The American beverages industry is booming.
The packaged water market generates over $50 billion, while experts predict that the alcoholic beverages market will grow north of 3.5 percent through 2021. That’s enough to whet the appetite of any conservative investor.
Demand is fairly consistent – absent seasonal spikes and summer lows. Beverage stocks are relatively stable investments over the long term and have the potential to add value to portfolios aimed at side-stepping the volatility so typical of tech stocks for example.
However, not all beverages stocks are the same. You need to choose a company that has a good reputation and adapts to market conditions and consumer demands.
Sure, you could invest in a beverages company like Coca Cola or Pepsi, who post stable profits year after year. But investing in beverage wholesalers could also provide you with a return on your investment.
Wholesalers provide commercial customers with the products they need for their businesses. This means drinks (and other items) for supermarkets and independent stores. The market size is healthy, demand is stable, and growth is expected.
But which companies will provide you with the best returns? What about Reyes Holdings? This company has a good reputation and financial history, but will it help you generate the profits you want? What about beverages stocks in general?
The Nuts and Bolts Of Reyes Holdings
Reyes Holdings is a wholesaler that distributes various food and drinks items to commercial companies. Some of its clients include world renowned brands like McDonald’s.
Reyes Holdings has two main distribution divisions:
- Reinhart FoodService
- Reyes Beverage Group
The latter specializes in beer distribution, and it distributes more than 100 million cases of beer every single year.
As a whole, Reyes Holdings dispenses food and drink items across the United States, with distribution centers in 27 different cities. This company delivers more than 150 million foodservice products to customers, and the organization works with restaurants, stores, schools, and even health care centers.
Reinhart FoodService, the food services sector of Reyes Holdings, is the fifth-biggest distributor of food products in the US.
Why You Can’t Buy
Reyes Holdings Stock
Reyes Holdings has a proven history.
Both its food services and beer distribution organizations reach untold numbers of customers across the country, and the company generates revenues in the billions of dollars each year.
However, before you think about parting with your cash, there’s something you should know. At the moment, you cannot invest in this company or purchase stock of Reyes Holdings because it is a private company. In fact, Reyes Holdings is one of the largest private companies in the United States (the 12th-largest as of 2016).
So if Reyes Holdings can’t be bought in your favorite brokerage account, like tastyworks,what alternative beverage stocks can you jump on board?
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Alternatives To Investing
in Reyes Holdings Stock
Although you can’t purchase Reyes Holdings stocks, there are a number of publicly traded companies that will allow you to make investments.
First, it’s a good idea to check out the biggest beverages wholesale and distribution companies in the country and review their financial history.
You can do this by speaking to a financial advisor, using screening software on top trading platforms, or doing your own research. This way, you can make better financial decisions about your investments.
Here are some beverage distribution companies to consider:
Southern Wine & Spirits of California
Southern Wine & Spirits of California is the largest distributor of wines and spirits in the US. This company operates in 44 states and has thousands of employees.
Southern Wine & Spirits of California generates billions of dollars in revenue. According to Forbes, this company brings in $17.5 billion annually.
Is Southern Wine & Spirits publicly traded? The bad news is, like Reyes Holdings, Southern Wine is privately held and ranked as the #18 largest privately held company in the United States.
Fedway Associates
Like Southern Wine & Spirits of California, Fedway Associates distributes wines and spirits to customers. This company provides customers in New Jersey with the alcoholic beverages.
Fedway Associates is not a publicly traded company either so you won’t be able to purchase shares in your Robinhood or Stash accounts.
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Publicly Traded Beverage Wholesalers
So if Reyes Holdings, Fedway Associates, and Southern Wine are not options for retail investors, what publicly traded beverage wholesalers are available?
The short answer is you might want to consider well known brands like:
- Constellation Brands
- Diageo
- Budweiser
- Heineken
- Boston Beer
- Brown Forman
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When To Buy Stocks
of Beverage Wholesalers
Generally, beverage sales tend to swell during the holiday season.
Research shows that Christmas and New Year’s Eve are the most lucrative days for wine sales in the US. These two days alone clock up 69 percent more revenue than an average two-week sales period at any other time of the year.
Wine and beer sales also increase in the summer months, especially around the 4th of July. During the months of July and August, many Americans purchase alcohol and other drinks for parties and barbeques.
You might want to invest in beverage companies prior to the anticipated share price run-up during these times. With that said, beverage sales are healthy throughout the year. Research shows that sales can increase in the spring and fall, too (around Easter and Halloween, to be exact).
What is important is that you understand the market and realize that, even though beverage stocks can be lucrative, there is no guarantee that you will make a profit. Many companies in this sector face tough competition, with many independent stores going out of business because of large supermarket chains dominating the industry. This could potentially have a knock-on effect on beverage wholesaler stocks.
How To Buy
Reyes Stock: Takeaway
Although Reyes Holdings seems like a solid company to invest in if beverages stocks interest you, this organization is not publicly traded in the stock market.
However, you can purchase beverage stocks from industry leading brands like Budweiser, Diageo, and Constellation Brands.
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