As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the beverages, alcohol, and tobacco industry, including Keurig Dr Pepper (NASDAQ: KDP) 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 strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was 1.2% below.

In light of this news, share prices of the companies have held steady as they are up 4.2% on average since the latest earnings results.

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 $4.16 billion, up 6.1% year on year. This print exceeded analysts’ expectations by 0.9%. Overall, it was a satisfactory quarter for the company with a solid beat of analysts’ EBITDA estimates but a miss of analysts’ gross margin estimates.

Commenting on the quarter, CEO Tim Cofer stated, "Our Q2 results cemented a strong first half of the year, as we drove robust performance in U.S. Refreshment Beverages, good growth in International, and sequential progress in U.S. Coffee. Today's dynamic environment puts a premium on operational excellence, which we are demonstrating while pushing ahead on our multi-year strategic agenda. Though the back half will present new challenges, we are on track to deliver our 2025 outlook and are confident in the long-term value creation ahead."

Interestingly, the stock is up 3.9% since reporting and currently trades at $34.81.

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

Best Q2: 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 $739.3 million, up 83.9% year on year, outperforming analysts’ expectations by 14%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Celsius scored the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 28% since reporting. It currently trades at $54.85.

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

Weakest Q2: Tilray (NASDAQ: TLRY)

Founded in 2013, Tilray Brands (NASDAQ: TLRY) engages in cannabis research, cultivation, and distribution, offering a range of medical and recreational cannabis products, hemp-based foods, and alcoholic beverages.

Tilray reported revenues of $224.5 million, down 2.3% year on year, falling short of analysts’ expectations by 2%. It was a slower quarter as it posted a significant miss of analysts’ gross margin estimates and a significant miss of analysts’ EPS estimates.

Tilray delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 32.8% since the results and currently trades at $0.93.

Read our full analysis of Tilray’s results here.

Monster (NASDAQ: MNST)

Founded in 2002 as a natural soda and juice company, Monster Beverage (NASDAQ: MNST) is a pioneer of the energy drink category, and its Monster Energy brand targets a young, active demographic.

Monster reported revenues of $2.11 billion, up 11.1% year on year. This number topped analysts’ expectations by 1.4%. It was a strong quarter as it also produced a solid beat of analysts’ EBITDA estimates and a decent beat of analysts’ adjusted operating income estimates.

The stock is up 5.5% since reporting and currently trades at $64.16.

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

MGP Ingredients (NASDAQ: MGPI)

Headquartered in Atchison, Kansas, MGP Ingredients (NASDAQ: MGPI) is a leading supplier of high-quality ingredients to the food and beverage industry

MGP Ingredients reported revenues of $145.5 million, down 23.7% year on year. This print beat analysts’ expectations by 3.7%. Overall, it was a very strong quarter as it also logged a beat of analysts’ EPS estimates and an impressive beat of analysts’ gross margin estimates.

MGP Ingredients achieved the highest full-year guidance raise but had the slowest revenue growth among its peers. The stock is down 4.5% since reporting and currently trades at $28.05.

Read our full, actionable report on MGP Ingredients 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 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.

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