Beer, one of the original alcoholic beverages, was developed at the dawn of human civilization. A product thousands of years in the making, modern beer is now a basic staple of the global economy. Through good times and bad, the beer industry enjoys steady rates of consumer consumption and is one of the top beverages of choice around the world.
The beer industry is dominated by massive conglomerates such as Budweiser parent Anheuser-Busch InBev (BUD -0.51%) and Heineken (HEINY -0.98%). This is an industry mostly devoid of small, fast-growing companies -- at least, publicly traded ones for the average investor. But for investors looking for stable growth over time from this large component of the consumer staples sector of the stock market, some beer stocks are worth considering.
Best beer stocks
Investing in beer stocks in 2025
Beer is big business, but it's not a high-growth industry. Nevertheless, a few notable names stand out as worthy of investor attention.
| Company | Market Cap | Description |
|---|---|---|
| AB InBev (NYSE:BUD) | $124.7 billion | The world's largest beer producer and owner of dozens of labels, including Budweiser. |
| Constellation Brands (NYSE:STZ) | $45.1 billion | Holding company for Corona, Modelo, and other wine and spirits brands. |
| Kirin Holdings (OTC:KNBWY) | $12.8 billion | Best known for Kirin, one of Japan's largest beer labels. |
| Molson Coors Beverage Company (NYSE:TAP) | $11.3 billion | Owner of brands such as Coors, Miller, Blue Moon, and dozens of other beers. |
| Boston Beer Company (NYSE:SAM) | $3.2 billion | Best known for Samuel Adams, one of the original "craft beer" names in the U.S. |
1. AB InBev
1. AB InBev
AB InBev is by far the world's largest beer company. It controls hundreds of beer brands, such as Budweiser, Stella Artois, Beck's, and Leffe, and an assortment of acquired craft brewers in the U.S. The company is a product of the 2008 merger between U.S. brewer Anheuser-Busch and Belgian-Brazilian brewer InBev and the 2016 acquisition of South African brewing giant SABMiller.
Things started out well for the mega-beer experiment, but rapid changes in consumer preferences and sluggish major beer label growth have hurt AB InBev shareholders in recent years. Since the creation of the new entity in 2008, shares are only up about 66%, compared to a 493% gain for the S&P 500.
However, since the market hit the reset button on AB InBev (shares are down about 20% since the start of 2020), the company trades more like the value stock it is -- reflecting slow but steady sales, consistent profitability, and a small dividend for investors seeking income. However, with the mega-beer merger not going exactly as planned, there are better beer investments than AB InBev.
The company also inflicted damage on itself following the storm of controversy in April 2023 after it partnered with transgender activist Dylan Mulvaney, putting her likeness on some of its cans. Protestors responded by dumping cans of Bud Light. In a viral social media video, Kid Rock even shot up several cases of Bud Light, the most popular beer in the U.S. at the time. As of September 2024, Bud Light sales were still down from before the controversy.
AB InBev stock fell in the aftermath of the controversy, but it has recovered those losses since then and has traded mostly flat since before the news broke.
AB InBev's size and diversification give it some protection from a single brand falling out of favor, and Bud Light is no longer the most popular beer in the U.S., falling behind both Modelo and Michelob Ultra.
2. Constellation Brands
2. Constellation Brands
While Constellation Brands isn't exactly a household name, some of the beers it produces are quite well-known. Among them are Corona, Modelo, and Pacifico. It also has several wine and spirits brands and an almost 40% stake in marijuana business Canopy Growth (CGC 2.94%), making it one of the largest diversified beverage companies around.
In October 2022, it wrote down the value of its stake in Canopy Growth by $1.06 billion, a sign that the deal has not lived up to expectations. Since then, Canopy stock has continued to falter.
Until recently, Constellation was able to sustain double-digit-percentage sales growth from its beer brands for years, which make up more than 80% of total revenue and almost all of the company's profits. Growth is expected to continue at a single-digit-percentage pace as the business has matured, but brands like Modelo and Corona continue to gain market share.
