In this article, we are going to discuss the 10 best alcohol stocks to buy according to analysts.
An analysis by Goldman Sachs has revealed that beer and spirits volumes in the American market have shown little correlation with economic growth. This is because beer and spirits are often seen as affordable luxuries or even staples. Liquor tends to enjoy stable sales even when general consumer spending takes a hit elsewhere, while there have also been times when alcohol sales even increase during economic downturns, as they did during the COVID-19 pandemic and the Great Recession of 2008-09.
READ ALSO: 10 Best Liquor Stocks To Buy According to Short Sellers
However, things haven’t been exactly easy for the alcohol sector lately, especially after the recent report from the U.S. Surgeon General claimed that alcohol consumption in the country is directly linked to approximately 100,000 cases of cancer and 20,000 deaths annually. The report has proposed to put cancer warning labels on alcoholic beverages, signaling a shift toward more aggressive tobacco-style regulation for the sector if adopted.
The proposition, if enacted, could seriously hurt sales for a sector that is already struggling with a pullback in drinking by younger consumers. According to the National Institute on Alcohol Abuse and Alcoholism, America’s per capita annual consumption of alcohol in 2022 was 2.5 gallons, down from 3.28 gallons in the early 1980s. The growing popularity of low-and no-alcohol products, rising prevalence of cannabis use, and anti-obesity drugs picking up steam certainly haven’t helped either.
Another looming threat for the American liquor industry is that of tariffs. The European Union is due to reimpose its retaliatory tariff on American whiskey in late March, but at a higher rate of 50%. Over the last two years, American whiskey exports to the EU have surged by more than 60%, and total US spirits exports grew to a record high of $2.2 billion in 2023. But this success story could face a devastating turn unless President Trump’s administration can swiftly negotiate a prolonged suspension or permanent removal of the tariff.
However, amidst the sharp decline in sales following the pandemic, one category that could be a bright spot for the struggling booze industry is that of spirit-based RTD’s, despite the fall in the overall spirits segment. Americans consumed over 62 million cases of ready-to-drink spirits in 2023, up almost 25% from 2022, making it the second-largest spirit category by volume, right behind vodka. A plethora of new brands have popped up in the market over the last few years, offering canned versions of many bar classics, including Negroni, Daiquiri, and even the good ol’ Jack & Coke.
The alcohol sector also seems to be responding adequately to the evolving consumer trends by investing heavily in a wide range of low- and no-alcohol beverages. The strategy seems to be paying off, as according to Nielsen, non-alcoholic beer, wine, and spirits collectively surpassed $565 million in sales in 2023, up 35% from the year before. Sales of Guinness 0.0, the zero-alcohol version of the highly beloved Irish stout, surged by nearly 50% between February 2023 and February 2024, putting it among the Best Selling Non Alcoholic Beers in the US. Nearly every major industry player has come up with No-Lo versions of their highly acclaimed brands, making sure they don’t miss out on their share of a market that is becoming more and more established every day.
With that said, here are the Best Alcohol Stocks to Invest in According to Analysts.
Pixabay/Public Domain
Methodology:
To collect data for this article, we examined all the companies in the alcohol sector that are listed on NASDAQ and NYSE and then compiled a list of the stocks with the highest upside potential according to Wall Street analysts, as of January 27, 2024. Following are the Best Alcohol Stocks According to Analysts.
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10. Diageo plc (NYSE:DEO)
Stock Upside Potential: 13.53%
A global leader in premium drinks, Diageo plc (NYSE:DEO) is a British multinational alcoholic beverage giant with over 200 brands and sales in nearly 180 countries. The company’s portfolio has remarkable breadth across the spirits and beer categories in a range of markets around the world, providing it with a buffer against market volatility associated with luxury goods and also enabling it to find opportunities to roll out more accessible product lines or bring innovation to the ‘everyday luxury’ segment.
