15 Most Valuable Alcohol Companies in the World
In this article, we are going to discuss the 15 most valuable alcohol companies in the world. You can skip our detailed analysis of the global alcohol industry, the impact of Covid-19 on alcohol consumption, and the recent shifts in the global alcohol market, and go directly to the 5 Most Valuable Alcohol Companies in the World.
There is a substantial amount of evidence that suggests that any alcohol consumption, however moderate, can have negative health consequences. Even low levels of drinking can increase the risk of heart disease, high blood pressure, and even certain types of cancer. Understanding that there is no such thing as risk-free drinking, the Centers for Disease Control and Prevention defines moderate drinking as 2 drinks or less per day for men, and no more than one drink per day for women. Still, despite the well-publicized health risks, more than two-thirds of adult drinkers regularly exceed those levels.
The Global Alcohol Industry:
In 2019, the global alcohol consumption, measured in liters of pure alcohol per person of 15 years of age or older, was 5.5 liters, which is a 4.7% decrease from 5.7 liters in 2010. As we mentioned in our article – Alcohol Consumption by Country: 25 Countries with the Highest Alcohol Consumption per Capita – the global alcoholic beverages market was valued at $1.62 trillion in 2021, and is projected to reach $2 trillion by 2031, with a CAGR of 2.2% during the forecast period.
The market is likely to be driven by the increasing global young-adult demographic, coupled with high disposable income and consumer demand for premium/super-premium products. Globally, beer drives the market for alcoholic beverages. Regionally, North America and Asia-Pacific are expected to dominate the market during the forecast period.
According to the 2021 European Health Report by the WHO, Europe is the continent that drinks the most alcohol per capita in the world, with every person aged 15 and over consuming an average of 9.5 liters of pure alcohol every year. This is equivalent to around 190 liters of beer, 80 liters of wine, or 24 liters of spirits.
The Impact of Covid-19:
As the Covid-19 virus tightened its grip on America in 2020, the hospitality industry took one of the biggest economic hits, but that didn’t mean it became harder to get a drink. With almost every state relaxing its alcohol laws in 2020 in an effort to keep local economies afloat, it was even easier to kick back with a drink after a bad day. All but three states gave liquor stores a lockdown exemption, with many classifying the business – along with grocery stores and pharmacies – as an essential service.
In the first few weeks of the lockdown, alcohol sales for off-premise locations jumped 54% and online alcohol sales had increased by 262% compared to sales data from the same week in 2019. From March to September 2020, there were $41.9 billion in liquor store sales, representing an increase of 20% from the same period the previous year.
Americans drank more alcohol during the pandemic and this was also reflected in the resultant imposts collected by the national kitty. Alcohol tax revenues collected by the U.S. Treasury Department rose by 8% in the fiscal year that ended on Sept. 30, 2021, compared to the previous year, and remained well above pre-pandemic levels.
Recent Shifts in the Global Alcohol Market:
From Japan to the United States, global drinking habits have shifted dramatically in recent years. While it may look like the alcohol industry is set to achieve a multi-trillion dollar mark in the coming decades, recent changes in consumer behavior suggest that the market, as we know it today, may be in danger of running dry.
The global low- and no-alcohol consumer trend is a significant shift in the drinks industry, driven by increasingly health-conscious consumers seeking alternatives to traditional alcoholic beverages. Millennials and Generation Z are the main insurgents, driving a transformation in choice and demanding more from their drinks. These younger generations are adopting a healthier lifestyle and reaping the benefits of going alcohol-free – but they're not the only ones. From fitness fans and healthy lifestylers to a renaissance in older living, knowing what you're putting into your body is now a key priority. While the low- and no-alcohol trend is taking off in the Western world, another region which holds opportunities for this sector is the Middle East, where alcohol is banned in many countries. In 2019, Saudi Arabia was recorded to have the sixth-largest global market for alcohol-free beer consumption.
