With the tit-for-tat tariff war between the United States and Canada ongoing (not to mention the desired annexation of Canada by a certain American president), the alcohol industry has been making headlines across North America. The US president has threatened a 25% tariff across a variety of industries, with Canada threatening to return the favour in-kind.
A ‘buy Canadian’ furor has taken over as Canadians rededicate themselves to local brands and explore new ones. Canadian retailers have begun pulling American-branded alcohol from their store shelves altogether. Maker of Jack Daniel’s whiskey, Brown-Forman CEO Lawon Whiting stated on an earnings call “That’s worse than a tariff because it’s literally taking your sales away.”
Sentiment will likely carry beyond this initial tariff skirmish, with general feelings between the two countries heating up – although this is more of a show of displeasure towards government policies than the people. The anthem booing at the 4 Nations Face-off hockey tournament highlighted that tension. (Go Team Canada!)
Let’s explore more about the Canadian alcohol industry and highlight some key players in the market.
Data on the Canadian alcohol market
Heading into 2026, the Canadian alcoholic beverage market has reached a sophisticated turning point, valued at roughly US $40 billion. While the total volume of traditional categories like beer and wine has faced slight downward pressure due to health-conscious consumption trends, dollar value remains high due to premiumization and the surge of the Ready-to-Drink (RTD) sector.
Revenue for at-home sales (supermarkets, convenience stores, and specialized retailers) is projected to reach $23.9 billion, as consumers increasingly favor premium craft and convenience-driven products for home enjoyment.
Conversely, out-of-home sales (bars, restaurants, and entertainment venues) are expected to hit $17.4 billion, rebounding from previous years as experiential dining and social drinking cultures continue to stabilize.
A recent “Buy Canadian” movement has significantly impacted market share, with domestic products now representing 59.0% of all alcohol sales in the country. The breakdown by category highlights the strength of local production:
- Beer (88.0%): Domestic breweries continue to dominate, accounting for nearly nine out of every ten dollars spent on beer.
- Ciders and Coolers (85.0%): This category remains a local powerhouse, driven by a 127% growth in the fashion-forward and convenient RTD cocktail segment.
- Spirits (46.1%): While historically lower, domestic spirits are on the rise as Canadian craft distilleries gain traction with premium whiskies and gins.
- Wine (28.8%): Local wines—particularly VQA selections from Ontario and B.C.—have seen a major boost in consumer sentiment, with some local VQA categories growing by over 50% year-over-year.
What are alcohol stocks?
Alcohol stocks refer to publicly traded companies involved in the production, distribution, and sale of alcoholic beverages such as beer, wine, and spirits. These companies can be involved in various aspects of the alcohol industry including brewing, distilling, marketing, and retailing.
Alcohol is often considered a non-cyclical sector (or “defensive” sector), meaning it can remain relatively stable during economic downturns because consumers tend to continue purchasing these products. Investors looking at alcohol stocks should consider factors such as market share, brand strength, innovation in product offerings, and international expansion potential.
Key segments of alcohol stocks
Beer producers
This segment includes companies that produce and sell beer. Some of the largest global beer companies are household names and have expansive brand portfolios catering to both mass markets and craft beer enthusiasts.
Wine companies
Wine producers range from global wine conglomerates to independent vineyards that specialize in premium wines. This segment can be influenced by factors such as vintage variations, consumer trends, and regional wine consumption habits.
Spirits manufacturers
Companies in this category produce distilled alcoholic beverages, including whiskey, vodka, rum, and gin. Spirits often have higher profit margins compared to beer and wine, making them attractive to investors.
Factors affecting alcohol stocks
- Regulatory Environment: Alcohol companies must comply with strict regulations regarding production, distribution, and marketing. Changes in legislation can significantly impact operations and profitability.
- Consumer Trends: Shifts in consumer preferences, such as a move towards craft beverages or lower-alcohol options, can influence company strategy and stock performance.
- Economic Conditions: While alcohol is often deemed recession-proof, overall economic health can impact discretionary spending and subsequently alcohol sales.
- International Markets: Companies with a strong presence in international markets may benefit from diverse revenue streams but also face challenges like varying regulations and currency fluctuations.
Trends in the alcohol industry
1. Declining alcoholic consumption
On a volume-basis, consumption of alcohol has been decreasing of late, highlighting a shift in consumer preferences toward alternative and often lower-alcohol options. The overall industry experienced a 3.8% decline between 2023 to 2024. Beer and wine sales decreased roughly 4.5%, while spirits dropped 0.8%. Ciders and coolers however grew almost 7% – the only sector to achieve growth between 2023-2024.
