In this article, we are going to discuss the 8 best beer stocks to buy now,
The first solid proof of brewed beer dates back to the Sumerians, around 6,000 years ago. Beer consumption was an important marker of societal and civilized virtues in Sumerian society and archaeologists even unearthed an ode to Ninkasi, the Mesopotamian patron goddess of beer. Later, the ancient Egyptians perfected the art of brewing and worshiped Tjenenet, the Egyptian goddess of brewing. Although these ancient deities are no longer revered in the modern world, their legacy has withstood the sands of time. Today, beer is widely cherished all around the globe and is, in fact, the third-most popular drink overall, right after water and tea.
Also read: 25 Countries with the Highest Alcohol Consumption per Capita
Global Beer Market:
If your idea of relaxing at the end of the day involves cracking open a cold one, you’re not alone. Beer is the Most Consumed Alcohol in the World. As we mentioned in our article – Top 20 Beer Brands in the World – the global beer market is projected to grow from $821.39 billion in 2023 to $1.07 trillion by 2030, with a CAGR of 3.88% during the forecast period. The overall demand for premium and low-calorie beers, the rising popularity of craft brews, and the expansion of distribution networks in emerging markets are expected to continue driving growth in the global beer market over the next few years.
World Beer Output:
The global brewing industry was impacted by the generally difficult economic situation in 2023, so beer production worldwide fell to 1.88 billion hectoliters, representing a YoY decline of 0.9 %.
Peter Hintermeier, Managing Director of BarthHaas, commented:
“After we had managed to post modest growth in 2022 despite unfavorable conditions, we were expecting another small increase in 2023. However, energy, raw materials, packaging, logistics, and labor costs remained at a high level, which put pressure on the brewing business in many countries.”
The overall beer production in the US also fell by 5.6% to 193 million hl, making it the only beer-producing country in the Americas to witness a downturn in production volume.
Thomas Raiser, Managing Director of BarthHaas, stated the following about the future outlook of the global beer industry:
“The brewing industry is still feeling the effects of the war in Ukraine; companies throughout the entire supply chain are laboring under sustained high costs. Consumers in many countries are groaning under the burden of high inflation. We therefore only expect beer output to remain stable for the current year, but are unable to identify a clear trend for the future.”
State of the American Beer Industry:
Americans seem to be shifting away from the brew as beer consumption in the US in 2023 fell to its lowest level since the 1970s, according to the Brewers’ Association. The popularity of hard seltzers, the decline in demand for domestic ‘premium’ brands such as Coors Light, and the overall decrease in alcohol consumption are believed to be the major reasons behind the downturn. In fact, in 2022, the American spirits industry surpassed beer in revenue for the first time ever. The trend then continued in 2023, driven primarily by the spirits ready-to-drink (RTD) category. Nevertheless, the country’s major brewers were still in good financial health, thanks to rising prices and a consumer shift towards more expensive, often imported beers.
Moreover, there was some positive news from the increasingly popular non-alcoholic (NA) beer category, where the market continues to explode with more and more options every day. For the 52 weeks ending May 19, 2024, Circana data shows dollar sales of NA beers in the US totaled $400.8 million, a 29.1% increase from the previous year, with case sales also up 21.8%. In the past few years, brands such as Athletic, WellBeing, and Partake – all dedicated exclusively to non-alcoholic beer – have come onto the scene, while several brewing giants have also kept up with the trend and introduced NA options.
With that said, here are the Best Beer Stocks According to Hedge Funds.
A closeup shot of a beer tap pouring a golden lager.
