In this article we will take a look at the 15 largest beverage companies by market cap. You can skip our detailed analysis of the beverage industry’s outlook for 2021, and some of the major growth catalysts for beverage stocks and go directly to the 5 Largest Beverage Companies by Market Cap.
The best thing to do in the scorching heat is to grab a chilled drink and relax. Whether it's because you've had a long day or just because the sun's blazing too much, a nice drink is enough to quench your thirst and leave you feeling refreshed, so it's not too surprising that beverage companies these days are enormously profitable.
You might be thinking just how much money one can make by selling water, but that's where you would be making a mistake. While inclusive of water, the word beverage means so much more than just that, and believe it or not, the industry itself is highly profitable. The popularity of sodas and cold drinks has been rising for years now, with some of the most notable examples being Coca-Cola Co (NYSE: KO) and PepsiCo Inc (NASDAQ: PEP). Coca-Cola Co's (NYSE: KO) net income in 2019 stood at $8.92 billion, while PepsiCo Inc's (NASDAQ: PEP) net income for the same year stood at $7.353 billion. It doesn't matter which one you prefer out of the two because both have an incredibly high market value, and these are just two of the hundreds of examples you can find.
Coca-Cola Co (NYSE: KO) and PepsiCo Inc (NASDAQ: PEP) notwithstanding, let's look at one more inspirational example in the beverage industry to drive the point home. The Chinese Kweichow Moutai (SSE: 600519), currently the world's biggest distillery with a market cap of $441.55 billion, stands as a company worth more than Nike Inc (NYSE: NKE), Toyota Motor Corporation (TSE: 7203.T), and even Walt Disney Co (NYSE: DIS). That should give you more of an idea of how much the other companies selling the drinks in your fridge should be worth.
However, more important than anything else is that the beverage industry is one of the most versatile and innovative industries out there. These mega-companies aren't just popping out the same drinks for their consumers to buy every year. Instead, immeasurable effort goes into coming up with the next drink, the next flavor to get the people hooked. After all, when a company turns a necessity like a mere drink into a commodity produced and sold for profit, the possibilities seem endless. Just look at companies such as Starbucks (NASDAQ: SBUX). They have a wide array of coffees to choose from, from the Doubleshot on Ice to the Cold Brew Coffee, and the list keeps getting longer. More than that, these companies take pride in indisputably satisfying their customers. You can see that in the sort of service Starbucks (NASDAQ: SBUX) provides, what with excellent coffee that you can customize according to your tastes until it's just right for a morning brew or an evening relaxant.
The Effects of Coronavirus Pandemic on the Beverage Industry
Be that as it may, it's not possible to ignore the gigantic elephant in the room: the coronavirus pandemic. With the advent of COVID-19, every industry globally took an economic hit – except perhaps the drug and pharmaceuticals and healthcare industries. The former here had a market size of $324.42 billion in 2019, which is expected to grow at a compound annual growth rate of 13.74% from 2020 to 2027. However, the beverage industry has taken an economic hit in recent years. In 2019, the food and beverage sector was worth $3606.1 billion but according to statistics, due to the pandemic, there was an expected decrease to $3505.3 billion in 2020. Established trends in consumer patterns have rapidly shifted with the onset of the pandemic, and they won't shift back that fast as people across the globe attempt to deal with economic distress.
Changing Trends in the Beverage Industry
Regardless of the pandemic, the beverage industry is also being disrupted by changing product popularity, brands, and distribution, apart from just consumerism. In the midst of it all, niche actors tend to take up more of the market share, while every company must strive to remain competitive to have the edge over the others. Non-alcoholic beverage companies have been operating in a wholly different manner as the industry undergoes these transformations. For instance, PepsiCo (NASDAQ: PEP) has begun to keep an eye out for health-conscious consumers and thus purchased the sparkling water company SodaStream in 2018. Coca-Cola Co (NYSE: KO) made leaps in the tea market years ago with its Honest Tea subsidiary and moved into the coffee market by purchasing Costa Coffee in 2019. Finally, with a greater emphasis on environmentalism in light of the climate action movement all over the world, companies with eco-friendly packaging like Boxed Water begin to one-up those conglomerates stacking plastic bottles on the shelves.
