Top 10 Alcohol Stocks to Invest In (2024)

Want to diversify your portfolio with alcohol stocks?

That might be a good idea. 

But is it the best way to invest in spirits and wine? 

Will these stocks guarantee you consistent growth even during economic downturns?

The truth is that investing in alcohol stocks may not be as straightforward as grabbing a pint of your favorite beer!

But don’t worry — we’ll show you 10 of the best-performing alcohol and wine stocks and the pros and cons of investing in liquor stocks. You’ll also discover a smarter and hassle-free way to invest in the attractive wine market!

What Are Alcohol Stocks?

Alcohol stocks are the stocks of alcoholic beverage companies that make and distribute beer, wine, and spirits. 

They fall into a category called “sin stocks” (similar to a vice fund), which includes marijuana stocks, tobacco stocks, gambling, and weapons manufacturers.

What are the best alcohol and wine stocks to add to your portfolio?

10 Best Alcohol Stocks to Invest In (2024)

Here’s a handpicked list of liquor stocks that could give you attractive returns: 

1. Constellation Brands (NYSE: STZ)
2. Brown Forman Corporation (NYSE: BF.B, BF.A)
3. Diageo (NYSE: DEO)
4. Pernod Ricard SA (EPA: RI)
5. LVMH Moet Hennessy Louis Vuitton SE (EPA: MC)
6. MGP Ingredients (NASDAQ: MGPI)
7. Rémy Cointreau SA (EPA: RCO)
8. Boston Beer (NYSE: SAM)
9. Molson Coors Beverage (NYSE: TAP)
10. Willamette Valley Vineyard (NASDAQ: WVVI)

1. Constellation Brands (NYSE: STZ)

Constellation Brands is a beer, wine, and spirits producer headquartered in New York, USA. It’s also one of the biggest liquor companies in North America.

This firm has over 100 popular brands in its portfolio, including wine brand labels like Robert Mondavi, Wild Horse Winery, Opus One, Ravenswood Winery, and Clos du Bois.

Constellation Brands, Inc also owns beer brands like Corona, Modelo Especial, and Pacífico. Its other popular alcoholic beverage brands include Svedka Vodka, Casa Noble Tequila, and High West Whiskey.

It has a 38.6% stake in the cannabis company Canopy Growth.

Interestingly, its revenue increased by 2.39% since 2021, and the operating free cash flow has been up 6.98% since 2020.

Historical Stock Price Performance Chart

Source: Google Finance

• P/E ratio (TTM): N/A
• Earnings per share (EPS): - 1.47
• Dividend yield: 1.33%
• Market cap: $49.06 billion

Company Fundamentals (2024)

• Revenue: $9.45 billion
• Operating expense: $1.86 billion
• Net profit margin: -0.75

2. Brown Forman Corporation (NYSE: BF.B)

Brown Forman is a spirits and wine company with a presence in more than 170 countries. It has a large product portfolio focused on whiskey, vodka, and tequila. 

Its popular brands include Jack Daniel (the flagship brand), Herradura, Woodford Reserve, El Jimador, and Finlandia.

The Brown Forman Corporation stock has an impressive 30-year track record of dividend growth — thanks to the strong brand value and resiliency to recessions.

Compared to slower-growing competitors like Compania Cervecerias Unidas (CCU), Brown-Forman has higher earnings growth forecast over the next few years (at least 7%).

Historical Stock Price Performance Chart

Source: Google Finance

• P/E ratio (TTM): 42.11
• Earnings per share: 1.63
• Dividend yield: 1.17%
• Market cap: $33.12 billion

Company Fundamentals (2024)

• Revenue: $4.23 billion
• Operating expense: $1.26 billion
• Net profit margin: 18.52

3. Diageo PLC (NYSE: DEO)

Diageo PLC, headquartered in London, is the world’s largest liquor distributor and the second-largest distiller. This alcohol company has more than 140 sites around the globe.

