The beverage industry is constantly changing and innovating. This can be a challenging environment for investors, but also creates opportunities for growth. As drinking habits change and consumers seek out healthier options, the demand for beverages that are lower in sugar, sodium and artificial sweeteners continues to grow. There are currently three main beverage segments – soft drinks, juices and nectars, and ready-to-drink teas – with several sub-segments. Businesses need to offer something unique or different in their product offerings to stand out from the competition. As a result, investors have many beverage stocks to choose from when researching potential investments. Here are some of the best beverage stocks you can invest in right now:
Coca-Cola Femsa (KOF)
Coca-Cola Femsa (KOF) is a Mexico-based beverage company. One of the company’s product lines is Coca-Cola beverages. It also produces non-alcoholic ready-to-drink tea, coffee, water and fruit juices, as well as dairy products such as fruit yogurts and flavored milk. Coca-Cola Femsa is one of the top five beverage companies in the world. The company also ranks among the top 10 companies in the world by market capitalization. Coca-Cola Femsa has strong long-term growth potential. The company’s strong brand portfolio and focus on innovation should help it continue to grow. Coca-Cola Femsa has expanded its product line and meets the growing demand for healthier beverages. The company also shifted its production to meet the ever-increasing demand for non-carbonated beverages.
Constellation Marks (STZ)
Constellation Brands (STZ) is a beverage company that manufactures and distributes beer, wine and soft drinks. The company owns several popular beverage brands, including Corona, Modelo, Ballast Point and Svedka. The company’s main business segments are beer, wine, spirits and nectars. Beer is further divided into Mexican brands and craft, basic and other beer segments. Wine includes wine grapes, wine and winemaking innovations. The Spirits and Nectars segment includes spirits, SVEDKA vodka and other spirits and nectars. The company has a strong brand portfolio and a significant presence in the US and Mexican markets. Acquiring a cannabis company will help Constellation Brands expand its reach. The company gained a substantial competitive advantage by acquiring its cannabis business, which the Canadian government approved in early October.
Brown-Forman (BF.B) is a spirits and wine producer. Its product portfolio includes Jack Daniel’s, Southern Comfort, Woodford Reserve and other top-selling liquors. Additionally, it owns top-selling wine brands including Sledgehammer, Heritage, and Fetzer. As a spirits and wine company, Brown-Forman has strong long-term growth potential. The spirits segment has been growing for several years thanks to its focus on the premium segment. The wine segment has also seen steady growth, mainly due to the focus on premium wines. Additionally, Brown-Forman has invested in innovation to energize its brand portfolio and increase revenue. As a result, the company’s premium brands have driven its core spirits business. Its wine segment is also growing thanks to the acquisition of Fetzer Wines.
National drink (FIZZ)
National Beverage (FIZZ) manufactures and distributes non-carbonated beverages. The company’s product portfolio includes flavored sparkling waters, ready-to-drink teas and energy drinks such as Natural Calm and Core Power. National Beverage competes in the non-carbonated beverage market, which is expected to grow at a healthy pace. Growing demand for healthy beverages and growing consumer health awareness will help drive demand for National Beverage’s products. National Beverage has a strong portfolio of brands and invests in innovation. The heart of the company sparkles; the water segment is constantly growing. The ready-to-drink tea segment is also growing as consumers move away from soft drinks.
The beverage industry is volatile, but several stocks seem like suitable investments at the moment. Coca-Cola Femsa, Brown-Forman and National Beverage have recorded solid growth rates in recent years. In addition, these companies have strong brand portfolios and extensive distribution networks. They also have significant room for growth as they continue to invest in innovation and expand their product offerings. Therefore, these beverage stocks are selected to perform well over the long term and should be good stocks to invest in.