According to the experts at Wine Spectator, there are about 31.4 billion bottles of wine bought and sold each year. By all accounts, that is a lot of wine. As an investor, you may be thinking that you want a piece of that market. There are a couple of publicly traded wine stocks that you might want to consider below.
Before you invest in any wine stock, you should keep in mind that they hold risk just like any other stock such as GE or Google. They are subject to the ever changing alcohol trends and general market swings among other things. You should complete your due diligence before investing in any stocks mentioned below.
Constellation Brands (STZ) is the big dog of wine stocks, which holds a current market capitalization of about $41.547 billion. The company owns many brands found commonly at local grocery stores such as Kim Crawford, Mark West, Blackstone, Clos du Bois, Robert Mondavi, Cook’s Champagne. and Ravens Wood. The company also distributes and markets other alcohol beverages such as Corona, Modelo, and Svedka Vodka. They have quite an impressive selection of brands with over 100 in their portfolio
Vina Concha Y Toro
Vina Concha Y Toro (VCO) is a wine company based out of Chile that was founded in 1883. The company has vineyards in Chile, Argentina, and the United States. Some of the company’s most notable wines are Don Melchor, Casillero del Diablo, and Fetzer located in California which was acquired in 2011. This is a much smaller company in comparison to Constellation Brands with a market cap of approximately $1.564 billion
Truett-Hurst (THST) is a tiny wine company with a market cap of only about $13.86 million. As with most micro cap stocks, there may be potential for substantial growth with also potential substantial risk for this wine stock. The company is based out of Sonoma County, California. According to the company, they offer top-quality products at a reasonable prices. Some of their wines you may have come across are Eden Ridge, Dearly Beloved, Colby Red Wine, and Cakebox.
Brown-Forman (BFA) may be more known for its liquor such as Jack Daniel’s. However, it does have a couple of wines brands in its portfolio. The first is Sonoma-Cutrer which makes both Chardonnays and Pinot Noirs. The second is Korbel which is well-known as a California champagne. Keep in mind that this company consists largely of liquor brands; therefore, this will not be a dominant investment in wine if you choose to invest.