We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Liquor Sales Get a Boost From E-commerce: 5 Stocks to Watch
Read MoreHide Full Article
Restaurant and bar closures due to the pandemic have been hurting food sales but not liquor! Higher sales at stores and e-commerce have been keeping spirits high for the liquor companies. This saw whisky and other alcohol sales surge during the pandemic.
In fact, e-commerce has been driving alcohol sales like never before in the United States and is likely to overtake China in online liquor sales in 2021, according to the beverage alcohol consultancy IWSR.
Pandemic Boosts U.S. Alcohol Sales in 2020
Although the alcohol industry initially faced a setback as restaurants and bars were closed down due to the pandemic, things started changing soon as more people started ordering online. Moreover, as the economy reopened, sales at liquor stores started surging as more people preferred buying and drinking alcohol at their homes.
According to a USA Today report citing Distilled Spirits Council of the United States, sales of Tennessee Whisky, bourbon and rye whisky jumped 8.2% or $327 million, totaling $4.3 billion last year. Domestic demand also increased to 28.4 million cases or 7% in 2020 as people bought alcohol brands of all price ranges. Overall alcohol sales increased 15% year over year.
The initial losses following the coronavirus outbreak were somewhat offset by an 18% surge in off-premise sales at liquor stores and other retail outlets given that consumers preferred preparing their own drink at home.
E-commerce Drives Alcohol Sales
Online orders for alcohols have been on the rise during the pandemic. According to IWSR, online alcohol sales in the United States were projected to rise 80% during the pandemic. Prior to that, in 2019, only 1% of the total alcohol sales came from e-commerce. Given the pace of growth following the coronavirus outbreak, the IWSR predicts that the United States will easily surpass China to become the world’s biggest market for online alcohol sales.
One of the primary reasons behind this surge was the innovation introduced by many alcohol companies and retailers. As the pandemic gripped the world, online happy hours got extended, allowing people to buy more. Also, several mixologists started sharing recipes on social that turned many into amateur bartenders at home, thus pushing up sales.
Stocks to Watch
Given that the pandemic has taught people to rely more on shopping online, it is likely that the alcohol market will continue to thrive. Moreover, the pandemic is far from over and people will continue drinking at home thus helping alcohol sales. It would thus be prudent to invest in these five alcohol stocks.
Diageo plc (DEO - Free Report) operates in approximately 180 countries and is involved in producing, distilling, brewing, bottling, packaging as well as distributing spirits, wine and beer.
The company’s expected earnings growth rate for the current year is 11.8%. The Zacks Consensus Estimate for current-year earnings has improved 7% over the past 60 days. The company has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
REMY COINTREAU (REMYY - Free Report) is an operator of the Wine & Spirits market. The company's portfolio consists of Rémy Martin and Louis XIII cognacs, the Cointreau liqueur as well as the Metaxa, Mount Gay, St-Rémy, Bruichladdich, Port Charlotte, Octomore and The Botanist spirits.
The company’s expected earnings growth rate for the current year is 18.5%. The company’s shares have gained 7.5% in the past 30 days. REMY COINTREAU carries a Zacks Rank #2.
Pernod Ricard SA operates as a manufacturer and seller of a wide range of wines and spirits. It is a holding company, with the structure divided between brand owner subsidiaries, such as The Absolut Company, Havana Club International and Chivas Brothers.
The company’s expected earnings growth rate for the current year is 12.5%. The Zacks Consensus Estimate for current-year earnings has improved 8.9% over the past 60 days. The company has a Zacks Rank #2.
Molson Coors Beverage Company (TAP - Free Report) is a global manufacturer and seller of beer and other beverage products. It has an impressive portfolio of owned and partner brands.
The company’s expected earnings growth rate for the current year is 7.9%. The Zacks Consensus Estimate for current-year earnings has improved 1.7% over the past 60 days. The company has a Zacks Rank #3 (Hold).
Constellation Brands Inc (STZ - Free Report) produces and markets beer, wine and spirits. It is the third-largest beer company and a leading, high-end wine company in the United States.
