Big box stores and grocery retailers have seen huge traffic in recent weeks. Consumers have flocked to stock up on supplies. Many have resorted to panic buying and hoarder, even as state officials have assured citizens that supply chains are intact. Unsurprisingly, alcohol sales have enjoyed an uptick as citizens across the U.S. have been told to hunker down.
According to data from Nielsen, beverage alcohol retail sales have been soaring "across the board" Total U.S. beverage alcohol retail sales in the week ending March 14, 2020 were up significantly from the prior year. Wine sales were up 27.6%, spirits up 26.4%, and beer/flavoured malt beverages/cider were up 14%.
Constellation Brands (NYSE:STZ) is an international producer of beer, wine, and spirits. Its stock has dropped 15% month-over-month as of close on March 30. Shares are down 22% so far in 2020.
The company boasts solid growth potential and a price-to-book value of 2.4. It also possesses a 2% dividend yield.
Brown-Forman (NYSE:BF.B) is one of the largest companies in the spirits and wines business. Shares of Brown-Forman have fallen 7.5% over the past month. The stock is still up 8.5% year over year. Brown-Forman possesses an adequate balance sheet.
Its strong position in the wine and spirits space is promising when we consider the strong sales numbers in March so far. The stock also offers a modest 1.2% dividend yield.
