In this article, we discuss the 10 best whiskey and alcohol stocks to buy in 2022.
The novel coronavirus pandemic caused many industries to collapse, including the global liquor industry, which was one of the hardest-hit industries in 2020. However, as bars and pubs around the world reopened and social distancing constraints eased, the liquor market embarked on its journey to recover from the nerve-racking effects of the pandemic. Even though the market is still suffering the aftershocks of Covid-19, it is on a trajectory to fully recover and surpass pre-pandemic levels by the end of 2022.
The Liquor Industry Analysis: Size, Trends, and Key Players
According to Statista, the global market share of alcoholic beverages came in at $1.49 trillion in 2020, down roughly $200 billion from 2019. Then in 2021 as economies around the world reopened, the revenues from the alcoholic beverages industry recovered to $1.55 trillion. Statista further estimates 2022 numbers to peak at $1.81 trillion, and the alcoholic beverages industry to hit $2.2 trillion by 2025.
Mordor Intelligence published a report in which they estimated the global alcoholic beverages market to grow at a CAGR of 3.4% from 2022 to 2027. Mordor Intelligence found that in 2020, the premium alcohol market grew by 9% year over year, driven by growth in demand for premium and super-premium whiskey. Moreover, they expect the North American market to remain dominant over the forecasted period and the Asia Pacific markets to mature further from a rise in disposable income. The US wine market consists of over 10,000 wineries, with California having the dominant share of over 85%, followed by Washington, Oregon, New York, Texas, and Virginia. Wine is becoming a popular alcoholic beverage among American consumers given its healthier variants, and an increasing adoption of clean-eating lifestyles.
The major players in the alcoholic beverages industry include Brown-Forman Corporation (NYSE:BF.B), Constellation Brands, Inc. (NYSE:STZ), and The Boston Beer Company, Inc. (NYSE:SAM).
Photo by Adam Wilson on Unsplash
Our Methodology
To determine the 10 best whiskey and alcohol stocks to buy in 2022, we did a careful assessment of the global liquor industry and identified major players that operate prominent brands. We narrowed down our selection to high-performance and high-momentum stocks, that are experiencing bullish trends in the market.
We also considered the analyst and investor sentiment for each stock as we believe both metrics to be key indicators of future performance. We derived the hedge fund sentiment from Insider Monkey’s database of 924 elite hedge funds.
Best Whiskey and Alcohol Stocks To Buy in 2022
10. Remy Cointreau SA (OTC:REMYY)
Number of Hedge Fund Holders: N/A
Remy Cointreau SA (OTC:REMYY) produces and distributes liquor and spirits. The company operates through three business segments: Rémy Martin, Liquor & Spirits, and Partner Brands. The company markets its products through distributors, agents, and wholesalers in Europe, the Middle East, Africa, the Americas, Asia, Australia, and New Zealand.
This April, Remy Cointreau SA (OTC:REMYY) reported record-high earnings for the fiscal year 2021. According to the company’s report, Remy Cointreau SA (OTC:REMYY) generated revenues of EUR 1.31 billion, up 29.7% year over year. The company reported organic revenue growth of 27.3% year over year which included a 9.2% increase in mix-effect and a remarkable 18.2% increase in trading volumes.
The stock is attracting multiple buy ratings from expert financial analysts who believe in the company’s long-term milestones, which makes it one of the best whiskey and alcohol stocks to buy in 2022. On May 3, Deutsche Bank analyst Mitch Collett raised his price target on Remy Cointreau SA (OTC:REMYY) to EUR 290 from EUR 274 and maintained a Buy rating on the shares.
Remy Cointreau SA (OTC:REMYY) is rising to prominence in the liquor industry and is a must-watch whiskey and alcohol stock in 2022. Other stocks that are proving to be lucrative for investors include Brown-Forman Corporation (NYSE:BF.B), Constellation Brands, Inc. (NYSE:STZ), and The Boston Beer Company, Inc. (NYSE:SAM).
