As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the beverages and alcohol industry, including Keurig Dr Pepper (NASDAQ:KDP) and its peers.
These companies' performance is influenced by brand strength, marketing strategies, and shifts in consumer preferences. Changing consumption patterns are particularly relevant and can be seen in the explosion of alcoholic craft beer drinks or the steady decline of non-alcoholic sugary sodas. Companies that spend on innovation to meet consumers where they are with regards to trends can reap huge demand benefits while those who ignore trends can see stagnant volumes. Finally, with the advent of the social media, the cost of starting a brand from scratch is much lower, meaning that new entrants can chip away at the market shares of established players.
The 12 beverages and alcohol stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 13.1% below.
Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation. However, beverages and alcohol stocks have held steady amidst all this with share prices up 2.2% on average since the latest earnings results.
Keurig Dr Pepper (NASDAQ:KDP)
Born out of a 2018 merger between coffee company Keurig Green Mountain and beverage company Dr Pepper Snapple, Keurig Dr Pepper (NASDAQ:KDP) boasts a powerhouse portfolio of beverages.
Keurig Dr Pepper reported revenues of $3.92 billion, up 3.5% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a narrow beat of analysts’ earnings estimates but a miss of analysts’ gross margin estimates.
Commenting on the quarter, CEO Tim Cofer stated, "Our second quarter results were healthy, with accelerating net sales trends, significant margin expansion, and solid EPS growth. Strong execution drove our performance, as we continued to advance our long-term strategic agenda. Our consumer-centric innovation model is resonating in market, our portfolio expansion to higher growth categories is ongoing, and we are actively enhancing an already robust route-to-market — all underpinned by an unrelenting focus on cost efficiency and capital discipline. Now halfway through 2024, we are on track to achieve our unchanged full year outlook, while also seeding initiatives to fuel consistent growth over multiple years."
Interestingly, the stock is up 6.6% since reporting and currently trades at $34.94.
Read our full report on Keurig Dr Pepper here, it’s free.
Best Q2: Molson Coors (NYSE:TAP)
Sporting an impressive roster of iconic beer brands, Molson Coors (NYSE:TAP) is a global brewing giant with a rich history dating back more than two centuries.
Molson Coors reported revenues of $3.25 billion, flat year on year, outperforming analysts’ expectations by 2.2%. It was a strong quarter for the company with a decent beat of analysts’ gross margin and earnings estimates.
The market seems content with the results as the stock is up 2.8% since reporting. It currently trades at $52.58.
Is now the time to buy Molson Coors? Access our full analysis of the earnings results here, it’s free.
Slowest Q2: Boston Beer (NYSE:SAM)
Known for its flavorful beverages challenging the status quo, Boston Beer (NYSE:SAM) is a pioneer in craft brewing and a symbol of American innovation in the alcoholic beverage industry.
Boston Beer reported revenues of $579.1 million, down 4% year on year, falling short of analysts’ expectations by 3.1%. It was a weak quarter for the company with a miss of analysts’ earnings and gross margin estimates.
The stock is flat since the results and currently trades at $271.67.
Read our full analysis of Boston Beer’s results here.
Vita Coco (NASDAQ:COCO)
Founded in 2004 followed by a 2021 IPO, The Vita Coco Company (NASDAQ:COCO) offers coconut water products that are a natural way to quench thirst.
Vita Coco reported revenues of $144.1 million, up 3.2% year on year, in line with analysts’ expectations. Revenue aside, it was a decent quarter for the company with an impressive beat of analysts’ gross margin estimates but full-year revenue guidance missing analysts’ expectations.
Vita Coco had the weakest full-year guidance update among its peers. The stock is up 2.1% since reporting and currently trades at $25.28.
Read our full, actionable report on Vita Coco here, it’s free.
Coca-Cola (NYSE:KO)
A pioneer and behemoth in carbonated soft drinks, The Coca-Cola Company (NYSE:KO) is a storied beverage company best known for its flagship soda of the same name.
Coca-Cola reported revenues of $12.31 billion, up 2.9% year on year, surpassing analysts’ expectations by 4.8%. More broadly, it was a very strong quarter for the company with an impressive beat of analysts’ organic revenue growth estimates and a narrow beat of analysts’ earnings estimates.
Coca-Cola achieved the biggest analyst estimates beat among its peers. The stock is up 6.2% since reporting and currently trades at $68.77.
Read our full, actionable report on Coca-Cola here, it’s free.
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