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.
6. Diageo plc (NYSE:DEO)
Number of Hedge Fund Holders: 26
Diageo plc (NYSE:DEO) is a British multinational alcoholic beverage company with its headquarters in London, England. With a vast array of brands in over 180 countries, Diageo’s portfolio has remarkable breadth across the spirits and beer categories in a range of markets around the world. This provides the industry giant with a buffer against market volatility associated with luxury goods and also enables it to find opportunities to roll out more accessible product lines or bring innovation to the ‘everyday luxury’ segment. Moreover, the London-based company’s evolving strategy revolves around pivoting away from its ‘affordable luxury’ narrative towards a more conventional staples business model, demonstrating that Diageo has been adapting to broader industry trends, favoring stability and consistent performance over the potential volatility of luxury markets.
Also, despite the challenges, the company generated a strong free cash flow of $2.6 billion in FY 2024 (ending June 30th), up $0.4 billion from the previous year. Diageo plc (NYSE:DEO) is also one of the Best Alcohol Stocks for Dividends, as the company stood up to its reputation as a very reliable dividend payer for decades and increased its full-year dividend by 5%, maintaining its track record of dividend increases since fiscal year 2000.
Diageo plc (NYSE:DEO) has vehemently kept up with the rising non-alcoholic beer trend. Its Guinness 0.0 brand has achieved massive success in only four years since its launch and is already counted among the Best-Selling Non-Alcoholic Beers in the US. In fact, the NA offering has witnessed an almost 50% increase in sales between the end of February 2023 and the end of February 2024, according to Food Manufacture.
Aristotle Capital Management, LLC, an investment management company, said the following about DEO in its Q3 2024 investment letter:
“Headquartered in London, England, Diageo plc (NYSE:DEO) is a global leader in the alcoholic beverages industry. The company has a vast portfolio of over 200 well-recognized premium spirits (~80% of FY 2024 sales), beers (~15% and mostly Guinness) and other beverages (~5%) that are sold in nearly 180 countries. Led by its Johnnie Walker brand, Diageo is the world’s largest exporter of Scotch whiskey—its largest category at ~25% of sales—followed by other spirits such as tequila and vodka (~10% each). Diageo also owns a ~34% stake in the premium champagne and cognac maker Moët Hennessy (a subsidiary of LVMH Moët Hennessy Louis Vuitton).
The company is the product of the 1997 merger between Grand Metropolitan and Guinness and the subsequent divestiture of its food-related businesses. M&A continues to be a part of Diageo’s strategy, as regional brands often dominate local markets (which provides further opportunities for mergers and industry consolidation). Over the last decade, Diageo has also meaningfully increased its presence in the rapidly growing tequila market with the acquisitions of Don Julio and Casamigos…” (Click here to read the full text).
5. Anheuser-Busch InBev Sa/NV (NYSE:BUD)
Number of Hedge Fund Holders: 26
Anheuser-Busch InBev SA/NV (NYSE:BUD) maintained its dominance as the Largest Beer Company in the World in 2023, with a global production volume of 585 million hectoliters and a revenue of $59.38 billion, an increase of over 2.7% from the previous year. This revenue increase was despite the company facing some headwinds in the American market last year after the recent controversy regarding its best-selling brand Bud Light, which resulted in the iconic brand losing its crown as the Top-Selling Beer in America after nearly two decades. The company’s size and diversification give it some protection from a single brand falling out of favor. Despite the Bud Light setback, AB InBev’s overall beer portfolio gained volume share in the US in Q3 of 2024, driven by Michelob ULTRA and Busch Light, which were two of the top three volume share gainers in the industry.
With a strong presence in around 150 markets around the world, Anheuser-Busch InBev SA/NV (NYSE:BUD) benefits from its ability to use its scale to expand globally. Although its growth has recently remained flat in the US, the Budweiser-maker is gaining ground in other countries, delivering revenue growth in more than 60% of its markets in Q3. The company has also recently announced a $2 billion share buyback program to be executed within the next 12 months.
Anheuser-Busch InBev SA/NV (NYSE:BUD) continues to make progress in the NA category after its Bud Zero and Corono Cero brands gained massive popularity through partnerships with mega events like the Olympics and the FIFA World Cup 2022. The company gained market share of non-alcoholic beer in over 60% of its key markets in Q3 of 2024, with Corona Cero more than doubling both volumes and revenues.
