Six Alcohol Industry Stocks to Consider for Your Stock Portfolio

NEW YORK (TheStreet) -- The alcohol industry has global sales estimated at $1.163 trillion a year. U.S. sales  totaled $197.8 billion in 2012, according to the most recent data available from the Wine & Spirits Wholesalers of America.

Domestic beer sales accounted for 49% of that total --87% of consumption by volume-- followed by spirits, 36%, and wine, 15%.

Americans collectively consumed 9.4 billion gallons of alcoholic beverages in 2012, second only to 13.5 billion gallons of soft drinks.

Spirits are proving to be more popular among millennials --those born between 1980 and 2000-- shown by the 13.3% growth in consumption over the five years from 2007 to 2012. Over the same time period, wine consumption grew 9%, while beer consumption declined 4.3%.

What follows are six alcohol industry stocks, ranked by our own proprietary quantitative ranking system at TheStreetRatings.com. Note that these ratings can change at any time.  If you would like access to real-time ratings of these stocks, you can subscribe to TheStreet Quant Ratings.

6. Compania Cervecerias Unidas S.A. (CCU)
Category: Wine & Spirits

Compania Cervecerias Unidas S.A., through its subsidiaries, produces, bottles, sells, and distributes beverages primarily in Chile, Argentina, Uruguay, and Paraguay.

The company offers alcoholic and non-alcoholic beer under 12 proprietary brands and four licensed brands; distilled wine spirits; ciders; cocktails; varietal and popular-priced wines; and fruit, soy, and dairy based beverages. The company also produces and sells soft drinks as well as mineral and purified bottled water. In addition, it manufactures and sells pre-forms, returnable and non-returnable bottles, and caps.

The company is involved in the sale and distribution of beer, soft drinks, mineral water, purified water, functional beverages, nectars, wine, pisco, rum whiskey, vodka, and sweet snacks products. It serves small and medium sized retail outlets; retail establishments, such as restaurants, hotels, and bars for on-premise consumption; wholesalers; and supermarket chains.

Compania Cervecerias Unidas S.A. also exports its products to Europe, Latin America, the U.S., Canada, and other locations.

The company was founded in 1850 and is based in Santiago, Chile.

Compania Cervecerias Unidas S.A. is a subsidiary of Inversiones y Rentas S.A.

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TheStreet Ratings team rates COMPANIA CERVECERIAS UNIDAS as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate COMPANIA CERVECERIAS UNIDAS (CCU) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, disappointing return on equity and a generally disappointing performance in the stock itself."

You can view the full analysis from the report here: CCU Ratings Report

5. Ambev S.A. (ABEV)
Category: Beer

Ambev S.A., through its subsidiaries, produces, distributes, and sells beer, draft beer, soft drinks, other non-alcoholic beverages, malt, and food in the Americas.

It offers beers primarily under Skol, Brahma, Antarctica brands, Brahva, Brahva Beats, Brahva Light, Extra, Budweiser, Becks & Stella Artois, Presidente, Brahma Light, President Light, Bohemia, The One, Corona, Stella Artois, Budweiser, Zenda, Quilmes Cristal, Pacena, Taqui a, Huari, Becker, Baltica, Pilsen, Patricia, and Bud Light, as well as Labatt Blue, Alexander Keith's, Stella Artois, and Kokanee brands.

The company also offers carbonated soft drinks, bottled water, isotonic beverages, energy drinks, and ready-to-drink teas under the Guarana Antarctica, Gatorade, H2OH!, Lipton Iced Tea, Fusion, Monster, Red Rock, Pepsi-Cola, Seven Up, Concordia, Evervess, Triple Kola, and Gatorade brands.

It has an agreement with PepsiCo to bottle, sell, and distribute Pepsi products in Brazil, Argentina, Bolivia, Uruguay, Peru, and the Dominican Republic; and a licensing agreement with Anheuser-Busch, Inc. to produce, bottle, sell, and distribute Budweiser products in Brazil, Canada, Ecuador, Guatemala, the Dominican Republic, and Paraguay. The company also produces and distributes Stella Artois under license to Anheuser-Busch InBev S.A./N.V. in Brazil, Canada, Argentina, and other countries.

It offers its products through a network of third-party distributors and a direct distribution system.

The company was founded in 1885 and is headquartered in Sao Paulo, Brazil. Ambev S.A. is a subsidiary of Interbrew International B.V.

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TheStreet Ratings team rates AMBEV SA as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate AMBEV SA (ABEV) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, notable return on equity, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."

You can view the full analysis from the report here: ABEV Ratings Report

4. Brown-Forman Corp.  (BF.B)
Category: Wine & Spirits

Brown-Forman Corp. is engaged in the manufacture, bottling, import, export, marketing, and sale of alcoholic beverages.

It provides whiskey, ready-to-drink cocktails, vodka, tequilas, champagnes, wines, liqueur and other distilled spirits.

The company offers its products primarily under the Jack Daniel's, Gentleman Jack, Southern Comfort, Finlandia, Antiguo, el Jimador, Herradura, Pepe Lopez, Woodford Reserve, Canadian Mist, Chambord, Collingwood, Early Times, Korbel Champagne, Little Black Dress, Maximus, Old Forester, Sonoma-Cutrer, and Tuaca brands.

