What is the "premiumization" trend in beverages?

Premiumization refers to consumers willingly paying higher prices for better quality products. In beverages, this means people are increasingly choosing craft beers, small-batch spirits, and premium wines over mass-produced options. They're prioritizing unique flavors, artisanal production methods, and authentic brand stories – essentially "drinking less, but better." This trend creates higher profit margins for companies in this portfolio.

Why are both small craft producers and large beverage companies included in this portfolio?

The portfolio takes a balanced approach by including both pure-play craft producers (like Willamette Valley Vineyards) and larger companies (like Anheuser-Busch) that have acquired craft brands. This gives you exposure to the innovation and growth of smaller specialists while benefiting from the resources, distribution networks, and stability of established players. Large companies often use acquisitions to reach craft-minded consumers, while smaller producers can grow independently.

How does economic uncertainty affect premium beverage stocks?

Premium beverage stocks are generally considered consumer discretionary investments, meaning they can be sensitive to economic conditions. During economic downturns, some consumers might cut back on premium-priced products. However, these companies often benefit from loyal customer bases and brand strength that can provide some resilience. Additionally, during tough times, people may still treat themselves to affordable luxuries like craft drinks instead of more expensive indulgences – a phenomenon sometimes called the "lipstick effect."

What does "pure-play" mean when describing some of these companies?

A "pure-play" company is one that focuses almost exclusively on a single business area or market segment. In this portfolio, Willamette Valley Vineyards (WVVI) is an example of a pure-play artisanal beverage company because it specializes specifically in producing premium wines. Unlike diversified conglomerates that might have many different business lines, pure-play companies offer investors direct exposure to a particular trend or sector – in this case, the premium wine market.

15 handpicked stocks

Artisanal Beverages Portfolio

This collection features carefully selected companies leading the premium drinks revolution. Our analysts have pinpointed businesses that are capitalizing on consumers' growing preference for quality over quantity in both alcoholic and non-alcoholic beverages.

Han Tan | Market Analyst

Published on June 17

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

Boston Beer Co. Inc.

SAM

Current price

$223.22

As a pioneer of the American craft beer movement with its Samuel Adams brand, this company is a cornerstone of the artisanal beverage theme.

Constellation Brands Inc.

STZ

Current price

$140.51

Constellation Brands owns a strong portfolio of high-end beer, wine, and spirits, including craft-oriented brands like The Prisoner Wine Company and H...

Constellation Brands owns a strong portfolio of high-end beer, wine, and spirits, including craft-oriented brands like The Prisoner Wine Company and High West Distillery.

Anheuser-Busch InBev SA/NV

BUD

Current price

$60.06

While a global giant, Anheuser-Busch InBev has strategically acquired numerous craft breweries to build a significant presence in the artisanal beer m...

While a global giant, Anheuser-Busch InBev has strategically acquired numerous craft breweries to build a significant presence in the artisanal beer market.

MGP Ingredients Inc.

MGPI

Current price

$24.69

Diageo plc

DEO

Current price

$96.35

Molson Coors Brewing Company

TAP

Current price

$45.90

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12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

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In 12 months it might be worth:

$1,000.00

+54.45%

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About This Group of Stocks

Our Expert Thinking

This portfolio taps into the powerful "premiumization" trend where consumers happily pay more for superior quality, unique flavors, and compelling brand stories. From craft beers to fine wines and premium spirits, these companies are positioned to benefit from the "drink less, but better" cultural shift.

What You Need to Know

This collection spans the complete premium beverage spectrum with a mix of pure-play artisanal producers, established vineyards, and larger companies that have strategically acquired craft brands. As consumer discretionary investments, these stocks may be sensitive to economic cycles but benefit from loyal customer bases.

Why These Stocks

Each company in this portfolio was selected for its significant presence in the premium beverage space and ability to command higher profit margins. The mix includes established craft pioneers, nimble specialists, and strategic conglomerates – all positioned to capture value from quality-focused consumers.

Group Performance Snapshot

54.45%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 54.45% over the next year.

10 of 15

Stocks Rated Buy by Analysts

10 of 15 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🥂

Premium Pricing Power

These companies command higher margins through quality and brand storytelling. As consumers willingly pay more for superior beverages, these stocks can potentially deliver stronger returns.

🌱

Riding the Quality Wave

The "drink less, but better" trend continues to gain momentum globally. These stocks are perfectly positioned to capture value from this fundamental shift in consumer behavior.

🔍

Hidden Craft Gems

Many people don't realize some of their favorite craft beverages are owned by companies in this portfolio. This diverse collection gives you exposure to both established names and emerging trends.

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