Beverages, Alcohol, and Tobacco Stocks Q3 Highlights: Vita Coco (NASDAQ:COCO)

Stock Story

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the beverages, alcohol, and tobacco industry, including Vita 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 14 beverages, alcohol, and tobacco stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.4% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 3.9% on average since the latest earnings results.

Vita Coco

Founded in 2004 followed by a 2021 IPO, The Vita Coco Company offers coconut water products that are a natural way to quench thirst.

Vita Coco reported revenues of $182.3 million, up 37.2% year on year. This print exceeded analysts’ expectations by 15.2%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ EBITDA estimates.

Vita Coco pulled off the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 23.6% since reporting and currently trades at $52.23.

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

Best Q3: Celsius

With its proprietary MetaPlus formula as the basis for key products, Celsius offers energy drinks that feature natural ingredients to help in fitness and weight management.

Celsius reported revenues of $725.1 million, up 173% year on year, outperforming analysts’ expectations by 1.2%. The business had an exceptional quarter with a beat of analysts’ EPS and EBITDA estimates.

Celsius scored the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 11.6% since reporting. It currently trades at $53.60.

Weakest Q3: Altria

Best known for its Marlboro brand of cigarettes, Altria offers tobacco and nicotine products.

Altria reported revenues of $5.25 billion, down 1.7% year on year, falling short of analysts’ expectations by 1.3%. It was a slower quarter as it posted a significant miss of analysts’ gross margin estimates and a slight miss of analysts’ revenue estimates.

The stock is flat since the results and currently trades at $61.69.

Read our full analysis of Altria’s results here.

Keurig Dr Pepper

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

Keurig Dr Pepper reported revenues of $4.31 billion, up 10.7% year on year. This result surpassed analysts’ expectations by 3.8%. Aside from that, it was a satisfactory quarter as it also produced a solid beat of analysts’ revenue estimates but a slight miss of analysts’ gross margin estimates.

The stock is up 2.8% since reporting and currently trades at $27.92.

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

Zevia

With a primary focus on soda but also a presence in energy drinks and teas, Zevia is a better-for-you beverage company.

Zevia reported revenues of $40.84 million, up 12.3% year on year. This number topped analysts’ expectations by 3.7%. Overall, it was an exceptional quarter as it also logged EBITDA guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.

Zevia scored the highest full-year guidance raise among its peers. The stock is down 17.6% since reporting and currently trades at $1.95.

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

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Keurig Dr Pepper Launches €31.85 Per Share Cash Offer For JDE Peet's

dpa-AFX

Keurig Dr Pepper

+1.72%

WASHINGTON (dpa-AFX) - North American beverage company, Keurig Dr Pepper Inc. (KDP) and pure-play coffee company, JDE Peet's N.V. (JDEPY), on Thursday said Keurig has launched a recommended cash offer to acquire all outstanding shares of JDE Peet's at €31.85 per share.

JDE Peet's will also pay a previously declared dividend of €0.36 per share on January 23, 2026, which will not affect the offer price.

The board of JDE Peet's unanimously recommends the offer, made through Kodiak BidCo B.V., and shareholders representing about 69% of outstanding shares - including Acorn Holdings B.V. and board members - have irrevocably committed to tender their shares.

The offer period runs from January 16 to March 27, 2026, with a minimum acceptance threshold of 95%, which can drop to 80% if shareholders approve certain post-closing restructuring measures at an extraordinary general meeting on March 2, 2026.

All required competition clearances have been obtained, and the transaction has received positive advice from JDE Peet's Dutch Works Council. The offer is expected to close early in the second quarter of 2026.

After the acquisition, Keurig Dr Pepper plans to split into two U.S.-listed companies; a North America-focused refreshment beverages business and a standalone global coffee company operating in more than 100 countries.

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Why Is Vita Coco (COCO) Stock Rocketing Higher Today

Stock Story

Vita Coco

-4.45%

What Happened?

Shares of coconut water company The Vita Coco Company jumped 5.2% in the morning session after an analyst at Wells Fargo raised the company's price target. The firm maintained its "Buy" rating on the stock but increased its price target to $63 from $50. This new target represented a potential upside of about 19% from the stock's price at the time of the report. A significant price target increase from a financial analyst often reflects a more positive outlook on a company's potential for growth and profitability. This can lead to increased investor confidence and drive buying activity, which appeared to be the case for Vita Coco.

After the initial pop the shares cooled down to $54.39, up 4.7% from previous close.

