10 Best Alcohol Stocks To Own According to Hedge Funds

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

Number of Hedge Fund Holders: 31

Anheuser-Busch maintained its dominance as the Largest Beer Company in the World in 2023, with a global production volume of 585 million hectoliters and 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.

Anheuser-Busch InBev SA/NV (NYSE:BUD) witnessed a slight decrease in volume during the first half of 2024, as it fell by 0.7% to 285.8 million hectoliters. The company’s volume growth in the Middle Americas, South America, Europe, and Africa regions was primarily offset by performance in Argentina and China. However, the Bud Light brewer’s revenue grew 2.7% to $29.9 billion but still fell short of analysts’ estimates. Meanwhile, normalized EBITDA beat Wall Street expectations and rose 7.8% to $10.3 billion.

Anheuser-Busch is a global company with a portfolio of over 500 brands and a strong presence in around 150 markets around the world. The company benefits from its ability to use its scale to expand globally and although its growth has recently remained flat in the US, the Budweiser maker is growing aggressively in countries like Colombia, Mexico, and Brazil.

Michael Doukeris, the CEO of Anheuser-Busch InBev SA/NV (NYSE:BUD), stated the following in the company’s Q2 2024 earnings call transcript:

“Our global momentum continued this quarter with revenue growth in more than 65% of our markets. Bottom line increases in four of our five operating regions and margin expansion in all five regions. Our scale and diverse geographic footprint has been driving consistent results and has us well placed to deliver superior long-term value creation.”

Keeping up with the modern trends, AB InBev is also investing heavily in the non-alcoholic beer category, with its Bud Zero brand being one of the Most Popular Non-Alcoholic Beer Brands in the world. In fact, Anheuser-Busch InBev SA/NV (NYSE:BUD) even managed to score a sponsorship for the recently held 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 Paris 2024 Summer Games to the Los Angeles 2028 Summer Games. Notably, the company has also partnered with brands such as Roland Garros, NBA, NFL, and even UFC to market its core beers, reflecting its broad marketing capabilities. AB InBev has set the ambitious goal of ensuring that low- or no-alcohol beer products make up at least 20% of its global beer volume by 2025.