Wrapping up Q1 earnings, we look at the numbers and key takeaways for the beverages, alcohol, and tobacco stocks, including Boston Beer (NYSE: SAM) 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 13 beverages, alcohol, and tobacco stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 4.9% while next quarter’s revenue guidance was 0.6% below.

Thankfully, share prices of the companies have been resilient as they are up 5.8% on average since the latest earnings results.

Weakest Q1: Boston Beer (NYSE: SAM)

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

Boston Beer reported revenues of $433.9 million, down 4.4% year on year. This print was in line with analysts’ expectations, but overall, it was a softer quarter for the company with a significant miss of analysts’ adjusted operating income estimates.

“We were encouraged by early signs of improvement in the total beer category in the first quarter,” said Chairman, Founder and CEO Jim Koch.

Boston Beer delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 23.6% since reporting and currently trades at $181.20.

Read our full report on Boston Beer here, it’s free.

Best Q1: 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 $179.8 million, up 37.3% year on year, outperforming analysts’ expectations by 20.5%. The business had a stunning quarter with a beat of analysts’ EPS and EBITDA estimates.

Vita Coco scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 49.2% since reporting. It currently trades at $77.02.

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

Constellation Brands (NYSE: STZ)

With a presence in more than 100 countries, Constellation Brands (NYSE: STZ) is a globally renowned producer and marketer of beer, wine, and spirits.

Constellation Brands reported revenues of $1.92 billion, down 11.3% year on year, exceeding analysts’ expectations by 2.3%. Still, it was a mixed quarter as it posted full-year EPS guidance missing analysts’ expectations.

Constellation Brands delivered the weakest full-year guidance update in the group. As expected, the stock is down 2.5% since the results and currently trades at $146.47.

Read our full analysis of Constellation Brands’s results here.

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 $106.4 million, down 12.5% year on year. This result surpassed analysts’ expectations by 1.4%. It was a very strong quarter as it also put up a beat of analysts’ EPS and EBITDA estimates.

MGP Ingredients achieved the highest full-year guidance raise but had the slowest revenue growth among its peers. The stock is down 11.8% since reporting and currently trades at $17.82.

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

PepsiCo (NASDAQ: PEP)

With a history that goes back more than a century, PepsiCo (NASDAQ: PEP) is a household name in food and beverages today and best known for its flagship soda.

PepsiCo reported revenues of $19.44 billion, up 8.5% year on year. This print topped analysts’ expectations by 2.9%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ revenue estimates and a decent beat of analysts’ EBITDA estimates.

The stock is down 3% since reporting and currently trades at $150.16.

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

Market Update

Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

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