Halloween Day is almost upon us, which serves as something of a gateway to the beginning of the holiday season. That puts the focus on Thanksgiving Day in the United States and on the Black Friday-Cyber Monday holiday shopping weekend. Today, I have my sights set on an industry that almost always performs well ahead of and during the holiday season: the alcohol industry.
Consumption trends have shifted considerably as the millennial generation has taken over as the most populous demographic. In recent years, experts and analysts have warned that beer has increasingly seen its market share eroded compared to wine and spirits in the North American market. Alcohol consumption may be on the decline for Generation Z, but millennials have remained strong consumers of alcohol.
A recent report from BevAlc Insights revealed some millennial spending habits on the Drizly shopping platform. That report showed that beer had the highest penetration among consumers aged 21 to 34, with 35% of the population purchasing in the beer category. Wine and spirits came in at 30% and 29%, respectively. While this may not seem like reason to panic for the beer market, it shows a significant decline compared to the market share it enjoyed among baby boomers and Gen X. Beer was particularly dominant among the male older demographics, and this has eroded among millennials.
With that in mind, investors may want to watch a stock like Constellation Brands (NYSE:STZ) closely. In addition to recently entering the cannabis beverages space, Constellation Brands is also focused on the marketing and sale of wine and spirits. Brown-Forman (NYSE:BF.A)(NYSE:BF.B) is another top wine stock that should be on your radar as we approach the holiday season.
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