Diageo’s notable brands include Johnnie Walker, Crown Royal, J&B, Smirnoff, Baileys, Ketel One, and Captain Morgan. The firm sold its food operations, including Pillsbury and Burger King, in 2000.

The broad Diageo beer and spirits portfolio appeals to both emerging and developing markets.

Diageo has shown consistent revenue growth, a growing stock price, and a 220% dividend per share increment over the last 20 years (until the coronavirus-induced downturn). In the first half of 2022, it had a net income (or net profit) of $1.28 billion.

Historical Stock Price Performance Chart

Source: Google Finance

• P/E ratio (TTM): 21.59
• Earnings per share: 8.02
• Dividend yield: 2.11%
• Market cap: $97.59 billion

Company Fundamentals (2024)

• Revenue: $17.11 billion
• Operating expense: $4.98 billion
• Net profit margin: 21.82

4. Pernod Ricard SA (EPA: RI)

Pernod Ricard SA is a French-based wine and spirits company best known for its aperitifs — Pernod Anise and Ricard Pastis. It’s the third-largest wine and liquor seller after Diageo and United Spirits Ltd.

The sales of this alcohol company grew by an ímpressive 20% in the third quarter of the 2022 fiscal year.

Historical Stock Price Performance Chart

Source: Google Finance

• P/E ratio (TTM): 21.21
• Earnings per share: 9.31
• Dividend yield: 2.35%
• Market cap: $50.08 billion

Company Fundamentals (2022)

• Revenue: $11.57 billion
• Operating expense: $3.74 billion
• Net profit margin: 18.65

5. LVMH Moet Hennessy Louis Vuitton SE (EPA: MC)

LVMH (Loius Vuitton - Moet Hennessy) is a French conglomerate specializing in luxury goods and alcoholic beverages. 

This company was founded in 1987 and is now the official distributor of luxury brands like Dior, Sephora, and Fendi. It also owns alcohol brands like Dom Perignon, Hennessy, and Cheval Blanc.

Historical Stock Price Performance Chart

Source: Google Finance

• P/E ratio (TTM): 28.87
• Earnings per share: 28.01
• Dividend yield: 1.44%
• Market cap: $403.97 billion

Company Fundamentals (2022)

• Revenue: $85.60 billion
• Operating expense: $35.87 billion
• Net profit margin: 17.79

6. MGP Ingredients (NASDAQ: MGPI)

MGP Ingredients has an established portfolio of premium alcohol brands. It sells mainly hard liquor like vodka, gin, and whiskey.

In 2021, it merged with Luxco Inc. — a renowned distilled spirits producer.

MGP Ingredients’ gross profit increased by 20% in the fourth quarter of 2022.  

Historical Stock Price Performance Chart

Source: Google Finance

• P/E ratio (TTM): 26.25
• Earnings per share: 4.62
• Dividend yield: 0.39%
• Market cap: $2.67 billion

Company Fundamentals (2022)

• Revenue: $782.36 million
• Operating expense: $104.34 million
• Net profit margin: 13.99

7. Rémy Cointreau SA (EPA: RCO)

Rémy Cointreau is a French family-owned company with a diverse portfolio of spirits like Remy Martin, Cointreau, The Botanist, and Bruichladdich. The company acquired J. de Telmont (a Champagne house) and Maison de Cognac J.R. Brillet (a Cognac producer) in 2020. 

The firm’s revenue increased by 15.52% in 2022. 

Historical Stock Price Performance Chart

Source: Google Finance

• P/E ratio (TTM): 26.48
• Earnings per share: 5.70
• Dividend yield: 1.29%
• Market cap: $7.80 billion

Company Fundamentals (2024)

• Revenue: $1.68 billion
• Operating expense: $728.84 million
• Net profit margin: 18.97

8. Boston Beer (NYSE: SAM)

Boston Beer Company is headquartered in Boston, Massachusetts, and was founded by James Koch in 1984. 

It specializes in craft beer, hard cider, and hard seltzer. The main alcohol brands in its portfolio are Samuel Adams, Twisted Tea, Angry Orchard, and Truly Hard Seltzer. 

