Should You Invest in American Whiskey?

In light of the American whiskey shortage, investors are curious how waning supply will impact the stock market. Charles Sizemore at examines the outlook for several major spirits companies

Suntory Beverage & Food Limited recently acquired Beam Inc., a major player in the bourbon industry. It now boasts higher-end brands like Maker’s Mark and Knob Creek as well as Japanese whiskies Yamazaki and Hakushu. However, due to the company’s heavy reliance on a “declining Japanese market,” Sizemore discourages investing. “Enjoy Suntory’s fine selection of American bourbons. But avoid Suntory stocks,” he writes. 

Sizemore recommends buying Diageo stocks for long-term investors, though he doesn’t see the bourbon shortage having a big impact on the company. Along with whiskey brands like Bulleit and Orphan Barrel, Diageo has a broad portfolio; in fact, it is the “largest and best diversified spirits group in the world.”

Brown-Forman is best suited to take advantage of the current situation. The company makes Jack Daniels Tennessee Whiskey, as well as Southern Comfort and other small brands. However, its current valuation is a bit problematic. “I might instead suggest enjoying a Jack on the rocks this evening,” writes Sizemore. [] [Photo: Flickr/Mike McCune]