Several alcohol companies have hopped on the zero-alcohol bandwagon, and are now offering products with all of the taste and none of the booze. Budweiser Zero was launched in 2020 by Anheuser-Busch InBev SA/NV (NYSE:BUD) as the company’s first non-alcoholic beer, setting itself up as the industry standard. The beer behemoth has set the ambitious goal of ensuring that low- or no-alcohol beer products make up at least 20% of its global beer volume by 2025. As a result, the company announced last summer that it is investing $34.4 million in upgrading some of its Belgian breweries, which will help expand its non-alcoholic beer portfolio. The investment will also improve Anheuser-Busch InBev SA/NV (NYSE:BUD)’s bottling capabilities and optimize a new de-alcoholizing system that is used to make Corona Cero – the company’s newest non-alcoholic version of its classic Mexican lager that debuted in ten European countries in 2022.
Anheuser-Busch InBev SA/NV (NYSE:BUD) ranks among Bill Gates’ 16 Dividend Stocks to Buy.
Similarly, Guinness-owner Diageo plc (NYSE:DEO) has also recently invested $26.7 million in a new facility at St. James's Gate in Dublin for its non-alcoholic stout. The new Guinness 0.0 production facility has a total capacity of 500,000 hectolitres, and is a big expansion of production capacity since the non-alcoholic stout launched in the Irish market in mid 2021. The investment is spurred by increasing demand from consumers for the 0.0 option, as Diageo plc (NYSE:DEO) forecasts that the non-alcoholic alternative will account for 10% of all Guinness trademark sales in Ireland in the coming years.
Diageo plc (NYSE:DEO) sits among the Best Brewery and Distillery Stocks to Buy Now.
With that said, here is our List of the Largest Alcohol Companies in the World.
Pixabay/Public Domain
Methodology:
To collect information for this article, we have referred to the Yahoo Finance database, looking for the Most Valuable Alcohol Companies. The following public companies have been ranked by their market capitalization, as of the writing of this article.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
15. Budweiser Brewing Company APAC Limited
Market Cap: $19.54 billion
Part of AB InBev, Budweiser Brewing Company APAC Ltd is an investment holding company principally engaged in the brewing and distribution of beer. They brew, import, market, distribute, and sell a portfolio of more than 50 beer brands, including Budweiser, Stella Artois, Corona, Hoegaarden, Cass, and Harbin.
Headquartered in Hong Kong, Budweiser Brewing Company APAC Ltd is counted among the Largest Beer Companies in the Asia Pacific.
14. Jiangsu Yanghe Brewery Joint-Stock Co., Ltd.
Market Cap: $21.33 billion
Founded in 2002, Jiangsu Yanghe Brewery is a China-based company principally engaged in the production and distribution of liquor and related products. The group owns two brands – Yanghe and Shuangou – and is one of the leading Baijiu enterprise groups in terms of production scale and technical strength.
Baijiu is one of the Most Consumed Alcohols in the World.
13. Brown-Forman Corporation (NYSE:BF-B)
Market Cap: $24.23 billion
Brown-Forman Corporation (NYSE:BF-B) engages in the production, distillation, bottling, import, export, marketing, and sale of a wide range of alcoholic beverages. This includes spirits, wines, whiskeys, flavored liqueurs based on whiskey, pre-mixed and pourable products, cocktails, vodkas, tequilas, champagnes, brandy, Bourbons, and liqueurs.
For the first six months of the fiscal year, ended October 31st 2023, the company’s reported net sales increased 2% to $2.1 billion (+1% on an organic basis) compared to the same prior-year period. First half reported operating income also increased 1% to $666 million (+1% on an organic basis) and diluted earnings per share decreased 1% to $0.98.
With several well-known brands, including the famous Jack Daniel’s, under its belt,
Brown-Forman Corporation (NYSE:BF-B) is one of the Largest Liquor Companies in USA.