The Boston Beer Company stock has a “hold” rating and a price target of $307.75.

Historical Stock Price Performance Chart

Source: Google Finance

• P/E ratio (TTM): 72.85
• Earnings per share: 4.96
• Dividend yield: N/A
• Market cap: $4.43 billion

Company Fundamentals (2022)

• Revenue: $2.09 billion
• Operating expense: $735.93 million
• Net profit margin: 3.22

9. Molson Coors Beverage (NYSE: TAP)

Chicago-based Molson Coors Beverage Company was established in 2005 and is the merger of Molson of Canada (founded in 1786) and Coors of the US (founded in 1873). 

It’s the second-largest brewer by alcoholic beverage sales volume in the United States and the world’s fifth-largest.

Molson Coors owns several brands, including Coors Light, Molson Canadian, Coors Banquet, Carling, Hop Valley, Blue Moon, and Crispin Cider. 

It has a relatively small group of craft beers in its portfolio compared to smaller breweries in the United States. However, with its top brands, Molson Coors is expected to maintain strong pricing power that will continue to boost its profit margin over time.

Historical Stock Price Performance Chart

Source: Google Finance

• P/E ratio (TTM): N/A
• Earnings per share: -1.20
• Dividend yield: 2.54%
• Market cap: $13.75 billion

Company Fundamentals (2022)

• Revenue: $10.70 billion
• Operating expense: $2.64 billion
• Net profit margin: -1.64

10. Willamette Valley Vineyard (NASDAQ: WVVI)

Jim Bernau’s Willamette Valley Vineyards is situated in Oregon. It makes wines from Dijon clone Chardonnay, Pinot Gris, Pinot Noir, and Riesling grapes. 

Willamette Valley Vineyards is one of the pioneers in Oregon winemaking. Notably, the company is the first crowdfunded winery in the United States.

While the company is experiencing a short-term share price dip, its stock value increased by 16% in the past year (and surged by 41% from 2019 to 2022). So, investors can get a solid return from the Willamette Valley Vineyard wine stock in the long run.

Historical Stock Price Performance Chart

Source: Google Finance

• P/E ratio (TTM): N/A
• Earnings per share: - 0.65
• Dividend yield: N/A
• Market cap: $29.44 million

Company Fundamentals (2022)

• Revenue: $33.93 million
• Operating expense: $19.36 million
• Net profit margin: -1.91

Other Alcohol Stocks to Invest in

11. Corby Spirit and Wine (TSE: CSW.A)

Corby Spirit and Wine is an alcoholic beverage company founded in 1859 in Ontario, Canada. Pernod Ricard owns a 46% portion of this firm. 

Corby’s portfolio includes JP Wiser's Whisky, Polar Ice vodka, Lamb's rum, and Guinness.   

12. Craft Brew Alliance (NASDAQ: BREW)

Craft Brew Alliance is a Portland-based company that manufactures beer and ciders. Its brands include Kona, Redhook, Cisco, pH Experiment, Widmer Brothers, Wynwood Brewing, Omission, Square Mile Cider, and the Appalachian Mountain Brewery. 

Anheuser-Busch InBev (AB InBev) fully acquired this alcoholic beverage company in 2020. Both AB InBev and Craft Brew Alliance merged with the Brewers Collective (Anheuser’s craft division), whose brands include Goose Island, Elysian, and Wicked Weed.

13. Anheuser Busch InBev SANV (NYSE: BUD)

Anheuser Busch InBev SANV (AB InBev) is a beer and soft-drink company headquartered in Leuven, Belgium. It owns over 400 beer brands, including Budweiser, Corona, Stella Artois, Hoegaarden, and Leffe. 

The company’s non-alcoholic drinks business has signed production agreements with PepsiCo and Ambev SA (ABEV). Pepsi, Gatorade, and 7UP are the brands distributed under these agreements.

