some overlap with the economy sector that provides water utilities. Alcohol sales, however, often remain strong in the sluggish but steady beverage industry even when consumer spending overall declines in other areas. Alcohol sales may even rise in tough economic times, as during the COVID-19 epidemic.
There is a considerable crossover with the brewing industry as well. For instance, the parent company of Budweiser, AB InBev (NYSE: BUD), along with smaller rivals Constellation Brands (NYSE: STZ), which produces Corona and Modelo, and Boston Beer Company (NYSE: SAM), which manufactures Samuel Adams, all have brands that are independent of their primary brewing operations.
The world's second-largest wine and spirits merchant, Pernod Ricard SA (OTC: PDRDF), is well recognized for its distinctive pastis-flavored alcoholic beverages. The drinks produced by Pernod Ricard SA (OTC: PDRDF) are distributed in more than 160 nations under more than 240 distinctive and premium brands. Jameson, Avion, Ricard, Malibu, and Pernod are a few examples of iconic brands.
Sales for the third quarter were $2.34 billion, according to Pernod Ricard SA (OTC: PDF), which also reported organic growth of 19% for the first nine months of 2021. The Q3 revenues were $0.13 billion more than experts' projected revenue of $2.21 billion.
On November 30, JPMorgan analyst Celine Pannuti increased the price objective for Pernod Ricard SA (OTC: PDRDF) from €225 to €250 while maintaining an Overweight rating on the stock.
On September 21, it was announced that Pernod Ricard SA (OTC: PDRDF), a leading online retailer of beverages and fine spirits, had acquired The Whiskey Exchange. This would enable Pernod Ricard SA (OTC: PDRDF) to take advantage of the synergies and access a wider clientele through The Whiskey Exchange's strong online global presence.
One of the greatest liquor companies to purchase right now is Pernod Ricard SA (OTC: PDRDF), which ranks among Constellation Brands, Inc. (NYSE: STZ), Brown-Forman Corporation (NYSE: BF-B), Molson Coors Beverage Company (NYSE: TAP), and Diageo plc (NYSE: DEO).
French family-owned beverage corporation Rémy Cointreau SA (OTC: REMYY) has a wide range of brands, including cognacs, liqueurs, and spirits. Rémy Cointreau SA's most popular products are Rémy Martin, Louis XIII cognacs, and Cointreau liqueur (OTC: REMYY). Rémy Cointreau SA (OTC: REMYY) purchased Maison de Cognac J.R. Brillet and the century-old Champagne House J. de Belmont in 2020 to broaden its business activities.
On November 25, Rémy Cointreau SA (OTC: REMYY) released its financial results for the first half of 2021–2022. On an organic basis, the revenue increased by 52% to €645.3 million. In addition to a good rebound in the European market, Rémy Cointreau SA (OTC: REMYY) reported strong demand momentum in China and the United States. The period's EPS came to €2.95, up 126% from the €1.31 EPS in the first half of 2020–2021. Rémy Cointreau SA (OTC: REMYY), despite the COVID-19 difficulties, has good financials, making it one of the top alcoholic beverage companies to purchase right now.
Laurence Whyatt, an analyst at Barclays, raised Rémy Cointreau SA (OTC: REMYY) from Equal Weight to Overweight on November 15 and raised the price objective from €175 to €234. In the analyst's opinion, the stock has high growth potential and consistently outperforms expectations. The analyst predicts that the cognac business will increase by 10% over the next two years, outpacing the projected 8% growth of Rémy Cointreau SA (OTC: REMYY).
Since September 2020, Pernod Ricard SA (OTC: PDRDF), a Canadian maker and distributor of alcoholic drinks, has held a portion of Corby Spirit and Wine Limited (OTC: CBYDF). The top 25 selling Canadian alcohol brands are all under the control of Corby Spirit and Wine Limited (OTC: CBYDF), and the business is growing in the US, Europe, and Australia. JP Wiser's Whisky, Lamb's Rum, Polar Ice Vodka, and McGuinness Liqueurs are some well-known alcoholic drinks produced by Corby Spirit and Wine Limited (OTC: CBYDF).
On November 10, Corby Spirit and Wine Limited (OTC: CBYDF) declared a quarterly dividend of CAD 0.24 per share, a 14.3% increase over the CAD 0.21 per share dividend paid during the previous quarter.
According to the company management, Corby Spirit and Wine Limited (OTC: CBYDF) experienced strong demand and are on a solid recovery track after COVID-19 pressures. However, its quarterly financial results for the period ended September 30, 2021, are not necessarily indicative of the outlook for the entire year.
According to the news release from November 10, EPS for the three months ending September 30 came in at CAD 0.25, a 35% decrease from the previous year. Similar to that, the reported quarterly sales were CAD 38.5 million, an 11% decrease from the same period last year.
