The beer industry is dominated by massive conglomerates such as Budweiser parent Anheuser-Busch InBev (NYSE: BUD) and Heineken (OTC: HEINY). This is an industry mostly devoid of small, fast-growing companies, at least, publicly traded ones for the average investor.
But for those looking for stable growth over time from this large component of this hot sector of the stock market, some beer stocks are worth considering.
1812 Brewing Company Inc. (OTC Markets:KEGS) is an operator of and investor in companies in the craft beer industry. The Company seeks to build a nation-wide network of craft breweries to develop and foster respective brand growth at the local, regional, and national level. KEGS looks to build a network wherein certain economies of scale can be shared across it such as production, distribution footprint expansion, inter-member contract brewing, new product development, sharing of best brewery practices and scale logistics and transportation. The network is to be built through investment by 1812 Brewing Company while maintaining the members’ respective local and regional uniqueness, brand autonomy and direct involvement with its consumers. The Company seeks to be an “incubator” of growth for its holdings in the industry.
1812 Brewing Company Inc. ‘s current holding, 1812 Brewing Co., produces award-winning beers such as War of 1812 Amber Ale (“1812 Amber Ale”), 1812 Light, Hazy Oasis Pale Ale, Thousand Islands IPA, Malicious Intent XX IPA, Route 11 Lager, Railroad Red Ale, Helles Bells Pilsner, St. Stephens Stout, Third Rail Porter, Featherhammer Maibock.
The company recently announced that beer sales have started the new year strong on a relative basis, and current sales to distributors is currently over 280% of sales for the same period in 2022. Growth is being driven by several factors including new distributors such as TapRm.com and AJ Missert in St. Lawrence County as well as the new product releases of Thousand Islands IPA and 1812 Brewing Company’s Wolves Den Cream Ale.
AB InBev (NYSE: BUD) is by far the world’s largest beer company. It controls hundreds of beer brands such as Budweiser, Stella Artois, Beck’s, Leffe, and an assortment of acquired craft brewers in the U.S. The company is a product of the merger between U.S. brewer Anheuser-Busch and Belgian-Brazilian brewer InBev in 2008, as well as the acquisition of South African brewing giant SABMiller in 2016.
Another potential stock in the beer industry is Molson Coors (NYSE: TAP) The parent holding company for Coors, Miller, Blue Moon, and dozens of other beer labels has struggled with stagnant sales for the past three years as North American consumers have increasingly favored craft beer and other alcoholic beverages.