9. Vintage Wine Estates Inc. (NASDAQ:VWE)
Number of Hedge Fund Holders: 7
Vintage Wine Estates Inc. (NASDAQ:VWE) is responsible for producing premium wines and delivering excellent customer experiences. The company operates wineries throughout Napa, Sonoma, California’s Central Coast, Oregon, and Washington State. The company boasts a portfolio of luxury wines, award-winning wines, everyday wines, inspired classic wines, inventive new vintages, and spirits among other alcoholic beverages.
Vintage Wine Estates Inc. (NASDAQ:VWE) is moving fast, but moving surely. On March 8, the company announced that its board of directors have authorized a share repurchase program worth $30 million in an aggregate value of the company’s common stock through September 8. Moreover, Vintage Wine Estates (NASDAQ:VWE) surged 8% in a day right after the company announced insider buying of roughly 47,000 shares which amounted to $390,000. CEO Patrick Roney bought 35,400 shares of the stock between $8.18 and $8.35 per share, and the company’s director Jon Moramarco bought 11,500 shares at a rate between $8.23 and $8.60.
Hedge funds are raising their stakes in Vintage Wine Estates Inc. (NASDAQ:VWE). At the end of the fourth quarter of 2021, 7 hedge funds held stakes in the company worth $75.47 million, up from $56.62 million in the prior quarter with 7 positions.
Paradice Investment Management was identified as the most bullish hedge fund on Vintage Wine Estates Inc. (NASDAQ:VWE) at the end of this March. According to Insider Monkey’s database, the fund’s stakes were valued at $40.5 million, which covers 2.37% of its 13F portfolio.
8. Ambev SA (NYSE:ABEV)
Number of Hedge Fund Holders: 16
Ambev SA (NYSE:ABEV) is a leading Brazilian brewing company that is known for its beer, draft beer, carbonated soft drinks, and non-alcoholic beverages. The company operates through four segments: Brazil; Central America and the Caribbean, and Canada.
Shares of Ambev SA (NYSE:ABEV) are picking up momentum and the stock is becoming popular among expert financial analysts. This January, Citi analyst Sergio Matsumoto upgraded Ambev to Buy from Neutral. Matsumoto contended that he expects a long-term recovery in sales volume, market share, and channel mix. Moreover, as of May 13, Ambev SA (NYSE:ABEV) has gained 5.15% year to date.
On May 5, Ambev SA (NYSE:ABEV) released its earnings for the fiscal first quarter of 2022 in which it outperformed market consensus. The company reported earnings per share of $0.04, and beat EPS estimates by $0.01. The company generated revenues of $3.68 billion, up 16.63% year over year, and beat estimates by $23.55 million.
Ambev SA (NYSE:ABEV) is becoming a top stock pick among investor circles. At the close of Q4 2021, 16 hedge funds were long Ambev SA (NYSE:ABEV) with stakes of $171.08 million. This is compared to 15 positions in the previous quarter with stakes of $79.89 million.
As of March 31, First Eagle Investment Management is the dominating stakeholder in Ambev SA (NYSE:ABEV) with more than 274.3 million shares of stock. This brings the fund’s stakes to $886.03 million, which covers 2.16% of its Q1 2022 investment portfolio.
Harding Loevner mentioned Ambev SA (NYSE:ABEV) in its recently published “Emerging Markets Equity Fund” fourth-quarter 2021 investor letter:
“Consumer Staples companies are typically considered to have strong pricing power, supported by the consumer loyalty to their brands that they have earned through advertising. But in some product categories competition and fear of losing market share may preclude raising prices significantly. Such is the case for Brazilian brewer Ambev, which in recent years has faced an intensifying competitive rivalry with Heineken in Brazil’s premium beer market. That has forced Ambev to find other ways to sustain its profits in the face of soaring costs for materials. One of its strategies has been to diversify its portfolio of brands across “core,” “core plus,” and “premium” segments, each at a different price point, which has helped to both attract new beer drinkers as well as retain established customers when they look to save money in a slowing economy. Ambev has also invested in technology that allows it to respond more rapidly to shifts in consumer demand—delivering the right beer in the right packaging and quantity, almost in advance of the retailer or distributor themselves knowing what will sell.”