Scotch whisky is the real breadwinner at Diageo plc (NYSE:DEO) and the company owns some of the Best-Selling Scotch Whisky Brands in the World, including Johnnie Walker, in its portfolio and holds a commanding 39% market share in the segment. The company owns nearly half of the Scotch whiskey stock currently in the maturing stage, which represents a position that is impossible for competitors to replicate. Diageo’s beer business also seems to be going well and its iconic Irish stout, Guinness, has recently experienced a remarkable resurgence in popularity among younger drinkers in America. There had been some rumors going around that Diageo might be interested in divesting its Guinness brand following the company’s declining net organic sales, but they were shot down after the alcohol giant stated that it had no intention to sell. Diageo will also continue to retain its 34% holding in champagne and cognac company Moet Hennessy, quashing widespread speculation.
Diageo plc (NYSE:DEO) is also one of the Best Alcohol Stock for Dividends, having continuously increased its dividend payout for the last 25 years. The company stood up to its reputation as a very reliable dividend payer and increased its full-year dividend by 5% in FY 2024
Oakmark Global Select Fund stated the following regarding Diageo plc (NYSE:DEO) in its Q4 2024 investor letter:
“Diageo plc (NYSE:DEO) is a global producer, distributor and marketer of premium drinks with more than 200 brands and sales in nearly 180 countries. The U.K.-based holding company’s portfolio includes leading brands, such as Johnnie Walker, Guinness, Don Julio, Crown Royal, Smirnoff, Baileys, Casamigos and Captain Morgan. As a market leader, Diageo’s scale provides meaningful competitive advantages in terms of distribution and marketing, which enables the company to invest more than its peers while still generating strong returns on capital. In addition, we like that the company’s portfolio is well diversified by geography and category, which helps mitigate against earnings volatility related to economic cyclicality and shifting consumer preferences. Industry destocking and what we believe is temporary weaker demand have weighed on the share price recently, which provided an attractive re-entry point to invest in this dominant beverage company at a below-average price.”
9. Molson Coors Beverage Company (NYSE:TAP)
Stock Upside Potential: 14.79%
Molson Coors Beverage Company (NYSE:TAP) is a multinational beverage and brewing giant with a diverse portfolio that includes a variety of beer brands, spirits, and non-alcoholic beverages. The company’s diversified portfolio includes a wide selection of beers in multiple price categories, going from core brands like Coors Light and Miller Light, premium brands like Madri and Blue Moon, right down to economy brands like Miller High Life, Keystone, and Icehouse. With a 4.4% share of the global beer production, Molson Coors is the 5th-largest brewer in the world.
Molson Coors Beverage Company (NYSE:TAP) has been struggling after the gains it achieved due to its competitor’s Bud Light upset seem to be coming to an end. Analysts estimate that the company has lost approximately 48% of the market share gains it had previously secured due to the resurgence of competitor brands, such as Busch Light and Michelob Ultra. As a result, net sales of Molson Coors declined by 7.8% YoY to reach $3.04 billion in Q3 2024, missing the analysts’ estimates by over $89 million. Molson Coors brewing volumes have also been affected after its two-decade-long contract agreement with Pabst Brewing Company came to an end recently. As a result, the brewing giant was forced to adjust its 2024 net sales revenue guidance to down approximately 1% from up-low single digits previously.
That said, Molson Coors Beverage Company (NYSE:TAP)’s core brands remain healthy. According to Circana, in the US, Coors Light, Miller Lite, and Coors Banquet retained a substantial portion of their combined volume share gains in Q3 versus a year ago, when we saw strong share increases. Another thing to keep in mind is that Molson Coors has consistently increased its revenue over the last 4 years, from $9.65 billion in 2020 to $11.7 billion in 2023, meaning the company was already achieving higher sales for years before the Bud Light controversy even happened.
Molson Coors Beverage Company (NYSE:TAP) remains financially healthy and generated $856 million in underlying free cash flow for the first nine months of 2024 while investing meaningfully in its business and returning $717 million in cash to shareholders through both dividends and share repurchases, which it accelerated in Q3. The company’s balance sheet was also supported by the divestiture of its several underperforming craft beer brands, a move that aligns with its long-term strategy of emphasizing premiumization and expanding into the Beyond Beer segment.
