Best Places To Buy Beer Stocks: Guide To Investing

Beer stocks are an interesting prospect for investors. Beer is a staple of the global economy, with steady rates of consumer consumption worldwide. The beer industry is dominated by massive conglomerates such as Anheuser-Busch InBev, Heineken, and Carlsberg, which hold leading positions in many markets. Beer stocks can offer stable growth over time, and investing in them can provide broader exposure to the food and beverage industry. However, it is important to monitor your portfolio and understand the regulatory landscape and changing consumer trends. While some beer companies have diversified into hard seltzers and craft beers, others have struggled with shifting consumer preferences and sluggish growth. Investors should carefully assess companies' market positioning, brand strength, and adaptability when considering beer stocks.

Where to buy beer stocks

Beer stocks 101: What to know before investing

The beer industry is a large and established market, with a long history and a loyal customer base. It is dominated by a few massive conglomerates, such as Anheuser-Busch InBev (producer of Budweiser), Heineken, and MillerCoors, which together controlled 80% of the U.S. market in 2013. These companies offer stable growth and steady rates of consumer consumption, making them attractive investments for those seeking lower-risk options.

However, the industry is not without its challenges. Traditional brewers are facing increasing competition from craft beers, and consumer preferences are rapidly changing, with beer now competing with wine and liquor for market share. The industry has also been impacted by recent mergers and acquisitions, making it harder for smaller companies to compete. Climate change is another long-term factor that may affect beer producers, particularly in the Pacific Northwest, a key region for growing hops and other grains used in beer production.

When considering investing in beer stocks, it's important to remember that your personal taste preferences may not align with a stock's performance in your portfolio. It's crucial to research and understand the different business models and strategies of the companies you're interested in. For example, some companies may focus on international expansion, while others may prioritize the development of new products or marketing campaigns.

Additionally, investors should familiarize themselves with the different types of stock offerings, such as American Depository Receipts (ADRs) or pink sheets, which are common for foreign-headquartered companies in the beer industry. Reading through annual filings (10-Ks for American stocks and 20-Fs for foreign stocks) can also provide valuable insights into a company's business and marketing decisions.

Finally, while beer stocks can provide stable growth and diversification into the food and beverage industry, it's important to monitor your portfolio regularly and only invest what you can afford to lose.

Top beer stocks to buy in 2025

Beer is a top beverage for consumers worldwide, and the beer industry enjoys steady rates of consumer consumption. If you are looking to buy beer stocks in 2025, here are some of the top options to consider:

AB InBev

AB InBev is the world's largest beer company and the top beer producer. It controls hundreds of beer brands, including Budweiser, Stella Artois, Beck's, Corona Extra, and Leffe, and has acquired several craft brewers in the US. The company was formed through the merger of US brewer Anheuser-Busch and Belgian-Brazilian brewer InBev in 2008, and later acquired South African brewing giant SABMiller in 2016. While its shares have only grown about 66% since 2008, compared to a 493% gain for the S&P 500, it provides stable, though modest, returns for investors.

Constellation Brands

Constellation Brands, founded in 1945 and based in New York, is the largest beer import company in the United States by sales and has the third-largest market share among major beer suppliers. Its flagship beer brand, Modelo, has overtaken Bud Light in the US market, and it also produces other popular beers like Corona and Fresca. Constellation has a strong position in the wines and spirits industry, with a portfolio of over 100 companies. Its total revenue has grown from over $8.3 billion in 2019 to more than $9.9 billion in 2023, generating a profit of over $1.7 billion in 2023. However, the company has over $10 billion in long-term debt and only $152 million in cash and short-term investments.

Molson Coors

Molson Coors is the fifth-largest beer maker in the world and offers a dividend yield of 3.2%. While its stock has been declining for years and is 50% down from its all-time highs in 2016, shares have been rallying lately. The company has been focusing on higher-end beers and trendy beverages, such as sparkling hard seltzers, partnering with Coca-Cola for its Topo Chico hard seltzer brand. With its recent challenges, Molson Coors is priced like a value stock and could be a good option for investors seeking income from their portfolios.

Kirin Holdings

Kirin Holdings is a Japanese beverage company that produces soft drinks, beer, wine, and whiskey. After struggling during the pandemic, Kirin has returned to solid growth, with revenue up 13% in the first half of 2024 to $7.7 billion. Its net income more than doubled in the first quarter of 2023 due to reduced operating expenses.

Boston Beer

Boston Beer is another option to consider, though its stock price is currently high at $228.62, with a 12-month price target of $270.22.

Beer stocks with the highest growth potential

Beer stocks can be a great way to make money as the beer industry generates ample profits for major producers and their shareholders. However, it is important to note that the beer industry is not a high-growth industry and is mostly devoid of small, fast-growing companies. Nevertheless, some notable names stand out as having high growth potential and are worth investor attention.

