5 Best Liquor Stocks to Buy Now

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

Number of Hedge Fund Holders: 33

Brown-Forman Corporation (NYSE:BF-B) is a Louisville, Kentucky-based spirits and wine company.

Brown-Forman Corporation (NYSE:BF-B) has a bright future outlook due to its strong growth strategies. The maker of Jack Daniel’s has partnered with the Coca-Cola Company (NYSE:KO) in expanding its footprint in the ready-to-drink alcohol market. Both corporations will join efforts to launch the “Jack & Coke” canned cocktail later this year. It is a widely known bar cocktail that will come in regular and zero-sugar versions. Mexico will be the debut market for the product. The drink would have an alcohol by volume (ABV) of 5%.

Furthermore, Brown-Forman Corporation (NYSE:BF-B) has highlighted India as an emerging market and is focused on expanding its footprint in tier two cities by investing actively in brand building.

Lindsell Train presented its insights on Brown-Forman Corporation (NYSE:BF-B) in its Q4 2021 investor letter:

“Such growth indicates that it’s not mass market tequila shots driving the boom but rather exquisitely crafted Palomas and complex fine sipping tequilas served over ice or even neat. The global rise of interest in cocktails – itself another indicator of consumer tastes turning towards quality over quantity – has been kind to tequila, with the 2021 Bacardi Global Brand Ambassador Survey placing it as the top trending spirit for 62% of global bartenders (rising to 76% in the US) and tequila-based cocktails now ranking 4 of 30 in popularity. We recognise that trends and “booms” have long been a feature of the spirits market, but arguably the combination of demographic behavioural changes and the increased emphasis on truly differentiated flavours as well as heritage and provenance might make shifts like this more durable than in previous years. So we were impressed with our Global portfolio holding Brown-Forman’s 20% growth in tequila volumes in 2021; and despite raised eyebrows at the 2017 Casamigos purchase price of $1bn, we’re pleased that Diageo owns this superpremium tequila and has managed to grow case sales from just 170,000 in 2017 to 1m in 2020. And even more importantly, I did happen to notice in the course of my, er, extensive research that Casamigos has now been immortalised by Claridge’s in a new cocktail named – what else? – “The George”.”

Overall, 33 funds held a stake in Brown-Forman Corporation (NYSE:BF-B) as of Q1 2022.