As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the beverages and alcohol industry, including Boston Beer (NYSE:SAM) and its peers.
These companies’ performance is influenced by brand strength, marketing strategies, and shifts in consumer preferences. Changing consumption patterns are particularly relevant and can be seen in the explosion of alcoholic craft beer drinks or the steady decline of non-alcoholic sugary sodas. Companies that spend on innovation to meet consumers where they are with regards to trends can reap huge demand benefits while those who ignore trends can see stagnant volumes. Finally, with the advent of the social media, the cost of starting a brand from scratch is much lower, meaning that new entrants can chip away at the market shares of established players.
The 13 beverages and alcohol stocks we track reported a decent Q1; on average, revenues were in line with analyst consensus estimates. while next quarter’s revenue guidance was 15.8% below consensus. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and beverages and alcohol stocks have had a rough stretch, with share prices down 6.2% on average since the previous earnings results.
Best Q1: Boston Beer (NYSE:SAM)
Known for its flavorful beverages challenging the status quo, Boston Beer (NYSE:SAM) is a pioneer in craft brewing and a symbol of American innovation in the alcoholic beverage industry.
Boston Beer reported revenues of $426.1 million, up 3.9% year on year, topping analysts’ expectations by 3.3%. It was a stunning quarter for the company, with an impressive beat of analysts’ earnings and operating margin estimates.
“I’m thrilled to have recently joined Boston Beer as CEO,” said President and CEO Michael Spillane.
The stock is up 4.5% since the results and currently trades at $300.
Is now the time to buy Boston Beer? Access our full analysis of the earnings results here, it’s free.
Molson Coors (NYSE:TAP)
Sporting an impressive roster of iconic beer brands, Molson Coors (NYSE:TAP) is a global brewing giant with a rich history dating back more than two centuries.
Molson Coors reported revenues of $2.60 billion, up 10.7% year on year, outperforming analysts’ expectations by 3.7%. It was a very strong quarter for the company, with a solid beat of analysts’ earnings estimates.
Molson Coors delivered the biggest analyst estimates beat among its peers. The stock is down 19.6% since the results and currently trades at $51.07.
Is now the time to buy Molson Coors? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Zevia PBC (NYSE:ZVIA)
With a primary focus on soda but also a presence in energy drinks and teas, Zevia (NYSE:ZVIA) is a better-for-you beverage company.
Zevia PBC reported revenues of $38.8 million, down 10.4% year on year, falling short of analysts’ expectations by 1.6%. It was a weak quarter for the company, with revenue guidance for next quarter missing analysts’ expectations.
Zevia PBC had the weakest full-year guidance update in the group. The stock is down 33.3% since the results and currently trades at $0.7.
Read our full analysis of Zevia PBC’s results here.
Vita Coco (NASDAQ:COCO)
Founded in 2004 followed by a 2021 IPO, The Vita Coco Company (NASDAQ:COCO) offers coconut water products that are a natural way to quench thirst.
Vita Coco reported revenues of $111.7 million, up 1.8% year on year, in line with analysts’ expectations. It was a very strong quarter for the company, with an impressive beat of analysts’ gross margin estimates.
Vita Coco achieved the highest full-year guidance raise among its peers. The stock is up 15.9% since the results and currently trades at $28.1.
Read our full, actionable report on Vita Coco here, it’s free.
Celsius (NASDAQ:CELH)
With its proprietary MetaPlus formula as the basis for key products, Celsius (NASDAQ:CELH) offers energy drinks that feature natural ingredients to help in fitness and weight management.
Celsius reported revenues of $355.7 million, up 36.8% year on year, falling short of analysts’ expectations by 8.8%. It was a very strong quarter for the company, with an impressive beat of analysts’ earnings estimates.
Celsius scored the fastest revenue growth but had the weakest performance against analyst estimates among its peers. The stock is down 28.4% since the results and currently trades at $56.1.
Read our full, actionable report on Celsius here, it’s free.
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