In this article, we are going to discuss the 5 best alcohol stocks to own according to hedge funds. If you want to check out our detailed analysis of the global alcohol industry, the rise of RTDs, and the recent shifts in the global alcohol market, head to 12 Best Alcohol Stocks to Own According to Hedge Funds.
5. Diageo plc (NYSE:DEO)
Number of Hedge Fund Holders: 25
Diageo plc (NYSE:DEO) is a British multinational alcoholic beverage company with its headquarters in London, England. The company is a major distributor of Scotch whisky and other spirits and operates from 132 sites around the world. As of April 2023, Diageo plc (NYSE:DEO) is the 6th Largest Beverage Company in the World. On the 13th of September 2023, Jefferies analyst Edward Mundy maintained his Neutral rating on the stock.
Warren Buffett had a position in the company in the first quarter of 2023 with 227,750 shares worth $39.510 million and his position in the company remained unchanged in the second quarter. In Q2, Diageo plc (NYSE:DEO) represented 0.1% of Berkshire Hathaway’s portfolio. The most prominent stakeholder in the company in Q2 was Markel Gayner Asset Management with 1.35 million shares, worth $234.23 million.
4. Brown-Forman Corporation (NYSE:BF-B)
Number of Hedge Fund Holders: 30
Brown-Forman Corporation (NYSE:BF-B) engages in the production, distillation, bottling, import, export, marketing, and sale of a wide range of alcoholic beverages. This includes spirits, wines, whiskeys, flavored liqueurs based on whiskey, pre-mixed and pourable products, cocktails, vodkas, tequilas, champagnes, brandy, bourbons, and liqueurs.
Brown Forman fell short of Wall Street expectations for its first quarter of fiscal 2024, plagued by lagging whiskey sales, supply challenges, and a significant inventory rebuild. The company reported Q1 revenue of $1.04 billion against the expectations of $1.05 billion, with EPS of $0.48 against expectations of $0.53.
Shares of Brown-Forman Corporation (NYSE:BF-B) were held by 30 hedge funds at the end of Q2 in the Insider Monkey database, with Fundsmith LLP holding the largest stake of over 12.19 million shares, valued at $814.41 million.
3. Molson Coors Beverage Company (NYSE:TAP)
Number of Hedge Fund Holders: 40
Molson Coors Beverage Company (NYSE:TAP) is a multinational beverage and brewing company that engages in the production, marketing, and sale of beer and malt beverage products across multiple regions including the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The Molson Coors Beverage Company (NYSE:TAP) experienced its best quarter of reported net sales revenue since the merger of Molson and Coors in 2005, the company announced on August 1st 2023.
The Molson Coors Beverage Company (NYSE:TAP) grew the top and bottom line by double digits in the second quarter, and volume and share grew in the U.S., Canada and the U.K. Its results were bolstered by increased demand for its premium light brands in the U.S., as well as strong performances by its flavor and above premium options in North America and abroad.
Compared to the second quarter last year, net sales grew by 12.1% to $3.26 billion on a constant currency basis. Underlying pre-tax net income rose 52.6% to $502.2 million, up from $328.1 million, while earnings per share, on a diluted basis, increased 49.6% to $1.78.
2. Monster Beverage Corporation (NASDAQ:MNST)
Number of Hedge Fund Holders: 44
Monster Beverage Corporation (NASDAQ:MNST) is an American beverage company that manufactures energy drinks including Monster Energy, Relentless, and Burn. It was announced last year that Monster Beverage had acquired the Canarchy Craft Brewery Collective, in a deal worth $330 million. The acquisition gave the company ownership of Canarchy’s craft breweries including Cigar City, Oskar Blues, Deep Ellum, Perrin Brewing, Squatters, and Wasatch.
The beverage giant spent the early weeks of 2023 rolling out a line of alcoholic beverages. Called ‘The Beast Unleashed’, the drinks are made with malt alcohol and contain 6% alcohol by volume, though no caffeine or energy-inducing ingredients.
Monster Beverage Corporation (NASDAQ:MNST) met market expectations and reported EPS of $0.39 for Q2 of 2023. Rodney Sacks, co-CEO of Monster Beverage, said the following at the Q2 Earnings Call Transcript:
“The company achieved record second quarter net sales of $1.85 billion in the 2023 second quarter, 12.1% higher than net sales of $1.66 billion in the 2022 comparable period, and 14.4% higher on a foreign currency adjusted basis. Gross profit as a percentage of net sales for the 2023 second quarter was 52.5% compared with 47.1% in the comparative 2022 second quarter. The increase in gross profit as a percentage of net sales for the 2023 second quarter as compared to the 2022 second quarter was primarily the result of pricing actions, decreased operating costs and increased aluminum can costs.”
1. Constellation Brands, Inc. (NYSE:STZ)
Number of Hedge Fund Holders: 48
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. Constellation Brands made headlines this summer when its Mexican beer brand, Modelo Especial, became the Top-Selling Beer in America after dethroning Bud Light.
The company will be looking to display strength as it nears its next earnings release. According to Zacks Investment Research, based on 9 analysts, the consensus EPS forecast for Constellation Brands, Inc. (NYSE:STZ) for the quarter ending August 2023 is $3.37. The reported EPS for the same quarter last year was $3.17.
Shares of STZ were held by 48 out of 910 hedge funds in the Insider Monkey database at the end of the company’s Q2, with Holocene Advisors holding the largest stake of 796,935 shares, valued at $196.15 million. Constellation Brands, Inc. (NYSE:STZ) is the best alcohol stock to invest in according to hedge funds.
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