Believe It Or Not, Morgan Stanley Says Buying Beer Is A Smart Investment

Yes, you read that right. For once in your life, putting your money into beer might be a smart thing to do according to a new report by Morgan Stanley.
Improving consumer environment
Morgan Stanley analysts believe that the overall American consumer environment is improving. Unemployment rates are at multi-year lows, consumer confidence is at multi-year highs, gas prices are low, and a slew of local laws have been passed recently to raise minimum wage in key markets across the US.

A spirited recovery?
Analysts looked at the potential for a recovery in the alcoholic beverage sector in 2015. The report indicates that early indications of such a recovery are already coming in. Morgan Stanley sources within the bar/restaurant industry have indicated that alcohol sales have picked up recently. This anecdotal evidence was seemingly confirmed by the Dec. 3 Brown-Forman Group BFB conference call.
Other beneficiaries of a macro recovery
The report was very bullish on the non-alcoholic beverage sector as well. The Coca-Cola Co KO has been a market leader in pricing increases, and Red Bull is looking to do the same in the energy drink group in 2015. Morgan Stanley sees improved top-line growth in beverage companies from these pricing hikes.
Top picks
Analysts selected Constellation Brands Inc STZ as the top alcohol play, citing its high exposure to premium beer in the U.S. When it comes to non-alcoholic beverages, Monster Beverage Corp MNST is Morgan Stanley’s top pick because of its high exposure to the U.S. market, particularly gas stations and convenience stores.