In this article, we are going to discuss the 10 best alcohol stocks to buy according to billionaires.
The alcohol industry has found itself on the frontlines of a global trade war, sparked by President Donald Trump imposing increased tariffs on America’s neighbors and friends across the pond. The European Union responded to Trump’s 25% tariff on all steel and aluminum imports by announcing countermeasures on up to $28 billion worth of American goods, including a 50% tariff on American alcohol. The move could be devastating for the US spirits industry, as over the last two years, American whiskey exports to the EU have surged by more than 60%. Around 40% of US spirits are exported to the European Union, totaling $883 million in 2023, making it America’s largest export market.
Chris Swonger, CEO of the Distilled Spirits Council of the United States, stated:
“The reimposition of these tariffs at a 50% rate would gut this growth and do irreparable harm to distillers large and small. It would be a catastrophic blow that will force many distillers out of our largest export market.”
READ ALSO: 10 Best Alcohol Stocks To Buy According to Analysts
In return, President Trump took it up a notch and threatened to slap a 200% tariff on wine, cognac, and other alcohol imports from Europe, causing panic also on the other side of the Atlantic. The United States imported wine worth around $5 billion from the EU last year and accounts for 31% of the overall wine and spirits exports from the bloc. A 200% tariff would push these European offerings outside the reach of most Americans, who would then prefer their local alternatives.
The tariffs on Mexico and Canada are set to have a significant impact as well. Sales of tequila and mezcal in the US rose 2.9% to total $6.7 billion last year and these numbers are expected to take a hit if the current 25% tariffs remain in place. Moreover, the extreme popularity of Mexican beers in the US could also be threatened as their prices are pushed higher compared to the local brews. In the province of Ontario in Canada, liquor stores have gone even as far as to remove American whiskey and wine from their shelves and replace them with domestic offerings.
And if that wasn’t enough, it seems like America’s much-celebrated Bourbon boom is finally over as the US whiskey industry shows signs of slowdown. According to industry tracker IWSR, sales volumes of American whiskey dropped 1.2% in 2023, marking the first decline since 2002. The downward trend continued last year and domestic sales of American whiskeys fell 1.8% in 2024 to total $5.2 billion, according to DISCUS. The sharp surge in demand that the sector witnessed during the pandemic is softening down as consumers cut back, plowing through bottles they accumulated in recent years and trading down to cheaper options.
Despite the current difficulties, some billionaire investors remain bullish on the American alcohol sector. Warren Buffett’s Berkshire Hathaway invested over $1.2 billion in an American alcohol giant in Q4 2024, signaling the Oracle of Omaha’s confidence in the alcoholic beverage market’s long-term prospects. The continued tilt towards premiumization, the rising popularity of low- and no-alcohol options, and the ballooning Ready-to-Drink segment represent only some of many opportunities that the industry can capitalize on, if it manages to muscle through the heating political landscape.
With that said, here are the Best Alcohol Stocks to Invest in According to Billionaires.
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Methodology
To collect data for this article, we scanned Insider Monkey’s database of billionaires’ stock holdings and picked the top 10 companies operating in the alcohol sector with the highest number of billionaire investors in Q4 of 2024. When two or more companies had the same number of billionaire investors, we ranked them by the revenue of their last financial year. Following are the Best Alcohol Stocks According to Billionaires.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. SNDL Inc. (NASDAQ:SNDL)
Number of Billionaire Holders: 5
SNDL Inc. (NASDAQ:SNDL) is the largest private-sector liquor and cannabis retailer in Canada, with retail banners that include Ace Liquor, Wine and Beyond, Liquor Depot, Value Buds, Spiritleaf, and Firesale Cannabis. The company also operates as a licensed cannabis producer and stands as one of Canada’s premier vertically integrated cannabis enterprises.
SNDL Inc. (NASDAQ:SNDL) has been focused on expanding its footprint and increasing revenue, but still hasn’t turned a profit over the last four years. However, it seems to be changing this strategy by working on a restructuring plan last year to help reduce its annual expenses by CA$20 million ($13.9 million) and finally improve its profitability. As a result, SNDL’s free cash flow was finally positive in the third quarter of 2024, supported by ongoing operational gains in gross margin and efficient working capital management. The company boasts a robust balance sheet and ended Q3 with a cash balance of $263 million, up from $183 million in the previous quarter, with no outstanding debt. The company also remains committed to its shareholders and announced a share repurchase program of around $70.3 million in November.
SNDL Inc. (NASDAQ:SNDL) remains focused on capitalizing on new opportunities and announced the acquisition of all outstanding shares of Nova Cannabis Inc. last year. The company has also recently signed a strategic supply agreement with Aurora Cannabis (a leading global medical cannabis company). Under the terms of the agreement, SNDL is expected to supply Aurora with premium cannabis flower products for three years with an option to extend at an estimated value of $27 million.
9. Tilray Brands, Inc. (NASDAQ:TLRY)
Number of Billionaire Holders: 7
The New York-based Tilray Brands, Inc. (NASDAQ:TLRY) has a highly diversified global portfolio – operating in more than 20 countries with businesses in medical adult-use cannabis, beverages, spirits, wellness products, and a vast array of consumer-connected lifestyle brands.
There hasn’t been a path forward for the cannabis industry in the US without federal legalization, so Tilray Brands, Inc. (NASDAQ:TLRY) has diversified and forayed into the beverages sector. Tilray Beverages booked $119 million in net revenue in the first half of FY 2025, a 68.5% increase on the year prior. The segment now generates a third of the company’s global revenue and includes over 20 brands, including 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 United States.
Tilray Brands, Inc. (NASDAQ:TLRY) posted revenue of $211 million for Q2 of 2025, up 8.9% YoY, but below market estimates by $5.38 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.
Shares of Tilray Brands, Inc. (NASDAQ:TLRY) fell this week after the company announced plans to issue up to 23 million shares of common stock in exchange for $14.6 million of its 5.2% Convertible Senior Notes due June 1, 2027.