8. The Boston Beer Company, Inc. (NYSE:SAM)
Stock Upside Potential: 17.27%
The Boston Beer Company, Inc. (NYSE:SAM) is a prominent player in the American beer industry, best known for its flagship brands such as Samuel Adams and Truly Hard Seltzer.
Though its history is deeply rooted in crafted beer, The Boston Beer Company, Inc. (NYSE:SAM) is now heavily committed to innovation and diversification, giving it a strong foothold in the Beyond Beer category covering flavored malt beverages and hard seltzers. The company remains a dominant force also in the hard tea segment and its Twisted Tea Brand enjoys a strong 85% market share, with the next best-selling competitor brand limited to a low single-digit share in the market. TBBC has also recently launched a distinctly American light craft lager called Samuel Adams American Light, to make sure it doesn’t miss out on the ballooning no-lo trend.
However, The Boston Beer Company, Inc. (NYSE:SAM)’s highly anticipated national launch of Hard Mountain Dew, which was initially expected to be a significant driver for its expansion, has not gained traction as quickly as projected. Moreover, its core Truly Hard Seltzer brand also continues to face challenges and the company witnessed an 11% decline in volumes of its overall Hard Seltzer category in Q3 of 2024. BBC’s $300 million investment in Dogfish Head Brewery doesn’t seem to be going according to plan either and it has already written down around $85 million of the floundering Delaware firm, including an impairment charge of $41.2 million in the last quarter.
The Boston Beer Company, Inc. (NYSE:SAM) maintains a strong financial position, with over $200 million in operating cash flow for the first nine months of 2024. The company ended Q3 2024 with a cash balance of $256 million and zero debt, a rarity among the massive global beer conglomerates. Moreover, to return value to its shareholders, TBBC has recently expanded its share buyback authorization by $400 million, bringing the total repurchase agreement to $1.6 billion.
7. Monster Beverage Corporation (NASDAQ:MNST)
Stock Upside Potential: 18.43%
Next on our list of the Best Alcohol Stocks is one of the biggest names in the global energy drinks market, Monster Beverage Corporation (NASDAQ:MNST), known for brands like Monster Energy, Relentless, and Burn. The beverage giant also forayed into the alcohol sector in 2022 when it acquired the CANarchy Craft Brewery Collective in a deal worth $330 million. The acquisition gave Monster ownership of CANarchy’s craft breweries, which now operate under the name Monster Brewing Co. Shares of MNST have gained over 46% over the last 5 years, with analysts predicting further gains in the future.
A notable aspect of Monster Beverage Corporation (NASDAQ:MNST) is its strategic partnership with Coca-Cola, which has owned an approximate 16.7% stake in the energy drinks company since 2015. This gives Monster access to Coca-Cola’s vast global distribution network and provides it a competitive edge in international markets.
Monster Energy Beverage Corporation (NASDAQ:MNST) has recently been facing challenges in the domestic market, as the energy drinks market in the US continues to struggle. In Q3 of 2024, the company management also pointed to ‘excess inventory levels’ of its Alcohol Brands segment, suggesting slower sales of those products than expected. However, despite these challenges, Monster has managed to outperform its competitors and improve its market share in the US market both in volume and dollar terms, indicating that the company’s brand strength and aggressive marketing strategies are effective in maintaining its competitive edge.
Monster Energy Beverage Corporation (NASDAQ:MNST)’s globalization strategy also seems to be paying off as international sales now account for approximately 40% of its total revenue, reducing the company’s reliance on the tough domestic market. The international emerging markets are particularly attractive for Monster. As disposable incomes rise in these regions and Western consumer trends gain popularity, the demand for energy drinks is likely to go up. However, such aggressive geographical diversification carries its own risks and the energy drinks giant took a significant revenue hit from the ongoing hyperinflation in Argentina in Q3 2024.
6. Constellation Brands, Inc. (NYSE:STZ)
Stock Upside Potential: 29.86%
The New York-based Constellation Brands, Inc. (NYSE:STZ) is involved in the production, import, marketing, and sale of beer, wine, and spirits. The company recently made headlines when its Mexican beer brand, Modelo Especial, became the Best-Selling Beer in America after dethroning Bud Light.
