{"id":175828,"date":"2020-06-23T22:31:21","date_gmt":"2020-06-23T22:31:21","guid":{"rendered":"https:\/\/stockchase.com\/discover\/?p=175828"},"modified":"2020-06-23T22:31:21","modified_gmt":"2020-06-23T22:31:21","slug":"top-alcohol-beer-stocks","status":"publish","type":"post","link":"https:\/\/stockchase.com\/discover\/top-alcohol-beer-stocks\/","title":{"rendered":"Top 5 Alcohol, Wine and Beer Stocks to Buy Guilt-free"},"content":{"rendered":"<p><span lang=\"en-CA\"> It&#8217;s summer. Bars are reopening across the land and folks are entertaining at home with barbecues and small dinner parties. After all, Canadians still can&#8217;t vacation abroad, attend concerts or catch ballgames, but we can still drink\u2014beer, wine and spirits. Why not have a look at alcohol and beer stocks?<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Discover What&#039;s Inside<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/stockchase.com\/discover\/top-alcohol-beer-stocks\/#Are_Beer_Stocks_a_Safe_Bet\" >Are Beer Stocks a Safe Bet?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/stockchase.com\/discover\/top-alcohol-beer-stocks\/#Beer_Stock_1_Constellation_Brands_STZ-N\" >Beer Stock #1: Constellation Brands (STZ-N)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/stockchase.com\/discover\/top-alcohol-beer-stocks\/#Beer_Stock_2_Tsingtao_Brewery_Co_0168-HK\" >Beer Stock #2: Tsingtao Brewery Co. (0168-HK)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/stockchase.com\/discover\/top-alcohol-beer-stocks\/#Beer_Stock_3_Waterloo_Brewing_WBR-T\" >Beer Stock #3: Waterloo Brewing (WBR-T)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/stockchase.com\/discover\/top-alcohol-beer-stocks\/#Wine_Stock_4_Andrew_Peller_ADWA-T\" >Wine Stock #4: Andrew Peller (ADW.A-T)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/stockchase.com\/discover\/top-alcohol-beer-stocks\/#Wine_Stock_5_Corby_Spirits_and_Wine_CSWA-T\" >Wine Stock #5: Corby Spirits and Wine (CSW.A-T)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/stockchase.com\/discover\/top-alcohol-beer-stocks\/#Top_5_Alcoholic_Beverages_stocks_Corby_Spirit_and_Wine_CSWA-T\" >Top #5 Alcoholic Beverages stocks Corby Spirit and Wine (CSW.A-T)<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Are_Beer_Stocks_a_Safe_Bet\"><\/span>Are Beer Stocks a Safe Bet?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In investing, sin stocks, whether it is wine stocks, beer stocks or any other alcohol stocks, are safe bets.<\/p>\n<p>In the early weeks of the pandemic, <span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/kitchener.ctvnews.ca\/alcohol-sales-on-the-rise-during-covid-19-pandemic-1.4920002\" target=\"_blank\" rel=\"noopener\"><span lang=\"en-CA\">alcohol sales spiked<\/span><\/a><\/u><\/span><\/span><span lang=\"en-CA\">, because there was little else to do but drink, toke up on weed and binge on <a href=\"https:\/\/stockchase.com\/NFLX-Q\">Netflix<\/a>. <\/span><\/p>\n<p><span lang=\"en-CA\">Since mid-spring, booze sales have levelled off to normal, but the summer heat will likely bump them up again. Meanwhile, Cannabis 2.0 still promises the integration of cannabis and drinks, which are starting to pop up in cannabis stores in Toronto, for example. So, raise a glass to these alcohol stocks.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Beer_Stock_1_Constellation_Brands_STZ-N\"><\/span>Beer Stock #1: Constellation Brands (STZ-N)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-113740\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2019\/10\/STZ-N-1-760x254.jpg\" alt=\"Constellation Brands\" width=\"860\" \/><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/data.wealthica.com\/api\/securities\/STZ-N\/chart?labels=true\" alt=\"STZ-N\" align=\"right\" \/><span lang=\"en-US\">You can&#8217;t mention <a href=\"https:\/\/stockchase.com\/STZ-N\">Constellation Brands<\/a> in the same breath without uttering \u201ccannabis.