Compaa Cerveceras Unidas SA (NYSE: CCU), which was established in 1902 and had its headquarters in Santiago, Chile, is one of the best liquor stocks right now. It is the biggest brewer and the second-largest wine producer in its area. Cider, beer, spirits, and wine are just a few of the alcoholic and non-alcoholic drinks that the firm is renowned for. Compaa Cerveceras Unidas SA (NYSE: CCU), in addition to manufacturing its own products, also has distribution rights for alcoholic and non-alcoholic beverage brands such as Anheuser-Busch InBev SA/NV (NYSE: BUD), Heineken N.V. (OTC: HEINY), Paulaner Brewery GmbH & Co., and Guinness Brewery (NASDAQ: KDP).
On November 3, Compaa Cerveceras Unidas SA (NYSE: CCU) released its third-quarter results. EPS came to $0.28 for the quarter, above expectations by $0.02. The $766.05 million revenue also performed $143.42 million better than expected.
On October 18, Goldman Sachs analyst Thiago Bortoluci raised Compaa Cerveceras Unidas SA (NYSE: CCU) from Sell to Neutral with a $16.80 price objective, down from $17. The analyst said that while the stock price has been under pressure due to worries about the macro environment, including the approaching presidential elections, foreign currency rates, and inflation, the short-term forecast for local consumption remains positive.
Seven hedge funds reported holding positions in Compaa Cerveceras Unidas SA (NYSE: CCU), according to Insider Monkey's Q3 database. Jean-Marie Eveillard's First Eagle Investment Management was the company's largest shareholder as of September 2021, holding more than 14 million shares valued at $242.74 million.
Anheuser-Busch InBev SA/NV (NYSE: BUD) is a global Belgian brewery with about 630 beer brands that are sold in 150 different countries. Budweiser, Corona, and Stella Artois are a few of Anheuser-Busch InBev SA/(NYSE: BUD) NV's worldwide brands, and the corporation has a very broad portfolio of both home and foreign brands.
On October 28, Anheuser-Busch InBev SA/NV (NYSE: BUD) disclosed Q3 earnings per share of $0.50, falling short of expectations by $0.05. The quarterly sales were $14.27 billion, up 11.38% year over year, and it was above expectations by $630.67 million.
On November 30, JPMorgan analyst Celine Pannuti boosted the price objective for Anheuser-Busch InBev SA/NV (NYSE: BUD) from €46 to €55 while maintaining an Underweight rating for the stock.
Ken Fisher's Fisher Asset Management is the largest shareholder in the firm out of the 11 hedge funds that were positive on Anheuser-Busch InBev SA/NV (NYSE: BUD), according to Insider Monkey's Q3 database, with more than 8.1 million shares worth $462.1 million.
MGP Ingredients, Inc. (NASDAQ: MGPI) is a Kansas and Indiana-based American beverage firm that specializes in producing premium whiskeys, ryes, bourbons, gins, and vodkas. The goal of MGP Ingredients, Inc. (NASDAQ: MGPI), a leading manufacturer of branded beverage alcohol products, has been to develop a range of premium beverages since 2015. In 2021, the firm purchased Luxco, Inc. and merged with it.
After releasing strong Q3 results on November 3, MGP Ingredients, Inc. (NASDAQ: MGPI) is one of the top booze stocks to buy right now. EPS for the time period was $1.09, above expectations by $0.69. At $176.61 million, revenue for the quarter was $28.66 million more than expected.
Thirteen hedge funds that Insider Monkey was following had a combined $32.1 million worth of bullish positions in MGP Ingredients, Inc. (NASDAQ: MGPI) as of Q3 2021. In the previous quarter, 14 funds had interests in the firm totaling $45.4 million.
MGP Ingredients, Inc. (NASDAQ: MGPI) was raised by Trust analyst Bill Chappell on November 29 to Buy from Hold with a $100 price objective, up from $80. The analyst predicted that MGP Ingredients, Inc. (NASDAQ: MGPI) would continue to report good and consistent performance for the foreseeable future, given the company's outstanding year-to-date performance. In the US, there is still a strong demand for whiskey.
As of September of this year, Arrowstreet Capital, which owned 134,996 shares of MGP Ingredients, Inc. (NASDAQ: MGPI) valued at $8.78 million, was the largest shareholder.
MGP Ingredients, Inc. (NASDAQ: MGPI) is one of the top alcoholic beverage companies right now, along with Constellation Brands, Inc. (NYSE: STZ), Brown-Forman Corporation (NYSE: BF-B), Molson Coors Beverage Company (NYSE: TAP), and Diageo plc (NYSE: DEO).
Ambev S.A. (NYSE: ABEV), a Brazilian brewing firm, is among the top corporations in the area in terms of market capitalization. Ambev S.A. (NYSE: ABEV), which was established in 1999, amalgamated with Anheuser-Busch InBev SA/NV (NYSE: BUD) in 2008.
On October 28, Ambev S.A. (NYSE: ABEV) reported Q3 earnings per share of $0.04, above expectations by $0.01. Additionally, the $3.29 billion quarterly sales came in at $263.5 million above expectations.
Ambev S.A. (NYSE: ABEV) was upgraded by BofA analyst Isabella Simonato from Underperform to Neutral with a $3.50 price objective, up from $3.00 on November 3. The effectiveness of Ambev S.A.'s (NYSE: ABEV) commercial beer strategy in Brazil, according to the analyst, was shown by the company's "large" volume beat in the third quarter, and the trend may continue for at least the next two quarters. The stock is, however, now trading above its historical value.
