The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how beverages, alcohol, and tobacco stocks fared in Q1, starting with Molson Coors (NYSE:TAP).

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 rise of cannabis, craft beer, and vaping or the steady decline of soda and cigarettes. 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 15 beverages, alcohol, and tobacco stocks we track reported a mixed Q1. As a group, revenues missed analysts’ consensus estimates by 0.5%.

In light of this news, share prices of the companies have held steady as they are up 2% on average since the latest earnings results.

Weakest Q1: 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 $2.30 billion, down 11.3% year on year. This print fell short of analysts’ expectations by 5.1%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ adjusted operating income estimates.Molson Coors Total Revenue

Unsurprisingly, the stock is down 4.4% since reporting and currently trades at $54.31.

Read our full report on Molson Coors here, it’s free.

Best Q1: Zevia (NYSE:ZVIA)

With a primary focus on soda but also a presence in energy drinks and teas, Zevia (NYSE:ZVIA) is a better-for-you beverage company.

Zevia reported revenues of $38.02 million, down 2% year on year, outperforming analysts’ expectations by 1.7%. The business had a very strong quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.Zevia Total Revenue

The market seems happy with the results as the stock is up 40.7% since reporting. It currently trades at $2.87.

Is now the time to buy Zevia? Access our full analysis of the earnings results here, it’s free.

Celsius (NASDAQ:CELH)

With its proprietary MetaPlus formula as the basis for key products, Celsius (NASDAQ:CELH) offers energy drinks that feature natural ingredients to help in fitness and weight management.

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Celsius reported revenues of $329.3 million, down 7.4% year on year, falling short of analysts’ expectations by 3.8%. It was a softer quarter as it posted a miss of analysts’ EBITDA and EPS estimates.

Interestingly, the stock is up 5.3% since the results and currently trades at $35.76.

Read our full analysis of Celsius’s results here.

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 $453.9 million, up 6.5% year on year. This number beat analysts’ expectations by 4.1%. Overall, it was a very strong quarter as it also produced an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Boston Beer delivered the biggest analyst estimates beat among its peers. The stock is down 3.4% since reporting and currently trades at $233.97.

Read our full, actionable report on Boston Beer here, it’s free.

MGP Ingredients (NASDAQ:MGPI)

Headquartered in Atchison, Kansas, MGP Ingredients (NASDAQ:MGPI) is a leading supplier of high-quality ingredients to the food and beverage industry

MGP Ingredients reported revenues of $121.7 million, down 28.7% year on year. This print surpassed analysts’ expectations by 3.5%. It was a strong quarter as it also put up a solid beat of analysts’ EBITDA and gross margin estimates.

MGP Ingredients achieved the highest full-year guidance raise but had the slowest revenue growth among its peers. The stock is up 3.3% since reporting and currently trades at $30.42.

Read our full, actionable report on MGP Ingredients here, it’s free.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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