All in all, consumers have been disproportionately affected by the coronavirus pandemic, and an increased level of importance being put on health and the environment. By 2026, Generation Z – those individuals born between 1998 and 2017 – are expected to be the largest generation on the planet, resulting in a buying power of more than $50 billion. With conventional media having no impact on this generation, one that grew up on the internet and smartphones, a greater demand for customization and individualism can be observed. As such, to cater to this rapidly growing consumer base, companies will need to take note of not just what tastes good but what feels good. Lastly, if you put together a pandemic with a generation of people who prefer spending all their time indoors anyway, you get the perfect digital consumer. With government-mandated lockdowns imposed worldwide, online shopping for food and drinks has skyrocketed, as the revenue from food and beverage ecommerce shot up from $13.03 billion in 2019 to $18.7 billion in 2020. Hence the potential of the industry making unprecedented headway in the digital world cannot be ignored.
With all that in mind, it won't be surprising to want to keep an eye on the beverage industry and its accomplishments in the coming years. Despite the ups and downs, especially in light of the pandemic, this industry's popularity and utility cannot be overlooked. Thus, we took it upon ourselves to compile a list of the 15 largest beverage companies by market cap, so people know which companies to keep an especially sharp eye on in the future.
Following is the list of the 15 largest beverage companies by market cap. We based this ranking through data collected on market cap from Google Finance and Yahoo Finance.
With this context and industry outlook in mind, let’s start our list of the 15 largest beverage companies by market cap.
Largest Beverage Companies by Market Cap
15. Brown-Forman Corporation (NYSE: BF-B)
Market Capitalization: $37.89 billion
Ranked 15 on the list of the largest beverage companies by market cap, Brown-Forman Corporation (NYSE: BF-B) is one of the largest American alcoholic beverage company, operating for the past 150 years. It works in over 170 countries and is the name behind Jack Daniel's and Woodford Reserve whiskeys.
14. Constellation Brands, Inc. (NYSE: STZ)
Market Capitalization: $46.52 billion
Constellation Brands is yet another American alcohol company specializing in beer, wine, and spirits. Claiming to deliver powerhouse brands and best-in-class experiences for their customers, this company ranks 14th on the list of largest beverage companies by market cap.
13. Monster Beverage Corporation (NASDAQ: MNST)
Market Capitalization: $46.52 billion
If you're a college student, you'd most likely be familiar with this name. Monster Beverage Corp (NASDAQ: MNST) has been producing and selling a wide variety of energy drinks for as long as I can remember and has, since its inception, raked in quite the profits and the name for itself. With such a history behind it, it's no wonder the company made it on this list as 13th in the last of the largest beverage companies by market cap. Like Brown-Forman Corporation (NYSE: BF-B), Diageo PLC (NYSE: DEO), Starbucks Coffee Company (NASDAQ: SBUX), PepsiCo (NASDAQ: PEP), Coca-Cola Co (NYSE: KO) and Keurig Dr. Pepper (NYSE: KDP), Monster is one of the most famous beverage companies in the world.
12. Keurig Dr Pepper Inc. (NYSE: KDP)
Market Capitalization: $52.35 billion
Another familiar name like Monster Beverage (NASDAQ: MNST) is Keurig Dr. Pepper (NYSE: KDP). Being a leading company in the production and sale of hot and cold beverages to its consumers, Dr. Pepper (NYSE: KDP) is ranked 12th on the list of 15 largest beverage companies by market cap. With a revenue of $11.62 billion just last year, it is one of the oldest and most successful beverage companies in the world. Like
"Keurig Dr Pepper is one of North America’s leading beverage companies and commands dominant positions in single-serve coffee and flavored sodas. We believe single-serve coffee pods will capture almost all of the incremental growth in at-home coffee consumption. Many consumers find that K-Cups offer better convenience, quality, variety and value, compared to drip brewing. Keurig’s competitive advantages (low-cost production, the largest installed base of brewers, exclusive brand partnerships) allow it to collect a toll on most pods sold in North America. The company’s soda franchises remain highly profitable, and we do not expect health-related concerns about sugar to materially impact consumption trends. We believe that Keurig’s brands should deliver steady growth, consistent market share gains and significant excess cash. We think the company is an above-average business trading at a meaningful discount to the broader market, its beverage peers and historical private market transactions.”
11. Jiangsu Yanghe Brewery Joint-Stock Co., Ltd. (SZSE: 002304.SZ)
Market Capitalization: $54.10 billion
Located in China's capital of Baijiu – Suqian, Yanghe Distillery (002304: SHE) is ranked 11th on the list of the largest beverage companies by market cap. Yet another alcohol company on the list like Constellation Brands (NYSE: STZ) and Brown Forman (NYSE: BF.B) above makes one realize the popularity of alcoholic beverages worldwide. Their website boasts of the unique and spellbinding way the company brews its drinks, and a revenue of over $3 billion in 2020 explains how it made it to this list.