Now, here’s something noteworthy:

According to data from Nielsen (a market research firm), the COVID-19 pandemic caused a short-term spike in alcohol sales in the US. Demand surged by 55% in the 3rd week of March 2021 compared to the same period in 2020.

That’s because consumers stocked up on alcohol before the shelter-in-place orders were introduced.

However, widespread job losses, decreased travel, and on-premise bar and restaurant closures negatively impacted alcohol sales. In fact, alcohol consumption dropped by 6.2% in 2020.

Let’s now explore the advantages of investing in these sin stocks.

Why Should You Invest in Alcohol Stocks?

Most alcoholic beverage companies have strong brands and high pricing power. They have a global distribution network and a higher cash flow — allowing them to pay higher dividends to stockholders.

Here are some other benefits of investing in alcohol stocks:

• The inelastic demand for alcohol makes the business more recession-proof than those of other commodities. 
• The social and regulatory risks associated with the liquor business often discourage competition, ensuring stable profits for existing alcohol stocks. 
• Alcohol stocks (like most sin stocks) may sometimes be undervalued, increasing the scope of high returns for investors.

Let’s now look at what you can expect from investing in different types of alcohol stocks.

1. Investing in Beer Stocks

The beer industry can be attractive to long-term investors. Beer companies usually perform well — ensuring a stable dividend return to shareholders.

Also, there’s been a major shift in consumer preferences. Customers are increasingly picking beer stocks of companies like Boston Beer Company (firms with craft beer, seltzers, and hard ciders in their portfolio) over the mass market beer makers.

2. Investing in Stocks of Other Spirits Like Whiskey

Most stocks of whiskey (like Jack Daniel or Johnnie Walker), rum, tequila, and other spirits pay dividends. For example, United Spirits, Kweichow Moutai, United Breweries, GM Breweries Ltd, Radico Khaitan Ltd., and Globus Spirits are steady dividend stocks.

3. Investing in Wine Stocks

Wine has outperformed the S&P 500 by 1000% for the last 20+ years — even during downturns! The Liv-ex 100 index (which tracks the performance of the 100 most sought-after fine wines) also outperformed the Dow Jones average by over 4% in 2021.

What does all this mean for you?

A fine wine stock can be an attractive long-term investment!

However, there are also some negatives to parking your money in alcohol stocks.

The Downside of Investing in Alcohol Stocks

Here’s why you shouldn’t bank only on alcoholic beverage company stocks:

1. Performance Issues During Economic Downturns
2. Volatility (Even During Healthy Economic Climates)
3. Alcohol Stock Investing Takes a Lot of Time and Effort
4. Brokerage

1. Performance Issues During Economic Downturns

Despite being regarded as recession-resistant assets, some liquor stocks have underperformed during economic downturns. 

For example, Diageo and Constellation Brands performed relatively poorly during the 2008 financial crisis. 

During this period, these beverage stocks fell to multi-year low valuations. Distillers and wineries saw the largest decline in P/E ratios, followed by soft drinks producers and brewers.

2. Volatility (Even During Healthy Economic Climates)

When the markets are volatile during stable economic conditions, alcohol stock market prices tend to fluctuate. In 2015, the Diageo liquor stock depreciated 11.63%, while Constellation Brands’ share price appreciated 54.93%.

3. Alcohol Stock Investing Takes a Lot of Time and Effort

To identify the best picks for your portfolio, you’ll have to dedicate a lot of time to researching liquor companies, their market share, and other stock market trends.

4. Brokerage

To save time and effort, many investors entrust brokerage firms with their alcohol stock management. 

But if you do that, you have to shell out high commissions each time you buy or sell a stock. Additionally, you’ll likely have to deal with currency conversion and account maintenance charges.

Now, if you want to explore other ways to invest in alcohol companies, check out bonds, ETFs, or a mutual fund. But bear in mind that these options also come with their fair share of challenges.

So, is there an easier way to invest in alcohol, especially wine?

Investing in wine bottles can be worth it!