The sales gap between the two brands has only widened further since then and Constellation Brands, Inc. (NYSE:STZ)’s beer business has continued to flourish. The company’s beer segment achieved a net sales increase of 3% in Q3 of 2025, supported by higher shipment volumes. Its core brands continued their uptick during the quarter as Modelo Especial grew by 3%, while Pacifico also surged by 20% and remained the number four dollar share gainer across the total beer category. However, STZ’s iconic Corona Extra brand experienced a slight decline due to adverse weather conditions in the Northeast.
Constellation Brands, Inc. (NYSE:STZ) could stand to lose big from Donald Trump’s presidency, as the President has announced to slap 25% tariffs on imports from Mexico, and Constellation’s high reliance on Mexican beer imports could become a serious problem. However, the company made sure that it had adequate inventory in place before any such tariffs were finalized. It is also assessing cutting costs elsewhere to absorb the blanket tariffs, or incrementally raising its prices, but that will carry its own risks.
Constellation Brands, Inc. (NYSE:STZ) is making sure it can keep up with the increasing demand for its brews and is investing approximately $3 billion through fiscal 2028 to expand its production facilities in Mexico. However, the overall US beer category is witnessing slow growth and the low consumer spending has forced Constellation to cut its sales and profits forecasts for fiscal year 2025. The company now expects annual net sales to grow 2% to 5%, against its previous forecast of 4% to 6% growth.
Constellation Brands, Inc. (NYSE:STZ) has also been included in our list of the 8 Best Beer Stocks to Buy Now.
5. Brown-Forman Corporation (NYSE:BF-B)
Stock Upside Potential: 34.52%
Ranked at number 5 on our list of the Best Alcohol Stocks According to Analysts is Brown-Forman Corporation (NYSE:BF-B), a major player in the global spirits industry that engages in the production and distribution of alcoholic beverages.
Brown-Forman Corporation (NYSE:BF-B)’s stock recently hit a 10-year low as the company faces challenges in the post-Covid environment, primarily due to changing consumer preferences, a general slowdown in the spirits industry, and the looming threat of 50% tariffs by the European Union on American whiskeys. The company reported a 5% YoY decline in net sales for the first six months of FY 2025, largely due to its divestitures of Finlandia vodka and the Sonoma-Cutrer wine business. BF’s sales dipped by 3% also in the challenging US market, primarily due to its flagship Jack Daniel’s expression.
As a result, Brown-Forman Corporation (NYSE:BF-B) has recently announced a series of strategic initiatives to position itself for continued growth in the dynamic global spirits market, including restructuring the executive leadership team, implementing a workforce reduction affecting approximately 12% of the company’s 5,400 strong global workforce, and closing the Louisville-based Brown‑Forman Cooperage. These moves are projected to deliver approximately $70 to $80 million in annualized cost savings collectively, a portion of which is expected to be reinvested to accelerate growth. Moreover, the company will also receive $30 million in proceeds in connection with the sale of the cooperage assets.
Brown-Forman Corporation (NYSE:BF-B)’s tequila portfolio also plummeted by 17% YoY in Q2 2025 and is set to decline even further after the imposition of President Trump’s 25% blanket tariffs on Mexico. However, if the tariffs aren’t imposed, the company’s tequila business is expected to benefit significantly from the excess supply of agave plants due to over-planting, thus bringing down costs and increasing margins.
Brown-Forman Corporation (NYSE:BF-B) announced a 4% increase in its quarterly cash dividend to $0.2265 per share in November 2024. The company has paid regular quarterly cash dividends for 81 consecutive years and has increased the regular dividend for 41 consecutive years, making it a proud member of the prestigious S&P 500 Dividend Aristocrats Index.
4. Anheuser-Busch InBev SA/NV (NYSE:BUD)
Stock Upside Potential: 36.08%
With a staggering 26.9% share of the entire global beer production in 2023, Anheuser-Busch InBev SA/NV (NYSE:BUD) is the Largest Beer Company in the World. Across nearly 50 countries, AB InBev has 175 major breweries and 40 other operations including hop farms and barley malting facilities.
