12 Best Brewery Stocks to Buy According to Hedge Funds

3. Monster Beverage Corporation (NASDAQ:MNST)

Number of Hedge Fund Holders: 35

Next in our list of the Best Alcohol Stocks is one of the biggest names in the global energy drinks market, Monster Beverage Corporation (NASDAQ:MNST), known for brands like Monster Energy, Relentless, and Burn.  The American beverage forayed into the beer sector in 2022 when it acquired the CANarchy Craft Brewery Collective in a deal worth $330 million. The acquisition gave Monster ownership of CANarchy’s craft breweries including Cigar City, Oskar Blues, Deep Ellum, Perrin Brewing, Squatters, and Wasatch.

Monster Beverage Corporation (NASDAQ:MNST) is facing challenges in its home country, as the energy drinks market in the US has shown signs of weakness. However, despite these issues, the company has managed to improve its market share in the domestic market both in volume and dollar terms, indicating that Monster’s brand strength and aggressive marketing strategies are effective in maintaining its competitive edge.

Monster Beverage Corporation (NASDAQ:MNST)’s globalization strategy also seems to be paying off as international sales now account for approximately 40% of its total revenue. The geographic diversification also reduces the company’s reliance on the tough domestic market, where it faces increasing competition from local brands. Monster’s partnership with Coca-Cola’s global distribution network also provides it with a significant competitive edge in international markets. However, while a globalized portfolio is beneficial to most firms, it also carries its risks and Monster took a significant revenue hit from the ongoing hyperinflation in Argentina.

Monster Beverage Corporation (NASDAQ:MNST) also remains committed to innovation and has recently launched several new drink flavors including Monster Energy Ultra Vice Guava and Oskar Blues NA beer in the US, Monster Ultra Peachy Keen in Mexico, and Monster Ultra Violet in Australia, among many more.

Monster Beverage Corporation (NASDAQ:MNST) still needs time to develop its beer business though, as net sales of its Alcohol Brands segment declined by 6% in Q3 of 2024, primarily due to the decreased sales by volume of craft beers. That said, the company remains committed to returning value to its shareholders and repurchased $534.7 million worth of its common stock during the quarter.