7. Anheuser-Busch InBev SA (NYSE:BUD)
Number of Hedge Fund Holders: 17
Anheuser-Busch InBev SA (NYSE:BUD) produces, distributes, and sells beer, alcoholic beverages, and soft drinks worldwide. The company offers a portfolio of approximately 500 beer brands. Anheuser-Busch InBev SA (NYSE:BUD) is being closely watched by analysts. On May 6, Deutsche Bank analyst Mitch Collett raised his price target on Anheuser-Busch InBev SA (NYSE:BUD) to EUR 67 from EUR 64 and reiterated a Buy rating on the shares.
Anheuser-Busch InBev SA (NYSE:BUD) had a profitable first quarter this year and posted market-beating earnings on May 5. The company reported earnings per share of $0.67 and beat EPS estimates by $0.07. Anheuser-Busch InBev SA (NYSE:BUD) saw revenue growth of 7.66% year over year, which brought its generated quarterly revenues to $13.24 billion, outperforming market consensus by $32.27 million. The company reported total volume growth of 2.8%, with beer volumes up 2.2% and non-beer volumes by 6.0%.
Anheuser-Busch InBev SA (NYSE:BUD) issued a 2022 outlook along with its earnings release and reported that the company expects in-line EBITDA growth, and revenues to grow ahead of EBITDA, catalyzed by a powerful combination of increased volumes and prices in the fiscal year 2022. Robust demand for its premium products and the company’s beer brands remaining strong in the liquor market make Anheuser-Busch InBev SA (NYSE:BUD) the seventh-best whiskey and alcohol stock to buy in 2022.
By the end of the fourth quarter of 2021, 17 hedge funds held stakes in Anheuser-Busch InBev SA (NYSE:BUD). The total value of these stakes came in at $642.04 million.
Ken Fisher’s Fisher Asset Management was the leading shareholder in Anheuser-Busch InBev SA (NYSE:BUD) at the end of March 2022. As of March 31, the fund owns more than 8.6 million shares of the company which amount to a stake value of $521.74 million.
Anheuser-Busch InBev SA (NYSE:BUD) is a compelling pure-play in the liquor market. Other attractive long plays include Brown-Forman Corporation (NYSE:BF.B), Constellation Brands, Inc. (NYSE:STZ), and The Boston Beer Company, Inc. (NYSE:SAM).
Broyhill Asset Management mentioned Anheuser-Busch InBev SA (NYSE:BUD) in its fourth-quarter 2021 investor letter. Here is what the firm had to say:
“Shares of ABI struggled to buck the double-digit decline in emerging market indices in the second half of the year. Consensus concerns around commodity cost headwinds certainly didn’t help matters, but beyond short term margin pressures, both businesses continue to grow their profits as well as their economic moats. ABI controls over a quarter of the nearly $600 billion global beer market, based on Euromonitor data, and remains well positioned for a rebound in post-pandemic industry sales.”
6. MGP Ingredients Inc (NASDAQ:MGPI)
Number of Hedge Fund Holders: 17
MGP Ingredients, Inc. (NASDAQ:MGPI) is a leading producer of distilled spirits, branded spirits, and food ingredients. The company operates through three business segments: Distillery Products, Branded Spirits, and Ingredient Solutions.
MGP Ingredients, Inc. (NASDAQ:MGPI) is experiencing growing demand for its American whiskey. On February 17, 2022, the company announced the commencement of a $12 million barrel warehouse which will produce the company’s American whiskey. The expansion is expected to reach completion in late 2022 and is expected to increase the company’s capacity by 75%.