The company’s expected earnings growth rate for the current year is 5.9%. The Zacks Consensus Estimate for current-year earnings has improved 2.3% over the past 60 days. Constellation Brands carries a Zacks Rank #3.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Liquor Sales Get a Boost From E-commerce: 5 Stocks to Watch
Restaurant and bar closures due to the pandemic have been hurting food sales but not liquor! Higher sales at stores and e-commerce have been keeping spirits high for the liquor companies. This saw whisky and other alcohol sales surge during the pandemic.
In fact, e-commerce has been driving alcohol sales like never before in the United States and is likely to overtake China in online liquor sales in 2021, according to the beverage alcohol consultancy IWSR.
Pandemic Boosts U.S. Alcohol Sales in 2020
Although the alcohol industry initially faced a setback as restaurants and bars were closed down due to the pandemic, things started changing soon as more people started ordering online. Moreover, as the economy reopened, sales at liquor stores started surging as more people preferred buying and drinking alcohol at their homes.
According to a USA Today report citing Distilled Spirits Council of the United States, sales of Tennessee Whisky, bourbon and rye whisky jumped 8.2% or $327 million, totaling $4.3 billion last year. Domestic demand also increased to 28.4 million cases or 7% in 2020 as people bought alcohol brands of all price ranges. Overall alcohol sales increased 15% year over year.
The initial losses following the coronavirus outbreak were somewhat offset by an 18% surge in off-premise sales at liquor stores and other retail outlets given that consumers preferred preparing their own drink at home.
E-commerce Drives Alcohol Sales
Online orders for alcohols have been on the rise during the pandemic. According to IWSR, online alcohol sales in the United States were projected to rise 80% during the pandemic. Prior to that, in 2019, only 1% of the total alcohol sales came from e-commerce. Given the pace of growth following the coronavirus outbreak, the IWSR predicts that the United States will easily surpass China to become the world’s biggest market for online alcohol sales.
One of the primary reasons behind this surge was the innovation introduced by many alcohol companies and retailers. As the pandemic gripped the world, online happy hours got extended, allowing people to buy more. Also, several mixologists started sharing recipes on social that turned many into amateur bartenders at home, thus pushing up sales.
Stocks to Watch
Given that the pandemic has taught people to rely more on shopping online, it is likely that the alcohol market will continue to thrive. Moreover, the pandemic is far from over and people will continue drinking at home thus helping alcohol sales. It would thus be prudent to invest in these five alcohol stocks.
Diageo plc (DEO - Free Report) operates in approximately 180 countries and is involved in producing, distilling, brewing, bottling, packaging as well as distributing spirits, wine and beer.
The company’s expected earnings growth rate for the current year is 11.8%. The Zacks Consensus Estimate for current-year earnings has improved 7% over the past 60 days. The company has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
REMY COINTREAU (REMYY - Free Report) is an operator of the Wine & Spirits market. The company's portfolio consists of Rémy Martin and Louis XIII cognacs, the Cointreau liqueur as well as the Metaxa, Mount Gay, St-Rémy, Bruichladdich, Port Charlotte, Octomore and The Botanist spirits.
The company’s expected earnings growth rate for the current year is 18.5%. The company’s shares have gained 7.5% in the past 30 days. REMY COINTREAU carries a Zacks Rank #2.
Pernod Ricard SA operates as a manufacturer and seller of a wide range of wines and spirits. It is a holding company, with the structure divided between brand owner subsidiaries, such as The Absolut Company, Havana Club International and Chivas Brothers.
The company’s expected earnings growth rate for the current year is 12.5%. The Zacks Consensus Estimate for current-year earnings has improved 8.9% over the past 60 days. The company has a Zacks Rank #2.
Molson Coors Beverage Company (TAP - Free Report) is a global manufacturer and seller of beer and other beverage products. It has an impressive portfolio of owned and partner brands.
The company’s expected earnings growth rate for the current year is 7.9%. The Zacks Consensus Estimate for current-year earnings has improved 1.7% over the past 60 days. The company has a Zacks Rank #3 (Hold).
Constellation Brands Inc (STZ - Free Report) produces and markets beer, wine and spirits. It is the third-largest beer company and a leading, high-end wine company in the United States.
The company’s expected earnings growth rate for the current year is 5.9%. The Zacks Consensus Estimate for current-year earnings has improved 2.3% over the past 60 days. Constellation Brands carries a Zacks Rank #3.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>