Forget AB InBev: Constellation Brands Is a Better Growth Stock
Thus far, 2020 has been a forgettable year for shareholders in the alcoholic beverage industry. Sure, the pandemic lifted demand for some popular brands as at-home consumption spiked in niches like hard seltzer and premium imports. But overall, the major beer, wine, and spirits companies are seeing reduced global demand as consumers largely avoid bars, restaurants, and traditionally crowded events like concerts, where a large fraction of their wares are normally sold.
These changes in consumer behavior are expected to be temporary, which means investors might be tempted to buy Anheuser-Busch InBev (NYSE: BUD), shares of which are still down by 31% year to date. But you'd be better off building a position in its smaller but better-positioned peer, Constellation Brands (NYSE: STZ).
Source Fool.com