MGP Ingredients Inc (NASDAQ:MGPI) is surging and is making profits while at it. This May, the company reported earnings for the fiscal first quarter of 2022 in which it beat both EPS and revenue estimates. According to the company’s earnings report, MGP Ingredients Inc (NASDAQ:MGPI) registered an EPS of $1.69, beating estimates by $0.74. The company’s quarterly revenues came in at $195.24 million, up 80.23% year over year, and outperformed market consensus by $21.64 million. The company also announced that its board of directors has declared a quarterly cash dividend of $0.12 per share of common stock, payable on June 3 to investors of record on May 20. The stock’s forward yield at the time of the announcement was 0.5%. On top of this, MGP Ingredients Inc (NASDAQ:MGPI) raised its fiscal year 2022 guidance and reaffirmed an EPS view of $4.0 and revenue views between $690 million and $715 million.
Moreover, as of May 13, MGP Ingredients Inc (NASDAQ:MGPI) has returned 51.35% to investors over the past twelve months, which makes it a high-momentum play for investors. Moreover, the stock is one of the few dividend players in the liquor industry and is therefore ranked among the 10 best whiskey and alcohol stocks to buy in 2022.
Insider Monkey spotted MGP Ingredients Inc (NASDAQ:MGPI) on 17 investment portfolios at the end of Q4 2021. These funds held combined stakes of $54.59 million in the company, up from $32.10 million in Q3 2021 with 13 positions. The hedge fund sentiment for the stock is positive.
Arrowstreet Capital was identified to be the most bullish on MGP Ingredients Inc (NASDAQ:MGPI) at the end of March 2022. The fund’s stakes came in at roughly $5.80 million.
5. Diageo plc (NYSE:DEO)
Number of Hedge Fund Holders: 19
Diageo plc (NYSE:DEO) operates as a beverage alcohol company in more than 180 countries with over 140 production sites all across the globe. The company offers premium liquors such as scotch, whisky, gin, vodka, and rum, through its prominent top-selling brands such as Johnnie Walker, Crown Royal, Bulleit, and Buchanan’s whiskies. Diageo plc (NYSE:DEO) is one of the largest distillers in the world and is among the best-performing companies in the liquor industry, which makes it stand among the 5 best whiskey and alcohol stocks to buy in 2022.
This April, Societe Generale analyst Toby McCullagh raised his price target on Diageo plc (NYSE:DEO) to 4,500 GBP from 4,250 GBP and reiterated a Buy rating on the shares.
Hedge funds are piling into Diageo plc (NYSE:DEO). Insider Monkey found that at the end of the fourth quarter of 2021, 19 hedge funds were long Diageo plc (NYSE:DEO) with stakes worth $935.93 million. This is compared to 18 hedge funds in the third quarter of 2021, with stakes worth $703.94 million.
As of March 31, 2022, Ako Capital is the most bullish on Diageo plc (NYSE:DEO) owning more than 1.6 million shares of the stock which equates to a stake value of $341.61 million.
Investment management firm Lindsell Train mentioned Diageo plc (NYSE:DEO) in its fourth-quarter 2021 investor letter. Here is what the firm had to say:
“A very important aspect of the rationale for investing in this smaller and more rarefied category is the fact that alcohol brands with a premium or luxury positioning tend to be highly differentiated, with a greater ability to increase prices over time than a “value” or mass market brand – even in downturns or periods of turbulence. Over time, these inflation-busting protective qualities usually result in considerable value creation: in January this year, against a backdrop of a sharp increase in input cost prices, Diageo reported increased operating profit margins – crucially, driven by price increases rather than cost savings – and indicated an expectation of operating profit growth of between 6 and 9% to 2025. Such an outlook would not be possible without a portfolio of beverages enjoying substantial pricing power.” (Click here to see the full text)
4. The Boston Beer Company, Inc. (NYSE:SAM)
Number of Hedge Fund Holders: 32
The Boston Beer Company, Inc. (NYSE:SAM) produces and sells alcoholic beverages primarily in the United States. The company’s flagship beer is the Samuel Adams Boston Lager and it sells its beverages to a network of approximately 400 wholesalers in the United States, Canada, Europe, Israel, Australia, New Zealand, the Caribbean, the Pacific Rim, Mexico, and Central and South America.
