Even in a pandemic, the alcoholic beverage industry is thriving.
While a ton of bars and restaurants around the country remain closed due to COVID-19, the alcoholic beverage industry hasn’t been feeling the same level of pain as some other victims of the pandemic like airlines and movie theaters have.
That’s because beverage producers still have take-home sales to fall back on. And having a large percentage of the population stuck at home has increased those sales in a big way.
In fact, Constellation Brands, Inc. (STZ) – makers of popular brands like Corona, Modelo, Svedka, and more – revealed that its year-over-year revenue in the third quarter actually grew an amazing 22%, despite sales from bars and restaurants falling by 35%.
Now, a lot of this is likely attributable to having lots of people forced to stay home with little else to do to stave off boredom.
But there’s also a new trend in the industry that’s helping to drive sales…
Where’s the money?
In the last few years, canned alcoholic seltzer drinks have skyrocketed in popularity.
Brands like Truly, White Claw, and others offer a low calorie, refreshing alternative for those that don’t enjoy beer or just want something different. With the early success of the pioneers of hard seltzer, we’re now seeing an arms race to develop new seltzer products and capture market share of a niche that analysts predict could grow to be a $4.7 billion industry by 2022.
Flavored seltzer is everywhere these days. You go to a pool party, you no longer seeing
people drinking beer, you see them drinking seltzers. And I think that trend is here to stay.
Now it’s just a matter of which company is best positioned to deliver big profits from the growing trend.
How do I get some?
Constellation Brands, Inc. (STZ) said that they sold over 10 million cases over the course of 2020 in their recent earnings report. That’s a massive number, and one that I believe will continue to grow as more bars and restaurants are able to reopen.
Their CEO advised that hard seltzer is a big part of their plans going forward, and that they’ll be looking to double their production capacity of Corona Hard Seltzer this year.
Also, STZ has taken a big stake in Canopy Growth Corp. (CGC) – the world’s largest cannabis company – and I think that cannabis stocks are at the lows poised to boom – another reason this is my favorite pick in the beverages space.
I like buying shares of Constellation on any pullback.
In the Spotlight:
Expectations for the retail sector – particularly those that rely more on their brick-and-mortar presence – are rising as more and more vaccines are rolled out.
As stores and shopping malls begin to reopen, retailers are expected to see a major comeback over the course of 2021. Apparel is one area of retail sales I expect to boom in a big way, as most shoppers would prefer to feel and try on clothes before buying.
I’ve got my eye on several retailers that could see meteoric growth off their current depressed levels, and I’ll be sharing a few recommendations with you in the weeks to come.
Another Opportunity I’m Watching…
While new consumer trends and expected reopening steps have caught my attention, something else is showing huge profit potential for the rest of 2021.
After a huge vote of confidence from major payment platforms, Fortune 500 companies, and others, cryptocurrencies look as though they’re primed for an explosion!
My colleague Tom Gentile, “America’s #1 pattern trader,” has uncovered a way to take your crypto profits to the next level…
Right here, he’s revealing his three favorite microcurrencies that have 20X the profit potential of Bitcoin.
Click for the full story.