Looking back on beverages, alcohol, and tobacco stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Vita Coco (NASDAQ: COCO) and its peers.

These companies' performance is influenced by brand strength, marketing strategies, and shifts in consumer preferences. Changing consumption patterns are particularly relevant and can be seen in the rise of cannabis, craft beer, and vaping or the steady decline of soda and cigarettes. Companies that spend on innovation to meet consumers where they are with regards to trends can reap huge demand benefits while those who ignore trends can see stagnant volumes. Finally, with the advent of the social media, the cost of starting a brand from scratch is much lower, meaning that new entrants can chip away at the market shares of established players.

The 15 beverages, alcohol, and tobacco stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was 1% below.

Thankfully, share prices of the companies have been resilient as they are up 6.8% on average since the latest earnings results.

Vita Coco (NASDAQ: COCO)

Founded in 2004 followed by a 2021 IPO, The Vita Coco Company (NASDAQ: COCO) offers coconut water products that are a natural way to quench thirst.

Vita Coco reported revenues of $168.8 million, up 17.1% year on year. This print exceeded analysts’ expectations by 4.8%. Overall, it was a satisfactory quarter for the company with a beat of analysts’ EPS estimates.

Vita Coco delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 14.2% since reporting and currently trades at $42.

Is now the time to buy Vita Coco? Access our full analysis of the earnings results here, it’s free.

Best Q2: Celsius (NASDAQ: CELH)

With its proprietary MetaPlus formula as the basis for key products, Celsius (NASDAQ: CELH) offers energy drinks that feature natural ingredients to help in fitness and weight management.

Celsius reported revenues of $739.3 million, up 83.9% year on year, outperforming analysts’ expectations by 14%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.

Celsius scored the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 33.5% since reporting. It currently trades at $57.21.

Is now the time to buy Celsius? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Tilray (NASDAQ: TLRY)

Founded in 2013, Tilray Brands (NASDAQ: TLRY) engages in cannabis research, cultivation, and distribution, offering a range of medical and recreational cannabis products, hemp-based foods, and alcoholic beverages.

Tilray reported revenues of $224.5 million, down 2.3% year on year, falling short of analysts’ expectations by 2%. It was a slower quarter as it posted a significant miss of analysts’ gross margin and EPS estimates.

Tilray delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 137% since the results and currently trades at $1.65.

Read our full analysis of Tilray’s results here.

Keurig Dr Pepper (NASDAQ: KDP)

Born out of a 2018 merger between Keurig Green Mountain and Dr Pepper Snapple, Keurig Dr Pepper (NASDAQ: KDP) is a consumer staples powerhouse boasting a portfolio of beverages including sodas, coffees, and juices.

Keurig Dr Pepper reported revenues of $4.16 billion, up 6.1% year on year. This print topped analysts’ expectations by 0.9%. Aside from that, it was a mixed quarter as it also produced a decent beat of analysts’ EBITDA estimates but a miss of analysts’ gross margin estimates.

The stock is down 24.1% since reporting and currently trades at $25.43.

Read our full, actionable report on Keurig Dr Pepper here, it’s free.

Zevia (NYSE: ZVIA)

With a primary focus on soda but also a presence in energy drinks and teas, Zevia (NYSE: ZVIA) is a better-for-you beverage company.

Zevia reported revenues of $44.52 million, up 10.1% year on year. This result beat analysts’ expectations by 6.6%. Overall, it was a stunning quarter as it also produced EBITDA guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

The stock is down 19.8% since reporting and currently trades at $2.76.

Read our full, actionable report on Zevia here, it’s free.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

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