After a boozy festive period, it’s time for non-alcoholic stocks to raise a toast, as millions of Brits take on Dry January.
Diageo shares have shrunk 0.23 per cent this week to 1,597.8p, while Amsterdam listed Heineken shares fell 1.7 per cent to €68.32 (£59.20).
Beyond January, Brits are becoming more sober conscious.
Nearly 50 per cent of young adults actively choosing low and non-alcoholic options in 2025, according to Drinkaware and non-alcoholic stocks are reaping the benefits.
Stock performance
According to analysis from trading platform Etoro, over the past five years a basket of soft drinks stocks, including Coca-Cola, Pepsi Co, Celsius and A.G. Barr rose 69 per cent.
Meanwhile, a basket of boozy stocks, including Diageo, Heineken, Carlsberg and Pernod Ricard tumbled 26 per cent.
In the past year alone, non-alcoholic stocks gained 24 per cent while alcohol stocks fell six per cent.
Maximilian Wienke, market analyst at Etoro, said: “Markets have been reflecting this shift for years.
“Traditional alcohol producers have struggled to deliver growth, while demand has increasingly moved towards non-alcoholic, functional and better-for-you drinks.”
Individual performance
According to Etoro, within the alcohol basket, long-term individual performances have been “consistently weak”, with both Diageo and Pernod Ricard down more than 40 per cent over five years, with no alcohol producer posting a positive return in three years.
Prior to the hire of chief executive Sir Dave Lewis, dubbed ‘Drastic Dave’, Diageo struggled to boost profits due to weak demand in China and damaged sale expectations in the US.
Beer brewers have shown more resilience, particularly in the past year, with Carlsberg up 21 per cent to 827.6 Danish Krone (£95.99), but it was not enough to offset broader decline as it faced weaker consumer spending.
Diageo’s premium spirits brand which includes Don Julio tequila and Johnnie Walker whisky, in particular fell out of favour in the US, leading the company to drop its profit guidance in November.
In contrast, Coca Cola has risen 35 per cent over the past five years trading at $67.84, Irn Bru owner A G Barr has risen 20 per cent to 616 pence.
Wienke said: “What we are seeing is not consumers abandoning alcohol, but investors reallocating towards categories with clearer volume growth, pricing power and relevance to younger, more health conscious consumers.”