12 Best Brewery Stocks to Buy According to Hedge Funds

2. Constellation Brands, Inc. (NYSE:STZ)

Number of Hedge Fund Holders: 36

Constellation Brands, Inc. (NYSE:STZ) is involved in the production, import, marketing, and sale of beer, wine, and spirits across the United States, Canada, Mexico, New Zealand, and Italy. The company made headlines last summer when its Mexican beer brand, Modelo Especial, became the Best-Selling Beer in America after dethroning Bud Light.

Constellation Brands, Inc. (NYSE:STZ)’s beer business continues to flourish and in Q2 2025, its beer segment (responsible for raking in the lion’s share of its revenue) continued to deliver strong financial performance with net sales and operating income growth of nearly 6% and 13%, respectively. Its core brands continued their growth during the quarter as Modelo Especial grew by 11%, while Pacifico surged by 21%. In addition to the sales uptick, the beer segment has also been witnessing a consistent improvement in margin expansion, highlighting the company’s ability to drive profitability alongside volume growth.

Another factor favoring Constellation Brands, Inc. (NYSE:STZ) is that America’s Hispanic population (a segment that makes up over 50% of the company’s client mix) is growing almost twice as fast as its general population, so brands like Modelo, Pacifico, and Corona are expected to stay in high demand.

The wine and spirits segment of Constellation Brands, Inc. (NYSE:STZ) continues to suffer and saw its net sales decline by 12% during the second quarter. Though it only accounts for less than 10% of overall earnings, the company recently wrote down the value of its wine and spirits business, taking a $2.5 billion charge. It was announced earlier this month that Constellation will sell its Svedka vodka to Sazerac, as the Corona maker looks to focus on premiumizing its wine and spirits portfolio.

Since its core beer brands come from across the southern border, Donald Trump’s 25% tariff on imports from Mexico could pose a serious threat to the continued growth of Constellation Brands, Inc. (NYSE:STZ). Hence, the company is making sure it has adequate inventory in place here before the President-elect takes office. It is also assessing cutting costs elsewhere to absorb the tariffs, or incrementally raising its prices, but that will come with its risks.