---
title: "Alcohol Stocks Slip as U.S. Beer Production Drops 5.4% after Young Adults Drink Less"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/297312246.md"
description: "U.S. alcohol stocks declined as beer production dropped 5.4% in Q2 2026, driven by reduced consumption among young adults. Gen Z drinking rates fell to 32%, influenced by non-alcoholic alternatives and GLP-1 medications. Analysts show mixed sentiment: Molson Coors holds a 'Hold' rating, Constellation Brands has a 'Moderate Buy', while Brown-Forman carries a 'Moderate Sell'."
datetime: "2026-08-28T10:49:56.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/297312246.md)
  - [en](https://longbridge.com/en/news/297312246.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/297312246.md)
generator: "portal-rs"
---

# Alcohol Stocks Slip as U.S. Beer Production Drops 5.4% after Young Adults Drink Less

Shares of major alcohol companies continue to drop as lower drinking rates hit total production volumes across the industry. U.S. beer output fell 5.6% in 2025 and dropped an additional 5.4% in the second quarter of 2026. At the same time, traditional spirit sales dropped 4.9% during the second quarter when excluding canned cocktails. Major brewers face ongoing pressure as young adults swap standard alcoholic drinks for nonalcoholic options or change habits while using GLP-1 weight-loss medications.

## **Younger Buyers Lead a Clear Shift Toward Lower Drinking Rates**

Research shows that just 32% of Gen Z adults drink weekly, compared to 45% of older age groups. Consequently, as this younger generation ages and replaces older drinkers, overall sales volumes for major beverage companies continue to shrink.

Social pressure plays a major role in this shift. Instead of forcing people to drink to fit in, having more nonalcoholic options at parties makes staying sober feel normal. Ultimately, this change in group habits leads the whole crowd to drink less.

## **Cheaper Alcohol Stock Prices Fail to Draw Wall Street Buyers**

Turning to TipRanks' Stock Comparison tool, Wall Street analysts show mixed feelings toward major beverage stocks despite lower market prices. Global brewer Molson Coors (TAP), known for Coors Light and Blue Moon, trades near $41.66 with a 4.56% dividend yield and a negative P/E ratio (-3.61), receiving a Hold rating with a $44.88 target price (7.72% upside potential). 

Meanwhile, Corona and Modelo importer Constellation Brands (STZ) trades near $131.43 at 12.53 times earnings with a 3.12% yield, earning a Moderate Buy consensus with a $170.18 target price (29.48% upside potential). 

On the other hand, Jack Daniel's maker Brown-Forman ($BF.B) trades near $27.28 at 17.95 times earnings with a 3.37% yield, carrying a Moderate Sell rating with a $26.38 target price that points to a 3.32% downside risk.

### Related Stocks

- [STZ.US](https://longbridge.com/en/quote/STZ.US.md)
- [BF.B.US](https://longbridge.com/en/quote/BF.B.US.md)
- [TAP.US](https://longbridge.com/en/quote/TAP.US.md)
- [BF.A.US](https://longbridge.com/en/quote/BF.A.US.md)
- [TAP.A.US](https://longbridge.com/en/quote/TAP.A.US.md)

## Related News & Research

- [BUZZ-Street View: Jack Daniel's maker leans on innovation as spirits demand remains soft](https://longbridge.com/en/news/297936030.md)
- [STZ: Brand-specific strategies and operational discipline fuel growth and margin resilience](https://longbridge.com/en/news/298349452.md)
- [Old Speckled Hen goes alcohol-free in attempt to woo Gen Z](https://longbridge.com/en/news/298218986.md)
- [IRONMAN partners with Athletic Brewing on Personal Record non-alcoholic beer](https://longbridge.com/en/news/298199750.md)
- [‘Breathtaking arrogance’: Khan slams Westminster ‘vertical drinking’ curbs](https://longbridge.com/en/news/298329746.md)

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**