December 18, 2024
Chicago, IL – December 19, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Vita Coco Co. COCO, Constellation Brands STZ, The Coca-Cola Co. KO, Anheuser-Busch InBev BUD and Keurig Dr Pepper KDP.
The U.S. beverage industry showcased resilience and innovation in 2024, navigating challenges like shifting consumer habits and economic uncertainty while embracing emerging trends. Driven by the demand for health-conscious, premium and sustainable products, beverage companies adapted to meet evolving preferences.
As 2025 approaches, beverage stocks are bubbling with opportunities for investors seeking steady returns and growth. From non-alcoholic beverages to premium spirits, these five companies stand out as refreshing picks — Vita Coco Co. , Constellation Brands , The Coca-Cola Co. , Anheuser-Busch InBev and Keurig Dr Pepper .
Non-alcoholic drinks, particularly functional beverages, such as energy drinks, infused waters and adaptogenic teas, experienced strong growth as consumers prioritized wellness. Leading brands expanded their zero-sugar and functional lines, catering to health-focused buyers. Premium alcohol brands, especially craft beers and spirits, performed well, driven by the willingness of younger generations to spend more on quality experiences.
Conversely, traditional soda consumption saw moderate declines, though innovation in flavor profiles and sugar-free alternatives helped mitigate losses. The coffee segment has thrived as the demand for specialty and ready-to-drink coffee surged, boosted by digital loyalty programs and strong market expansions.
Health, convenience, and sustainability are set to remain key factors shaping beverage demand in 2025.The rise of plant-based beverages, low-alcohol options and eco-friendly packaging will accelerate as consumers push for greener, healthier choices. Meanwhile, alcoholic beverage companies will continue focusing on premiumization and product diversification.
With steady economic recovery and evolving trends, the U.S. beverage industry is poised for growth, blending innovation with consumer demand to remain dynamic in the year ahead.
Investors looking to raise a glass to stable earnings and market resilience will find the beverage stocks mentioned below worthy additions to their portfolios before 2025.
Here, we have highlighted five stocks with a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold). The stocks are backed by sound fundamentals and consistent better-than-expected results. Sales and earnings estimates of these companies suggest continued growth in 2025.
This trailblazer in the functional beverage sector continues to thrive by expanding the consumption occasions for coconut water. Headquartered in New York, COCO has focused on increasing the versatility and accessibility of its flagship product, Vita Coco Coconut Water. This initiative has fueled significant volume growth within the coconut water category, contributing to seeing a robust 15% compound annual growth rate (CAGR) in overall sales over the past four years. The company’s commitment to category expansion and innovation is supported by strong retail execution and dynamic marketing campaigns, driving brand visibility and consumer engagement.
By capitalizing on consumer demand for healthy, functional beverages and focusing on innovation, Vita Coco is well-positioned to sustain its growth trajectory and solidify its leadership in the functional beverage market. COCO shares have risen 35.8% in the past year. The Zacks Consensus Estimate for Vita Coco’s 2025 sales and earnings indicates year-over-year increases of 11.3% and 20.9%, respectively. The company delivered a trailing four-quarter earnings surprise of 17.6%, on average. The company currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .
Vita Coco Company, Inc. price-consensus-chart | Vita Coco Company, Inc. Quote
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Known for its premium beer and spirits portfolio, including iconic brands like Corona and Modelo, Constellation Brands has captured strong market demand. By embracing the premiumization trend in the alcohol industry, the company stays ahead of the curve with investments in its above-premium beer portfolio and Power Brands.
Constellation Brands has diversified its offerings across beer, wine and spirits, prioritizing high-margin premium and craft brands. This strategy minimizes reliance on any single category and broadens its consumer appeal. Investments in innovation and responsiveness to consumer trends have driven the success of product launches, while plans for capacity expansion in Mexico aim to support growth.
Constellation Brands leverages technology to optimize supply chains, boost consumer engagement through e-commerce and harness data-driven marketing. These efforts have significantly enhanced the company’s operational efficiency and market agility. The Zacks Consensus Estimate for fiscal 2025 sales and earnings suggests growth of 4.1% and 12.6%, respectively, from the year-ago period’s reported figures. The company delivered a trailing four-quarter earnings surprise of 5.3%, on average. The Zacks Rank #2 stock has declined 3.3% in the past year.
Constellation Brands Inc price-consensus-chart | Constellation Brands Inc Quote
Coca-Cola has successfully navigated evolving market trends by focusing on key strategies that bolster its performance. One of the main drivers has been its shift toward health-conscious options, expanding its portfolio to include low-sugar, no-sugar and functional beverages in response to growing consumer demand for healthier alternatives.
The company has also embraced sustainability through carbon reduction, recycling and eco-friendly packaging. Innovation in flavors and product formats, and the expansion of non-carbonated drinks have supported growth. Partnerships and strong retail execution have strengthened its global market presence.
By staying aligned with consumer preferences, prioritizing sustainability and continuously innovating its product lineup, Coca-Cola is poised for continued success in the competitive beverage industry. The Zacks Consensus Estimate for KO’s 2025 sales and earnings suggests growth of 4% and 3.6%, respectively. The company delivered a trailing four-quarter earnings surprise of 3.9%, on average. Its shares have gained 7.7% in the past year. The company currently has a Zacks Rank #3.
CocaCola Company (The) price-consensus-chart | CocaCola Company (The) Quote
Also known as AB InBev, Anheuser-Busch InBev is well-positioned for growth, driven by investments and a focus on premiumization. Its strong portfolio of global and craft beer brands, including Budweiser, Stella Artois and Michelob Ultra, appeals to a wide consumer base. BUD has successfully capitalized on the shift toward higher-margin premium beers, and expanded into low-alcohol and non-alcoholic beverages to meet changing consumer preferences.
The company is also enhancing digital marketing, e-commerce and innovation to engage younger, tech-savvy consumers. With a solid global presence and strong retail relationships, AB InBev is well-positioned for growth, particularly in emerging markets.
With continued investments in sustainability, supply-chain optimization and partnerships, BUD is poised to maintain its leadership in the global beer market and drive long-term growth. The Zacks Consensus Estimate for AB InBev’s 2025 sales and earnings suggests growth of 1% and 7.2% from the year-ago period’s reported figure. The company delivered a trailing four-quarter earnings surprise of 8.2%, on average. The Zacks Rank #3 company has lost 18.9% in the past year.
Anheuser-Busch InBev SA/NV price-consensus-chart | Anheuser-Busch InBev SA/NV Quote
Keurig Dr Pepper is capitalizing on several key trends shaping the beverage industry. One major trend is the growing demand for premium and functional beverages. KDP is expanding its presence in the premium coffee segment through Keurig's at-home brewing systems and offering functional drinks that cater to health-conscious consumers, such as low-sugar and zero-calorie options.
The company is prioritizing sustainability with eco-friendly packaging, water conservation and carbon footprint reduction. Additionally, it is investing in e-commerce and direct-to-consumer channels to meet the growing demand for online shopping and convenience.
By aligning with trends like premiumization, health-conscious products, sustainability and digital engagement, KDP is well-positioned for continued success in the competitive beverage market. The Zacks Consensus Estimate for AB InBev’s 2025 sales and earnings suggests growth of 6.2% and 6.6% from the year-ago period’s reported figure. The company delivered a trailing four-quarter earnings surprise of 3.4%, on average. The Zacks Rank #3 company has risen 1.6% in the past year.
Keurig Dr Pepper, Inc price-consensus-chart | Keurig Dr Pepper, Inc Quote
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CocaCola Company (The) (KO) : Free Stock Analysis Report
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