[Christian Harris]

Alcohol stocks are feeling the pressure this year as Dry January gains traction, with investors growing concerned about slowing demand.

On Wednesday, Brown-Forman, the maker of Jack Daniel’s, fell 2.3%, bringing its total decline for the year to 13%.

Constellation Brands, which owns Corona and Modelo, slipped 2.25%, while Boston Beer, the company behind Sam Adams, lost 1.3%. Global spirits giant Diageo, known for Johnnie Walker and Guinness, also dropped 1.7%.

Dry January, a movement encouraging people to abstain from alcohol for the entire month, has been growing in popularity, fuelled by health-conscious consumers and the rising trend of non-alcoholic beverages.

As more people embrace sobriety challenges, alcohol sales tend to dip in the early months of the year.

While some alcohol companies have responded by expanding into non-alcoholic beer, wine, and spirits, the impact on traditional alcohol sales is evident in the stock market.

Beyond Dry January, concerns about a broader slowdown in alcohol consumption are adding to investor worries.

Younger generations are drinking less, opting for alternatives like cannabis, mocktails, and functional beverages.

If this trend continues, alcohol companies may need to rethink their strategies to stay competitive in a shifting market.

Data: eToro

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[Dominic]

I wish I had the restraint for dry January.

You’re post has made me wonder whether there’s a pattern most years of alcohol stocks underperforming around January time. Hmmmm.

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[Christian Harris]

What’s weird it that relationship breakups peak in January, with the first working Monday of the year often called ‘Divorce Day.’

So, I’d have thought alcohol sales would increase 🤔 Or, maybe, that’s another reason why gym memberships peak?

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