Stocks to Consider for Your Next At-home Happy Hour
Does the pandemic and sheltering in place have you wanting to turn to your favorite adult beverage more frequently? You’re not alone. According to recent Nielsen data, total beverage alcohol sales during the week ended May 16th grew 29.4% as compared to the prior year period. This week isn’t an anomaly either. As you can see from the chart below, off-premise (direct to consumer sales such as liquor stores or convenience stores) alcohol sales have grown by double digits each week since mid-March.
Source: The Nielsen Company
While the larger brands seem to be faring better during this pandemic due to the closures of tasting rooms, restaurants and bars, it’s unclear how long these elevated purchasing levels will persist as more states and cities reopen for business. Below are a handful of brands and stocks to consider if you’re looking to capitalize on these recent trends.
Brown-Forman Corporation (Tii:BF.B)
For almost 150 years, Brown-Forman Corporation has enriched the experience of life by responsibly building fine quality beverage alcohol brands, including Jack Daniel’s Tennessee Whiskey, el Jimador, Woodford Reserve, Old Forester, Canadian Mist, and Herradura. Brown-Forman’s brands are supported by over 4,800 employees and sold in approximately 170 countries worldwide.
Diageo is a global leader in beverage alcohol with an outstanding collection of brands across spirits and beer categories. These brands include Johnnie Walker, Crown Royal, JεB, Buchanan’s and Windsor whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness. Diageo is a global company, with products sold in more than 180 countries around the world.
Crimson Wine Group (Tii:CWGL)
Based in the Napa Valley, Crimson Wine crafts benchmark wines from exceptional vineyards in premier wine-growing regions throughout the United States. Crimson Wine Group owns and manages approximately 1,000 acres of vineyard land across six distinct regions, along with a diverse collection of exceptional domestic estates and wine brands, including Pine Ridge Vineyards (Napa, Calif.), Seghesio Family Vineyards (Healdsburg, Calif.), Archery Summit (Dayton, Ore.), Chamisal Vineyards (San Luis Obispo, Calif.), Double Canyon (West Richland, Wash.), Seven Hills Winery (Walla Walla, Wash.) and Malene Wines (Santa Luis Obispo, Calif.).
Willamette Valley Vineyards (Tii:WVVI)
Founded in 1983 by Oregon native Jim Bernau with the dream of creating world-class Pinot Noir, Willamette Valley Vineyards has grown from a bold idea into one of the region’s leading wineries, earning the title “One of America’s Great Pinot Noir Producers” from Wine Enthusiast Magazine.
MGP Ingredients (Tii:MGPI)
MGP is a leading producer and supplier of premium distilled spirits. Distilled spirits include premium bourbon and rye whiskeys, gins and vodkas, which are carefully crafted through a combination of art and science and backed by a long history of experience. MGP additionally is a top producer of high-quality industrial alcohol for use in both food and non-food applications. The Company is headquartered in Atchison, Kansas, where distilled alcohol products are produced. Premium spirits are also distilled and matured at the Company facility in Lawrenceburg, Indiana.
LVMH, the world’s leading luxury products group, gathers 75 prestigious brands, with 53.7 billion euros in annual revenue last year and a retail network of over 4,910 stores worldwide. In terms of wine and spirits, LVMH boasts an impressive portfolio of well-known brands, including Moët & Chandon, Dom Pérignon, Krug and Veuve Clicquot Champagnes, along with Hennessy Cognac and Cloudy Bay and Château d'Yquem wines.