Investing
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5 minutes
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Top 7 Wine Stocks To Consider Investing In [for 2020]

By
Thomas M.
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September 14, 2020

Want to invest in wine stocks?

With global wine consumption steadily rising, investing in wine stocks can give you significant returns in the long run. However, out of all the publicly traded wine companies, how do you decide on which wine stock to invest in?

To help you out, we’ll highlight the top seven wine stocks in 2020 and also cover a better way to make smart wine investments.

This article contains:

•  Should You Invest In Wine Stocks?
•  The Top Seven Wine Stocks To Consider In 2020 (includes company and stock valuation details)

  1. Constellation Brands
  2. Diageo
  3. Brown-Forman
  4. Willamette Valley Vineyards
  5. LVMH Moet Hennessy Louis Vuitton
  6. Andrew Peller
  7. Pernod Ricard

•  The Three Problems With Investing In Wine Stocks
•  The Best Way To Invest In Wine

Let’s get started.

Should You Invest In Wine Stocks?

While wine stocks are no different from other dividend stocks, they also benefit from the growing demand but finite supply of wine.

A. Growing Demand

According to a recent report, the global wine market is predicted to grow with a CAGR (Compound Annual Growth Rate) of 5.8% for the forecast period 2019–2024.

Here are some key points from the report:

  • The growing demand is driven by changing tastes, innovations in exotic flavour and increased global business networks.
  • Wine consumption is increasing in the large markets of the Asia-Pacific, with China dominating the market in the region.
  • There’s also a surging demand for tropical fruit and sparkling wines among millennials and other generations.

Other studies also show that the total wine consumption has been increasing since 2005, with the average US resident consuming three gallons of wine in 2018.

B. Limited Supply

For anything to be lucrative, there has to be a growing demand with a limited supply, right?


There’s only a limited supply of wine because:

  • Favorable land for vineyards is scarce.
  • Weather conditions like frost and drought affect the grape and wine production every year.
  • Only a few grape varieties, wineries and vineyards are preferred by buyers.

For example, Bordeaux in France is a major wine-producing region. However, only a fraction of the region's products are heavily sought-after.

Additionally, as the wine produced from a particular region or winery is consumed each year, the remaining supply is likely to have a higher demand.

This combination of a growing global demand and a finite supply makes wine a smart investment choice.

The Top Seven Wine Stocks To Consider In 2020

Here are seven of the top publicly-traded companies in the wine industry.

Most of these companies:

  • Are also spirit and beer companies.
  • Have had mergers and acquisitions with leading brand names in the industry.
  • Have a high cash flow due to their global business outreach.

1. Constellation Brands, Inc (NYSE: STZ)

Constellation Brands is one of the world’s largest producers and marketers of beverages like beer, wine and spirits. The company was founded in 1945 and produces high-quality white wine and red wine from regions like Napa Valley and Sonoma County in the United States.

The company has sales in more than 125 countries and had a dividend yield of 1.55% last year. Additionally, they also have a $4 billion investment in Canopy Growth Corp (CGC) - a leading cannabis producer.

About The Company

  • Market Cap – 36.95 billion USD
  • Based In – New York, USA
  • Top Products & Brands
  • Kim Crawford
  • Robert Mondavi
  • SVEDKA VODKA
  • Corona
  • Modelo

Performance In 2019

  • Revenue Growth – 1.40% YoY
  • PAT – 8,29,300 USD
  • PE Ratio – 44.73 TTM
  • Earnings Per Share – 4.31 TTM (trailing twelve months)
  • Stock Price Growth – 10.08%

Historical 5-Year Performance

2. Diageo PLC (NYSE: DEO)

Based in London, Diageo is a leading distilling and brewing company. It had an average dividend yield of 2.6% over the past five years. Although Diageo mainly deals in beverages like beer and distilled liquor, it’s also involved in the wine industry with investments in winemakers like Moet.  

About The Company

  • Market Cap – 94.82 billion USD
  • Based In – London, United Kingdom
  • Top Products & Brands
  • Smirnoff
  • Baileys
  • Guinness
  • Johnnie Walker
  • Captain Morgan
  • Crown Royal

Performance In 2019

  • Revenue Growth – 4.20% YoY
  • PAT – 30,49,000 GBP
  • PE Ratio – 25.40 TTM
  • Earnings Per Share – 6.40 TTM
  • Stock Price Growth – 6.33%

Historical 5-Year Performance

3. Brown-Forman Corporation (NYSE: BF-B)

Brown Forman is one of the world’s largest publicly traded wine companies. The company was founded in 1870 and has several beverage brands for scotch, tequila and other liquor varieties.

The company had a profit margin of 25.10% last year and their return on equity was 50.65% for the last quarter of 2019.

About The Company

  • Market Cap – 32.5 billion USD
  • Based In – Kentucky, USA
  • Top Products & Brands
  • Korbel
  • Sonoma-Cutrer
  • Jack Daniel
  • Finlandia
  • Fords Gin

Performance In 2019

  • Revenue Growth – 8.70% YoY
  • PAT – 8,54,000 USD
  • PE Ratio – 39.44 TTM
  • Earnings Per Share – 1.77 TTM
  • Stock Price Growth – 46.56%

Historical 5-Year Performance

4. Willamette Valley Vineyards, Inc. (NASDAQ: WVVI)

Willamette Valley Vineyards is one of the leading wine producers of Pinot Noir in the United States. With over 30 years of experience in the wine business, the winery produces premium red wine and white wine in the Willamette Valley.

