Whether from economic worries during a recession or from the desire for a low-cost form of entertainment and indulgence, the sale of alcoholic beverages frequently rises during an economic downturn. Numerous studies have confirmed that expenditures for alcohol are among the personal purchases that are not reduced as a result of the need for families to tighten their belts when hardship hits or is on the horizon.

That is not to say that alcohol-related investments perform well only during tough times. Regardless of economic conditions, people find the consumption of alcoholic beverages, especially beer and wine, to be a source of comfort or an important part of celebrating with friends, or marking a significant event. Companies engaged in the business of producing and/or distributing alcoholic beverages are generally steady earners and performers.

Bond investors should therefore look seriously at this sector, as it is likely to produce more consistent positive returns in the short and the long run than most other options. Among my favorites in this area is Constellation Brands (STZ).

STZ is the largest wine-producing company in the world. The company produces and markets over 250 brands. Constellation has sales presence in 150 countries and produces wines through the full price range from low-cost to premium brands. Among its brands in the wine market are names such as Robert Mondavi, Simi, Wild Horse, Clos du Bois and Ravenswood. Constellation also is the distributor of a wide range of imported beers, including Corona, Modelo, Pacifico and Negra Modelo from Mexico, St. Pauli Girl from Germany and Tsingtao from China.

In addition to being a foremost producer and distributor of these products, the company has benefitted from strong, effective leadership from its CEO, Robert Sands.