\u201d Just last month, <a href=\"https:\/\/stockchase.com\/STZ-N\">STZ<\/a> poured $245 million more into <a href=\"https:\/\/stockchase.com\/WEED-T\">Canopy Growth<\/a> to increase the beverage company&#8217;s stake to 38.6%. If <a href=\"https:\/\/stockchase.com\/STZ-N\">STZ<\/a> exercises all its warrants, it would own roughly 56% of Canada&#8217;s biggest weed producer. <\/span><\/p>\n<p><span lang=\"en-US\">Before it got into cannabis, <a href=\"https:\/\/stockchase.com\/STZ-N\">Constellation<\/a> was known for its large portfolio of beer, wine and spirits including Corona, Kim Crawford and Robert Mondavi. But the weed investment has given the stock a hangover with analysts recommending shorting, selling or just avoiding.<a href=\"https:\/\/stockchase.com\/expert\/view\/1385\/Jason-Del-Vicario\"> Jason Del Vicario<\/a> sums it up: the company is well-run and <a href=\"https:\/\/stockchase.com\/WEED-T\">Canopy<\/a> is adding long-term value, but right now it&#8217;s carrying a lot of debt. <a href=\"https:\/\/stockchase.com\/STZ-N\">Constellation<\/a> trades at a 22.77x PE, revenue growth YOY is 2.8%, and its one-year return is -1.54%. <\/span><\/p>\n<p>However, bulls like <span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/www.barrons.com\/articles\/constellation-brands-earnings-are-coming-buy-the-stock-now-jpmorgan-says-51592410647?siteid=yhoof2&amp;yptr=yahoo\" target=\"_blank\" rel=\"noopener\"><span lang=\"en-US\">JPMorgan<\/span><\/a><\/u><\/span><\/span><span lang=\"en-US\"> recently raised STZ&#8217;s price target from $163 to $200, banking on beer production rising post-pandemic. <\/span><\/p>\n<p><span lang=\"en-US\">Another encouraging sign is that <a href=\"https:\/\/stockchase.com\/STZ-N\">Constellation<\/a>&#8216;s last four quarters have beat the street. So, future prospects look positive, though the cannabis situation is giving some investors pause. However, at a 1.63% dividend yield, <a href=\"https:\/\/stockchase.com\/STZ-N\">Constellation<\/a> does not pay you to wait. You&#8217;re banking on growth. Consider <a href=\"https:\/\/stockchase.com\/STZ-N\">Constellation<\/a> a slow pour ending with a satisfying finish.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Beer_Stock_2_Tsingtao_Brewery_Co_0168-HK\"><\/span>Beer Stock #2: Tsingtao Brewery Co. (0168-HK)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-175927\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2020\/06\/0168-HK-1-760x254.png\" alt=\"Tsingtao Brewery Co.\" width=\"860\" \/><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/data.wealthica.com\/api\/securities\/0168-HK\/chart?labels=true\" alt=\"0168-HK\" align=\"right\" \/><span lang=\"en-US\">Here&#8217;s a surprising fact: Tsingtao is one of the most successful beer companies in the world in terms of stock performance. Tsingtao is China&#8217;s second-largest brewery, selling its golden lager in more than 90 countries, including Canada and the U.S., though it was founded as an Anglo-German company over a century ago. <\/span><\/p>\n<p><span lang=\"en-US\">It trades primarily on the Hong Kong exchange (as well as <\/span><span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/www.theglobeandmail.com\/investing\/markets\/stocks\/TSGTF\/\" target=\"_blank\" rel=\"noopener\"><span lang=\"en-US\">New York<\/span><\/a><\/u><\/span><\/span><span lang=\"en-US\">), which probably explains why Bay Street analysts overlook it. <\/span><span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/asia.nikkei.com\/Companies\/Tsingtao-Brewery-Co.-Ltd\" target=\"_blank\" rel=\"noopener\"><span lang=\"en-US\">Data from last December<\/span><\/a><\/u><\/span><\/span><span lang=\"en-US\"> reports that Tsingtao earned HK$2.1 million net income on HK$29.1 million revenues; it offers a diluted EPS of 1.55 with operating cash flow of HK$5.1 million.<\/span><\/p>\n<p>Tsingtao pays a 1.07% dividend yield and trades at a 37x PE. Not exactly enticing numbers, but its daily trading volume of 2.7 million shares protects it from the small-cap volatility of the other names here. The brewery currently trades at HK$56, which has blown past its target of HK$36.85.<\/p>\n<p>It has rebounded sharply from its March 16 trough of HS$33.40 and keeps going up.