What Is The Market Telling Us

Vita Coco’s shares are quite volatile and have had 16 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 11 months ago when the stock dropped 12.7% on the news that the company reported weak fourth-quarter 2024 results with full-year revenue guidance that slightly missed expectations. On the other hand, revenue exceeded projections. Adjusted EBITDA also topped expectations, though earnings were in line.Overall, this quarter could have been better, as strong profit growth was overshadowed by a softer full-year revenue outlook.

Vita Coco is up 1.7% since the beginning of the year, and at $54.39 per share, it is trading close to its 52-week high of $54.65 from December 2025. Investors who bought $1,000 worth of Vita Coco’s shares at the IPO in October 2021 would now be looking at an investment worth $4,023.

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A Look Back at Beverages, Alcohol, and Tobacco Stocks’ Q3 Earnings: Boston Beer (NYSE:SAM) Vs The Rest Of The Pack

Stock Story

Philip Morris International

+1.92%

Boston Beer

+5.45%

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how beverages, alcohol, and tobacco stocks fared in Q3, starting with Boston Beer .

The 15 beverages, alcohol, and tobacco stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Boston Beer

Known for its flavorful beverages challenging the status quo, Boston Beer is a pioneer in craft brewing and a symbol of American innovation in the alcoholic beverage industry.

Boston Beer reported revenues of $537.5 million, down 11.2% year on year. This print fell short of analysts’ expectations by 0.9%, but it was still a very strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ gross margin estimates.

“Our depletions declined by 3% in the third quarter as volumes were pressured across the beer industry” said Chairman, Founder and CEO Jim Koch.

Unsurprisingly, the stock is down 11.3% since reporting and currently trades at $194.80.

Best Q3: Celsius

With its proprietary MetaPlus formula as the basis for key products, Celsius offers energy drinks that feature natural ingredients to help in fitness and weight management.

Celsius achieved the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 24.6% since reporting. It currently trades at $45.73.

Weakest Q3: Altria

Best known for its Marlboro brand of cigarettes, Altria offers tobacco and nicotine products.

As expected, the stock is down 6.9% since the results and currently trades at $57.69.

Read our full analysis of Altria’s results here.

Philip Morris

Founded in 1847, Philip Morris International manufactures and sells a wide range of tobacco and nicotine-containing products, including cigarettes, heated tobacco products, and oral nicotine pouches.

Philip Morris reported revenues of $10.85 billion, up 9.4% year on year. This number surpassed analysts’ expectations by 2%. Zooming out, it was a satisfactory quarter as it also logged a decent beat of analysts’ revenue estimates but a slight miss of analysts’ EBITDA estimates.

The stock is up 1.9% since reporting and currently trades at $161.

Read our full, actionable report on Philip Morris here, it’s free for active Edge members.

Monster

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

Monster reported revenues of $2.20 billion, up 16.8% year on year. This print topped analysts’ expectations by 4.3%. It was an exceptional quarter as it also recorded an impressive beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.

The stock is up 16.4% since reporting and currently trades at $77.21.

Read our full, actionable report on Monster here, it’s free for active Edge members.

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Vita Coco (COCO): Buy, Sell, or Hold Post Q3 Earnings?

Stock Story

Vita Coco

-4.45%

What a fantastic six months it’s been for Vita Coco. Shares of the company have skyrocketed 52.4%, setting a new 52-week high of $55. This was partly due to its solid quarterly results, and the run-up might have investors contemplating their next move.

Is now still a good time to buy COCO? Or are investors being too optimistic? Find out in our full research report, it’s free for active Edge members.

Why Does Vita Coco Spark Debate?

Founded in 2004 followed by a 2021 IPO, The Vita Coco Company offers coconut water products that are a natural way to quench thirst.

Two Things to Like:

1. Elevated Demand Drives Higher Sales Volumes

Revenue growth can be broken down into changes in price and volume (the number of units sold). While both are important, volume is the lifeblood of a successful staples business as there’s a ceiling to what consumers will pay for everyday goods; they can always trade down to non-branded products if the branded versions are too expensive.

Vita Coco’s average quarterly volume growth of 10.8% over the last two years has beaten the competition by a long shot. This is great because companies with significant volume growth are needles in a haystack in the stable consumer staples sector.

2. Outstanding Long-Term EPS Growth

We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.

Vita Coco’s EPS grew at an astounding 89.3% compounded annual growth rate over the last three years, higher than its 13% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

Vita Coco Trailing 12-Month EPS (Non-GAAP)

One Reason to be Careful:

Fewer Distribution Channels Limit its Ceiling

With $609.3 million in revenue over the past 12 months, Vita Coco is a small consumer staples company, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with retailers. On the bright side, it can grow faster because it has a longer list of untapped store chains to sell into.

