BofA Global Research anticipates a gradual improvement in beverage sector sales in 2026, driven by growth markets and easier comparative figures. This is according to a recent industry analysis of breweries reviewed by Bloomberg.

The analysis also emphasizes a preference for the beer sector over the spirits sector, with the latter’s outlook still considered uncertain, particularly in the United States, where there is a risk of inventory reductions during the first half of the year.

Beer companies’ earnings have proven resilient, and breweries are expected to meet their EBIT forecasts, albeit at the lower end of the range, the report states. Regarding individual companies, Danish Royal Unibrew has been upgraded to a buy rating and, alongside compatriot Carlsberg, is a sector favorite. The bank projects another year of strong organic EBIT growth for Royal Unibrew.

The buy recommendation for AB Inbev is maintained, supported by strong pricing power, increased margins, and improved cash generation.

The buy recommendation is also reiterated for Diageo despite a persistently weak US market. Diageo remains BofA’s preferred stock in the spirits segment.

Coca-Cola Europacific Partners is downgraded to neutral, but remains the preferred company within the soft drinks sector.

Additionally, BofA is initiating coverage of C&C Group with an underperform rating.