On February 16, 2022, Jim Koch, the chairman and founder of The Boston Beer Company, Inc. (NYSE:SAM), shared that he is targeting full-year volume growth between 4% and 10% for the fiscal year 2022 as the company’s inventory levels recover. Positive outlooks and an ambitious FY 2022 guidance place The Boston Beer Company, Inc. (NYSE:SAM) among the 5 best whiskey and alcohol stocks to buy in 2022.
Shortly after the company’s earnings release, on April 22, Credit Suisse analyst Kaumil Gajrawala cut his price target on The Boston Beer Company, Inc. (NYSE:SAM) to $620 from $670 but reiterated an Outperform rating on the shares. The analyst contended that the company reported positive results for the quarter after a series of weak quarters and believes that the company’s maintained EPS and revenue guidance signals sustainable growth.
The Boston Beer Company, Inc. (NYSE:SAM) is being closely watched by elite hedge funds. At the end of Q4 2021, 32 hedge funds held long positions in The Boston Beer Company, Inc. (NYSE:SAM). The total stakes of these funds amounted to $454.15 million, up from $237.87 million in the previous quarter with 19 positions. The hedge fund sentiment for the stock is positive.
Durable Capital Partners is the most prominent shareholder in The Boston Beer Company, Inc. (NYSE:SAM) as of the end of this March. The fund’s stakes were valued at $55.37 million which represents 0.48% of its 13F portfolio.
Artisan Partners, a high value-added investment management firm, shared its views on The Boston Beer Company, Inc. (NYSE:SAM) in its third-quarter 2021 investor letter. Here is what experts at Artisan said:
“We ended our campaigns in Boston Beer Company. Boston Beer Company sells a focused portfolio of alcoholic beverage brands. In recent years, the company has emerged as one of the leaders in the hard seltzer category, which has grown over 150% in each of the past three years (2018-2020). Boston Beer’s Truly brand, the second-largest seller of hard seltzer, has benefited from this growth and was core to our investment thesis. However, the hard seltzer category’s growth has recently slowed to single digits, falling short of high investor expectations and pressuring Boston Beer’s earnings upside. Truly’s growth was core to our investment thesis, and a recovery is uncertain; thus, we ended our investment campaign.”
3. Molson Coors Beverage Company (NYSE:TAP)
Number of Hedge Fund Holders: 33
Molson Coors Beverage Company (NYSE:TAP) manufactures and sells beer and other malt beverage products in the Americas, Europe, Middle East, Africa, and the Asia Pacific. Molson Coors Beverage Company (NYSE:TAP) is gaining momentum and as of May 13, the stock has surged 13.66% over the past six months.
On May 3, Molson Coors Beverage Company (NYSE:TAP) reported market-beating earnings for the fiscal first quarter of 2022. The company’s earnings per share were valued at $0.29, beating EPS estimates by $0.10. The company’s revenues grew 16.66% year-over-year and came in at $2.21 billion, outperforming revenue estimates by $71.90 million.
Shortly after Molson Coors Beverage Company (NYSE:TAP) posted a profitable quarter, Citi analyst Wendy Nicholson raised her price target on the stock to $61 from $58 and reiterated a Buy rating on the shares.
Molson Coors Beverage Company (NYSE:TAP) is becoming an investor’s favorite. According to Insider Monkey’s database, 33 hedge funds were long Molson Coors Beverage Company (NYSE:TAP) at the end of Q4 2021. The stakes of these funds totaled 325.64 million, up from $236.76 million in the previous quarter with 29 positions.
As of the end of March 2022, Ariel Investments is the leading hedge fund having stakes in Molson Coors Beverage Company (NYSE:TAP). According to Insider Monkey, the fund’s stakes amounted to $40.41 million, which covers 0.35% its investment portfolio.