Anheuser-Busch InBev SA/NV (NYSE:BUD) was held by 31 hedge funds at the end of Q3 2024, as per Insider Monkey’s database. The largest stake of over 10.3 million shares was held by Fisher Asset Management, valued at $683.25 million.
4. The Boston Beer Company, Inc. (NYSE:SAM)
Number of Hedge Fund Holders: 28
Next up in our list of the Best Alcohol Stocks is The Boston Beer Company, Inc. (NYSE:SAM), one of the largest American-owned brewing companies, best known for its line of all-malt beers under the brand name Samuel Adams.
The Boston Beer Company, Inc. (NYSE:SAM) declared in its Q3 2024 earnings call transcript that it had generated over $200 million in operating cash flow YTD and maintained a cash balance of $256 million at the end of the third quarter with no debt. The company also continues returning access cash to its shareholders. As such it had repurchased $191 million in shares this year by the end of Q3 and recently even expanded its share repurchase authorization by $400 million, bringing the repurchase agreement total to $1.6 billion.
As the craft beer market continues its decline, The Boston Beer Company, Inc. (NYSE:SAM)’s focus has been on diversifying its portfolio of products by including flavored malt and hard seltzers, among others. The company continues to see hard tea as an attractive category and its Twisted Tea Brand enjoys an 85% market share, with the most successful competitive brand limited to a low single-digit share in the market. However, Boston Beer Company’s hard seltzer category truly underperformed in Q3 as it declined 11% in volume in measured channels. The company has also kept up with the up-and-coming no-lo trend by launching a distinctly American light craft lager called Samuel Adams American Light.
At the end of Q3 2024, The Boston Beer Company, Inc. (NYSE:SAM) was held by 28 hedge funds in the IM database with a total investment value of $361.02 million, an increase of 24.1% from the previous quarter.
SouthernSun Asset Management LLC stated the following about The Boston Beer Company, Inc. (NYSE:SAM) in its Q1 2024 investment letter:
“In the near term, we believe the company will remain focused on sustaining Twisted Tea’s growth, turning Truly volume trends, improving operations to enhance gross margins, and thus providing more funds to invest in its core assets as a company – its brands and its sales force. Overall, we remain confident management’s efforts and investments are likely to produce profitable growth that will reward investors over time.”
3. Molson Coors Beverage Company (NYSE:TAP)
Number of Hedge Fund Holders: 34
Coming in at number 3 in our list of the Best Alcohol Stocks in 2024 is the Molson Coors Beverage Company (NYSE:TAP), a multinational beverage and brewing giant with a diverse portfolio that includes a variety of beer brands, spirits, and non-alcoholic beverages spread across the Americas, Europe, the Middle East, Africa, and the Asia Pacific.
The company produces a wide selection of beers in multiple price categories, going from core brands like Coors Light and Miller Light, premium brands like Madri and Blue Moon, right down to economy brands like Miller Higher Life, Keystone, and Icehouse. In terms of volume percentage growth, its Coors Banquet brand is the fastest-growing top 15 beer brand in the US this year so far.
The gains made by Molson Coors Beverage Company (NYSE:TAP) due to the Bud Light upset seem to be coming to an end, as the company revealed a decrease in net sales and volumes in Q3 2024, with consolidated net sales revenue down by 7.8% and US financial volume dropping by 17.9%. However, it must also be kept in mind that MC has consistently increased its revenue over the last 4 years, from $9.65 billion in 2020 to $11.7 billion in 2023, while the Bud Light controversy only happened last year.
Knowing the risks it faces in the current beer market landscape, Molson Coors Beverage Company (NYSE:TAP) is actively investing in its spirits portfolio and even acquired the cult favorite high-end Bourbon and rye whiskey brand, Blue Run Spirits, last year.
BofA Securities recently upgraded Molson Coors Beverage Company (NYSE:TAP) from Neutral to Buy and increased the price target to $70, up from the previous $57. Molson Coors also offers a fair dividend yield and has been active in share buybacks, resulting in a shareholder yield of approximately 6% if maintained. While TAP may not be a high-growth stock, it positions itself as a defensive investment that could perform relatively well during economic downturns.
