While global stock markets are continuing a broad rally, shares of major liquor corporations have moved the other way. Most fell more than the benchmark indexes representing their respective securities markets. Companies with portfolios centered on high-priced spirits such as whisky and cognac were hit especially hard.
In the past, liquor stocks were treated as defensive on the logic that "people drink even when the economy is bad," but that is becoming a thing of the past.
On the 28th, ChosunBiz examined liquor-related stocks listed on major markets in the United States, France, the United Kingdom, Italy, Japan, China, and Korea and found that last year the share prices of global large liquor corporations fell as much as 34% from the start to the end of the year. Some corporations saw gains, but they fell short of the increases in the benchmark indexes representing their respective securities markets.
Diageo, one of the world's largest liquor corporations in the United Kingdom, saw its share price drop more than 34% over the past year. That is the opposite of the U.K.'s FTSE 100 showing a solid rise in the low 20% range over the same period. It owns major liquor brands such as the blended Scotch whisky brand Johnnie Walker and the world's No. 1 stout Guinness, but slowing consumption in the U.S. and China has weighed on its outlook and dampened investor sentiment.
Bloomberg said that "as of October last year, share prices of more than 50 beer, wine, and spirits companies fell, wiping out a total of $830 billion (1,196.45 trillion won) in market capitalization over the past four years," adding that "they remain 46% below the June 2021 peak." Reuters, citing Gallup's latest consumer habits survey, reported that "as of August 2025, about 54% of Americans said they drink alcohol, compared with 62% in 2023 and 58% in 2024," and that "it is lower than the lowest level of 55% recorded in 1958 since Gallup began its 90-year survey."
French liquor brands are in a similar situation. While the CAC 40 in the French market rose about 10%, shares of Pernod Ricard, known for Ballantine's and Royal Salute, fell 30.3%. Remy Cointreau, a group representing the cognac market, also accepted a poor report card with shares down 34.2% over the year.
Liquor stocks were also shunned in the U.S. market. The Dow Jones Industrial Average rose more than 15% over the year. But shares of U.S. comprehensive liquor corporation Constellation Brands fell about 22%. Constellation Brands is a giant corporation that owns the beer brand Modelo and the wine brand Robert Mondavi. Brown‑Forman, which sells the Tennessee whiskey Jack Daniel's, and Molson Coors, the second-largest beer brand in North America, also saw their annual share prices fall 22.1% and 9.6%, respectively.
In Korea, while the KOSPI rose 71.3% over the year, Hitejinro shares fell 5.8%.
Some beer corporations, however, showed a differentiated trend. Japan's Kirin Holdings saw its shares rise 18.9% for the year, and Belgium's Anheuser‑Busch InBev (AB InBev) rose 19.2%. But the gains were smaller compared with the Nikkei average up 28.4% and Belgium's BEL 20 up 20.8%.
A common thread among liquor companies with steep share-price declines is a portfolio concentrated in "high-priced spirits." Diageo, Pernod Ricard, and Remy Cointreau, which fell sharply, all focus on high‑ticket spirits such as whisky and cognac. As high inflation and high interest rates persist and consumers close their wallets, they cut back first on high‑priced liquor, which is not a necessity, dealing a direct blow. By contrast, corporations with a higher share of beer, which carries relatively less price burden, suffered less damage.
An industry official said, "These corporations rely on the United States and China for a significant portion of their sales, but the recent slowdown in China's economic growth and the U.S. inventory glut have combined to intensify pressure on earnings," adding, "In particular, the contraction in consumption in the Chinese market, which favored drinking liquor straight, had a fatal impact on high‑priced brands."
The trend of dining out less and drinking lightly at home or avoiding alcohol altogether has also had a major impact. As a health-conscious culture spread among younger people, the tendency to shun high‑proof alcohol and seek low‑alcohol or nonalcoholic beverages became clear. Traditional spirits powerhouses failed to keep pace with this shift, and doubts about their future growth engines were reflected in their share prices.
An industry official said, "The traditional model centered on premium spirits has hit a growth ceiling. Long‑standing leaders that failed to respond sensitively to change were also sidelined in the stock market," adding, "Whether they diversify product portfolios and target emerging markets is becoming a key variable in corporate value."