Wrapping up Q3 earnings, we look at the numbers and key takeaways for the beverages, alcohol and tobacco stocks, including Coca-Cola (NYSE:KO) 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 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 14 beverages, alcohol and tobacco stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was 2.7% below.

In light of this news, share prices of the companies have held steady as they are up 3.1% on average since the latest earnings results.

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 $11.95 billion, flat year on year. This print exceeded analysts’ expectations by 2.9%. Overall, it was a satisfactory quarter for the company with a solid beat of analysts’ organic revenue estimates.

Coca-Cola scored the biggest analyst estimates beat of the whole group. Even though it had a relatively good quarter, the market seems discontent with the results. The stock is down 106% since reporting and currently trades at $64.15.

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

Best Q3: 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 $36.37 million, down 15.6% year on year, falling short of analysts’ expectations by 6.8%. However, the business still had a strong quarter with EBITDA guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EPS estimates.

The market seems happy with the results as the stock is up 106% since reporting. It currently trades at $2.23.

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

Weakest Q3: 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.

Celsius reported revenues of $265.7 million, down 30.9% year on year, falling short of analysts’ expectations by 0.7%. It was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

Celsius delivered the slowest revenue growth in the group. As expected, the stock is down 5.8% since the results and currently trades at $29.91.

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 $605.5 million, flat year on year. This number surpassed analysts’ expectations by 0.7%. Aside from that, it was a mixed quarter as it also logged an impressive beat of analysts’ EBITDA estimates but full-year EPS guidance missing analysts’ expectations.

The stock is up 1.2% since reporting and currently trades at $305.52.

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

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 $132.9 million, down 3.7% year on year. This result came in 4.3% below analysts' expectations. Taking a step back, it was still a strong quarter as it produced an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ gross margin estimates.

Vita Coco achieved the highest full-year guidance raise among its peers. The stock is up 16.4% since reporting and currently trades at $35.83.

Read our full, actionable report on Vita Coco here, it’s free.

Market Update

Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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

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