Sin Stocks Setting Pace in Staples Sector (SHNJF, SBEV, EAST, XXII, KAVL)  

The Consumer Staples sector is known for being consistent in all market conditions.  This means during bull markets the sector isn’t very exciting, however, during bearish periods stocks in the sector provide some of the best opportunities for short term bulls trying to find a glimmer of green in a sea of red.

  • The earnings for companies in the Consumer Staples industry have grown 18% per year over the last three years.
  • Revenues for these companies have grown 7.3% per year.
  • More sales and increasing profits are generally a recipe for market success.

Consumer Staples stocks consist of food, beverage, tobacco, household products and are generally immune to volatile consumer sentiment-related price swings because they are on the grocery list in the best and worst of times.  However, in the worst of times, it can be hypothesized that sin stocks in the sector (alcohol and tobacco) could outperform others.  The recent data backs up this position. 

In fact, according to Simply Wall Street, while Consumer Staples are down over the past 3 months (still outpacing the US Markets), two sub-industries are in the green and outperforming:

  1. Distillers and Winemakers (+3.2%)
  2. Tobacco (+1.16%)

The data shows “investors are most optimistic about the Distillers and Wine Makers industry which is trading above its 3-year average PE ratio of 29.2x.”

The research site also notes, “Analysts are most optimistic on the Tobacco industry, expecting annual earnings growth of 11% over the next 5 years.”

With these numbers in mind, investors should start researching plays in the subindustries.   Speculative investors could benefit from the following microcap plays.


Rogue Baron PLC (OTCMKTS: SHNJF) is still a relative unknown, but as that changes things could escalate quickly.  SHNJF gives individuals an opportunity to invest in a multi-award-winning Japanese Whiskey through a company with a $7.4 million dollar market cap that is building a brand to position it as a buyout target.

SHNJF’s lead brand, Shinju Japanese Whiskey, has won several ‘best-in-class’ awards including receiving a perfect score of 100 at the 2021 Sante’ International Spirits Competiton.  The company’s differentiators include:
Shinju differentiates by price point and taste. 

  • Low Price Point, Superior Taste
  • Smooth, but sweeter, making it well suited for cocktails. 
  • The price is under most Japanese Whiskies, and in a range that gives bars, restaurants, and consumers the ability to buy as a ‘mixer’. 

SHNJF just completed production on the first Shinju bottles made for Europe.  Shinju Whiskey will be in the U.K. market within the next 45 days, with another five EU countries committed, pending the arrival of more stock. 

Now is the time to start researching SHNJF:

Splash Beverage Group (NYSE: SBEV) owns a portfolio of alcoholic and non-alcoholic beverage brands including Copa di Vino wine by the glass, SALT flavored tequilas, Pulpoloco sangria, and TapouT performance hydration and recovery drink. 

SBEV just broadened its reach announcing a distribution deal with Buck Distributing in Maryland to distribute all Splash Beverage Group products through 5 Central Maryland Counties. Buck Distribution generates volume of 3 million cases per year through more than 200 brands with a fleet of 23 trucks and 110 sales representatives.

Eastside Distilling, Inc. (NASDAQ: EAST) is a craft spirits producer based in Portland, Oregon.  Its wholly owned Craft Canning + Printing services the craft beverage industry throughout the Pacific Northwest. The company’s product line includes Azuñia Tequilas®, Burnside Whiskeys®, Hue-Hue Coffee Rum®, and Portland Potato Vodkas®. 

Eastside (NASDAQ: EAST) continued to grow this month announcing an asset purchase agreement and a services agreement with Aprch Beverage Co, maker of wellness beverages.  Craft Canning has acquired the production facility previously operated by Aprch Beverage Co. in Portland, Oregon and has been contracted to be the exclusive provider of can printing and co-packing services to Aprch for products distributed by Aprch in Washington State or Oregon, including all of Aprch’s CBD water flavors.  


22nd Century Group, Inc. (Nasdaq: XXII) produces reduced nicotine tobacco, among other vertices. The Company has developed proprietary reduced nicotine content (RNC) tobacco plants and cigarettes, which have become the cornerstone of the FDA’s Comprehensive Plan to address the widespread death and disease caused by smoking. The Company received the first and only FDA MRTP authorization of a combustible cigarette in December 2021, now in a pilot marketing program in the United States. 

The company will be holding meetings at the 8th annual Roth London Conference next week (June 22, 2022).

Kaival Brands Innovations Group, Inc. (Nasdaq: KAVL) through its relationship with Bidi Vapor distributes, the BIDI® Stick, is a vaping product.  KAVL announced it reached an agreement with Philip Morris Products S.A. , a wholly owned affiliate of Philip Morris International Inc. (NYSE: PM), for the development and distribution of electronic nicotine delivery system products in markets outside of the U.S., subject to market (or regulatory) assessment.

Investors looking to benefit from the surge in sin stocks should start researching SHNJF today:

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