Saturday, March 07, 2015

Rich Full Bodied Stocks with Overtones of Hearty Pepper, an Abundance of Fruit Sensations, Complimented by Gripping Acidity

Are you looking for vineyard and wine stocks that haven't become vinegar? Unfortunately, there aren't too many to pick from, and for many of the large wine producers, wine is a small part of the overall business. 

According to the Wine Institute, Americans consumed 779 million gallons of table wine in 2013, the latest reported year. This is up from 749 million gallons the previous year. There are several reasons for this, including an increased preference for wine by an aging population, an explosion in the number of wine bars, and of course all the health benefits attributed to wine. 

Based on the list of wine and liquor stocks at, there are over a dozen wine companies to choose from. The majority of them trade over-the-counter but a few trade on the New York Stock Exchange.

Constellation Brands (STZ) is the largest wine producer in the world. It produces and sells table wines, sparkling wines, and even dessert wines. Brands include Robert Mondavi, Clos du Bois, and Ravenswood. The stock trades at 28 times trailing earnings and 23 times forward earnings.  Earnings for the company's latest quarter were up 5.3% year-over-year, on a revenue boost of 6.8%.

Willamette Valley Vineyards Inc. (WVVI), based in Turner, Oregon, makes and sells Syrah, Merlot, Cabernet Sauvignon, Cabernet Franc, The Griffin, and Viognier under the Griffin Creek label. The stock trades at 18 times earnings. For the quarter ending September 30, earnings spiked by an amazing 147% on a healthy 32.9% jump in revenues. The company will be reporting year end earnings at the end of March.

Brown-Forman Corporation (BF-B) is another wine distributor which markets the Sonoma-Cutrer  wines and Corbel California Champaigne. The stock has a trailing price-to-earnings ratio of 28 and carries a yield of 1.6%.

You can check out the other wine companies on the free list of wine and liquor stocks. Cheers to a healthy and rising portfolio.

Disclosure: Author didn't hold a position in any of the stocks mentioned at the time the article was written.


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