5 Best Brewery and Distillery Stocks to Buy Now

In this article, we are going to discuss the 5 best brewery and distillery stocks to buy now. If you want to check out our detailed analysis of the global alcohol industry, alcohol as a lucrative investment asset, and investments in Scotch whisky, head to 11 Best Brewery and Distillery Stocks to Buy Now.

5. Diageo plc (NYSE:DEO)

Number of Hedge Fund Holders: 28

Diageo plc is a British multinational alcoholic beverage company with its headquarters in London, England. With over 200 brands sold in more than 180 countries, Diageo is the Largest Spirits Company in the World. The company’s portfolio has remarkable breadth across spirits and beer, with brands such as Guinness, Captain Morgan, Johnnie Walker, and Smirnoff etc. 

Diageo is reportedly seeking a buyer for a trio of its brands as it looks to restore its profits and increase its value for shareholders. The owner of Guinness and Baileys has hired financial service group Rothschild to explore the sale, which includes Pimm’s, fruit liqueur brand Safari, and Pampero rum. Each brand could be offloaded individually or as a three.

Fiduciary Management Inc. (FMI), an independent money management firm, featured Diageo plc (NYSE:DEO) in the Q4 2023 investor letter, and made the following statement: 

“Diageo plc (NYSE:DEO) is the #1 player in the large and attractive global spirits industry, with #1 positions in Scotch, Tequila, Gin, Vodka, and Rum. Total Beverage Alcohol (TBA) is a $950+ billion market, with Diageo at 4.7% of TBA, and aspiring to 6% by 2030. Premiumization in spirits is value creating, and Diageo owns 9 of the top 30 global brands, including Johnnie Walker, Tanqueray, Smirnoff, and Guinness. 12 of Diageo’s top brands are over 140 years old. The company has strong exposure to growth in emerging markets (38% of sales) and has proven to be a superior brand builder. The Diageo portfolio has been optimized, with limited reliance on M&A over the last decade. Capital allocation has been shareholder friendly. Following a period of post-COVID inventory destocking, Diageo trades at its lowest valuation in 10 years.”