10 Best Brewery and Distillery Stocks To Buy Now

Published May 4, 2023 at 5:08 pm EDT Updated August 31, 2026 at 8:43 pm EDT

In this article, we discuss 10 best brewery and distillery stocks to buy now.

The global beer market made significant progress in 2021, making up nearly half of the volume losses it experienced during the peak of the pandemic in 2020. Looking forward, IWSR predicts that the global beer market will return to pre-Covid levels within the next two years. Furthermore, by 2026, it is expected to surpass pre-pandemic levels by nearly 3%. Throughout the pandemic, wine, ready-to-drink beverages (RTDs), and spirits were not as heavily affected as beer due to the decline in on-trade establishments. As a result, these alternative alcoholic beverages gained market share. In many markets, still wine became a popular choice for “at-home” consumption during lockdowns, while RTDs and spirits capitalized on the growing trend of cocktails worldwide. Despite many brewers diversifying into other categories, they also continue to invest in their core beer brands, as per IWSR data.

The brewery and distillery industry is highly competitive, as indicated by search results from Grata, a private company intelligence engine, cited by Middle Market Growth. The results show that there are 16,559 companies operating in this sector, with 98% of them being privately owned. These companies vary in size and ownership, ranging from small, self-funded businesses run by families to larger enterprises backed by private equity or operating as private subsidiaries. Spencer Finney, partner at private equity firm Sage Capital, told Middle Market Growth on June 8, 2022:

“It’s a very competitive space, and the craft consumer is still an experimenter. They’re not super brand-loyal. They want to try a lot of different things.”

Finney also noted:

“There is a movement away from beer to more wine and liquor, and distilled spirits are definitely a big part of that.”

Don’t Miss: 10 Best Beverage Stocks to Buy Now

According to IWSR’s latest projections, the beer category is expected to maintain a strong position in 2023, with an estimated volume growth ranging between 1% and 2%. Despite the persisting macroeconomic and geopolitical challenges that bring uncertainty, there are still numerous opportunities for beer on a global scale. Although many markets are experiencing the effects of rising costs of living, IWSR predicts that beer, being considered an “affordable luxury,” will remain resilient as consumers choose to postpone more expensive purchases and continue to enjoy beer as a more accessible indulgence. Some of the best alcohol stocks to invest in include Constellation Brands, Inc. (NYSE:STZ), Brown-Forman Corporation (NYSE:BF-B), and Molson Coors Beverage Company (NYSE:TAP).

Our Methodology

We scanned Insider Monkey’s database of 943 hedge funds and picked the top 10 companies that operate in the brewing and distillery sector with the highest number of hedge fund investors. These are the best alcohol stocks to buy according to hedge funds.

Pixabay/Public Domain

Best Brewery and Distillery Stocks To Buy Now

10. Eastside Distilling, Inc. (NASDAQ:EAST)

Number of Hedge Fund Holders: 2

Eastside Distilling, Inc. (NASDAQ:EAST) has gained recognition for its innovative and high-quality spirits. The company focuses on creating unique and flavorful products by combining traditional distilling techniques with modern approaches. Their product lineup includes whiskeys, rums, vodkas, gins, and specialty spirits. On March 31, Eastside Distilling, Inc. reported a Q4 GAAP EPS of -$0.62 and a revenue of $2.31 million.

On May 9, 2022, Roth Capital analyst Sean McGowan initiated coverage of Eastside Distilling, Inc. with a positive outlook, giving it a Buy rating and setting a price target of $2.30. McGowan highlighted the company’s increased emphasis on canning and bottling operations, which includes the acquisition of a digital can printer. He noted that the growth in revenue will be primarily propelled by the Craft sector in the upcoming years. Furthermore, McGowan found Eastside Distilling, Inc.’s efforts to lower costs and enhance the balance sheet to be promising and encouraging.

According to Insider Monkey’s fourth quarter database, Ken Griffin’s Citadel Investment Group held 17,341 shares of Eastside Distilling, Inc., worth $4.2 million.

In addition to Constellation Brands, Inc., Brown-Forman Corporation, and Molson Coors Beverage Company, Eastside Distilling, Inc. is one of the top alcohol stocks to invest in.

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

Number of Hedge Fund Holders: 6

Compañía Cervecerías Unidas S.A. (NYSE:CCU) is a beverage company in Chile, Argentina, Bolivia, Colombia, Paraguay, and Uruguay. The company operates through three segments – Chile, International Business, and Wine. Compañía Cervecerías Unidas S.A. is one of the biggest brewers in Chile. It is one of the best alcohol stocks to invest in. On March 1, the company reported a Q4 GAAP EPS of CLP 126.80 and a revenue of CLP 768.36 billion.

