Refreshing Returns: 3 Beverage Stocks to Quench Your Thirst for Profits


  • Beverage companies can actually grow very rapidly. These three beverage stocks are well-positioned to deliver excellent returns for investors.
  • Vita Coco (COCO): COCO’s beverages are fairly healthy and growing fairly rapidly.
  • Celsius Holdings (CELH): The Street’s worries about the company are overblown as it appears to have found the Holy Grail of beverages.
  • Keurig Dr Pepper (KDP): The company just reached a major milestone with similar overwrought concerns.
beverage stocks - Refreshing Returns: 3 Beverage Stocks to Quench Your Thirst for Profits

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When most people hear the term “beverage stocks,” they probably picture rather ancient, slow-growing staples like Coca-Cola (NYSE:KO) and Pepsi (NYSE:PEP). But beverage companies can actually expand extremely quickly.

Energy drink maker Monster Beverage (NASDAQ:MNST), soared from $3.40 in February 2010 to $46.50 in May 2021 while Molson Coors Beverage (NYSE:TAP) jumped from $32.65 in September 2020 to $70.55 in July 2023. Meanwhile, even Warren Buffett is a believer in beverage stocks, as shown by his significant, longtime stake in Coca-Cola. In fact, the Oracle owns 400 million shares of the soda maker and has owned the company’s stock since way back in 1988.

Here are three beverage stocks that are well-positioned to produce big returns for investors.

Vita Coco (COCO)

A line of Vita Coco (COCO) waters on a shelf.
Source: Nicole Glass Photography /

Vita Coco (NASDAQ:COCO) beverages are fairly healthy as they are based on coconut water. According to Healthline, coconut water is “naturally sweet and hydrating,” while it is also “loaded with several important nutrients, including minerals that many people don’t get enough of.” And unlike coconut milk, coconut water contains very little fat. Additionally, several studies show the beverage could be more efficient than water when it comes to helping people recover from exercise sessions. Vita Coco heavily utilizes the latter aspect of the liquid in its marketing campaigns.

Those efforts are bearing some fruit (no pun intended) as the company’s top line jumped to $493.6 million last quarter last year from $427.8 million in 2022. Moreover, its operating income soared over five times to $56.9 million in 2023 from $10.4 million in 2022. Meanwhile, analysts, on average, expect its earnings per share to advance to 94 cents this year from 79 cents in 2023.

Large investors also appear to be warming up to the name as COCO stock climbed 22% from Apr. 22 to Jun. 4.

Celsius Holdings (CELH)

three energy drinks contrasted against a white background
Source: Shutterstock

I view Celsius Holdings (NASDAQ:CELH) as having found a “Holy Grail” of sorts because its beverages are healthy, don’t use artificial sweeteners, have very few calories, taste rather good and provide a tremendous amount of energy via caffeine.

Its products include large amounts of important vitamins. For example, its Live Fit offerings have 90% of the FDA’s Recommended Daily Allowance (RDA) for Vitamin C, 130% ofor Riboflavin, and 120% for B6.

Last quarter the company’s revenue jumped 37% versus the same period a year earlier. That growth enabled its top line to reach $355.7 million. Further, its earnings per share more than doubled year-over-year to 27 cents.

Lately, the Street has shunned its shares, largely because its growth has slowed slightly, according to Nielsen. But retail demand for the company’s product is increasing and the placement of its beverages is improving. Also importantly, Celsius is in the process of expanding to multiple, significant overseas markets.

Keurig Dr Pepper (KDP)

Keurig Dr Pepper (KDP) sign on the front of a building
Source: Shutterstock

According to Beverage Digest, Dr Pepper last year overtook Pepsi to become America’s second favorite soft drink. Specifically, Dr Pepper and Pepsi both commanded 8.3% of the soft drink market in 2023, with Dr Pepper holding a slight edge. Buffett’s Coca Cola remained way ahead of both of the other two firms with a 19.2% share.

The news is certainly positive for Keurig Dr Pepper (NYSE:KDP) which, of course, manufactures and markets Dr Pepper. The data suggests the company is doing a very good job of marketing its soda. What’s more, the news itself has given the company a great deal of free publicity.

Meanwhile, speaking on CNBC’s Halftime Report on Jun. 4, Jenny Van Leeuwen Harrington, the CEO of  Gilman Hill Asset Management, said the new weight loss drugs could cause consumers to cut back on Keurig Dr Pepper’s Keurig pods. But I believe that the opposite could very well be true. That’s because as consumers drink fewer sugary drinks that give them energy, they could turn more to low-calorie coffees to obtain energy instead.

Although consumers on the weight loss drug are likely to drink less regular Dr Pepper, many are likely to switch to Diet Dr Pepper instead.

On the date of publication, Larry Ramer held a long position in CELH. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.       

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been SMCI, INTC, and MGM. You can reach him on Stocktwits at @larryramer.

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