2. Monster Beverage Corporation (NASDAQ:MNST)
Number of Hedge Fund Holders: 35
Monster Energy Beverage Corporation (NASDAQ:MNST) is an American beverage company that manufactures energy drinks including Monster Energy, Relentless, and Burn. It was announced in 2022 that the beverage giant had acquired the CANarchy Craft Brewery Collective in a deal worth $330 million. The acquisition gave Monster ownership of CANarchy’s craft breweries including Cigar City, Oskar Blues, Deep Ellum, Perrin Brewing, Squatters, and Wasatch.
In Q3 of 2024, Monster Energy Beverage Corporation (NASDAQ:MNST)’s revenue increased by 1% YoY while earnings per share shrank from $0.43 to $0.4. Both figures were slightly below Wall Street’s consensus estimates. While a globalized portfolio is beneficial to most firms, it also carries its risks and Monster took a significant revenue hit from the ongoing hyperinflation in Argentina. The company has cited foreign currency exchange rates as a persistent headwind.
However, Monster Energy Beverage Corporation (NASDAQ:MNST) remains the leading energy brand in value in countries like Argentina, Brazil, and Chile, and the firm also enjoys a sizable position in the US market, positioning it well for a recovery in consumer spending. To restart the stalled sales growth, Monster has recently launched several new drink flavors including Monster Energy Ultra Vice Guava and Oskar Blues NA beer in the US, Monster Ultra Peachy Keen in Mexico, and Monster Ultra Violet in Australia, among many more. During Q3, the company also purchased approximately 11.3 million shares of its common stock for a total amount of $534.7 million.
Monster Energy Beverage Corporation (NASDAQ:MNST) was held by 35 hedge funds at the end of Q3 2024. The largest stake of around 8.3 million shares was held by Broadwood Capital, valued at over $432.78 million.
1. Constellation Brands, Inc. (NYSE:STZ)
Number of Hedge Fund Holders: 36
Constellation Brands, Inc. (NYSE:STZ) continues to be the Best Alcohol Stock According to Hedge Funds, with 36 hedge fund holders in Q3 2024 boasting an overall stake value of over $1.14 billion. The New York-based company is involved in the production, import, marketing, and sale of beer, wine, and spirits across the United States, Canada, Mexico, New Zealand, and Italy. STZ also made headlines last summer when its Mexican beer brand, Modelo Especial, became the Best-Selling Beer in America after dethroning Bud Light.
Even after more than a year, there are no major signs of a slowdown. In Q2 2025, Constellation Brands, Inc. (NYSE:STZ)’s beer business (responsible for raking in the lion’s share of its revenue) continued to deliver strong financial performance with net sales and operating income growth of nearly 6% and 13%, respectively. Although the wine and spirits segment declined by 12% in net sales during the second quarter, it accounts for less than 10% of overall earnings. The company also returned almost $250 million of cash to shareholders through share repurchases during the quarter, bringing its total YTD cash returns through repurchases to approximately $450 million. Moreover, for the first half of FY 2025, CB generated free cash flow of $1.2 billion, a 12% increase from the prior period.
Another factor helping Constellation Brands, Inc. (NYSE:STZ) is that America’s Hispanic population (a segment that makes up over 50% of the company’s client mix) is growing almost twice as fast as its general population, so brands like Modelo, Pacifico, and Corona are expected to stay in high demand.
Coho Partners said the following about Constellation Brands, Inc. (NYSE:STZ) in its Q2 2024 investment letter:
“We are encouraged by the Constellation Board’s decision to eliminate the dual voting share class and reprioritize capital allocation away from acquisitions and towards returns to shareholders. With capital spending expected to decline and leverage near the company’s target, more cash flow should be available for shareholders. STZ is now focused on the higher growth and the higher margin premium beer category, which they dominate with Corona Extra, Modelo Especial, and Pacifico. Additionally, the Wine and Spirits business, which has been disappointing is no longer a meaningful part of STZ’s business as it now accounts for less than 10% of overall earnings. We expect STZ to deliver low double-digit growth in both earnings and dividends for many years to come, which is consistent with the Board’s recent approval of a 13.5% dividend hike.”
Overall, Constellation Brands, Inc. (NYSE:STZ) ranks first on our list of the best alcohol stocks. While we acknowledge the potential for STZ to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than STZ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
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