<\/p>\n<p><span lang=\"en-US\">The big question is, Can it keep rising? <\/span><\/p>\n<p>Currently, there is one buy, nine holds, five underperforms and two sells on the stock. Like a quick pour, Tsingtao&#8217;s price run-up suggests frothiness, but after settling down it should be worth a taste.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Beer_Stock_3_Waterloo_Brewing_WBR-T\"><\/span>Beer Stock #3: Waterloo Brewing (WBR-T)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-113737\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2019\/10\/WBR-T-1-760x254.png\" alt=\"Waterloo Brewing\" width=\"860\" \/><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/data.wealthica.com\/api\/securities\/WBR-T\/chart?labels=true\" alt=\"WBR-T\" align=\"right\" \/><span lang=\"en-CA\">This indie brewery from southern Ontario flies under the radar of most investors, but its reliable 3.79% dividend yield acts as a bond proxy for its shareholders in a time when companies are halting dividends. Analysts like <a href=\"https:\/\/stockchase.com\/expert\/view\/1349\/Bruce-Campbell-2\">Bruce Campbell<\/a> of Stone Castle Investment note that cannabis drinks hold potential for huge upside for <a href=\"https:\/\/stockchase.com\/WBR-T\">Waterloo<\/a>. <\/span><\/p>\n<p><span lang=\"en-CA\">Further, he and <a href=\"https:\/\/stockchase.com\/expert\/view\/1221\/Colin-Stewart\">Colin Stewart<\/a> consider <a href=\"https:\/\/stockchase.com\/WBR-T\">WBR<\/a> a takeover candidate by one of the big players. However, <a href=\"https:\/\/stockchase.com\/WBR-T\">Waterloo<\/a> missed its <\/span><span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/finance.yahoo.com\/news\/waterloo-brewing-ltd-just-missed-140120395.html\" target=\"_blank\" rel=\"noopener\"><span lang=\"en-CA\">last quarterly earnings<\/span><\/a><\/u><\/span><\/span><span lang=\"en-CA\">, though revenues of $15 million were in line with the street. No doubt that restaurant and bar closures impacted sales. Furture projections are more optimistic. <\/span><\/p>\n<p>Consensus from four analysts predicts revenues of $72.1 million in 2021, meaning a 15% increase on sales over the the past 12 months, and for EPS to soar 1497% to $0.14. The current <a href=\"https:\/\/stockchase.com\/WBR-T\">WBR<\/a> price target is $4.88. (Its 50-day moving average is $2.85.) The street expects <a href=\"https:\/\/stockchase.com\/WBR-T\">Waterloo<\/a> grow 15% which would outpace its 10% per annum of the last five years.<\/p>\n<p><span lang=\"en-CA\">A caveat: <a href=\"https:\/\/stockchase.com\/WBR-T\">Waterloo<\/a> is a small-cap stock of $100 million with an average trading volume of 31,000 shares, so expect fluctuations. Year-to-date, <a href=\"https:\/\/stockchase.com\/WBR-T\">WBR<\/a> trails the TSX -17% vs. -9%, though has closed the gap in the past month. <a href=\"https:\/\/stockchase.com\/WBR-T\">Waterloo<\/a> is worth a pour.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Wine_Stock_4_Andrew_Peller_ADWA-T\"><\/span>Wine Stock #4: Andrew Peller (ADW.A-T)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-175924\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2020\/06\/ADW.A-T-1-760x254.jpg\" alt=\"Andrew Peller\" width=\"860\" \/><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/data.wealthica.com\/api\/securities\/ADW.A-T\/chart?labels=true\" alt=\"ADW.A-T\" align=\"right\" \/><span lang=\"en-CA\">This Ontario winemaker <\/span><span lang=\"en-US\">is a growth-by-acquisition story, notably three B.C. wineries it bought in October 2017. The stock then got ahead of itself, but has since settled down. Analyst <a href=\"https:\/\/stockchase.com\/expert\/view\/1366\/Ryan-Modesto\">Ryan Modesto<\/a> expects <a href=\"https:\/\/stockchase.com\/ADW.A-T\">Peller<\/a>&#8216;s<\/span> <span lang=\"en-US\">modest <\/span><span lang=\"en-CA\">2.33% dividend yield <\/span><span lang=\"en-US\">to rise, and he likes the company&#8217;s stability. <a href=\"https:\/\/stockchase.com\/expert\/view\/1344\/Stephen-Takacsy-B-Eng-MBA\">Stephen Takacsy<\/a> has been adding to his position during the pandemic, because he foresees growth driven in part by marketing. <\/span><\/p>\n<p><span