Anheuser-Busch InBev SA/NV (NYSE:BUD) came under fire after the storm of controversy regarding its best-selling beer Bud Light, which resulted in the brand losing its crown as the Top-Selling Beer in America after nearly two decades. However, the beer behemoth’s sheer size and the breadth of its portfolio give it some protection from a single brand falling out of favor and so despite the Bud Light setback, Ab InBev’s overall beer portfolio gained volume share in the US in Q3 of 2024, driven by Michelob ULTRA and Busch Light, which were two of the top three volume share gainers in the brewing industry.
Anheuser-Busch InBev SA/NV (NYSE:BUD)’s beer volumes in the US are also set to benefit from its recently announced deal with Pabst Brewing Company, one of North America’s largest privately held brewing entities, to produce its Pabst Blue Ribbon beer products starting early 2025. For AB InBev, the strategic move brings a one-time rival into its supply chain.
Anheuser-Busch InBev SA/NV (NYSE:BUD) gains immensely from its humongous global footprint and in Q3 of 2024, the company witnessed volume increase in 50% of its markets and revenue growth in 60% of its markets internationally. However, the beer giant still witnessed an overall volume decline of 2.4% YoY due to a soft consumer environment in China and Argentina, highlighting the risks associated with aggressive geographical diversification.
Anheuser-Busch InBev SA/NV (NYSE:BUD) continues to gain ground in the ballooning non-alcoholic beer category. The company gained market share of NA beer in over 60% of its key markets in Q3 of 2024, with Corona Cero more than doubling both volumes and revenues. The brewing major also remains committed to returning value to its shareholders and recently announced a $2 billion share buyback program to be executed within the coming year.
3. Tilray Brands, Inc. (NASDAQ:TLRY)
Stock Upside Potential: 47.37%
Tilray Brands, Inc. (NASDAQ:TLRY) has a highly diversified global portfolio with businesses in medical adult-use cannabis, beverages, spirits, wellness products, and a vast array of consumer-connected lifestyle brands. The company operates in over 20 countries across five continents with a portfolio of over 40 consumer-connected lifestyle brands and 20 vertically integrated facilities that produce approximately 90% of its products in-house.
The core business of Tilray Brands, Inc. (NASDAQ:TLRY) is cannabis and it operates the largest cannabis business in Canada by revenue, the leading medical cannabis business across Europe, and the largest branded hemp business in North America. However, cannabis is a notoriously tough business to profit from and Tilray hasn’t been able to turn a single annual profit over the last four years. This forced the company to diversify beyond cannabis and so it expanded into the craft beer industry with the acquisition of several breweries from Ab InBev and Molson Coors. What started off as a venture is now a serious segment and Tilray counts among the top five craft beer businesses in the United States in terms of scale.
Tilray Beverages, the beverage business of Tilray Brands, Inc. (NASDAQ:TLRY) now generates a third of the company’s global revenue and includes more than 20 beverage brands, which includes 15 American craft beer brands, 10 network manufacturing facilities, over 700 distributors, 20 brew pubs and restaurants, and a single integrated sales and marketing team operating across the US. Tilray Beverages booked $119 million in net revenue in the first half of FY 2025, a 68.5% increase on the year prior.
Tilray Brands, Inc. (NASDAQ:TLRY) reported a total revenue of $211 million for Q2 of 2025, and though it was up 9% YoY, the figure fell short of the broader market consensus of $218 million, due in part to a 16% decrease in the company’s Canadian adult-use cannabis sales. Tilray reported an operating loss of $42.2 million during the quarter, up from the $41.8 million loss it posted a year ago. The company’s reported cash flow for the first half of FY 2025 was a negative $76 million, up from the $46.3 million cash it burned during the same period a year earlier.
Despite all the aggressive diversification and expansion, Tilray Brands, Inc. (NASDAQ:TLRY) is struggling to turn a profit and so the company has recently announced its Project 420, a comprehensive plan focused on enhancing margins and profitability with an aim to achieve $25 million in cost savings, synergies, and cost avoidance initiatives. The company’s strategy to diversify geographically is also paying off and Tilray’s international business grew by 25% YoY in Q2 2025 as it launched new commercial products and expanded its reach across Europe.
