As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the beverages, alcohol, and tobacco industry, including Brown-Forman (NYSE: BF.B) 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 14 beverages, alcohol, and tobacco stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was 2.2% above.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.4% since the latest earnings results.

Brown-Forman (NYSE: BF.B)

Best known for its Jack Daniel’s whiskey, Brown-Forman (NYSE: BF.B) is an alcoholic beverage company with a broad portfolio of brands in wines and spirits.

Brown-Forman reported revenues of $912 million, up 2% year on year. This print exceeded analysts’ expectations by 3.5%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ gross margin estimates but a significant miss of analysts’ EPS estimates.

Interestingly, the stock is up 6.6% since reporting and currently trades at $26.39.

Read our full report on Brown-Forman here, it’s free.

Best Q1: 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 $216.2 million, up 28.1% year on year, outperforming analysts’ expectations by 3%. The business had a stunning quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ gross margin estimates.

Vita Coco achieved the highest full-year guidance raise of the whole group. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 22.1% since reporting. It currently trades at $57.98.

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

Weakest Q1: 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 $817.9 million, up 10.6% year on year, falling short of analysts’ expectations by 6.2%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.

Celsius delivered the weakest performance against analyst estimates among its peers. As expected, the stock is down 2% since the results and currently trades at $28.57.

Read our full analysis of Celsius’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 $7.31 billion, up 75.6% year on year. This number topped analysts’ expectations by 0.9%. More broadly, it was a mixed quarter as it also recorded a beat of analysts’ EPS estimates but full-year revenue guidance meeting analysts’ expectations.

Keurig Dr Pepper scored the fastest revenue growth in the group. The stock is up 2.8% since reporting and currently trades at $31.60.

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

PepsiCo (NASDAQ: PEP)

With a history that goes back more than a century, PepsiCo (NASDAQ: PEP) is a household name in food and beverages today and best known for its flagship soda.

PepsiCo reported revenues of $25.27 billion, up 5.6% year on year. This print beat analysts’ expectations by 1.3%. It was a satisfactory quarter as it also produced a decent beat of analysts’ gross margin estimates.

The stock is up 1.9% since reporting and currently trades at $126.08.

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

Market Update

Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.

Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.

By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.

Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.