As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the beverages, alcohol, and tobacco industry, including Vita Coco (NASDAQ: COCO) 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 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 1.7% on average since the latest earnings results.

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 $130.9 million, up 17.2% year on year. This print exceeded analysts’ expectations by 4%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Vita Coco pulled off the fastest revenue growth of the whole group. The stock is up 10.6% since reporting and currently trades at $35.

We think Vita Coco is a good business, but is it a buy today? Read our full report 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.

The market seems happy with the results as the stock is up 33.3% since reporting. It currently trades at $2.72.

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

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, falling short of analysts’ expectations by 5.1%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

As expected, the stock is down 6.8% since the results and currently trades at $52.90.

Read our full analysis of Molson Coors’s results here.

Keurig Dr Pepper (NASDAQ: KDP)

Born out of a 2018 merger between Keurig Green Mountain and Dr Pepper Snapple, Keurig Dr Pepper (NASDAQ: KDP) is a consumer staples powerhouse boasting a portfolio of beverages including sodas, coffees, and juices.

Keurig Dr Pepper reported revenues of $3.64 billion, up 4.8% year on year. This print topped analysts’ expectations by 1.9%. Overall, it was a strong quarter as it also put up a decent beat of analysts’ EBITDA and EPS estimates.

The stock is down 6.3% since reporting and currently trades at $32.94.

Read our full, actionable report on Keurig Dr Pepper here, it’s free.

Altria (NYSE: MO)

Best known for its Marlboro brand of cigarettes, Altria (NYSE: MO) offers tobacco and nicotine products.

Altria reported revenues of $4.52 billion, down 4.2% year on year. This result came in 2.5% below analysts' expectations. Zooming out, it was a mixed quarter as it also recorded a decent beat of analysts’ EBITDA estimates but a significant miss of analysts’ gross margin estimates.

The stock is up 3.9% since reporting and currently trades at $60.45.

Read our full, actionable report on Altria 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.

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