Euro Bev Alc 3Q26 review: plenty of valuation support and solid EPS growth (esp for the brewers) but no re-rating, yet

This report reviews the European beverage alcohol sector's performance in 3Q 2026. The sector was up +5% in 9M 2026, slightly behind the market (+7%) but well ahead of European staples (-3%). Share performance diverged: Rémy Cointreau rose 20%, AB InBev 19% and Campari 11%, while Pernod Ricard fell 17%. Despite solid EPS growth, especially for the brewers as well as Campari and Diageo, sector valuations remain at twenty-year lows, with most stocks trading around 9x-11x NTM+1 earnings, below the European market (14x) and far below their historical premium. We continue to prefer beer over spirits given the ongoing weakness of the US spirits market;