On March 22, HSBC analyst Sorabh Daga increased the target price on Compañía Cervecerías Unidas S.A. from $13 to $16 while maintaining a Hold rating on the shares. The analyst believes that Compañía Cervecerías Unidas S.A. is encountering tougher competition in Chile. Nevertheless, the analyst assured investors that the beverage industry should benefit from reduced inflation and stabilized currency in Chile, leading to improved margins and profitability.

According to Insider Monkey’s fourth quarter database, 6 hedge funds were bullish on Compañía Cervecerías Unidas S.A., compared to 5 funds in the prior quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the largest stakeholder of the company, with 14.7 million shares worth $193 million.

8. Anheuser-Busch InBev SA/NV (NYSE:BUD)

Number of Hedge Fund Holders: 15

Anheuser-Busch InBev SA/NV (NYSE:BUD) manufactures, distributes, and sells beer and beverages. Its global beer brands include Budweiser, Corona, and Stella Artois. Anheuser-Busch InBev SA/NV operates numerous breweries worldwide and it is one of the best alcohol stocks to invest in.

On May 4, Anheuser-Busch InBev SA/NV reported a Q1 non-GAAP EPS of $0.65 and a revenue of $14.21 billion, outperforming Wall Street estimates by $0.03 and $160 million. For full-year 2023, the company anticipates that its EBITDA will increase according to the medium-term projections, which range between 4% and 8%. Additionally, BUD expects its revenue to outpace EBITDA growth due to a favorable combination of both higher sales volume and pricing.

According to Insider Monkey’s fourth quarter database, 15 hedge funds were bullish on Anheuser-Busch InBev SA/NV, with collective stakes worth $921 million, compared to 14 funds in the prior quarter worth $740 million. Ken Griffin’s Citadel Investment Group is the largest stakeholder of the company, with 1.3 million shares worth $80.3 million.

Here is what ClearBridge Investments Large Cap Growth Strategy has to say about Anheuser-Busch InBev SA/NV in its Q4 2021 investor letter:

“To make room for these new names and optimize the growth profile of the Strategy, we exited two additional positions during the quarter. We sold out of Anheuser-Busch InBev as we see too much work ahead for the world’s largest beer maker to re-ignite sales growth post COVID-19. While the company should benefit from a recovery in the on-premise channel, individual country complexities, the hedging of raw materials, and senior management turnover leave us more confident in the Strategy’s other reopening-related holdings.”

7. Ambev S.A. (NYSE:ABEV)

Number of Hedge Fund Holders: 16

Ambev S.A. (NYSE:ABEV), a Brazilian brewing company that has merged with Anheuser-Busch InBev, is involved in the manufacturing, distribution, and retail of beer, draft beer, carbonated soft drinks and non-alcoholic beverages, malt, and food products. On March 2, Ambev S.A. reported a Q4 non-GAAP EPS of R$0.33 and a revenue of R$22.69 billion, up 3.1% year-over-year. The company’s goal for FY 2023 is to achieve consolidated normalized EBITDA growth that surpasses the 17.1% growth it achieved in 2022.

On January 12, UBS analyst Rodrigo Alcantara raised the rating on Ambev S.A. from Sell to Buy, along with a revised price target of R$18, up from R$14. The analyst highlighted the company’s exceptional digital business-to-business (B2B) ecosystem, which has been overlooked. According to the analyst, Ambev S.A.’s Brazil EBITDA is expected to experience a turning point in the third quarter, leading to margin expansion and reaching 31% by 2024.

According to Insider Monkey’s fourth quarter database, 16 hedge funds were long Ambev S.A., compared to 17 funds in the prior quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the biggest stakeholder of the company, with 285.75 million shares worth $777.25 million.

Here is what First Eagle Investments Overseas Fund has to say about Ambev S.A. in its Q2 2022 investor letter:

“Brazilian brewer Ambev, a subsidiary of Anheuser-Busch InBev, posted better-than-expected earnings for its most recent reporting period driven by improvements in both pricing and volumes. Its stock declined during the quarter, however, weighed down by such Brazil-centric issues as a new wave of Omicron variant infections, high domestic inflation, and a weakened real and national elections in October. We were encouraged that Ambev continued to gain market share despite disruptions associated with Covid and the cancellation of Brazil’s Carnival festivities in April.”

6. Diageo plc (NYSE:DEO)

Number of Hedge Fund Holders: 23

Diageo plc (NYSE:DEO), an alcoholic beverage company based in London, is the owner of several distilleries. The company is responsible for manufacturing a majority of the total production of Scotch whisky and boasts a portfolio of over 24 brands, including Johnnie Walker, J&B, and Vat 69.