2. Brown-Forman Corporation (NYSE:BF.B)
Number of Hedge Fund Holders: 34
Brown-Forman Corporation (NYSE:BF.B) manufactures, distills, and sells various alcoholic beverages. The company boasts a portfolio of premium brands, including Jack Daniel’s, Woodford Reserve, Old Forester, GlenDronach, Benriach, Glenglassaugh, Slane Irish Whiskey, and Korbel Champagne among others. Brown-Forman Corporation (NYSE:BF.B) is one of the largest companies in the liquor business by market share, which stands at $31.32 billion as of May 13, and is also the owner of the most premium beer brands which justifies the stock’s runner-up rank among the 10 best whiskey and alcohol stocks to buy in 2022.
On March 30, 2022, JPMorgan analyst Andrea Teixeira lowered her price target on Brown-Forman Corporation (NYSE:BF.B) to $73 from $76 and reiterated a Neutral rating on the shares. Teixeira slashed her price target to reflect the impact of the Ukraine conflict on commodities costs, transportation, and currency, however, she expects demand to remain robust as consumers continue to favor brands over private labels.
Insider Monkey spotted Brown-Forman Corporation (NYSE:BF.B) on 34 investment portfolios at the close of the fourth quarter of 2021. The total stakes of these funds were valued at $1.87 billion. This is compared to $1.65 billion in the preceding quarter with 31 positions. The hedge fund sentiment for the stock is positive.
As of March 31, Gardner Russo & Gardner is the most prominent stakeholder in Brown-Forman Corporation (NYSE:BF.B) with more than 2.7 million shares of stock which amount to a stake of $169.43 million. The investment covers 1.63% of its 13F portfolio.
1. Constellation Brands, Inc. (NYSE:STZ)
Number of Hedge Fund Holders: 48
Constellation Brands, Inc. (NYSE:STZ) produces, imports, and sells alcoholic beverages in the United States, Canada, Mexico, New Zealand, and Italy. The company boasts a portfolio of premium alcohol brands including Corona Extra, Corona Light, Modelo Especial, Modelo Negra, Pacifico, 7 Moons, Cook’s California Champagne, Cooper & Thief, Crafters Union, and Kim Crawford among others. Constellation Brands, Inc. (NYSE:STZ) is packing up momentum and as of May 13, the stock has appreciated by 8.78% over the past six months, which makes it a high-momentum whiskey and alcohol stock to buy in 2022.
On April 7, Constellation Brands, Inc. (NYSE:STZ) reported a profitable fiscal fourth quarter for 2022. The company reported earnings per share of $2.37 and beat estimates by $0.25. Moreover, the company’s revenues were valued at $2.10 billion, up 7.65% year over year, and outperformed market consensus by a hefty $85.60 million.
Shortly after Constellation Brands, Inc. (NYSE:STZ) posted market-beating earnings, JPMorgan analyst Andrea Teixeira slashed her price target on the stock to $271 from $276 but maintained an Overweight rating on the shares. Teixeira noted that the company’s operational performance demonstrates strength in beer with depletions nearly up 10% in the quarter despite a difficult January and the impact of the Omicron variant. The analyst further stated that Constellation Brands, Inc. (NYSE:STZ) is on the path to gaining momentum from beer sales, naming the company the “best GARP” in her note to investors.
Hedge funds are making sizeable investments in Constellation Brands, Inc. (NYSE:STZ). At the end of the fourth quarter of 2021, 48 hedge funds were long Constellation Brands, Inc. (NYSE:STZ) with stakes worth $1.31 billion.
Arrowstreet Capital is the most bullish hedge fund on Constellation Brands, Inc. (NYSE:STZ) as of March 2022. The fund’s stakes came in at $236.91 million, which covers 0.29% of its 13F portfolio.
You can also take a look at 10 Weed Stocks to Buy in 2022 and 15 Most Valuable Cigarette Companies in the World.
Follow Insider Monkey on Twitter
Suggested Articles:
- 15 Most Valuable Alcohol Companies
- 15 Most Expensive Alcohols in The World in 2021
- 11 Best Liquor Stocks to Buy Right Now
Disclose. None. 10 Best Whiskey and Alcohol Stocks To Buy in 2022 is originally published on Insider Monkey.
