Beer Loses Fizz as Spirits Gain Popularity: Top 10 Stocks to Buy

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

Number of Hedge Fund Investors  in Q1 2024: 36

Anheuser-Busch InBev SA/NV (NYSE:BUD) is one of the biggest beer companies in the world, with close to five hundred beer brands in its portfolio. Similar to its beers like Molson Coors, Anheuser-Busch InBev SA/NV (NYSE:BUD)’s performance depends on its ability to hold market share, ship volumes, keep costs under control, and grow market share in emerging markets. Since it has managed to recover well from the Bud Light controversy and actually gained market share as of late, Anheuser-Busch InBev SA/NV (NYSE:BUD)’s stock is down by just 5.5% year to date and stemmed losses when compared to Coors. Additionally, while the firm’s growth is relatively flattish in the US, it is growing aggressively in countries like Colombia, Brazil, and South America. Anheuser-Busch InBev SA/NV (NYSE:BUD) benefits from its ability to use its scale to expand globally, and the stock’s performance should depend on this to a large extent.

Anheuser-Busch InBev SA/NV (NYSE:BUD)’s management commented on its US beer performance during the Q2 2024 earnings call. Here is what the firm said:

“In the U.S., the beer industry remained resilient, gaining share of total alcohol by value in the off-premise. Our beer market share was flattish as we cycled a challenge comparable in April, while we gained volume share of the industry in May and June. Our improved market share trend, ongoing premiumization and productivity initiatives drove EBITDA growth of 17.5% with a margin improvement of approximately 500 bps. The rebalancing of our portfolio for growth continued with 45% of our revenues now coming from our above core beer and beyond beer portfolio.”