Aylett & Co. returns to Magic Markets for a deep dive into one of the more debated sectors in global markets: alcohol.

Justin Ritchie and Ryann Dean unpack the big question facing investors: is the recent weakness in alcohol stocks structural, or simply cyclical? From the COVID-era demand surge and subsequent hangover to shifting consumption patterns, affordability pressures and inventory cycles, this episode cuts through the noise with a data-driven lens (and a healthy dose of scepticism about popular narratives aroung GLP-1 impacts and Gen Z drinking habits).

Premiumisation, no-alcohol products and the contrasting dynamics between beer and spirits - it's all in here, including a look at developed vs. emerging markets.

Key Topics Covered

• Structural vs cyclical debate in alcohol stocks
• COVID demand pull-forward and the post-pandemic unwind
• GLP-1 drugs and their real (and overstated) impact on consumption
• Generational drinking trends and long-term volume declines
• Affordability pressures and changing consumer behaviour
• Premiumisation: drinking less, but better
• Inventory cycles in spirits vs beer
• Regional dynamics: emerging markets vs developed markets
• Growth in no-alcohol beer and ready-to-drink cocktails
• Strategies companies are using to reignite demand
• Beer vs spirits: defensiveness and cyclicality
• Valuation compression and investment opportunities
• Comparison with tobacco and other “vice” sectors

Find out more about Aylett & Co. here:

• Aylett.co.za
• Justin Ritchie on LinkedIn
• Ryann Dean on LinkedIn

Get in touch:

• The Magic Markets Website
• @MagicMarketsPod, @FinanceGhost, and @MohammedNalla (all on X)
• Pop us a note on LinkedIn

Disclaimer: This podcast is for informational purposes only and does not constitute financial or investment advice. Please speak to your personal financial advisor. Aylett & Co. (Pty) Ltd is an authorised Financial Services Provider, licence number 20513.