Final Judgment

Vita Coco’s positive characteristics outweigh the negatives, and after the recent surge, the stock trades at 36.9× forward P/E (or $55 per share). Is now a good time to buy despite the apparent froth? See for yourself in our full research report, it’s free for active Edge members.

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Food Makers Need to Rekindle Demand in 2026. That's a Tall Order. — Barrons.com

Dow Jones Newswires

By Evie Liu

Food and beverage companies head into 2026 under unusual pressure, squeezed by policymakers, consumers, supply challenges, and fast-changing cultural expectations about what Americans should eat and drink.

After a bruising 2025, many companies have recast their portfolios, cut costs, or made bold acquisitions in hopes of regaining momentum. The coming year will show whether those efforts are enough — or whether the industry's headwinds have become structural.

Food companies were under significant cost pressures in 2025. Commodity prices stayed stubbornly high as supplies of beef, cocoa, coffee, and dairy proteins remained tight. Tariffs added further pressure, leaving companies to choose between raising prices and testing consumer patience or absorbing margin hits.

Demand wasn't much healthier. Immigration uncertainty weighed on Hispanic consumers — historically among the most reliable spenders across food and beverage — while November's government shutdown disrupted food-stamp payments and squeezed lower-income households.

"2025 has been one of the toughest we can remember in our 25 years covering the consumer staples sector," wrote RBC Capital Markets analyst Nik Modi in a recent note.

Some pressures may ease next year. The Trump administration has already reversed tariffs on some agricultural products and signaled an interest in moderating beef prices. The World Bank expects agricultural commodity prices to remain stable to slightly lower in 2026, though weather shocks and crop diseases could still trigger volatility.

Other headwinds look far more durable. The rapid adoption of GLP-1 weight-loss drugs like Wegovy is encouraging Americans to eat less, a demand shock hurting volume growth from snacks and meals to sodas and beer. As new oral versions of the drug become available and prices come down, usage is expected to continue rising.

At the same time, regulators are intensifying scrutiny under the Make America Healthy Again initiative. The initial push to remove synthetic colors may soon extend to added sugar, sodium, preservatives, and front-of-pack nutrition labels — changes that could raise reformulation costs and erode already-thin margins.

Accustomed to pricing power during the inflation surge, food companies now face consumers who are both more price-sensitive and more skeptical of ultraprocessed foods. Policy changes surrounding immigration and SNAP benefits will also continue pressuring the spending power of millions of Americans. The toll is showing up in earnings and stock performance.

Companies focused on pantry staples, where private labels have been taking share, were hurt the most with sluggish or even declining sales. Conagra Brands, Lamb Weston Holdings, and Campbell's stocks led the pack, losing 38%, 34%, and 32%, respectively. Seasoning and snack companies are holding up better: McCormick shares are down 10%, Mondelez International lost 9%, while chocolate giant Hershey scored a 12% gain as cocoa prices started to ease.

Beverage makers are facing similar headwinds: Coca-Cola posted only 1% volume growth in the latest quarter, while PepsiCo's North America beverage volume shrunk 3% from a year ago. PepsiCo shares had tumbled 15% by mid 2025, but bounced back as investors regained hope over the involvement of activist investor Elliott Investment Management.

Alcohol consumption remains depressed as well — stocks of Constellation Brands, Diageo, Boston Beer, Molson Coors, and Brown-Forman all saw steep declines this year, led by Constellation's 39% loss.

"We are struggling to find any drivers that would suggest middle- and lower-income pressures will improve," said Modi. "In fact, we would argue things could get worse before they get better given changes to SNAP benefits, some wobbling in the labor market and general anxiety over AI and its impact on job security."

Still, consumers aren't abandoning packaged foods — they're simply demanding different ones. Shoppers increasingly prefer shorter ingredient lists, recognizable components, and products that convey wellness through high protein, high fiber, or gut-health ingredients. That shift has forced strategic pivots.

Companies are pruning underperforming legacy brands and doubling down on faster-growing categories. Kraft Heinz plans to unwind its past merger and split into two businesses, while Keurig Dr Pepper is separating its coffee unit — along with an acquisition of JDE Peet's — from other soft drinks. Others are buying growth outright: PepsiCo purchased prebiotic soda maker Poppi, and Celsius Holdings acquired Alani Nu, expanding its share of the energy-drink market.

Investors continue to reward companies that can diversify their portfolios and find growth pockets even in a market of shrinking calories and shifting tastes. Much of that is happening in the beverage market.