Shares of Tilray Brands, Inc. (NASDAQ:TLRY) were held by 16 hedge funds in the IM database at the end of Q3 2024, putting it among the 7 Best CBD Stocks To Invest In Right Now.
2. Ambev S.A. (NYSE:ABEV)
Stock Upside Potential: 71.51%
Next on our list of the Best Alcohol Stocks is Ambev S.A. (NYSE:ABEV), one of South America’s leading beverage companies that has now merged with Anheuser-Busch InBev. With popular brands such as Skol and Brahma, Ambev claims to be the largest brewer in Latin America in terms of sales volume and one of the largest beer producers in the world.
Ambev S.A. (NYSE:ABEV) has displayed strong stability, having consistently grown its revenue and net profit since 2020. A deep-pocket global giant owner like Ab InBev grants the Brazilian brewing company the resources and the distribution network to expand its footprint. Moreover, Ambev also greatly benefits from its relationship with PepsiCo to bottle, sell, and distribute its products in several Latin American countries, including Brazil.
Ambev S.A. (NYSE:ABEV) maintains a strong balance sheet, generating BRL 68 billion (around $11 billion) in free cash flow over the last five years, while also expanding ROIC and achieving positive EVA every year. The company also remains committed to its shareholders and returned over BRL 43 billion (approx. $7 billion) to them since 2020 and even recently approved a BRL 2 billion ($330 million) share buyback program, demonstrating its financial health and its disciplined approach to capital allocation. Moreover, Ambev announced a dividend of $0.0414 per share in December 2024 and boasted an annual dividend yield of 5.75% as of January 29, 2024.
To make sure it keeps up with the evolving consumer trends, Ambev S.A. (NYSE:ABEV) has strengthened its zero-alcohol portfolio with Corona Cero and Budweiser Zero, while it also launched gluten-free, low-calorie propositions such as Stella Pure Gold and Michelob Ultra.
A total of 19 hedge funds tracked by IM held shares of Ambev S.A. (NYSE:ABEV) at the end of Q3 2024, with a total stake value of $522.4 million, a noteworthy 165% increase from the previous quarter.
1. Splash Beverage Group, Inc. (NYSE:SBEV)
Stock Upside Potential: 150%
Topping our list of the Best Alcohol Stock to Invest in According to Analysts is Splash Beverage Group, Inc. (NYSE:SBEV), an innovator in the beverage industry with a growing portfolio of alcoholic and non-alcohol brands including Copa di Vino wine by the glass, SALT flavored tequilas, and Pulpoloco sangria etc.
Splash Beverage Group, Inc. (NYSE:SBEV) has been struggling and the company reported a net revenue of $981,858 for Q3 of 2024, a significant decrease from over $5.1 million in the same quarter of the previous year. However, the company’s net loss of $4.6 million during the quarter was slightly lower than the loss of $5,670,081 in the third quarter of 2023. Despite the slight improvement, SBEV faced challenges with liquidity and timing of inflows, which impacted inventory and sales.
However, a major growth factor for Splash Beverage Group, Inc. (NYSE:SBEV) is that some of its most popular products, Copa di Vino and Pulpoloco, have received multiple chain authorizations recently, including Chevron’s ExtraMile convenience stores, SeaWorld Parks & Entertainment venues, and even 28 Walmart stores in Tampa, Florida. The company announced last month that it has expanded the distribution of its Pulpoloco Sangria with Total Wine & More, the ‘country’s largest independent retailer of fine wine’, which has authorized the brand over 115 stores in Arizona, California, Colorado, Florida, Illinois, Nevada, Texas, and Virginia.
Moreover, Splash Beverage Group, Inc. (NYSE:SBEV) has also announced plans to diversify its business and buy the Texas-based JEM Beverage Management Company, the owner of vodka brand Western Son. The move is set to enhance SBEV’s product portfolio and market reach, given that the company can effectively market and distribute its expanded product line while competing in a crowded and competitive beverage market.
Overall, Splash Beverage Group, Inc. (NYSE:SBEV) ranks first on our list of the best alcohol stocks according to analysts. While we acknowledge the potential for SBEV to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SBEV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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