10. Pernod Ricard SA (EPA: RI.PA)
Market Capitalization: $56.64 billion
Pernod Ricard (EPA: RI.PA) is a French company also producing alcoholic beverages. With revenue of €8.987 billion in 2018 and their famous Pernod Anise and Ricard Pastis, the company is ranked 10th on the list of 15 largest beverage companies by market cap. Pernod Ricard (EPA: RI.PA) is the company holding one of the most prestigious brand portfolios in this industry: Absolut Vodka.
9. Nongfu Spring Co., Ltd. (HKSE: 9633.HK)
Market Capitalization: $67.97 billion
Nongfu Spring (HKSE: 9633.HK) is another Chinese company. However, they are the producers and sellers of bottled water headquartered in Xihu District, Hangzhou, Zhejiang Province. In 2019, their revenue stood at $3.4 billion, earning them the 9th spot on the list of 15 largest beverage companies by market cap. Like Brown-Forman Corporation (NYSE: BF-B), Diageo PLC (NYSE: DEO), Starbucks Coffee Company (NASDAQ: SBUX), PepsiCo (NASDAQ: PEP), Coca-Cola Co (NYSE: KO), Monster Beverage (NASDAQ: MNST) and Keurig Dr. Pepper (NYSE: KDP), Nongfu is one of the most famous beverage companies in the world.
8. Heineken N.V. (AMS: HEIA.AS)
Market Capitalization: $67.97 billion
Yet another company specializing in brewing and selling alcoholic beverages, Heineken (AMS: HEIA.AS) stands at 8th on the list of largest beverage companies by market cap. The company is a Dutch multinational brewing company founded in 1864 and owns over 165 breweries in over 70 countries by 2017. They focus on 250 international, regional, local, and specialty beers and ciders and employ around 73,000 people. Like Brown-Forman Corporation (NYSE: BF-B), Diageo PLC (NYSE: DEO), Starbucks Coffee Company (NASDAQ: SBUX), PepsiCo (NASDAQ: PEP), Coca-Cola Co (NYSE: KO), Monster Beverage (NASDAQ: MNST) and Keurig Dr. Pepper (NYSE: KDP), Heineken is one of the most famous beverage companies in the world.
7. Diageo plc (NYSE: DEO)
Market Capitalization: $112.75 billion
Diageo PLC (NYSE: DEO) is a British multinational alcoholic beverage company based in London, England. Operating in over 180 countries and producing beverages in over 140 sites globally, the company falls 7th on the list of 15 largest beverage companies by market capitalization. Until 2017, Diageo (NYSE: DEO) was the world's largest distiller when it was overtaken and replaced by the Chinese Kweichow Moutai Co., Ltd. (SSE: 600519.SS). The revenue of the company stood at £11.75 billion in 2020. Like Starbucks Coffee Company (NASDAQ: SBUX), PepsiCo (NASDAQ: PEP), Coca-Cola Co (NYSE: KO), Monster Beverage (NASDAQ: MNST) and Keurig Dr. Pepper (NYSE: KDP), Diageo is one of the most famous beverage companies in the world.
Weitz Investment Management, in its Q1 2021 investor letter, mentioned Diageo plc (NYSE: DEO). Here is what the fund said in its latest letter:
"We sold Diageo after twelve years of very profitable ownership. The global spirits company has done a fine job of growing earnings, and the stock has enjoyed an extra boost from substantial, multiple expansions along the way. While the business is in good hands, we think a repeat of our mid-double-digit annualized return experience is far less likely. We simply see better risk/reward profiles in the Fund’s other quality holdings.”
6. Starbucks Corporation (NASDAQ: SBUX)
Market Capitalization: $131.71 billion
Everyone must have heard of this company at least once in their lives. Starbucks Coffee Company (NASDAQ: SBUX) revolutionized the coffee market since its inception, and thus it earned a place on the list of the 15 largest beverage companies by market cap. The corporation is an American multinational chain of coffeehouses and roastery reserves based in Seattle, Washington. It is also the world's largest coffeehouse chain and symbolizes the American third wave of coffee culture. The company's revenue stood at $26.5 billion in 2019.
Like Brown-Forman Corporation (NYSE: BF-B), PepsiCo (NASDAQ: PEP), Coca-Cola Co (NYSE: KO), Diageo PLC (NYSE: DEO), Monster Beverage (NASDAQ: MNST) and Keurig Dr. Pepper (NYSE: KDP), Starbucks is one of the most famous beverage companies in the world. Click to continue reading and see 5 Largest Beverage Companies by Market Cap. Suggested articles:
Disclosure: None. 15 Largest Beverage Companies by Market Cap is originally published on Insider Monkey.