However, Constellation coaxes a more than 30% operating profit margin from its alcoholic beverage operation. Given its top free cash flow-generating ability, there's plenty to like about this diversified and highly profitable beer business.
3. Molson Coors
3. Molson Coors
Another potential value stock in the beer industry is Molson Coors. The parent holding company for Coors, Miller, Blue Moon, and dozens of other beer labels has struggled with stagnant sales for the past three years as North American consumers have increasingly favored craft beer and other alcoholic beverages. The company also took an $845 million goodwill impairment charge in the fourth quarter of 2022 due in part to a softening beer market.
Although it's the fifth-largest beer maker in the world, Molson Coors' stock has substantially declined for years. Shares have been rallying lately, but they remain 50% down from all-time highs reached in 2016.
Attention has shifted to higher-end beers and trendy beverages such as sparkling hard seltzer (the premium side of the business) like Topo Chico hard seltzer in partnership with Coca-Cola to better align the brand portfolio with current consumer tastes. Despite its recent challenges, the stock is priced like a value stock, and could be a great addition for investors seeking income from their portfolios as it now offers a dividend yield of 3.2%.
4. Kirin Holdings
4. Kirin Holdings
Kirin is Japan's second-largest beer label, just behind Asahi Group Holdings (ASBRF 12.78%), and it's one of the largest consumer staples companies in the country. After struggling during the pandemic, Kirin is back to delivering solid growth, with revenue up 13% in the first half of 2024 to $7.7 billion. Operating profit rose even faster, up 24% to $653.9 million.
Kirin also has health science and pharmaceuticals businesses, leveraging its expertise in beverage production to build a healthy food and drink business. The pharmaceuticals business isn't directly related to the beer business, but it follows a conglomerate model popular in Japan.
Results in the health science category were boosted by its acquisition in 2023 of Blackmores, an Australian vitamin company.
In alcoholic beverages, standout categories included Lion, whose sales were up 14%, and U.S. Craft, which jumped 25%.
After an extended stock-market decline, Kirin shares have started to rebound, and it could have more momentum ahead. Its dividend yield of 3.6% also gives investors an incentive to be patient.
5. Boston Beer Company
5. Boston Beer Company
Boston Beer -- best known for its Samuel Adams craft beer label, Truly Hard Seltzer, Angry Orchard hard cider, Dogfish Head craft beer, and several other small regional brewers -- has long been a top advocate for the independent craft beer movement. Although it isn't the small business it once was, Boston Beer is still relatively small compared to the macrobrew giants.
The pandemic led to a sharp increase in at-home alcohol consumption. As a result, Boston Beer enjoyed an acceleration in its sales growth in 2020 and early 2021. However, since then, changing consumer trends have caused some headaches, such as lower-than-anticipated demand for spiked seltzer products; the company was forced to dump its seltzer when it made too much. Additionally, the company took a $27.1 million impairment on its acquisition of Dogfish Head, showing that the deal disappointed. The slowdown started in the summer of 2021, and those challenges have continued into 2024. Depletions and shipments have continued to decline, though modestly, but sales of Truly Hard Seltzer continue to be weak.
Boston Beer has no debt, a rarity among the massive global beer conglomerates. Shares are down more than 80% from all-time highs due to the slowdown in hard seltzer sales. Boston Beer is still profitable, but the business will need to return to growth for the stock to recoup some of those losses.
Related investing topics
Making the best of a slow-growth industry
The beer industry isn't the most exciting investment theme around, but there are some standouts in the space worth your attention, especially for investors seeking to generate some dividend income along the way.
Beer is a top beverage for consumers all over the world and generates ample profits for the major producers and their shareholders. If you decide to add some beer stocks to your portfolio, bear in mind some of these stocks can exhibit volatile price action. Remember to stay diversified and focus on the long-term potential of these alcoholic beverage makers.