About The Company

  • Market Cap – 33.70 million USD
  • Based In – Oregon, USA
  • Top Products & Brands
  • Pambrun Cabernet Sauvignon
  • Estate Pinot Noir
  • Griffin Creek Merlot
  • Pinot Gris
  • Estate Chardonnay

Performance In 2019

  • Revenue Growth – 23.80% YoY
  • PAT – 2,722 USD
  • PE Ratio – 19.80 TTM
  • Earnings Per Share EPS – 0.34 TTM
  • Stock Price Growth – 15.08%

Historical 5-Year Performance


5. LVMH Moet Hennessy Louis Vuitton SE (EPA: MC)

The famous luxury brand name, LVMH, also specializes in alcoholic beverages like wine spirits. The company was founded in 1987 and has 20+ wine houses in famous regions like Bordeaux, Champagne and Burgundy.

About The Company

  • Market Cap – 210.78 billion EUR
  • Based In – Paris, France
  • Top Products & Brands
  • Dom Perignon
  • Cabernet Sauvignon
  • Belvedere Vodka
  • Château Cheval Blanc
  • Hennessy

Performance In 2019

  • Revenue Growth – 14% YoY
  • PAT – 66,18,000 EUR
  • PE Ratio – 28.85 TTM
  • Earnings Per Share – 14.23 TTM
  • Stock Price Growth – 41.02%

Historical 5-Year Performance

6. Andrew Peller Limited (TSE: ADW-B)

Andrew Peller Limited is a Canadian wine company whose signature beverage is Icewine. The company sells high-quality wine brands made from both red and white grapes. One of its divisions, Global Vintners, is also engaged in the sales of winemaking kits.

About The Company

  • Market Cap – 487.58 million CAD
  • Based In – Grimsby, Canada
  • Top Products & Brands
  • Peller Estates Wine
  • Cabernet Sauvignon
  • Merlot
  • Riesling Icewine
  • Pinot Noir

Performance In 2019

  • Revenue Growth – 0.10% YoY
  • PAT – 21,951 CAD
  • PE Ratio – 28.85 TTM
  • Earnings Per Share EPS – 22.13 TTM
  • Stock Price Growth – -24.65%

Historical 5-Year Performance

7. Pernod Ricard (EPA: RI)

Image Source: Pernod Ricard Website

Pernod Ricard is a French alcoholic beverage company that’s known for two products — Pernod Anise and Ricard Pastis. Additionally, the company sells premium wine brands made from high-quality grapes. Its current dividend yield is 1.99%.

About The Company

  • Market Cap – 42.08 billion EUR
  • Based In – Paris, France
  • Top Products & Brands
  • Jacob’s Creek
  • Campo Viejo
  • Chivas Regal
  • Blenders Pride
  • Brancott Estate Wines

Performance In 2019

  • Revenue Growth – 5.60% YoY
  • PAT – 14,55,000 EUR
  • PE Ratio – 29.01 TTM
  • Earnings Per Share EPS – 5.48 TTM
  • Stock Price Growth – 6.92%

Historical 5-Year Performance


While you could invest in these beverage stocks, here are some other alcohol stocks you could consider:

  • Truett-Hurst, Inc. (OTC: THST)
    Truett-Hurst is a wine company based in California. Some of their popular wine brands are made from Pinot Noir, Zinfandel and Chardonnay grapes.


  • Compania Cervecerias Unidas (NYSE: CCU)
    Based in Chile, Compania Cervecerias Unidas is an industry leader in producing alcoholic and non-alcoholic beverages like soft drinks and bottled water.


Its product portfolio also includes brands like Anheuser-Busch InBev (which owns the Brazilian brewing company Ambev SA and the Stella Artois beer brand), Coors Original and Coors Light. CCU’s net income in 2019 was 29,35,08,792 CLP.

  • Corby Spirit and Wine (TSE: CSW.B)

Corby Spirit and Wine is one of the leading publicly traded wine companies in Canada. Its CSW.B stock had a dividend yield of 5.74% last year.

  • Crimson Wine Group (OTC: CWGL)

Crimson Wine Group is a wine company that produces white wine and red wine from wineries in Napa Valley, Sonoma County and other regions in the United States.

  • Diamond Estates Wine & Spirits (TSXV: DWS)

Diamond Estates Wines & Spirits is a winemaking and liquor company based in Canada. It produces well-known brand names like Dan Aykroyd and 20 Bees and also manages sales and marketing for other wine spirits in the country.

The Three Problems With Investing In Wine Stocks

While wine stocks can be good investments, there are three key issues with investing in them:

1. Increased Volatility

Financial markets are always volatile due to several factors like:

  • Trade imbalances
  • Changes in monetary policies
  • Economic crises
  • Financial health of a company
  • And more.

