10 Best Alcohol Stocks to Buy Now

3. Anheuser-Busch InBev Sa/NV (NYSE:BUD)

Number of Hedge Fund Holders: 36

Anheuser-Busch InBev Sa/NV (NYSE:BUD) is the Largest Beer Producer by Volume in the World. The company had a global production volume of 585 million hectoliters in 2023 while boasting a revenue of $59.38 billion, an increase of over 2.7% from the previous year. This revenue increase was despite the company facing some headwinds in the American market last year after the recent controversy regarding its best-selling brand Bud Light, which resulted in the iconic brand losing its crown as the Top-Selling Beer in America after nearly two decades.

AB InBev’s total production volume decreased by 0.6% during the first quarter of 2024, as growth in the majority of its markets was offset by its volume performance in Argentina, China, and especially the U.S. However, revenue per hectoliter still increased by 3.3% as a result of revenue management initiatives and premiumization. Underlying EPS also increased by 16% compared to last year, reaching $0.75.

Despite the slight decrease in overall volume, the company’s portfolio seems to be gaining momentum thanks to the continued strength of its core mega brands. The sales of Busch Light have stayed strong, Stella Artois has witnessed market share gains after the recent partnership with David Beckham, Michelob Ultra is expected to profit from the increasing popularity in the U.S., and even Bud Light, despite the recent setback, has remained among the top four or five brands in most U.S. markets by sales.

Anheuser-Busch InBev Sa/NV (NYSE:BUD) also maintains a strong position in the swiftly emerging non-alcoholic beer segment. In fact, it has recently scored a sponsorship for the upcoming Olympic Games, making it the first beer company ever to sponsor the grand event. The IOC specifically highlighted Corona Cero – the non-alcoholic version of the global best-seller Corona – as the beer of choice for the partnership, which will stretch from the upcoming Paris 2024 Summer Games to the Los Angeles 2028 Summer Games. The brewing giant has also partnered with brands such as Roland Garros, NBA, UFC, NFL, and even UFC to market its core beers, reflecting its broad marketing capabilities.

Among the 36 hedge funds in the IM database that had invested in the Top Brewery Stock in Q1 2024, the largest stake of 9.29 million shares was held by Fisher Asset Management, valued at over $564.8 million.