In this article, we are going to talk about the 15 most valuable alcohol companies. You can skip our detailed discussion about the trends in the alcohol sector and go to the 5 Most Valuable Alcohol Companies.
The alcohol industry performed better-than-expected in 2020 as demand grew worldwide. According to a report, the global alcoholic beverage market was valued at $515.2f billion in 2019 and projected to reach $614.7 billion at a compound annual growth rate (CAGR) of 7% from 2021 to 2023. In 2019, the largest region in the global alcoholic beverage market was Asia Pacific which accounted for 41% of the market. North America was the second biggest region, contributing 24% of the global market for alcoholic beverages.
Rising Online Demand
A report by the market research firm International Wine and Spirit Records, or IWSR, said that online demand for liquor in the U.S. was expected to jump by over 80% in 2020 as a result of the coronavirus outbreak. The report said that alcohol e-commerce sales were expected to come in at $5.6 billion in 2020, up from about $3 billion in 2019.
Another unexpected trend that favored the alcohol companies in the U.S. and abroad was high consumer spending on spirits. A report by Distilled Spirits Council said that distillers’ revenue in the U.S. jumped 7.7% to $31.2 billion in 2020. As people missed travel, concerts and live sports matches, they treated themselves with more food and high-end spirits, boosting major distillers’ revenue. The report added that spirits with price tags of over $40 per 750 milliliters made up 40% of the U.S. spirits industry’s growth last year, compared to 34% in 2019.
International Wine and Spirit Records said 44% of alcohol e-shoppers in the US only started buying alcohol online in 2020, compared to 19% in 2019. In the middle of the pandemic, e-commerce stores have become an increasingly important retail platform for alcoholic beverages across the world. Alcohol e-commerce has grown in almost all marketplaces this year, but some have seen faster growth than others. China is the largest online alcohol market in the world, but its growth rate of 23% during 2019-2020 has been relatively slower than that of the US, the UK, Australia, and Brazil as the online ecosystem for alcohol sales in China is already established and thriving with less runway for growth.
Several companies jumped in the alcohol industry to profit from the changing trends. Uber (NYSE: UBER) recently acquired Drizly, an alcohol delivery service startup, in a $1.1 billion deal. Founded in 2012, Drizly has seen an outstanding 300% year-over-year growth in bookings from 2019 to 2020 and is already profitable. Shares of UBER rallied 58.55% over the past twelve months.
Dramatic Rise of Alcohol Consumption During the Pandemic
According to a national survey conducted by RAND Corporation, overall alcohol consumption has increased by 14% among adults over the age of 30 compared to the same period last year in the US. Based on a different study posted by Int J Environ Res Public Health, the primary reasons for increased drinking included stress (45.7%), increased access to alcohol (34.4%), and boredom (30.1%). Respondents said stress caused by the pandemic resulted in increased consumption of alcohol.
With typical shopping centers shut down and severely limited supply in the early part of the year, alcohol e-commerce will continue to play a key role throughout 2021.
To give you accurate insights into the most valuable alcohol companies, we ranked the global alcohol companies based on their market cap.
Let's take a look at the most valuable alcohol companies starting from number 15.
15. Tsingtao Brewery Co Ltd
Market cap: $15.23 billion
Assets: $4.5 billion
Headquarters: Qingdao, China
Ranking 15th on our list of the 15 most valuable alcohol companies is Tsingtao Brewery. Tsingtao Brewery is the second-largest beer company in China after China Resources Enterprise in terms of revenue. As of 2014, the company has approximately 60 production facilities in 20 provinces and direct-controlled municipalities across China. In 2020, Tsingtao bought the domestic water business of Nestlé. The agreement involves the transfer of ownership of the local brand Dashan Yunnan Shan Quan and three factories headquartered in Kunming, Yunnan Province, Shanghai, and Tianjin. During the third quarter of 2020, Tsingtao Brewery reported a revenue of $1.264 billion, an increase of 6.2% on a year-over-year.