One of the most prominent names in the beer industry is AB InBev, the world's largest beer company. It controls hundreds of beer brands, including Budweiser, Stella Artois, Beck's, and Leffe, and several acquired craft brewers in the U.S. The company has a strong presence in both the U.S. and European markets. However, AB InBev has faced some challenges recently, including sluggish major beer label growth and rapid changes in consumer preferences.

Another notable company is Constellation Brands, which produces popular beers like Corona and Modelo. Constellation has demonstrated strong profit margins and sustained double-digit percentage sales growth from its beer brands for years. While growth is expected to continue at a slower pace, Constellation's diversified business and high profitabilities make it an attractive investment option.

Boston Beer, the producer of Samuel Adams beer, is another profitable company in the beer industry. While it has faced some setbacks, it still has growth potential and is recommended by investment platforms like Motley Fool.

Finally, Molson Coors offers a promising investment opportunity with its well-known beer brands and a 3.2% dividend yield. Additionally, its promising hard seltzer brand positions it well to capitalise on changing consumer preferences.

Other notable mentions include Heineken, the world's second-largest brewer, and Kirin Holdings, a Japanese beverage company with a diverse portfolio of drinks, including beer.

In summary, while the beer industry may not be characterised by high growth, companies like AB InBev, Constellation Brands, Boston Beer, and Molson Coors stand out as having notable growth potential and strong market positions.

How to diversify your portfolio with beer stocks

Beer stocks can be a great way to diversify your portfolio and gain exposure to the food and beverage industry. Many companies that brew beer also produce other alcoholic and non-alcoholic beverages, so investing in beer stocks can provide you with a broader range of products and brands. For example, the Campari Group owns popular brands such as Campari, Aperol, Grand Marnier, Wild Turkey Bourbon, and Skyy Vodka.

When diversifying your portfolio, it is important to remember that investing takes discipline and a long-term view, rather than being a knee-jerk reaction to market movements. A well-diversified portfolio can help you weather market storms and reduce your overall risk. One way to achieve this is by investing in a variety of asset classes that have low or negative correlations with each other. This means that if one asset class experiences a downturn, the others can help balance out your portfolio and reduce volatility.

Some examples of beer stocks to consider include Anheuser-Busch InBev (which owns Budweiser, Stella Artois, and Beck's), Heineken, Molson Coors, and Constellation Brands (which produces Corona and Modelo). These companies offer stable growth and strong profit margins, and some pay dividends. For instance, as of March 2025, Molson Coors had a stock price of $58.75 and offered a dividend yield of 3.2%.

In addition to stocks, you can also consider other investment vehicles to further diversify your portfolio. Exchange-traded funds (ETFs) and mutual funds are popular options, but be mindful of any hidden costs and trading commissions associated with them. You can also look into commodities, real estate investment trusts (REITs), and even beer bonds, which some breweries offer with the promise of high annual interest rates.

Remember to monitor your portfolio regularly and make investment decisions that align with your financial goals and risk tolerance. Diversification is a powerful tool, but it does not eliminate all risk, so always invest with caution and seek advice from a financial professional if needed.

Beer stocks vs. alcohol distillery stocks

Beer stocks and alcohol distillery stocks can be a good investment option, especially if you are looking for stable growth over time. While the alcohol industry is not the fastest-growing segment of the stock market, it is a big business that enjoys steady rates of consumer consumption, even during economic downturns.

When it comes to beer stocks, you can consider investing in companies like AB InBev, the world's largest beer company, which controls hundreds of beer brands, including Budweiser, Stella Artois, and Beck's. Other options include Molson Coors, which offers a 3.2% dividend yield, and Constellation Brands, which produces popular beers like Corona and Modelo. Boston Beer Company, which produces Samuel Adams and Angry Orchard, is another player in the beer industry.

On the other hand, alcohol distillery stocks offer a more diverse range of options, including spirits, liquors, and wines. Some of the top names in this category include Diageo, the world's largest liquor distributor and the second-largest distiller, with brands like Johnnie Walker, Smirnoff, and Captain Morgan. LVMH Moët Hennessy Louis Vuitton, a diversified luxury goods company with brands like Moët Chandon and Hennessy, is another option. Additionally, you can consider stocks like Brown-Forman, which has an impressive 30-year track record of dividend growth, and Pernod Ricard, a top player in the alcohol industry.

It is important to remember that while these stocks can provide stable growth, the market is mostly dominated by large conglomerates, and small-batch craft producers are often privately owned. Additionally, as with any investment, it is crucial to do your research and monitor your portfolio to ensure you are buying and selling with your best interests in mind.

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