The company sells its products to distributors and state governments, as well as directly to retail stores and wholesalers primarily in the U.S., Australia, Mexico, Germany, Poland, Russia, France, Turkey, Canada, Japan, Spain, the Czech Republic, South Africa, Turkey, Mexico, South Korea, Brazil, and Italy.

The company was founded in 1870 and is headquartered in Louisville, KY.

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TheStreet Ratings team rates BROWN-FORMAN as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate BROWN-FORMAN (BF.B) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."

You can view the full analysis from the report here: BF.B Ratings Report

3. Boston Beer Co. Inc. (SAM)
Category: Beer

The Boston Beer Co. Inc. produces and sells alcohol beverages primarily in the U.S., Canada, Europe, Israel, the Caribbean, the Pacific Rim, Mexico, and Central and South America.

The company sells approximately 50 beers under the Samuel Adams or the Sam Adams brand names; 10 flavored malt beverages under the Twisted Tea brand name; and eight hard cider beverages under the Angry Orchard brand name. It sells its products to a network of wholesale distributors, who in turn sell to retailers, such as pubs, restaurants, grocery stores, convenience stores, package stores, stadiums, and other retail outlets.

The Boston Beer Co. Inc. was founded in 1984 and is based in Boston, MA.

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TheStreet Ratings team rates BOSTON BEER INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate BOSTON BEER INC (SAM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and increase in stock price during the past year. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

You can view the full analysis from the report here: SAM Ratings Report

2. Constellation Brands Inc. (STZ)
Category: Wine & Spirits

Constellation Brands, Inc., together with its subsidiaries, produces, imports, and markets beer, wine, and spirits in the U.S., Canada, Mexico, New Zealand and Italy.

The company sells wine across various categories, including table wine, sparkling wine, and dessert wine. Its wine brands include Arbor Mist, Black Box, Blackstone, Clos du Bois, Estancia, Franciscan Estate, Inniskillin, Kim Crawford, Mark West, Mount Veeder, Nobilo, Ravenswood, Rex Goliath, Robert Mondavi, Ruffino, Simi, Toasted Head, and Wild Horse; and Spirits Brands comprise Black Velvet Canadian Whisky and Svedka Vodka.

Constellation Brands, Inc. primarily offers its products to wholesale distributors, retailers, on-premise locations, and government alcohol beverage control agencies.

The company was founded in 1945 and is headquartered in Victor, NY.

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TheStreet Ratings team rates CONSTELLATION BRANDS as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate CONSTELLATION BRANDS (STZ) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, reasonable valuation levels, solid stock price performance and compelling growth in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

You can view the full analysis from the report here: STZ Ratings Report

1. Molson Coors Brewing Co.  (TAP)
Category: Beer

Molson Coors Brewing Co. manufactures and sells beer and other beverage products.

The company sells its products in Canada under the Coors Light, Molson Canadian, Molson Export, Molson Canadian 67, Molson Dry, Molson Canadian Cider, the Rickard's family, Carling, Carling Black Label, Pilsner, Keystone Light, Creemore Springs, the Granville Island, and Coors Banquet brands.

It also brews or distributes licensed products under the Heineken, Amstel Light, Murphy's, Newcastle Brown Ale, Strongbow cider, Miller Lite, Miller Genuine Draft, Miller Chill, Milwaukee's Best, and Milwaukee's Best Dry brands.

In addition, the company distributes the Corona, Coronita, Negra Modelo, and Pacifico brands, as well as Singha brand. Further, the company sells various brands in the U.S. and Puerto Rico comprising Coors Light, Miller Lite, Miller High Life, Keystone Light, Blue Moon, Leinenkugel's, Coors Banquet, Miller Genuine Draft, Icehouse, Mickey's, Milwaukee's Best, Hamm's, Old English 800, Blue Moon, Henry Weinhard's, Molson and Foster's, George Killian's Irish Red, Redd's, Peroni Nastro Azzurro, Pilsner Urquell, Grolsch, Batch 19, Worthington's, St. Stefanus, Third Shift, cider, Coors Non-Alcoholic, and Sharp's.

Additionally, it sells various brands in Europe that include Carling, Ozujsko, Jelen, Staropramen, Coors Light, Kamenitza, Niksicko, Bergenbier, Branik, Worthington's, Sharp's Doom Bar, Borsodi, Ostravar, Noroc, Astika, Apatinsko, and Blue Moon; and various regional ale brands, as well as factored brands.

The company also sells brands through a joint venture, Cobra Beer Partnership Ltd. In addition, it sells Zima, Iceberg 9000, King Cobra, Coors Coors Gold, and Coors Extra brands.

The company was formerly known as Adolph Coors Co. and changed its name to Molson Coors Brewing Company in February 2005.

Molson Coors Brewing Co. was founded in 1786 and is headquartered in Denver, CO.

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TheStreet Ratings team rates MOLSON COORS BREWING CO as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate MOLSON COORS BREWING CO (TAP) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, revenue growth and attractive valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

You can view the full analysis from the report here: TAP Ratings Report

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