The tumult during the first quarter of 2020 amid the global COVID-19 virus outbreak was reflected in all beverage stocks tracked by BD (see table). In many cases, the declines reversed gains posted for the full year 2019. Beverage retailers also posted declines or slower growth during the first quarter of this year. Still, those stocks generally performed better than the broader market.

Beverages.  Despite declines, Monster, PepsiCo, National Beverage (LaCroix) and Keurig Dr Pepper all performed better than the S&P 500, which declined -20% (see table). Coca-Cola’s decline was on par with the broader market, as investors were concerned that Coke’s exposure to the restaurant sector and global footprint left the company more vulnerable to the economic and business upheaval caused by the COVID-19 crisis. The first-quarter declines for Coca-Cola, PepsiCo, and Keurig Dr Pepper represented a swing of roughly 30 percentage points or more compared to full-year 2019 gains for those stocks.

Retailers.  Most beverage retailers tracked by BD performed better than the S&P 500, as consumers stocked up on goods including food and beverages while hunkering down and working at home. While Amazon and Kroger posted stock price gains and beat the broader market, those stocks grew less than they did for full-year 2019. Target and Walgreens Boots Alliance posted declines that were deeper than that of the S&P 500. Wholesale food distributor UNFI also posted a +4.8% gain, reversing last year’s double-digit percentage decline.