When the stock market is volatile, wine stock prices could rise and fall multiple times within a single day! As these market fluctuations are beyond your control, it can be hard to predict the right time to buy and sell wine stocks.

2. Brokerage Costs

Investing in stocks can be very risky if you don’t know when and how to invest. The easiest way to deal with this is to hire stockbrokers to help manage your investments.

However, each time you buy or sell a stock, you’ll have to pay high brokerage commissions to the broker. Some brokerage firms also charge currency conversion and account maintenance costs.

Paying these high brokerage costs regularly can reduce your overall wine stock returns in the long run.

3. Time-Consuming Investment

With wine stocks, you need to perform in-depth research on various public companies to identify the right ones to invest in.

But even after buying a wine stock, you must regularly monitor its share price on the stock market to know when to sell it. This makes it a fairly time-consuming and complex investment even if you can afford the services of a stockbroker.

Another Way To Invest In Wine: Buy Investment Wines Yourself

Investment wines (investment-grade wines) are a popular alternative investment option, like private equity, for people who don’t want to invest in traditional investments like:

  • Dividend stocks
  • ETFs
  • Mutual funds
  • Real estate

Here, you buy an actual bottle of wine and sell it later (usually after a minimum of five years) at a higher price via:

  • Auctions
  • Online wine exchanges
  • Wineries and vineyards
  • Vintners
  • Wine brokers

As investment wines are tangible luxury assets, buying them minimizes problems associated with investing in wine stocks, such as long-term volatility. However, buying wines still has two key issues.

Two Problems With Buying Investment Wines Yourself

Here are the two main problems faced by investors who buy investment-grade wines:

1. Storage

Buying investment wines won’t give you any returns if you don’t have proper storage facilities like a cellar.

Think about it.

As wines age over time, its quality can change while you’re waiting to sell it. And without proper storage conditions, the wine will degrade over time and you won’t be able to earn any significant returns.

While you can store wines in a private or professional cellar to avoid this, managing and insuring such facilities can be very costly.

2. Counterfeiting

Counterfeits exist for any luxury company’s products and wines are no exception.

Two common types of wine counterfeiting are:

  • Adulterating wines by adding cheap products like juices, harmful chemicals or sweeteners to maintain its color or flavour.
  • Relabelling a cheaper bottle of wine with costlier brands.

The only way to avoid this is to verify wines to prove their authenticity and provenance, but doing this manually can be challenging for any wine investor.

However, there’s one way to avoid these two issues associated with buying investment wines:

The Smartest Way To Invest In The Right Wines: Use Vinovest

Vinovest is an online platform that helps investors tap into fine wine as an asset class. We leverage a global network of top wineries and trusted fine wine vintners to give you a portfolio of the best investment-grade wines.

How Vinovest Helps You Invest In Fine Wine

Here’s how it works in three simple steps:

Step 1: Sign Up And Get A Customized Portfolio

When you open a Vinovest account, we guide you on what your wine portfolio should have according to your risk appetite.


Step 2: Vinovest Authenticates And Stores Your Wine For You

Once your wine portfolio is created, we buy and certify the authenticity of the wine for you. It’s then stored at high-quality facilities to provide optimal storage conditions. Additionally, we’ll also insure your wine at full replacement value.

Step 3: Track And Manage Your Wine Easily

You can easily track and manage your wine investments through Vinovest in real-time. The tool auto-adjusts your portfolio to ensure that it stays balanced during stock market fluctuations.



What’s more?

You can come and visit our storage facilities or request photos of your wines anytime you want!

The Four Key Benefits of Investing In Wine With Vinovest

1. Trusted Buying & Selling

Vinovest sources your wines from quality wineries, global wine exchanges and trusted vintners at fair market value. This gives us better transparency into the wine market.

If you want to sell a portion or all of your portfolio, we’ll help you find a buyer and deliver your wine bottle to them. You don’t have to worry about doing any of this on your own!

2. Easy Storage

Vinovest stores your wines in industry-leading wine storage facilities in the UK, Switzerland, France and other locations. As all these facilities are bonded, you get tax advantages with no VAT (Value Added Tax) or excise duty when trading your wines.

Additionally, we can also extend a full insurance policy to protect your wines — something that’s not easily available if you store wines in your own cellar.

3. Investors Have Full Ownership Over Your Wines

Having full ownership of your assets isn’t always the case with managed funds like stocks and bonds. However, since wine is a tangible asset, you have full ownership over each wine bottle you buy!

4. Low Fees

Vinovest only charges a 2.85% annual fee for all our services. Additionally, if your portfolio is larger than $50,000, that fee goes down to 2.5%!

The fee covers the following services:

  • Wine buying and selling
  • Fraud detection
  • Storage and insurance
  • Active management of your portfolio

Conclusion

Investing in wine doesn’t have to be hard.

While you could check the wine stocks we covered here, investing in wine stocks can be risky, costly and time-consuming.

Instead, why not invest in fine wine bottles with a portfolio manager like Vinovest?

We’ll help you choose the right wines and also handle the buying, storing and selling of each wine bottle. So why not sign-up and start investing today?

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