3 Stocks To Consider As Wine Prices Continue To Rise

With the markets seesawing each week, it is difficult to predict when the bearish trend will recede. While benchmark indexes reported their best performance in July, they have been pulling back lately. The S&P 500 index is on track to break its four-week winning streak today, while the Dow is currently in the red.

Wine stocks could be ideal for portfolio diversification and hedging market risks. As wine is typically considered a consumer staple product, the demand for the same remains strong despite the economic environment. Wine and alcohol demand usually peaks during periods of market downturn such as slowdown or recession. With the U.S. staring at a potential recession in the near term, wine stocks could gain momentum soon.

Related: This Platform Is Pouring Up Returns: Vint Pays Out 21.7% IRR Distribution To Investors In Its Champagne Collection

Top Wine Stocks to Invest In

Brown-Forman Corp. (NYSE: BF-B)

The Kentucky-based company is one of the oldest in business, known for its scotch whiskey and wine brands. The strong consumer demand has been boosting the company’s revenues lately, with BF.B’s organic revenues up 27% year-over-year to $996 million in the fiscal fourth quarter ended April 30, 2022. As global supply chain disruptions ease, BF.B’s financials are expected to grow by double digits in the upcoming quarters.

LVMH Moët Hennessy Louis Vuitton ADR LVMUY

The French are undoubtedly some of the best producers of wine. LVMUY, a French luxury goods company, is known for its famous wine and champagne collection, including Château Cheval Blanc, Dom Pérignon and Moët & Chandon. With more than 5.97 billion euros in annual sales as of 2021, the fine wine stock could be a sound investment.

Duckhorn Portfolio Inc. NAPA

NAPA is a relatively newer publicly traded company, having completed its IPO in March 2021. It is currently the only publicly traded pure-play luxury wine company. Its most famous wine brands include pinot noir and merlot.

The company’s management is currently predicting robust growth in financials, as it raised its net sales, adjusted EBITDA and adjusted EPS guidance for fiscal 2022. 

Related News Highlights

  • Wine investment platform Vint is set to launch its largest offering to date this week -- Bordeaux En Primeur 2021 Collection at $50 per share. Merlot yields in the Bordeaux region were impacted by cold temperatures and early frost in 2021, leading to lower volumes and higher demand for the vintage.

Photo by Ievgenii Meyer on Shutterstock

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