5 Best Alcohol Stocks To Buy Heading Into 2023

In this article, we discuss 5 best alcohol stocks to buy heading into 2023. If you want to see more stocks in this selection, check out 10 Best Alcohol Stocks To Buy Heading Into 2023. 

5. Winc, Inc. (NYSE:WBEV)

Number of Hedge Fund Holders: N/A

Winc, Inc. (NYSE:WBEV) is a California-based company involved in sourcing, bottling, labeling, and distributing wine under its own winery license in the United States and internationally. The company was incorporated in 2011 and is based in Santa Monica, California. It is one of the top alcohol stocks to buy for 2023. 

Canaccord analyst Bobby Burleson on September 22 maintained a Buy recommendation on Winc, Inc. (NYSE:WBEV) but lowered the firm’s price target on the shares to $2 from $4. The analyst noted that Winc, Inc. (NYSE:WBEV)’s CEO is stepping down but he maintained his rating given a depressed valuation and ongoing robust core brand performance. However, he slashed his target as the company will potentially need extra capital amid the presently tight capital market environment.

4. Pernod Ricard SA (OTC:PDRDF)

Number of Hedge Fund Holders: N/A

Pernod Ricard SA (OTC:PDRDF) is a French company that produces and sells wines and spirits worldwide. The company provides whiskey, vodka, gin, rum, liqueur and bitters, champagne, and tequila under multiple brands. Pernod Ricard SA (OTC:PDRDF) is one of the elite alcohol stocks to invest in. On September 2, Barclays raised the price target on Pernod Ricard SA (OTC:PDRDF) to EUR 277 from EUR 256 and kept an Overweight rating on the shares.

On October 17, Pernod Ricard SA (OTC:PDRDF) announced that it will acquire a majority stake in the Mexican Código 1530, a range of ultra-premium and prestige tequila. Pernod Ricard SA (OTC:PDRDF) also recently lifted its minority stake in Sovereign Brands’ super premium wine and spirits portfolio.

3. Brown-Forman Corporation (NYSE:BF-B)

Number of Hedge Fund Holders: 28

Brown-Forman Corporation (NYSE:BF-B) is a Kentucky-based company that manufactures, distills, bottles, and sells various alcoholic beverages. It provides spirits, wines, whiskey spirits, ready-to-drink and ready-to-pour products, vodkas, tequilas, champagnes, brandy, bourbons, and liqueurs. Brown-Forman Corporation (NYSE:BF-B) on October 6 announced an agreement to purchase the Diplomático Rum brand from Spain’s Destillers United Group S.L. The new brand will be added to Brown-Forman Corporation (NYSE:BF-B)’s spirits portfolio. 

On October 10, Wedbush analyst Gerald Pascarelli initiated coverage of Brown-Forman Corporation (NYSE:BF-B) with a Neutral rating and a $70 price target as part of a broader research note on Alcoholic Beverages. The company is well positioned to capitalize on long-term industry dynamics, including spirits share gains and relative outperformance for bourbon, but he is cautious on the short-term setup, the analyst wrote in a research note.

According to Insider Monkey’s data, 28 hedge funds were bullish on Brown-Forman Corporation (NYSE:BF-B) at the end of June 2022, compared to 33 funds in the earlier quarter. Terry Smith’s Fundsmith LLP is the largest position holder in the company, with 12.2 million shares worth nearly $857 million. 

2. Molson Coors Beverage Company (NYSE:TAP)

Number of Hedge Fund Holders: 34

Molson Coors Beverage Company (NYSE:TAP) is a Colorado-based company that manufactures, markets, and sells beer and other malt beverage products in the Americas, Europe, Middle East, Africa, and Asia Pacific. The company provides flavored malt beverages, craft, and ready-to-drink beverages. On November 1, Molson Coors Beverage Company (NYSE:TAP) reported a revenue of $2.94 billion, up 4.3% year-over-year, beating Wall Street estimates by $50 million. The revenue also increased 7.9% in constant currency due to positive net pricing and favorable sales mix resulting from a premium portfolio.

On October 10, Wedbush analyst Gerald Pascarelli initiated coverage of Molson Coors Beverage Company (NYSE:TAP) with a Neutral rating and a $50 price target. The analyst said Molson Coors Beverage Company (NYSE:TAP) has made “great strides” in executing on its revitalization plan. However, in the present environment, Molson Coors Beverage Company (NYSE:TAP) seems to be hugely benefitting from easy comps and fresh distribution gains on new offerings which will need to be cycled at the beginning of 2023.

According to Insider Monkey’s data, 34 hedge funds were long Molson Coors Beverage Company (NYSE:TAP) at the end of Q2 2022, compared to 36 funds in the prior quarter. Cliff Asness’ AQR Capital Management is the leading position holder in the company, with 1.60 million shares worth $87.5 million. 

Here is what Argosy Investors has to say about Molson Coors Beverage Company (NYSE:TAP) in its Q2 2021 investor letter:

“TAP (+52% from August 2020 purchase to sale) was never intended to be a core position. I expected a couple of years of deleveraging and perhaps some excitement around the hard seltzer category, but the stock price increased faster than I expected. I have not fully exited these positions as I rarely do all in one trade, but hopefully this gives some perspective into my thinking on selling so quickly.”

1. Constellation Brands, Inc. (NYSE:STZ)

Number of Hedge Fund Holders: 44

Constellation Brands, Inc. (NYSE:STZ) is one of the best alcohol stocks to buy heading into 2023. The New York-based company produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. On October 6, Constellation Brands, Inc. (NYSE:STZ) declared a quarterly dividend of $0.80 per share, in line with previous. The dividend is payable on November 18, to shareholders of record on November 4. Constellation Brands, Inc. (NYSE:STZ) also posted market-beating results for the third quarter of 2022. 

On October 10, Wedbush analyst Gerald Pascarelli initiated coverage of Constellation Brands, Inc. (NYSE:STZ) with an Outperform rating and a $275 price target. The company’s beer portfolio continues to deliver increasing levels of sales growth and solid levels of market share gains, the analyst told investors in a research note. He added that consumer demand, incremental distribution gains, and promising demographic trends continue to be in Constellation Brands, Inc. (NYSE:STZ)’s favor.

According to Insider Monkey’s data, 44 hedge funds were bullish on Constellation Brands, Inc. (NYSE:STZ) at the end of June 2022, compared to 41 funds in the last quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the biggest stakeholder of the company, with 1.4 million shares worth $326 million. 

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