Top Alcohol Stocks in Canada to Buy in February 2025

ByMathieu Litalien Published On:

Key takeaways

Premiumization is a key growth driver: Consumers are shifting towards higher-quality, premium-priced alcoholic beverages, benefiting companies with strong premium brands like Andrew Peller and Corby Spirits.

Diversification is crucial in a changing market: Companies expanding into new categories like ready-to-drink cocktails, non-alcoholic beverages, and cannabis-infused drinks (e.g., SNDL and Molson Coors) are better positioned for long-term success.

Regulatory and cost pressures remain significant risks: Strict alcohol distribution laws, rising input costs, and shifting consumer preferences create challenges for the industry, making operational efficiency and brand strength critical for success.

3 stocks I like better than the ones on this list.

Sin stocks – industries like gambling, casinos, cigarettes, and alcohol – have traditionally excellent investments.

Take alcohol, for instance. Despite millions of drinkers enjoying it responsibly, many look at the disadvantages and declare it undesirable. These investors are missing the big picture.

Canadian investors don’t need to look to the U.S. market to get beer and spirit stocks in their portfolio. There are plenty of options among our Canadian stocks on the Toronto Stock Exchange, beer companies with excellent brands, coast-to-coast distribution, rock-solid business models, and often above-average dividend yields.

However, returns have certainly been lackluster. But, there is potential moving forward as trade wars loom, which is highly likely why you’ve hit this post.

Let’s take a closer look at some of Canada’s most prominent alcohol stocks.

What are the top Canadian alcohol stocks to buy right now?

One of Canada’s Largest Wine Producers

Andrew Peller (TSX:ADW.A)

Andrew Peller is one of Canada’s largest and most recognizable wine companies, with brands such as Peller Estates, Trius, and Wayne Gretzky Estates. The company produces and markets wines, spirits, and cider, making it a diversified play on the alcohol sector.

Valuation: 77/100

Profitability: 33/100

Outlook: 71/100

Risk: 20/100

Dividend: 61/100

P/E: 71.5

5 Yr Revenue Growth: 0.2%

5 Yr Earnings Growth: -%

5 Yr Dividend Growth: 3.7%

Yield: 5.7%

  • Leading market position in the Canadian wine industry with strong brand recognition.
  • Expanding premium and ultra-premium wine offerings to capture higher-margin sales.
  • Strong real estate assets, including vineyards and winery properties.
  • Diversified alcohol portfolio, including spirits and cider, reduces risk.
  • Long history of paying dividends, making it attractive for income investors.
  • Potential for strategic acquisitions to fuel long-term growth.
  • Premiumization: Consumers are shifting to higher-end wines, which boosts margins.
  • Tourism and Winery Sales: Growth in winery visits and direct-to-consumer sales is a key driver.
  • Competition from Imports: European and U.S. wines are strong competitors in the Canadian market.
  • Economic Sensitivity: Wine sales can be impacted by economic downturns and discretionary spending trends.
  • Supply Chain Issues: Grape supply and production costs can fluctuate based on weather and market conditions.
  • Competitive Pressures: International wine brands offer strong competition.
  • Regulatory Challenges: Alcohol distribution laws in Canada can be complex and restrictive.
  • Consumer Trends: Younger generations are consuming less wine, posing a long-term risk.

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Global Beer Giant

Molson Coors Beverage Company (TSX:TAP.A) (TSX:TAP.B)

Molson Coors is one of the largest beer companies in North America, with brands like Coors Light, Molson Canadian, and Blue Moon. The company has been expanding into new categories like hard seltzers and non-alcoholic beverages to adapt to changing consumer preferences.

Valuation: 88/100

Profitability: 65/100

Outlook: 28/100

Risk: 30/100

Dividend: 62/100

P/E: 12.9

5 Yr Revenue Growth: 1.7%

5 Yr Earnings Growth: -3.2%

5 Yr Dividend Growth: -%

Yield: 3.1%

  • One of the largest and most established beer companies in Canada and the U.S.
  • Expanding into new beverage categories (seltzers, RTDs, non-alcoholic) to diversify revenue.
  • Strong distribution network and brand loyalty provide a competitive moat.
  • Cost-cutting initiatives have helped improve margins and profitability.
  • Defensive stock with stable cash flows and dividend payments.
  • Global presence offers long-term growth opportunities outside North America.
  • Beer Industry Headwinds: Declining beer consumption in North America is an ongoing challenge.
  • Growth in Hard Seltzers and RTDs: Expanding into these categories could offset beer declines.
  • Cost Pressures: Inflation in raw materials and transportation costs impact profitability.
  • Market Share Battles: Competing with Anheuser-Busch and craft brewers remains a challenge.
  • Declining Beer Sales: The overall beer market is shrinking in North America.
  • Brand Loyalty Shifts: Younger consumers are gravitating toward new brands and products.
  • Regulatory Risks: Alcohol regulations can impact advertising, distribution, and sales.
  • Currency Fluctuations: As a global company, exchange rate changes impact earnings.

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Leading Spirits Producer

Corby Spirits and Wine (TSX:CSW.A) (TSX:CSW.B)

Corby Spirits and Wine is a Canadian distillery and beverage company known for brands like Wiser’s Whisky, Polar Ice Vodka, and Lamb’s Rum. It is one of the largest spirit producers in Canada and has an exclusive agreement with Pernod Ricard for distribution.

(TSX:CSW.A)

Valuation: 84/100

Profitability: 40/100

Outlook: 71/100

Risk: 54/100

Dividend: 28/100

P/E: 14.2

5 Yr Revenue Growth: 8.9%

5 Yr Earnings Growth: -1.4%

5 Yr Dividend Growth: -0.9%

Yield: 6.7%

  • Market leader in Canadian whisky with well-known brands.
  • Exclusive distribution partnership with Pernod Ricard enhances global reach.
  • Strong balance sheet with no debt and consistent dividend payments.
  • Spirits have outperformed beer in recent years, benefiting Corby’s portfolio.
  • Expanding into premium and flavored spirits to capture new consumers.
  • Stable cash flows from long-term licensing and distribution agreements.
  • Whisky Popularity: Canadian whisky is seeing growing international demand.
  • Premiumization of Spirits: Higher-end spirits command better margins.
  • RTD Cocktails Growth: Pre-mixed cocktails and flavored spirits are gaining traction.
  • E-commerce Sales: Online liquor sales could be a growing revenue stream.
  • Dependence on Pernod Ricard: Changes in their partnership could impact distribution.
  • Competition in Spirits: Global brands like Diageo and Beam Suntory pose threats.
  • Regulatory Uncertainty: Liquor laws can affect sales and distribution strategies.
  • Input Costs: Grain, glass, and transportation costs continue to rise.

Overall, alcohol stocks have underperformed, but the future is unknown

Alcohol tends to have a fairly resilient sales funnel. Even during economic downturns, humans tend to consumer alcohol on a relatively consistent basis. In fact, there is actually proof that consumption goes up during times of economic weakness.

In addition to this, we don’t have many publicly traded companies here in Canada, and the ones that are publicly traded, like Molson Coors for example, do have large market shares. If they can get their act together and start turning out positive results, shareholders could benefit.

And finally, the rise of premium whiskey, tequila, and craft beers is something alcohol companies can take advantage of. These often yield higher margins as customers are willing to spend a higher price on what they feel is a higher quality beer.