On April 18, Morgan Stanley analyst Pinar Ergun raised the firm’s price target on Diageo plc (NYSE:DEO) to 3,700 GBp from 3,600 GBp and kept an Equal Weight rating on the shares.

According to Insider Monkey’s fourth quarter database, 23 hedge funds held stakes worth $557.3 million in Diageo plc (NYSE:DEO), compared to 20 funds in the prior quarter worth $527.4 million. Tom Gayner’s Markel Gayner Asset Management is the biggest stakeholder of the company, with 1.35 million shares worth $240.6 million.

In addition to Constellation Brands, Inc., Brown-Forman Corporation, and Molson Coors Beverage Company, Diageo plc (NYSE:DEO) is one of the best alcohol stocks to watch.

Here is what ClearBridge Aggressive Growth Strategy has to say about Diageo plc (NYSE:DEO) in its Q2 2022 investor letter:

“Diageo is a leading global distiller and brewer which addresses the large ($500 billion-plus) and fragmented market for spirits. With its portfolio of premium products, we see Diageo as a steady compounder poised for sustained, above industry growth. The company’s margins remain below pre-COVID levels in a number of geographies and should continue to recover as channels reopen, though we also see opportunities for consistent margin expansion beyond this period of rebound. The spirits category is not immune to weaker consumer spending nor inflation; however the majority of Diageo’s profits are from the U.S. market, which has historically been more resilient. Additionally, the company has a number of margin levers to help combat rising input costs.”

5. The Boston Beer Company, Inc. (NYSE:SAM)

Number of Hedge Fund Holders: 23

The Boston Beer Company, Inc. (NYSE:SAM) is involved in the production and distribution of alcoholic beverages, primarily within the United States. The company’s renowned beer, Samuel Adams Boston Lager, serves as their flagship product. As one of the major brewers in the United States, The Boston Beer Company, Inc.’s offerings can be found both domestically and internationally. It is one of the top alcohol stocks to invest in. Although Q1 2023 results missed Wall Street estimates, the company expects a FY 2023 GAAP EPS of $6.00 to $10.00, while the consensus estimate is $7.81.

On April 28, Filippo Falorni, an analyst at Citi, revised the price target for The Boston Beer Company, Inc., reducing it from $340 to $330, while the analyst maintained a Neutral rating on the company’s shares. This adjustment in price target came after The Boston Beer Company, Inc. reported lower-than-expected earnings in the first quarter. Falorni is now awaiting further indications of stabilization in Truly trends before making further assessments.

According to Insider Monkey’s fourth quarter database, 23 hedge funds were bullish on The Boston Beer Company, Inc., compared to 29 funds in the earlier quarter. GLG Partners is a prominent stakeholder of the company, with 44,365 shares worth $14.6 million.

Here is what Artisan Mid-Cap Fund has to say about The Boston Beer Company, Inc. in its Q3 2021 investor letter:

“We ended our campaigns in Boston Beer Company. Boston Beer Company sells a focused portfolio of alcoholic beverage brands. In recent years, the company has emerged as one of the leaders in the hard seltzer category, which has grown over 150% in each of the past three years (2018-2020). Boston Beer’s Truly brand, the second-largest seller of hard seltzer, has benefited from this growth and was core to our investment thesis. However, the hard seltzer category’s growth has recently slowed to single digits, falling short of high investor expectations and pressuring Boston Beer’s earnings upside. Truly’s growth was core to our investment thesis, and a recovery is uncertain; thus, we ended our investment campaign.”

4. MGP Ingredients, Inc. (NASDAQ:MGPI)

Number of Hedge Fund Holders: 25

MGP Ingredients, Inc. (NASDAQ:MGPI) specializes in the production and distribution of distilled spirits, branded spirits, and food ingredients. Their operations span across the United States and international markets. The company operates through three distinct segments – Distillery Solutions, Branded Spirits, and Ingredient Solutions.

On February 2, Wells Fargo analyst Marc Torrente reiterated an Overweight rating on MGP Ingredients, Inc. but lowered the firm’s price target on the shares to $118 from $128. The reason for the share price decline is concerns about normalization within the category. However, Wells Fargo believes that MGP Ingredients, Inc.’s strategic position could help it withstand the current challenges better than the market is giving it credit for, despite tempering its sales outlook due to this issue.

According to Insider Monkey’s fourth quarter database, MGP Ingredients, Inc. was part of 25 hedge fund portfolios, compared to 19 in the prior quarter. Richard Driehaus’ Driehaus Capital is the biggest stakeholder of the company, with 477,203 shares worth $50.7 million.

