With consumers confined to their own homes over the past year due to the Covid-19 pandemic, alcohol sales reports indicate a substantial increase in consumption with beer sales up 42%, wine sales up 66%, and liquor sales like tequila and gin increasing 75% compared to the same time last year.
With the effects of the pandemic causing various dislocations throughout the majority of the markets, trends in the ‘Sin Stocks’ sector continue upward as Americans are spending more time at home consuming their favorite alcoholic beverages. Even if ‘Sin Stocks’ were not a consideration for your portfolio previously, they are certainly worth a stronger look today.
Rogue One Inc. (OTCMKTS: ROAG) is focused on the acquisition of spirit brands and distillers. The specific topic of intrigue for investment potential comes with the fourth quarter announcement last year that Human Brands International Inc, an exclusively owned subsidiary of Rogue One, pioneered a plan of action to age a minimum of 250,000 liters of Blanco tequila.
Through the aging and curing processes, the tequila is then said to be sold in Reposado form to existing and new bulk customers. Human Brands International production is not limited to this significant quantity as the Company also announced its goals to produce a minimum of 75,000 liters of Anejo tequila during the same time frame.
The intrigue for investors formulates through the staggering 75% increase in consumer demand discussed earlier that coincides stride for stride with an industry-wide known shortage of aged tequila expressions. As the company meets tequila demand sitting at all-time highs with their newly available supply, a worthwhile return on investment appears likely.
According to the global market research firm Nielson, tequila has demonstrated to be one of the fastest-growing Spirit categories for the past 5 years. Nielsen’s analysis placed U.S. off-premise tequila sales mid-year last year at a bountiful $1.25 billion. Certainly, there is room for money to be made in an industry with sales this high.
Adding additional strength to their primary focus on the tequila industry, Human Brands International Inc. currently owns and manages 250,000 agave plants, the essence of tequila. Strengthening their stance even further, the Company currently holds supply contracts with well-known tequila brands, along with celebrities and athletes.
So regardless of whether your preference is in the clear Blanco or one of the aged varieties, Rogue One and its subsidiaries are taking their production and positions in the expansive tequila industry to compelling new heights. Even if tequila is not your liquor of choice, choosing to get in on the ground floor of Rogue One will likely be a tequila decision you will remember, but also a tequila involved decision you will likely not regret.