The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Coca-Cola (NYSE: KO) and the rest of the beverages, alcohol, and tobacco stocks fared in Q1.

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 16 beverages, alcohol, and tobacco stocks we track reported a mixed Q1. As a group, revenues missed analysts’ consensus estimates by 1.2%.

In light of this news, share prices of the companies have held steady as they are up 4.3% on average since the latest earnings results.

Coca-Cola (NYSE: KO)

A pioneer and behemoth in carbonated soft drinks, Coca-Cola (NYSE: KO) is a storied beverage company best known for its flagship soda.

Coca-Cola reported revenues of $11.22 billion, flat year on year. This print exceeded analysts’ expectations by 0.6%. Overall, it was a satisfactory quarter for the company with a decent beat of analysts’ organic revenue estimates.

Unsurprisingly, the stock is down 2.7% since reporting and currently trades at $69.82.

Is now the time to buy Coca-Cola? Access our full analysis of the earnings results 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 36.3% since reporting. It currently trades at $2.78.

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 11.7% since the results and currently trades at $50.15.

Read our full analysis of Molson Coors’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 $1.85 billion, down 2.3% year on year. This print came in 6.3% below analysts' expectations. It was a slower quarter as it also recorded a slight miss of analysts’ EBITDA estimates.

The stock is down 1.7% since reporting and currently trades at $59.11.

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 $121.7 million, down 28.7% year on year. This number topped analysts’ expectations by 3.5%. It was a strong quarter as it also recorded an impressive beat of analysts’ EBITDA and gross margin estimates.

MGP Ingredients pulled off the highest full-year guidance raise but had the slowest revenue growth among its peers. The stock is up 7% since reporting and currently trades at $31.51.

Read our full, actionable report on MGP Ingredients 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.

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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