10 Best Alcohol Stocks To Own According to Hedge Funds

7. The Boston Beer Company, Inc. (NYSE:SAM)

Number of Hedge Fund Holders: 27

Next up in our list of the Top Alcohol Stocks is The Boston Beer Company, Inc. (NYSE:SAM), one of the largest American-owned brewing companies, best known for its line of all-malt beers under the brand name Samuel Adams.

As the craft beer market continues its decline, the company’s focus has been on diversifying its portfolio of products by also including flavored malt and hard seltzers, etc. One of TBBC’s core brands, Twisted Tea, posted strong growth in the second quarter of 2024 with dollar sales up by 15.1% and increased dollar share of FMBs by 1.6 share points while increasing shelf space by approximately 30% over the prior year period. However, the performance in the hard seltzer category was dismal, down 14.9% in volume with Truly declining 22.8% and losing 2.1 share points. The company has also kept up with the up-and-coming no-lo trend by launching a distinctly American light craft lager called Samuel Adams American Light.

SouthernSun Asset Management LLC also highlighted the growth potential for The Boston Beer Company, Inc. (NYSE:SAM)’s Twisted Tea in its Q1 investment letter:

“In the near term, we believe the company will remain focused on sustaining Twisted Tea’s growth, turning Truly volume trends, improving operations to enhance gross margins, and thus providing more funds to invest in its core assets as a company – its brands and its sales force. Overall, we remain confident management’s efforts and investments are likely to produce profitable growth that will reward investors over time.”

The number of hedge funds in the Insider Monkey database invested in The Boston Beer Company, Inc. (NYSE:SAM) increased from 26 in Q1 to 27 in Q2 of 2024, with their overall stake value exceeding $290.8 million.