12. Luzhou Laojiao Co.,Ltd
Market Cap: $37.74 billion
Founded in 1950, Luzhou Laojiao Co.,Ltd is a Chinese company that engages in the research, development, production, and sale of liquors. Its products include National Cellar 1573 Customized Liquor and Luzhou Laojiao Tequ Liquor, and the company's sales area covers more than 40 countries and regions in China and overseas.
Luzhou Laojiao Co.,Ltd boasted a revenue of $3.51 billion in 2022.
11. Ambev S.A. (NYSE:ABEV)
Market Cap: $39.27 billion
Ambev S.A. (NYSE:ABEV), formally Companhia de Bebidas das Américas, is a Brazilian brewing company now merged into Anheuser-Busch InBev. It offers beer under the brand names Skol, Brahma, Antarctica, Bohemia, Original, Quilmes, Paceña, Pilsen, Labatt Blue, Alexander Keith's, Kokanee, and Guaraná Antarctica.
Ambev S.A. (NYSE:ABEV) is a great alcohol penny stock to own and is included among the Goldman Sachs Penny Stocks: Top 12 Stock Picks.
10. Pernod Ricard SA
Market Cap: $40.68 billion
Founded in 1975, Pernod Ricard has quickly become the world's leading premium spirits company, serving up its iconic offerings in more than 160 countries. World-renowned brands such as Absolut Vodka, Malibu, and Jameson Whiskey etc. are counted among the French giant’s portfolio.
With over $12.1 billion in total earnings reported in its last fiscal year, Pernod Ricard SA is included among the Largest Alcohol Companies by Revenue.
9. Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX)
Market Cap: $41.94 billion
Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX), doing business as FEMSA, is a Mexican multinational beverage and retail company headquartered in Monterrey, Mexico. The company picked up a 20% stake in Heineken in 2010 but trimmed it to 14.8% in 2017. Then it was again announced in May 2023 that FEMSA sold about $3.63 billion of its shares in the Heineken Group, divesting its stake in the Dutch brewer as it plans to focus on its main businesses.
Shares of Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX) were held by 27 hedge funds at the end of Q4 2023 in the Insider Monkey database, with First Eagle Investment Management holding the largest stake of about 9.97 million shares, valued at around $1.3 billion.
Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX) sits among the Alcohol Companies Worth the Most.
8. Shanxi Xinghuacun Fen Wine Factory Co.,Ltd.
Market Cap: $42.16 billion
Shanxi Xinghuacun Fen Wine is a wine and spirits company based in China, with a product line that includes Fen wine, Zhuyeqing, and other white spirits. The Fen series contributed about 90% of the company's sales revenue in 2022, including sub-premium brand Qinghua, mid-range products Panama and Laobaifen, and low-end Bofen.
7. Heineken N.V.
Market Cap: $52.76 billion
Led by its Heineken brand, the Amsterdam-based company has a portfolio of more than 300 international, regional, local, and specialty beers and ciders. With a workforce of over 85,000 in more than 190 countries, Heineken N.V. is able to draw strength from the diverse regions it operates in and sells to – driving consumer trends and opening up new market opportunities in the process.
Heineken N.V. is placed among the Largest Beer Companies in the World.
6. Constellation Brands, Inc. (NYSE:STZ)
Market Cap: $56.17 billion
Constellation Brands, Inc. (NYSE:STZ) is involved in the production, import, marketing, and sale of beer, wine, and spirits across the United States, Canada, Mexico, New Zealand, and Italy. The company made headlines last summer when its Mexican beer brand, Modelo Especial, became the Top-Selling Beer in America after dethroning Bud Light.
Shares of Constellation Brands, Inc. (NYSE:STZ) were held by 53 hedge funds at the end of Q4 2023 in the Insider Monkey database, with Marshall Wallace LLP holding the largest stake of over 1.4 million shares, valued at $340.41 million.
Constellation Brands, Inc. (NYSE:STZ) is placed among the Top 10 Richest Alcoholic Drinks Companies in the World.
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Disclosure: None. 15 Most Valuable Alcohol Companies in the World is originally published on Insider Monkey.