Energy drinks have been a notable standout. Shares in Monster Beverage has increased 45% in 2025, thanks to its innovative products and international expansion. Celsius stock gained 63% as its Alani Nu acquisition and deepened partnership with distributor PepsiCo boosted revenue significantly. Vita Coco, a leader in coconut water, is also drawing interest as demand for low-sugar, natural hydration rises. The stock, which is a Barron's pick, is up 45% this year.

Legacy names could shine as well. Shares in Anheuser-Busch climbed 29% despite weak beer volumes, lifted by strength in its premium brands, expansion into nonalcoholic offerings, and shareholder-friendly capital returns. Coca-Cola increased 13% as the company showed strong pricing power even as inflation cools. The beverage giant also benefits from its global footprint, strong balance sheet, and new growth engines in brands like Fairlife milk.

For food and beverage stocks, performance next year will depend on whether companies can spark real demand through innovation, reformulation, and successful marketing. Modi expects 2026 to be another tough year, but believes that companies that lay out the most realistic targets will be the best performing stocks.

"We believe the companies that create value over the next 1, 3 and 5 years will be those that have the courage to make decisive decisions that others are not willing to make," he said.

Write to Evie Liu at evie.liu@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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Best Energy Drink Stocks WarrenAI Says to Buy for 2026: From Monster to Celsius

Investing.com

Advanced Micro Devices

Investing.com -- Energy drink stocks continue to deliver strong performance in 2025, offering investors exposure to one of the beverage industry’s most dynamic segments. According to WarrenAI’s analysis using Investing Pro metrics, several key players stand out ahead of 2026 for their growth potential and market positioning.

Compare WarrenAI and Wall Street analysts using InvestingPro -

The energy drink market remains robust with continued consumer demand for functional beverages that provide performance benefits. Using a comprehensive evaluation of fair value estimates, Pro scores, technical indicators, and analyst price targets, we’ve identified the top performers in this competitive space.

1. Monster Beverage Corporation (NASDAQ:MNST)

Monster maintains its position as the blue-chip leader in the energy drink sector, recently reaching a new 52-week high with a 47.9% one-year return. Despite trading at a premium forward P/E of 38.9x and showing a -12.1% fair value downside according to InvestingPro, Monster’s exceptional financial health (Pro Score:3.43) and strong ROIC of 22.1% justify its position. Analysts maintain support with a mean price target of $76.05, while technical indicators show strong momentum on both daily and weekly timeframes. The company’s global expansion and innovation pipeline continue to drive its market leadership.

In recent news, Monster Beverage has received several price target increases from analyst firms, including Stifel, Piper Sandler, and Wells Fargo, which pointed to the company’s growth outlook and innovation in zero-sugar products.

2. Celsius Holdings Inc (NASDAQCM:CELH)

Celsius represents the high-growth contender in the energy drink space, delivering an impressive 63.0% annual return. With projected revenue growth of 79.6% for FY2025 and a fair value upside of 16.6%, the company shows significant potential. However, investors should note the volatility associated with its growth trajectory, particularly following transition-related challenges with the Alani Nu brand’s move to Pepsi. While technical indicators remain bullish, Celsius’s forward P/E of 35.4x reflects high expectations that require continued execution.

Celsius Holdings recently announced a new $300 million share repurchase program. The company also saw Piper Sandler lower its price target to $61, while UBS reiterated its Buy rating.

3. GURU Organic Energy Corp (TSX:GURU)

GURU Organic Energy has been the standout performer with an extraordinary 292.8% one-year return, making it the speculative darling of the sector. However, its Pro Score of 2.12 signals weaker financial health compared to industry leaders, with concerning metrics including a negative free cash flow yield of -18.5%. With minimal fair value upside remaining (0.1%), investors should approach with caution despite analyst targets suggesting room for growth to C$6.00.

GURU Organic Energy Corp was downgraded to Hold from Buy by Stifel Canada, which noted the stock’s significant price surge as the reason for the change.

4. Suntory Beverage & Food Limited (OTCPK:STBF.Y)

Suntory presents a value opportunity within the energy drink space, currently trading at a more reasonable forward P/E of 17.5x with a substantial 29.6% fair value upside according to InvestingPro. Despite underperforming with a -5.6% one-year return, the company’s healthy 6.2% free cash flow yield and strong analyst consensus suggest potential for recovery. Investors seeking a more defensive position with value characteristics may find Suntory’s profile appealing as a contrarian play.

Suntory’s parent company, Suntory Holdings, announced that its Jim Beam brand plans to pause production at its main U.S. distillery for all of 2026 due to an oversupply of whiskey.

These companies represent different investment approaches within the energy drink sector, from established market leaders to high-growth challengers and value opportunities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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