In This Article: We recently compiled a list of the 10 Best Alcohol Stocks To Buy According to Analysts . In this article, we are going to take a look at where Diageo plc (NYSE:DEO) stands against the other alcohol stocks. An analysis by Goldman Sachs has revealed that beer and spirits volumes in the American market have shown little correlation with economic growth.
This is because beer and spirits are often seen as affordable luxuries or even staples. Liquor tends to enjoy stable sales even when general consumer spending takes a hit elsewhere, while there have also been times when alcohol sales even increase during economic downturns, as they did during the COVID-19 pandemic and the Great Recession of 2008-09. READ ALSO: 10 Best Liquor Stocks To Buy According to Short Sellers However, things haven’t been exactly easy for the alcohol sector lately, especially after the recent report from the U.
S. Surgeon General claimed that alcohol consumption in the country is directly linked to approximately 100,000 cases of cancer and 20,000 deaths annually. The report has proposed to put cancer warning labels on alcoholic beverages, signaling a shift toward more aggressive tobacco-style regulation for the sector if adopted.
The proposition, if enacted, could seriously hurt sales for a sector that is already struggling with a pullback in drinking by younger consumers. According to the National Institute on Alcohol Abuse and Alcoholism, America’s per capita annual consumption of alcoh.
