Home » alcohol sin stocks » Beer Companies No Longer Sin Stocks? The Booze-Free Beer Trend

Among the most-listed sin stocks, breweries have always been a staple stock. They’re central players in our alcohol sin stock category.

But maybe it’s time to re-think those categories.

An article published on Investing.com discusses Heineken’s plans to aggressively enter new markets by selling… non-alcoholic beer.

Dutch brewery Henieken (HEINY) is launching a zero alcohol beer and plans to sell it into 17 markets. Anheuser Busch InBev (BUD) apparently has plans to make as much as one-fifth of its beer alcohol free in the next seven years.

Will the plan work?

It has the potential to work well for alcohol sin stocks and for the people who invest in them:

  • People who like the taste of beer but do not the alcohol content can enjoy beer at other times of day when they might not normally be able to do so now; this has the potential to open up marketshare growth. A business lunch. Drinks for the designated driver. Give it out to high school students. Pour it on your breakfast cereal. The possibilities are much broader with no alcohol.
  • The trends away from big brands toward craft beer is only part the story. Today’s drinkers are changing and a high calorie, low alcohol, mass-produced beer are not necessarily in demand by the up-and-coming crowd. This could be the way to get more drinkers from this group.
  • Heineken’s zero-alcohol beer also has fewer calories than other beers or even sodas, so that may make it a popular choice among the health-conscious crowd.
  • With a massive marketing budget, a breweries’ biggest restrictions right now are age and transportation, both of which are solved by non-alcoholic beer: anyone can drink it, and, it may be more easily shipped across borders.
  • As mentioned in the article above, once a drink ceases to contain alcohol it may no longer incur booze taxes, which makes it potentially more profitable to produce and sell.
  • And let’s talk about one aspect that is probably whispered in marketing departments in every brewery: getting teens to fall in love with your beverage legally, so that they can “graduate” to the alcoholic version when they are old enough, is not a bad position to be in either.

If you agree that these are compelling reasons that will enable breweries to sell more beer, then consider looking further into the trend and adding soon-to-be-NON-alcohol sin stocks to portfolio to tap into this shift.

DISCLAIMER

Nothing on this site is a recommendation because, hey, I can't read your mind and I don't know what you have in your portfolio, and I'm not a licensed financial advisor. So never EVER trade without doing your due diligence. If you want more information about this fascinating topic, please check out the Sin Stocks Disclaimer page which basically says the same thing but more emphatically.