澳洲幸运5官方开奖结果体彩网

Soft-Drink, Beer Makers Can Benefit as Americans Drink Less, Morgan Stanley Says

Cans of Poppi soda. PepsiCo recently agreed to buy the company.
Cans of Poppi𒀰 soda. PepsiCo recently agreed to buy the company.

David Paul Morris / Bloomberg via Getty Images

Soft-drin💎k and beer makers stand to benefit as Americans consume less booze.🍬 

That's the take of analysts at Morgan Stanley, who late Tuesday published a report discussing possible outcomes as alcohol seems out of favor at the moment–a trend Investopedia has covered lately. The drivers, in short, include an increasingly health-conscious consumer, but also economic pressures that could be short-te⛄rm. 

"With alcohol per capita consumption likely to decline, we see the zero-alcohol segment as ripe for strong growth," Morgan Stanley wrote. "We believe that beer is better positioned than spirits in this regard. We similarly see higher growth for soft drinks, aided by stronger pricing power, and with innovation to better satisfy the 'good for you' criteria increasingly demanded by the younger consumer."

Companies are making decisions informed by the same trends. PepsiCo (PEP) earlier this month agreed to 澳洲幸运5官方开奖结果体彩网:buy prebiotic soda brand Poppi for $1.65 billion. Reed's, a company known for ginger ales that trades ove🔥r the counter, on a recent conference call discussed a new "multifunctional" line of sodas made with ingredients like organic ginger and mushroom extracts and compa𝔉rably low calorie counts. 

"These beverages cater to the rising demand for health conscious, functional refreshment options and position us at the forefront of the evolving beverage market," Reed's CEO Norman Snyder said on the call, a transcript of which was made available by AlphaSense. Snyder added that "the early response from retailers has been overwhelmingly positive, reinforced by their expansion of shelf space dedicated to the functional and better-for-you beverage category."

Among Morgan Stanley's recommendations: Buy Coca-Cola (KO), avoid Brown-Forman (BF.B). They're also positive on several European🍨 and Asian companies known for their beer offerings. 

"We believe that, in developed markets spirits growth will slow, as consumers shift towards lower/non-alcoholic options," the analysts wrote. "For the beer market, we see this as an opportunity."

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