As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the beverages, alcohol, and tobacco industry, including Brown-Forman (NYSE: BF.B) 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 rise of cannabis, craft beer, and vaping or the steady decline of soda and cigarettes. 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 16 beverages, alcohol, and tobacco stocks we track reported a mixed Q4. As a group, revenues missed analysts’ consensus estimates by 0.7%.
In light of this news, share prices of the companies have held steady as they are up 1.2% on average since the latest earnings results.
Brown-Forman (NYSE: BF.B)
Best known for its Jack Daniel’s whiskey, Brown-Forman (NYSE: BF.B) is an alcoholic beverage company with a broad portfolio of brands in wines and spirits.
Brown-Forman reported revenues of $1.04 billion, down 3.2% year on year. This print fell short of analysts’ expectations by 3.5%. Overall, it was a slower quarter for the company with a miss of analysts’ EBITDA estimates.
“We are pleased to reaffirm our outlook for organic top and bottom line growth in fiscal 2025 and are proud of our team’s ability to deliver industry-leading growth in this challenging environment,” said Lawson Whiting, Brown-Forman’s President and Chief Executive Officer.
The stock is up 5.6% since reporting and currently trades at $33.20.
Read our full report on Brown-Forman here, it’s free.
Best Q4: Zevia (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 reported revenues of $38.02 million, down 2% year on year, outperforming analysts’ expectations by 1.7%. The business had a very strong quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 28.9% since reporting. It currently trades at $2.63.
Is now the time to buy Zevia? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: 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 $2.30 billion, down 11.3% year on year, falling short of analysts’ expectations by 5.1%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
As expected, the stock is down 6.7% since the results and currently trades at $52.97.
Read our full analysis of Molson Coors’s results here.
Philip Morris (NYSE: PM)
Founded in 1847, Philip Morris International (NYSE: PM) manufactures and sells a wide range of tobacco and nicotine-containing products, including cigarettes, heated tobacco products, and oral nicotine pouches.
Philip Morris reported revenues of $9.30 billion, up 5.8% year on year. This number beat analysts’ expectations by 2.6%. Overall, it was a strong quarter as it also recorded an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ gross margin estimates.
The stock is up 11.2% since reporting and currently trades at $182.37.
Read our full, actionable report on Philip Morris here, it’s free.
MGP Ingredients (NASDAQ: MGPI)
Headquartered in Atchison, Kansas, MGP Ingredients (NASDAQ: MGPI) is a leading supplier of high-quality ingredients to the food and beverage industry
MGP Ingredients reported revenues of $121.7 million, down 28.7% year on year. This print topped analysts’ expectations by 3.5%. It was a strong quarter as it also produced a solid beat of analysts’ EBITDA and gross margin estimates.
MGP Ingredients achieved the highest full-year guidance raise but had the slowest revenue growth among its peers. The stock is flat since reporting and currently trades at $29.21.
Read our full, actionable report on MGP Ingredients here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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