Drinks Giants: Diageo, Pernod, AB InBev, Heineken — 2026-10-12
Pernod Ricard shares are stabilizing near €61 as analysts like Citi upgrade spirits stocks, citing easing inventory pressures and a potential recovery in consumption trends. Meanwhile, Deutsche Bank analysts anticipate a mixed performance for Heineken in its upcoming Q3 update, driven by strong volume growth in Asia offset by continued weakness in Europe.
Drinks Giants: Diageo, Pernod, AB InBev, Heineken — 2026-10-12
Top developments
Pernod Ricard sees analyst upgrades and stock stabilization
Pernod Ricard shares traded at €61.46 in weekend trading on October 10, following a period of volatility where the stock hovered between €59 and €60 earlier in the week. On October 7, Boursier reported that Citi maintained an "buy" rating on both Rémy Cointreau and Pernod Ricard, anticipating a "gradual recovery trajectory" supported by improving final consumption trends and mitigating stock pressures in key markets. This sentiment shift comes ahead of the company's scheduled sales update on October 15, with analysts setting an average target price of €81.76.
Deutsche Bank expects mixed Q3 for Heineken
In a note published on Tuesday, October 6, Deutsche Bank analyst Mitch Collett predicted that Heineken likely had a "mixed quarter," with significant divergence in regional performance. The report highlighted that volumes in Vietnam rose by 10% and India by 5%, suggesting that Asian markets are compensating for softer demand elsewhere. This outlook contrasts with earlier H1 results where total volume grew 1.6%, driven by global brands like Heineken® and Tiger.
Constellation Brands beats expectations on beer strength
Constellation Brands reported higher revenue and profit for the second quarter of its broken fiscal year, announced late Tuesday evening. The company attributed the positive results to strong beer sales in bars and restaurants (on-premise), which successfully offset weaker performance in supermarkets and off-premise retail channels. This data point is critical for the sector as it provides a real-time gauge of consumer behavior in the US, a key market for all major drinks giants.
Local view
French financial media is focusing heavily on the valuation of spirits companies. Boursier notes that while the sector faces headwinds from tariffs and changing habits, the "stock pressure" is alleviating, leading to renewed interest in names like Rémy Cointreau and Pernod Ricard. In the Netherlands, De Aandeelhouder emphasizes the regional disparity in Heineken’s recent quarters, noting that the Dutch brewer relies heavily on emerging markets like Vietnam to maintain top-line growth.
Context & numbers
- Pernod Ricard Share Price: €61.46 (Oct 10 close); €59.22 (Oct 6 close)
- Pernod Ricard Analyst Target: €81.76 average target price
- Heineken Regional Volumes (DB Forecast): Vietnam +10%, India +5%
- Global Alcohol Volumes: Total beverage alcohol volumes fell by 2% in 2025, marking the third consecutive annual decline
On the radar
- October 15: Pernod Ricard is scheduled to release its Q1 sales update, which will be closely watched for signs of recovery in China and Europe
- Heineken Q3 Update: Investors are awaiting the official confirmation of Deutsche Bank's forecast regarding the divergence between Asian growth and European weakness
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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