Constellation Brands, Inc. (STZ), Diageo plc (ADR) (DEO), Brown-Forman Corporation (BF.A): Raise Your Glass to These Wine Stocks

Page 1 of 2

Here in Silicon Valley, many a glass of Cabernet is raised to toast a business deal, a wedding, or simply the gathering of old friends.  Many Silicon Valley “veterans” retire up North to repeat their success in the growing wine industry, creating a whole new influx of money, talent, and ideas.

The wine craze shows no signs of stopping, but unfortunately there are only a few publicly traded wineries in North America to choose from.  Another way to invest in wine (and the safer way to go) is to choose the larger, more secure beverage companies that have significant holdings in major wineries, three of which are detailed below.

Constellation Brands

Constellation Brands, Inc. (NYSE:STZ)

Although Constellation Brands, Inc. (NYSE:STZ) doesn’t represent a “pure” wine investment (it is a wine, beer, and spirits company), it does give the wine-savvy investor the opportunity to invest in Napa Valley wines. Constellation Brands, Inc. (NYSE:STZ)’s brand portfolio includes some Napa valley labels that are household names in SIlicon Valley – such as Robert Mondavi, Clos du Bois, Blackstone, Estancia, and Ravenswood.  This company appears to be a mixed bag in the eyes of investors as it has a CAPS rating of 3, and Fools and analysts alike either love it or hate it.  Given the huge brand portfolio, the popularity of its premium wine brands such as Ravenswood, Robert Mondavi, and Clos du Bois (my very favorite Merlot label), and great cash flow numbers (245.7M change in cash annually, announced at the last year end period, it has my vote. Those who hate it cite top-heavy management and slower growth rates than the valuation might indicate.  During the last earnings announcement, the CEO mentioned some higher grape costs creating margin pressure (margins are now around 50% total, quite respectable for a beverage company), but stated that his strategy will be to increase market share for the premium wine brands.  I’ll drink to that!

Diageo

Beverage giant Diageo plc (ADR) (NYSE:DEO) is best known as the company behind Bailey’s; it is a little known secret that it also owns Beaulieu VIneyards and Sterling Vineyards through its UDV Guinness subsidiary. Both brands are premium and well-distributed to higher end grocery stores and restaurants, at least throughout the West. Diageo as a whole is highly diversified within the alcoholic beverage field, and owns such well known brands as Guinness, Smirnoffs, J&B, and Tanquerey.  A British company, Diageo plc (ADR) (NYSE:DEOis traded in 180 countries – with primary volume coming from the US New York Stock Exchange and the London Stock Exchange.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!