Methodology:
To collect data for this article, we scanned Insider Monkey’s database of 900 hedge funds and picked the top 8 companies operating in the brewing sector with the highest number of hedge fund investors. When two or more companies had the same number of hedge funds investing in them, we ranked them by the revenue of their last financial year instead. Following are the Beer Stocks Held by the Most Hedge Funds.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
8. Tilray Brands, Inc. (NASDAQ:TLRY)
Number of Hedge Fund Holders: 16
The New York-based Tilray Brands, Inc. (NASDAQ:TLRY) has a highly diversified global portfolio – operating in more than 20 countries with businesses in medical adult-use cannabis, beverages, spirits, wellness products, and a vast array of consumer-connected lifestyle brands. The core business of Tilray Brands is cannabis and it is the number one cannabis business in Canada, the leading medical cannabis business across Europe, and the top branded hemp business in North America. The company has lately been very active in acquiring other industry players to expand its presence and the strategy seems to be paying off. For example, its acquisition of Redecan in June 2023 has helped it gain a strong footing in categories like pre-rolls, oils, and capsules. As a result, Redecan has now moved up to the number six position in Canada as reported by Hifyre data, and now the brand is also launching in Australia.
Tilray Brands, Inc. (NASDAQ:TLRY) forayed into the alcohol sector last year when it acquired eight beer and beverage brands from Anheuser-Busch InBev for an undisclosed amount, making it the 5th largest craft beer business in the US with a 4.5% market share. To further strengthen its craft portfolio, the company announced in August that it had agreed to acquire another four craft beer brands from Molson Coors – Hop Valley Brewing Company, Terrapin Beer Co., Revolver Brewing, and Atwater Brewery. Tilray has also diversified into spirits and earlier this year, its Breckenridge Distillery celebrated the wins of World’s Best Finished Bourbon, America’s Best Finished Bourbon, and Icons of Whisky Campaign Innovator of the Year: Highly Commended at the 2024 World Whiskies Awards.
This venture seems to be bearing fruit, as Tilray Brands, Inc. (NASDAQ:TLRY)’s alcohol business now accounts for 28% of its revenue. Overall, the company’s beverage segment, including craft beer, spirits, non-alcoholic beers, and other drinks grew 132% in net revenue YoY during the fiscal Q1 of 2025. In fact, Tilray Brands, Inc. (NASDAQ:TLRY) is now included among the 20 Largest Publicly-Traded Liquor Companies in the US.
At the end of Q3 of 2024, 16 hedge funds in the IM database held a stake in TLRY with a total value of $20.62 million, 36% more than the previous quarter.
7. Ambev S.A. (NYSE:ABEV)
Number of Hedge Fund Holders: 19
Ambev S.A. (NYSE:ABEV), formally Companhia de Bebidas das Américas, is a Brazilian brewing company that has now merged with Anheuser-Busch InBev. It offers beer under several brand names such as Skol, Brahma, etc, and claims to be the largest brewer in Latin America in terms of sales volume. Ambev also has a relationship with PepsiCo to bottle, sell, and distribute its products in many Latin American countries, including Brazil.
19 hedge funds tracked by IM held shares of Ambev S.A. (NYSE:ABEV) at the end of Q3 2024, with a total stake value of $522.4 million, a staggering 165% increase from the previous quarter.
With a deep-pocket owner like Ab InBev, an extensive distribution network, and a diverse product portfolio, Ambev S.A. (NYSE:ABEV) has been resilient in both local and international markets. In Q3 of 2024, the company’s brand strategy continued to work and its premium brands grew by more than 20% led by Corona, Spaten, and Original, all of which witnessed volume upticks of over 25%. The core plus brands grew in the low teens, led by Budweiser, which increased volumes by nearly 50%. This strong performance across various product categories highlights the company’s ability to meet diverse consumer preferences.
Over the last five years, Ambev has generated BRL 68 billion (over $11 billion) in free cash flow and it maintained this performance in Q3 2024, as it reported a cash flow of nearly $1.33 from operating activities. The company has returned over BRL 43 billion (approx. $7 billion) to shareholders since 2020 and recently, it approved a BRL 2 billion ($330 million) share buyback program, demonstrating its disciplined approach to capital allocation.
Wall Street analysts maintain a consensus Moderate Buy rating on ABEV, with an average price target of $3.43, representing an upside potential of 49.78%. Ambev S.A. (NYSE:ABEV) is placed among the Best Alcohol Stocks in the beer industry.