lang=\"en-US\">Revenue growth is shy of 5%, though <a href=\"https:\/\/stockchase.com\/ADW.A-T\">ADW<\/a>&#8216;s one-year return is -31.9% and its three-year is -15.53%. YTD, <a href=\"https:\/\/stockchase.com\/ADW.A-T\">Peller<\/a> trails the TSX -22% vs. -9%, and 3% to 4% in the past month. Like <a href=\"https:\/\/stockchase.com\/WBR-T\">WBR<\/a>, <a href=\"https:\/\/stockchase.com\/ADW.A-T\">Peller<\/a> is a small-cap, exchanging 27,000 shares each day at a<\/span><span lang=\"en-CA\"> PE under 17x. <\/span><span lang=\"en-US\">The last four quarters saw two misses, one beat and one inline report, a mixed bag.<\/span><\/p>\n<p><span style=\"color: #000080;\"><span lang=\"zxx\"><u><a href=\"https:\/\/finance.yahoo.com\/news\/andrew-peller-limited-reports-solid-220255489.html\" target=\"_blank\" rel=\"noopener\"><span lang=\"en-US\">YOY sales in Q4<\/span><\/a><\/u><\/span><\/span><span lang=\"en-US\"> rose 2.9% as were gross margins, adjusted EBITDA and net earnings. <a href=\"https:\/\/stockchase.com\/ADW.A-T\">ADW<\/a> looks like a safe, though undramatic bet long term. It&#8217;s worth picking up a bottle or two, but maybe not an entire case.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Wine_Stock_5_Corby_Spirits_and_Wine_CSWA-T\"><\/span>Wine Stock #5: Corby Spirits and Wine (CSW.A-T)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-175923\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2020\/06\/CSW.A-T-1-760x254.jpg\" alt=\"Corby Spirit and Wine\" width=\"860\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Top_5_Alcoholic_Beverages_stocks_Corby_Spirit_and_Wine_CSWA-T\"><\/span>Top #5 Alcoholic Beverages stocks Corby Spirit and Wine (CSW.A-T)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img decoding=\"async\" src=\"https:\/\/data.wealthica.com\/api\/securities\/CSW.A-T\/chart?labels=true\" alt=\"CSW.A-T\" align=\"right\" \/><\/p>\n<p lang=\"en-US\">The market sees <a href=\"https:\/\/stockchase.com\/CSW.A-T\">Corby<\/a> as a steady eddy, but offering little growth. It owns half of Windsor&#8217;s Hiram Walker distillery which produces most of its spirits which are found in every bar in the land: J.P. Wiser&#8217;s, Chivas Regal, Polar Ice vodka, Kahlua plus many others.<\/p>\n<p lang=\"en-US\">Income-seekers can buy this for the 4.83% dividend, but don&#8217;t expect much excitement. <a href=\"https:\/\/stockchase.com\/CSW.A-T\">Corby<\/a> ain&#8217;t going anywhere, but nowadays boring is not a bad thing. <a href=\"https:\/\/stockchase.com\/CSW.A-T\">Corby<\/a> trades at a 17.5x PE and, unlike the other names on this list, its stock has returned to pre-Covid levels.<\/p>\n<p lang=\"en-CA\"><i>(Disclosure: I own shares of Waterloo Brewing.)<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It&#8217;s summer. Bars are reopening across the land and folks are entertaining at home with barbecues and small dinner parties. After all, Canadians still can&#8217;t vacation abroad, attend concerts or catch ballgames, but we can still drink\u2014beer, wine and spirits. [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":175925,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"cwp_meta_box_check":"No","cwp_rev_product_name":"","cwp_rev_product_image":"","wppr_links":[],"cwp_rev_price":"","wppr_options":[],"wppr_pros":[],"wppr_cons":[],"footnotes":""},"categories":[17],"tags":[],"class_list":["post-175828","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lists"],"wppr_data":{"cwp_meta_box_check":"No"},"_links":{"self":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/posts\/175828","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/comments?post=175828"}],"version-history":[{"count":0,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/posts\/175828\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/media\/175925"}],"wp:attachment":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/media?parent=175828"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/categories?post=175828"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/tags?post=175828"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}