A Lucrative Alternative: Investing in Fine Wine

Investing in wine bottles has a few key advantages over investing in alcohol stocks.

1. You can pursue a specific wine bottle (one from a particular year) that you believe will increase in price. Meanwhile, buying an alcohol stock forces you to bet on the company amongst a portfolio of different types of alcohol. 

2. In times of recession, alcohol consumption rises. This is a big advantage for wine investors since the demand for wine bottles also increases. 

But that advantage may not translate when you buy the stock of a large market share conglomerate with thousands of employees on payroll (and many other complicated logistical operations).

3. Finally, if the price of a wine bottle goes down, you can always drink and enjoy your wine. You can’t do that with stocks. 

But how do you invest in wine bottles?

You could have a trusted wine investment company like Vinovestbuy your Cabernet Sauvignon or Pinot Noir bottles, store them under perfect conditions, and even sell them for you!

Let’s see how this works.

How to Invest in Fine Wines Through Vinovest

Vinovest is a wine investment company that buys, authenticates, stores, and sells investment-grade wines for you.

The best part?

You don’t need to be a wine expert or a professional to have a successful wine portfolio.

How does it work?

Simply follow these four steps:

1. Sign up on the Vinovest website with your name, email, and password.
2. Answer a few questions so that Vinovest’s wine experts can assess your investment style and risk appetite.
3. Add funds to your account.
4. Track your fine wine portfolio online.

Benefits of Buying Wines Through Vinovest

Here are the main advantages of buying, storing, and selling your wine through Vinovest: 

1. Easy Buying and Selling of Wines

Vinovest’s Artificial Intelligence (AI)-based online platform makes it easy for you to buy and sell wines.

In fact, the platform allows you to sell your wines at any time. However, it’s usually best to sell fine wine after 5-20 years (when it has reached its peak value). 

To make things easier for you, our advisors will work with you to maximize your returns — no matter the market conditions. They’ll guide you on the best liquidity options and the best time to sell your wines.

2. Best Prices

Vinovest sources wines directly from winemakers, global wine exchanges, and wine merchants. This allows you to buy wine bottles at the best possible wholesale prices.

3. Provenance and Authenticity

Vinovest authenticates your wine bottle and traces its provenance before you buy it.

4. Curated Portfolio 

With Vinovest, you don’t have to waste your time and energy on hours of in-depth research of the wine industry. 

Vinovest’s master sommeliers and data scientists carefully curate your portfolio for you. They use proprietary financial models that analyze your investment preferences and historical market data.

5. Optimal Storage 

Your wine bottles are stored safely in bonded warehouses under ideal light, humidity, vibration, and temperature conditions. 

6. Insurance and Security

Your bottles are monitored constantly by security cameras. Rest assured — there are power back-ups if the primary method fails to maintain the climate-controlled conditions. There’s also a comprehensive insurance policy that will protect your wine cellar at all times.

7. Low Overall Costs

Besides the funds you add to your account, all you need to pay is a 2.5% annual fee (1.9% for a portfolio over $50,000). This covers wine buying, authentication, storage, a full insurance policy at market value, portfolio management, and selling. 

You’ll also enjoy significant tax advantages because bonded warehouses don’t charge VAT and excise duty.

8. Easy delivery of wines

You can get your favorite Merlots and Sauvignon Blancs delivered to a buyer or your home — whether you’re in North America, Latin America, or anywhere in the world. 

9. Ownership

But do you own the wines you buy? Yes — and that’s the coolest part!

Grow Your Wine Portfolio Easily Through Vinovest

Alcohol stocks like Radico Khaitan Ltd. and Globus Spirits may seem like the most straightforward way to invest in spirits and wine. 

But, the fortunes could swing either way during an economic downturn. And the continuous process of choosing stocks and selling them at the right time will take up significant time, effort, and money.  

Instead, your smartest and easiest option is to invest in the wine industry by buying, storing, and selling wine bottles through Vinovest.

So sign up right away and get started with building your wine portfolio!