14. Kirin Holdings (OTC: KNBWY)
Market cap: $16.8 billion
Assets: $22.2 billion
Headquarters: Tokyo, Japan
Ranking 14th on our list of the 15 most valuable alcohol companies is Japan's second-largest brewer Kirin. The company is engaged in the production of alcoholic and non-alcoholic beverages as well as pharmaceutics. Kirin announced revenue of $17.3 billion in Q4 2020. According to Statista, Kirin Brewery held 27.6% of Japan's beer market in 2017. Shares of KNBWY rallied 2.91% over the past twelve months.
13. Asahi (OTC: ASBRF)
Market cap: $21.7 billion
Assets: $28.9 billion
Headquarters: Tokyo, Japan
Asahi is Japan's biggest beer manufacturer which holds over 35% of the beer market led by the Asahi Super Dry beer brand. The company also produces non-alcoholic beverages and food distributed globally. Shares of Asahi rallied 11.51% over the past twelve months. During the fourth quarter of 2020, ASBRF reported a revenue of around $19 thousand.
Market cap: $24.5 billion
Assets: $18.5 billion
Headquarters: Copenhagen, Denmark
One of the most valuable alcohol companies in the world is Carlsberg. The company manufactures and distributes beer, craft beer, and non-alcoholic beer all over the world mostly in Europe. During the fourth quarter of 2020, the Danish brewer, Carlsberg reported revenue of $2.01 billion. Moreover, the company witnessed an annual organic revenue decline by 8.4% due to the pandemic. Shares of CABGY rallied 21.86% over the past twelve months.
11. China Resources Beer
Market cap: $28.73 billion
Assets: $6 billion
Headquarters: Hong Kong, Hong Kong
China Resources Beer is a state-owned major alcohol manufacturer and a core subsidiary of China Resources (Holdings), a holding company that operates electricity, food, and other businesses. China Beer Resources is famous for its "Snow" beverage, accounting for about 20% of the Chinese beer market. Shares of CRHKY rallied 85.83% over the past twelve months. At the end of June 2020, China Resources Beer reported $2.4 billion revenue.
Market cap: $34.98 billion
Assets: $5.5 billion
Headquarters: Louisville, KY
Brown-Forman is the name behind the most popular alcoholic brands such as Jack Daniel's, Old Forester, El Jimador and Chambord. The company has approximately 40 brands of spirits, wine, and ready-to-drink cocktails. During the fourth quarter of 2020, BF.B reported a net sales of $709 million, a 4% decrease from $744 million during the same period of 2019.
Market cap: $43.12 billion
Assets: $$27.3 billion
Headquarters: Victor, NY
Constellation Brands own a portfolio of more than 200 alcohol brands, from imported beer to distilled spirits. The company has over 45 manufacturing facilities in North America, New Zealand, Chile, Europe, Australia, and Asia. The company is popularly known for its Corona Extra and Modelo Especial brands. At the end of November 2020, the company reported a revenue increase of 21.94% or $2.4 billion year-over-year.
8. Jiangsu Yanghe Brewery Joint-Stock Co., Ltd. (SHE: 002304.SZ)
Market cap: $46.42 billion
Assets: $7.3 billion
Headquarters: Suqian, China
Ranking 8th on our list of the 15 most valuable alcohol companies is Jiangsu Yanghe Group. The company produces and distributes alcoholic beverages in China and internationally. Yanghe reported revenue of $368 million during Q4 2020. Shares of Yanghe rallied 97.62% over the past twelve months.
7. Pernod Ricard
Market cap: $50.75 billion
Assets: $36.8 billion
Headquarters: Paris, France
Chivas Regal, Malibu, and Cognac are only some of the alcoholic beverages that make Pernod Ricard one of the most valuable alcohol companies in the world. The company is the 6th biggest wine company in the world too. Pernod Ricard's revenue fell 36.2% in the fourth quarter due to the impact of COVID-19 on travel retail. Shares of PDRDF rallied 18.69% over the past twelve months.
6. Heineken N.V. (AMS: HEIA.AS)
Market cap: $59.92 billion
Assets: $52.2 billion
Headquarters: Amsterdam, Netherlands
Heineken is one of the most popular beer brands stacked in your local store's fridge. The Dutch brewery distributes beer and cider internationally. Heineken announced said its full-year revenue for 2020 was $28.6 billion.
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Disclosure: None. 15 Most Valuable Companies is originally published at Insider Monkey.