‘Tis the season to be shopping – or drinking, as shown by the rising liquor revenues in the United States. Every year around this time, the alcohol industry rakes in sales at an estimate of more than a trillion dollars, according to the Wine & Spirits Wholesalers of America. From baby boomers to millennials, everybody has a craving for spirits of their choice come the holidays.
It may not come as a surprise to anyone that December is usually seen as a popular month for alcohol – shoppers take advantage of sales to stock up and perhaps even buy a better brand. From a report by the Independent Record, Montana sees whiskey as the state’s preferred beverage. In Iowa, meanwhile, flavored vodka and craft beer reigns supreme, says The Republic.
Before you say cheers to the year that was – here are some liquor stocks that are quickly becoming rising stars. You may want to raise your glass to these.
Now That’s A Classic
Diageo PLC (NYSE:DEO) makes Johnnie Walker Black Label, while the Brown-Forman Company (NYSE:BF-B) makes Jack Daniels. Who could go wrong with scotch and whiskey? Brown spirits are still making headway in the market, all thanks to the “Mad Men” effect, which may or may not be still a thing (this is 2014, after all).
Nevertheless, earlier this year Brown-Forman announced a 6% increase in the company’s sales – that’s a lot of Jack Daniels. The most bought product? Tennessee Honey, which suggests that drinkers’ behavior are now moving from flavored vodka towards flavored whiskeys. From Barron’s: “The first key factor is flavored vodka. Over the last decade, flavoured vodka has steadily grown in importance, from approx. 7% in 2001 to 21% in 2013, with a notable surge from 2009 to 2013. However, in 2013 (and through into 2014), we have seen a slowdown in regular vodka and a dramatic deceleration in flavoured vodka.”
Something Fancy for Your Table
Meanwhile, if wine is more of your caliber, there’s Constellation Brands Inc. (NYSE:STZ), a company that sells different kinds of wine. Familiar brands include the always delicious Arbor Mist, Clos du Bois, Wild Horse, Inniskillin, Robert Mondavi, Mount Veeder, among others.
Analysts believe that the company is very valuable moving forward, and is currently trading in the bullish zone. WallStreet Scope thinks it’s a stock worth watching, while Forbes recommends purchasing shares at $77.50, with a possibility of earning 6.5% using options.
A New Breed of Spirits
Now, if you’re feeling more adventurous, there’s Eastside Distilling (OTCBB:ESDI) in Portland, whose sales have grown 45% per year since 2010. A perfect fit for any generation looking for something new, this company is slowly becoming known for its award-winning line of drinks that include the Cherry Bomb Whiskey, Burnside Bourbon, Below Deck rums, and holiday liqueurs.
After years of business at Distillery Row, the established craft distiller is now getting involved in nationwide distribution. It also finally went live in the stock exchange this week, and is off to a good start.
The Best Way to End the Day
Molson Coors Brewing Co. (NYSE:TAP), meanwhile, has been in the game for a long time with its big-name brands like Coors and Pilsner. It is also the distributor of Corona and Singha, as well as Blue Moon, Miller, and Keystone.
Beer has been a constant companion by many, special event or no. Its place in history is undeniable, and today the industry is alive and well, thanks to the birth of independent crafters and breweries. Experts say that beer stocks would remain reliable, too, and attractive to investors.
