10 Best Liquor Stocks To Buy According to Short Sellers

4. Compañía Cervecerías Unidas S.A. (NYSE:CCU)

Short % of Shares Outstanding: 0.61%

Compañía Cervecerías Unidas S.A. (NYSE:CCU) is a beverage giant that operates in Chile, Peru, Argentina, Bolivia, Colombia, Paraguay, and Uruguay. The company is one of the largest players in each one of the beverage categories in which it participates and is best known for its highly popular Cristal brand in its home country of Chile.

Compañía Cervecerías Unidas S.A. (NYSE:CCU) reported mixed results in the third quarter of 2024 as organic volumes were down 6.9%, primarily due to weakened demand in Argentina, though it is starting to see a sequential improvement. However, the company’s Chilean segment saw a 7% revenue increase, driven by a hike in prices and improved volumes. The Wine Operating segment also posted a top line expansion of 3.3%, mostly due to a boost in volumes in the domestic market. All in all, CCU managed to achieve a net profit of CLP 29.55 billion (around $29.5 million) during the quarter, a significant 211% increase from the same period last year.

Compañía Cervecerías Unidas S.A. (NYSE:CCU) remains committed to expanding its footprint in the South American market and it was announced last month that the beverage giant, which distributes PepsiCo products in Chile, has struck a deal for its rights also in Paraguay. The company has acquired a 51% stake in Bebidas del Paraguay, Distribuidora del Paraguay, and AV, in association with Vierci Group. This marks the landlocked country of Paraguay as the second market where CCU holds the PepsiCo license, promising future growth and investment opportunities.

Compañía Cervecerías Unidas S.A. (NYSE:CCU) continues to expand its product line to respond to an ever-evolving demand and recently launched Escudo Maki, a limited-edition variety produced with wild maquis collected by an agricultural cooperative in the south of Chile. Moreover, its subsidiary CPCh launched ‘Hard Fresh: Hard Soda’, a 5% ABV ready-to-drink cocktail in response to the growing demand for low-alcohol options especially among the younger generations. CCU’s Mistral brand also recently launched Mistral Nobel Cristalino, a crystalline pisco, as a response to a growing trend.