US tariffs hit alcohol stocks: is the sector still investable?

With the threat of US tariffs on European goods, alcohol producers face mounting pressure, compounding existing challenges from declining consumption trends and rising costs. Spirits brands such as Diageo and Pernod Ricard are particularly vulnerable, as production cannot be easily relocated to mitigate tariff impacts. While some fund managers argue that valuations already reflect these risks, others are shifting their focus to alternative plays such as beer stocks, which may have greater flexibility in adjusting supply chains. As the industry navigates regulatory uncertainty and changing consumer...