5 Best Brewery and Distillery Stocks To Buy Now

In this article, we discuss 5 best brewery and distillery stocks to buy now. If you want to see more stocks in this selection, check out 10 Best Brewery and Distillery Stocks To Buy Now. 

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. (NYSE:SAM)’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. (NYSE:SAM), 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. (NYSE:SAM) 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. (NYSE:SAM), 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. (NYSE:SAM) 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. (NASDAQ:MGPI) 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. (NASDAQ:MGPI)’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. (NASDAQ:MGPI) 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. (NASDAQ:MGPI) 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. (NASDAQ:MGPI) 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 (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 company offers flavored malt products including hard seltzers, craft, and ready-to-drink beverages. Molson Coors Beverage Company (NYSE:TAP) is one of the best alcohol stocks to watch. 

On May 2, Molson Coors Beverage Company (NYSE:TAP) 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 (NYSE:TAP) on May 3 from $62 to $75 and maintained a Buy rating on the company’s shares. The analyst highlighted Molson Coors Beverage Company (NYSE:TAP)’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 (NYSE:TAP), 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 (NYSE:TAP) 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 (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, 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 (NYSE:BF-B) 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 (NYSE:BF-B) 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 (NYSE:BF-B), 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. (NYSE:STZ) 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. (NYSE:STZ) 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. (NYSE:STZ) but reduced the price target on the shares from $279 to $277. According to Barclays, Constellation Brands, Inc. (NYSE:STZ) 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. (NYSE:STZ), 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.