With 7.58 million shares valued at about $21 million as of Q3 2021, Pzena Investment Management is one of the largest owners of Ambev S.A. (NYSE: ABEV). At the end of September, 15 hedge funds were overall positive on Ambev S.A. (NYSE: ABEV), down from 18 firms the quarter before.
A worldwide beverage company, Diageo plc (NYSE: DEO), distributes its products in 180 countries and has operations and manufacturing facilities in more than 140 of them. Diageo plc (NYSE: DEO), a significant participant in the alcohol industry, is also the biggest producer of scotch whisky in the world.
For FY2021, Diageo plc (NYSE: DEO) released its financial results. Revenue during the time period was £12.73 million, up 8.3% from the prior year, and was equivalent to the £11.75 million in revenue for 2020. Earnings per share for Diageo plc (NYSE: DEO) in 2021 were £1.13, up 89.4% from £0.60 in the previous year.
On November 30, JPMorgan analyst Celine Pannuti maintained a Neutral rating and increased the price target for Diageo plc (NYSE: DEO) to £4,350 from £3,800.
The largest shareholder of Diageo plc (NYSE: DEO), with 1.43 million shares valued at $276.35 million, is Nicolai Tangen's Ako Capital, one of the 18 hedge funds that were optimistic about the business, according to Insider Monkey's Q3 database of top funds.
The merger of Molson from Canada with Coors from the US in 2005 resulted in the creation of the American-Canadian brewing corporation known as Molson Coors Beverage Company (NYSE: TAP).
Molson Coors Beverage Company (NYSE: TAP) grew to be one of the biggest alcoholic beverage corporations in 2016 by purchasing Miller Brewing Company. Blue Moon, Coors Light, Miller Lite, and Milwaukee's Best are just a few of the beers, spirits, and wines offered by Molson Coors Beverage Company (NYSE: TAP).
On October 28, Molson Coors Beverage Company (NYSE: TAP) released its third-quarter results. EPS for the quarter came at $1.75, above expectations by $0.24. The $2.82 billion in sales increased by 2.51% on a yearly basis. However it fell short of expectations by -$91.44 million.
On October 18, analyst Steve Powers from Deutsche Bank decreased the company's price objective for Molson Coors Beverage Company (NYSE: TAP) from $50 to $48 while maintaining a Hold rating on the stock, citing supply chain constraints and weak demand as a result of COVID-19 pressures.
Ariel Investments, one of the 867 hedge funds monitored by Insider Monkey as of Q3 2021, is the largest shareholder in Molson Coors Beverage Company (NYSE: TAP), with a $35.6 million position in the business. At the end of September, 29 funds were overall optimistic on Molson Coors Beverage Company (NYSE: TAP), down from 39 firms the quarter before.
Brown-Forman Corporation, one of the biggest American producers of spirits and wine, has made it to our list of the finest alcoholic beverage stocks (NYSE: BF-B). It is a Kentucky-based beverage corporation that sells a variety of booze brands, including Chambord, Early Times, Old Forester, and Woodford Reserve.
Brown-Forman Corporation (NYSE: BF-B) boosted its quarterly cash dividend on its Class A and Class B common shares by 5% to $0.1885 per share from $0.1795 per share in the preceding quarter, it was announced on November 18. The owners with records as of December 3 will receive the quarterly dividend on December 28. Additionally, $480 million will be distributed on December 29 as a special one-time dividend to investors who had recorded as of December 9 as well.
Terry Smith's Fundsmith LLP is the largest shareholder of Brown-Forman Corporation (NYSE: BF-B) as of Q3 2021, with 14.42 million shares worth $966.45 million. As of September, 31 hedge funds had a combined position of $1.65 billion in Brown-Forman Corporation (NYSE: BF-B).
The top-ranked liquor stock on our list is Constellation Brands, Inc. (NYSE: STZ), which has 53 hedge funds positive on it in its exclusive database of Insider Monkey, with a total stake value of $1.71 billion as of September 2021. The company's largest shareholder, Harris Associates, has more than 4 million shares worth about $850 million.
With more than 100 beverage brand names under its ownership, Constellation Brands, Inc. (NYSE: STZ) is an American manufacturer and distributor of beer, wine, and spirits. The most well-known brands from its selection of domestic and foreign alcoholic drinks include, among others, Robert Mondavi, Richards Wild Irish Rose, Ravenswood Winery, Corona, Modelo Especial, Funky Buddha, and High West Whiskey.
Constellation Brands, Inc. (NYSE: STZ) released Q2 results on October 6, with EPS coming in at $2.38, below projections by $0.38. The $2.37 billion sales beat projections by $69.49 million and increased by 4.9% over the same period last year.
Following the release of the second quarter earnings, on October 13, HSBC analyst Carlos Laboy upgraded Constellation Brands, Inc. (NYSE: STZ) from Hold to Buy and raised his price objective from $254 to $262. According to the analyst, Constellation Brands, Inc. (NYSE: STZ) has great fundamentals and robust demand.
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