Here is what Harding Loevner specifically said about MGP Ingredients, Inc. in its Q2 2022 investor letter:

“By region, our performance was aided by a renewed market preference for higher-quality small caps in the US, where the portfolio had its best stock selection. Shares of discount retailer Ollie’s Bargain Outlet rebounded from their first-quarter decline while shares of MGP Ingredients, Inc. reached an all-time high. Ollie’s expects to benefit from the excess inventory at other retailers given its focus on closeout merchandise. MGP Ingredients posted record growth and margin expansion on strong demand for its aged whiskey as well as specialty wheat starches and proteins used in food products.”

3. Molson Coors Beverage Company (NYSE:TAP)

Number of Hedge Fund Holders: 29

Molson Coors Beverage Company 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 company offers flavored malt products including hard seltzers, craft, and ready-to-drink beverages. Molson Coors Beverage Company is one of the best alcohol stocks to watch.

On May 2, Molson Coors Beverage Company reported a Q1 non-GAAP EPS of $0.54 and a revenue of $2.35 billion, outperforming Wall Street estimates by $0.28 and $120 million, respectively.

Bill Kirk, an analyst at Roth MKM, increased the target price for Molson Coors Beverage Company on May 3 from $62 to $75 and maintained a Buy rating on the company’s shares. The analyst highlighted Molson Coors Beverage Company’s strong Q1 earnings, noting that its volume performance, when adjusted for an additional selling day, exceeded that of previous quarters. Additionally, the company’s reaffirmed guidance does not take into account the market share gains experienced by Miller Lite and Coors Light at the expense of Bud Light, according to the research note provided to investors by the analyst.

According to Insider Monkey’s fourth quarter database, 29 hedge funds were bullish on Molson Coors Beverage Company, compared to 34 funds in the prior quarter. Cliff Asness’ AQR Capital Management is the largest stakeholder of the company, with nearly 2 million shares worth $99 million.

Here is what Argosy Investors has to say about Molson Coors Beverage Company in its Q2 2021 investor letter:

“TAP (+52% from August 2020 purchase to sale) was never intended to be a core position. I expected a couple of years of deleveraging and perhaps some excitement around the hard seltzer category, but the stock price increased faster than I expected. I have not fully exited these positions as I rarely do all in one trade, but hopefully this gives some perspective into my thinking on selling so quickly.”

2. Brown-Forman Corporation (NYSE:BF-B)

Number of Hedge Fund Holders: 36

Brown-Forman Corporation engages in the production, distillation, bottling, import, export, marketing, and sale of a wide range of alcoholic beverages. This includes spirits, wines, whiskey spirits, flavored liqueurs based on whiskey, pre-mixed and pourable products, cocktails, vodkas, tequilas, champagnes, brandy, bourbons, and liqueurs. It is one of the best alcohol stocks to invest in. In Q4 2022, Brown-Forman Corporation reported a revenue of $1.08 billion, up 3.8% year-over-year, beating market estimates by $60 million.

On October 10, Gerald Pascarelli, an analyst at Wedbush, initiated coverage of Brown-Forman Corporation with a Neutral rating and a price target of $70. This assessment is part of a comprehensive research note on the Alcoholic Beverages sector. The analyst acknowledged that the company is well positioned to take advantage of long-term industry trends, such as gaining market share in the spirits sector and the strong performance of bourbon. However, the analyst expressed caution regarding the near-term outlook.

According to Insider Monkey’s fourth quarter database, 36 hedge funds were long Brown-Forman Corporation, and Terry Smith’s Fundsmith LLP is the biggest stakeholder of the company, with 12 million shares worth $797.80 million.

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

Number of Hedge Fund Holders: 42

Constellation Brands, Inc. is involved in the production, importation, marketing, and sale of beer, wine, and spirits across the United States, Canada, Mexico, New Zealand, and Italy. The company has made several acquisitions of breweries and distilleries throughout its history. It is one of the premier alcohol stocks to invest in.

On April 6, Constellation Brands, Inc. declared a $0.89 per share quarterly dividend, an 11.3% increase from its prior dividend of $0.80. The dividend is payable on May 18, to shareholders of record on May 4.

Barclays on April 11 maintained an Overweight rating on Constellation Brands, Inc. but reduced the price target on the shares from $279 to $277. According to Barclays, Constellation Brands, Inc. anticipates high single-digit growth for its beer business in fiscal 2024. However, the company intends to place a stronger emphasis on operational efficiencies compared to previous periods. Barclays considers this approach as “smart growth.”

According to Insider Monkey’s fourth quarter database, 42 hedge funds were bullish on Constellation Brands, Inc., compared to 43 funds in the earlier quarter. D E Shaw is the largest stakeholder of the company, with 579,915 shares worth $134.4 million.

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out 15 Biggest Companies in Pakistan by Market Cap and 12 Best Video Game Stocks to Buy Now.