2. Growth in non-alcoholic beverages
One of the more notable trends in the industry is the growth in non-alcoholic beverages, which reached almost $200 million in 2024, an increase of 24% over the previous year. Non-alcoholic beer accounts for 76% of sales but non-alcoholic spirits had a growth of 67%, as customers seek alternatives to traditional alcoholic spirits.
3. Emphasis on premiumization and craft offerings
Within the Canadian alcohol industry, there is a growing trend toward premiumization and craft offerings. Consumers are increasingly seeking high-quality, artisanal products, resulting in a surge in demand for craft beers, small-batch spirits, and exclusive wines. This shift is driven by a desire for unique flavors, authentic experiences and local ingredients, with craft beer market share growing by over 12% from 2023 to 2024. Limited-edition releases and collaborations are also attracting consumers looking for novelty and exclusivity, highlighting a shift toward quality over quantity in the industry.
Top Canadian alcohol stocks
Despite the overall global decline in alcohol consumption, the alcohol industry is still substantial and a big part of the Canadian economy and lifestyle. Here are some of the top alcohol stocks in Canada:
Molson Coors Canada Inc.
Molson Coors (TSX:TPX.B) continues to evolve its strategy to meet shifting consumer tastes, supported by a 2024 rebrand that signaled its move beyond traditional beer into the “Beyond Beer” and premium spirits categories. Its diverse Canadian portfolio features best-selling staples like Molson Canadian and Coors Light alongside high-growth premium brands like Peroni and Miller Lite. As part of a global entity, the company leverages an extensive distribution network across North America and Europe to stabilize its performance against regional market fluctuations.
Entering 2026, Molson Coors has faced a more challenging operating environment following a strong 2024. While the company achieved $11.63 billion in net sales and an 18% increase in net income for the 2024 fiscal year, 2025 saw a pivot toward lower volumes. As of the third quarter of 2025, the company reported a year-to-date revenue decline of approximately 4.6%, largely driven by softer industry demand and the exit of specific contract brewing agreements.
Despite these top-line pressures, Molson Coors remains a significant generator of cash, returning roughly $1.3 billion in free cash flow to shareholders through dividends and buybacks in 2025. The current dividend yield remains attractive at approximately 4.06%.
Corby Spirit and Wine Limited
Founded in 1859 in Corbyville, Ontario, Corby Spirit and Wine (TSX:CSW.A) has evolved over the years to become a significant player in the alcohol industry. Corby’s portfolio boasts several top-selling brands in Canada, including J.P. Wiser’s Whisky, Lamb’s Rum, Polar Ice Vodka, and McGuinness Liqueurs. The company also represents renowned international brands such as ABSOLUT Vodka, Chivas Regal, The Glenlivet, Jameson Irish Whiskey, Beefeater Gin, and Mumm Champagne within the Canadian market.
Corby reported strong financial performance in the first quarter of fiscal 2025, with revenue reaching $65.1 million, an 11% increase year-over-year. Growth was driven by the acquisition of the Nude brand and a 3% rise in organic revenue. Earnings from operations increased by 31% to $15.0 million, with net earnings rising 24% to $9.3 million. The company also declared a $0.22 per share dividend.
Andrew Peller Limited
Andrew Peller (TSX:ADW.A) is a leading Canadian producer and marketer of wines and craft beverage alcohol products, operating wineries in British Columbia, Ontario, and Nova Scotia. The company offers a diverse portfolio of brands, including Peller Estates, Trius, Thirty Bench, Wayne Gretzky, Red Rooster, Sandhill, Black Hills Estate, Gray Monk Estates, Tinhorn Creek, Conviction, and Raven Conspiracy.
Andrew Peller also operates 101 well-positioned independent retail locations in Ontario under The Wine Shop, Wine Country Vintners, and Wine Country Merchants store names, furthering its direct-to-consumer reach.
Entering fiscal 2026, the company maintains strong momentum despite broader economic shifts. For the second quarter ended September 30, 2025, Andrew Peller reported $105.5 million in revenue, which, when adjusted for the previous year’s LCBO strike impact, represented solid organic growth across major trade channels.
Profitability has surged, with net earnings for the first half of fiscal 2026 reaching $13.5 million, a significant increase over the prior year. Andrew Peller also offers a healthy forward dividend yield of approximately 4.76% and has 46 consecutive years of payouts.