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Beverage sales data is being watched carefully into the Q2 earnings season with some analysts warning that consumers may be showing the first signs of tightening.
The non-alcoholic beverage category is not seeing that pushback just yet, with sales gains reported for Coca-Cola (NYSE:KO) +9.4%, PepsiCo (PEP) +12.8%, Keurig Dr Pepper (KDP) +9.6%, Monster Beverage (MNST) +5.5%, National Beverage (FIZZ) +1.6%, and Vita Coco Company (COCO) +15.8% compared to a year ago based on a four-week tracking period of retail scanner data through June 26.
The alcoholic beverage sector did not hold up as well, with majors like Heineken (OTCQX:HEINY) -11.6%, Diageo (DEO) -0.8%, Boston Beer (SAM) -2.5%, and Anheuser-Busch InBev (BUD) -1.9% all seeing drops during the four-week tracking period. The scanner data showed gains for Brown-Forman (BF.A) +5.0%, Constellation Brands (STZ) +8.5%, and Molson Coors (TAP) +0.6%.
Beverage stocks have outperformed the broad market in 2022, led by a 20.0% YTD jump for Molson Coors (TAP), 9.1% gain for National Beverage (FIZZ) +9.2%, and 8.7% jump for Coca-Cola (KO).
Overall, the soda category and energy drink category saw much stronger growth than the beer and spirits categories.
Despite concerns around consumer strength and recent pricing actions, retail sales were strong and trends generally similar to quarter-to-date trends for the last few weeks of Q2, noted Evercore ISI on the fresh data.
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