The beverage alcohol investment landscape has cooled over the last few years, with interest rates above 4% slowing deal-making across sectors. However, smart money remains active, taking a "horses for courses" approach and selecting companies that make strategic sense for their portfolios.
Warren Buffett's $2 billion Constellation investment and emerging data showing Gen Z re-engaging with alcohol (70% vs 46% in 2023) suggest that selective opportunities persist. Investors are pivoting toward proven brands with scale, adjacent categories like hemp-derived THC beverages, and non-alcoholic alternatives.
Despite projected single-digit declines, investment in the first half of 2025 shows that the massive alcohol market remains attractive for strategic buyers focused on sustainable growth rather than speculative valuations.