Looking back on beverages, alcohol and tobacco stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Tilray Brands (NASDAQ:TLRY) and its peers.

These companies' performance is influenced by brand strength, marketing strategies, and shifts in consumer preferences. Changing consumption patterns are particularly relevant and can be seen in the rise of cannabis, craft beer, and vaping or the steady decline of soda and cigarettes. Companies that spend on innovation to meet consumers where they are with regards to trends can reap huge demand benefits while those who ignore trends can see stagnant volumes. Finally, with the advent of the social media, the cost of starting a brand from scratch is much lower, meaning that new entrants can chip away at the market shares of established players.

The 14 beverages, alcohol and tobacco stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was 2.7% below.

In light of this news, share prices of the companies have held steady as they are up 3.5% on average since the latest earnings results.

Tilray Brands (NASDAQ:TLRY)

One of the first companies to be federally licensed to produce and distribute cannabis, Tilray Brands (NASDAQ:TLRY) today offers cannabis and a variety of other wellness products.

Tilray Brands reported revenues of $200 million, up 13.1% year on year. This print fell short of analysts’ expectations by 9.4%. Overall, it was a softer quarter for the company with a significant miss of analysts’ adjusted operating income estimates.

Irwin D. Simon, Tilray Brands’ Chairman and Chief Executive Officer, stated, “As the Chairman and CEO of Tilray Brands, I am excited to lead a company that is disrupting the CPG industry through innovative products that are transforming the way consumers eat, drink, and unwind with cannabis, hemp and beverage products. Our investments in the cannabis, wellness, beverage, and distribution industries are focused on shaping the future and staying ahead of the curve. We are dedicated to executing our strategic plan to increase revenue, drive operational efficiencies, and improve margins and profitability while investing in our continued growth. Our commitment to innovation and growth is unwavering.”

Tilray Brands scored the fastest revenue growth but had the weakest performance against analyst estimates of the whole group. Still, the market seems discontent with the results. The stock is down 112% since reporting and currently trades at $1.30.

Read our full report on Tilray Brands here, it’s free.

Best Q3: Zevia PBC (NYSE:ZVIA)

With a primary focus on soda but also a presence in energy drinks and teas, Zevia (NYSE:ZVIA) is a better-for-you beverage company.

Zevia PBC reported revenues of $36.37 million, down 15.6% year on year, falling short of analysts’ expectations by 6.8%. However, the business still had a strong quarter with EBITDA guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EPS estimates.

The market seems happy with the results as the stock is up 112% since reporting. It currently trades at $2.30.

Is now the time to buy Zevia PBC? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: Celsius (NASDAQ:CELH)

With its proprietary MetaPlus formula as the basis for key products, Celsius (NASDAQ:CELH) offers energy drinks that feature natural ingredients to help in fitness and weight management.

Celsius reported revenues of $265.7 million, down 30.9% year on year, falling short of analysts’ expectations by 0.7%. It was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

Celsius delivered the slowest revenue growth in the group. As expected, the stock is down 13.6% since the results and currently trades at $27.45.

Read our full analysis of Celsius’s results here.

Keurig Dr Pepper (NASDAQ:KDP)

Born out of a 2018 merger between coffee company Keurig Green Mountain and beverage company Dr Pepper Snapple, Keurig Dr Pepper (NASDAQ:KDP) boasts a powerhouse portfolio of beverages.

Keurig Dr Pepper reported revenues of $3.89 billion, up 2.3% year on year. This print came in 0.8% below analysts' expectations. Aside from that, it was a mixed quarter as it also logged a solid beat of analysts’ EBITDA estimates but a miss of analysts’ gross margin estimates.

The stock is down 14% since reporting and currently trades at $31.57.

Read our full, actionable report on Keurig Dr Pepper here, it’s free.

Boston Beer (NYSE:SAM)

Known for its flavorful beverages challenging the status quo, Boston Beer (NYSE:SAM) is a pioneer in craft brewing and a symbol of American innovation in the alcoholic beverage industry.

Boston Beer reported revenues of $605.5 million, flat year on year. This print beat analysts’ expectations by 0.7%. Taking a step back, it was a mixed quarter as it also produced an impressive beat of analysts’ EBITDA estimates but full-year EPS guidance missing analysts’ expectations.

The stock is up 5.1% since reporting and currently trades at $317.22.

Read our full, actionable report on Boston Beer here, it’s free.

Market Update

In response to the Fed's rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed's 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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