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10 Best Wine Stocks to Invest In 2022

by Ozva Admin

In this article, we’ll take a look at the top ten wine stocks to invest in 2022. If you’d like to skip our industry introduction, skip to Top 5 Wine Stocks to Invest in 2022.

For the everyday investor, the recent economic turmoil caused by the Russian invasion of Ukraine and the coronavirus stimulus packages is a double-edged sword. While the cost of living is hitting record highs, stock markets are on edge as the US Federal Reserve Bank takes an aggressive approach to tackling inflation by relentlessly raising interest rates and, as a result, increasing the cost of loans for consumers.

However, while the middle class decides between investing or saving, the world’s richest increase their consumption. This has benefited high-end industries, with the Wall Street Journal reporting that luxury goods sellers are increasing their marketing budgets as other businesses falter during a time of historic economic downturn. It reports that St. Michelle Wine Estates Ltd., a Washington-based winemaker, increased its marketing budget by 15% this year, later citing the company’s CEO as saying that sales of wines above the $15 price point they are growing. .

The global wine market itself is quite large, with various research reports putting its value in the hundreds of billions of dollars. For example, Advantageous Research estimated earlier this year that the global wine market was worth $418 billion in 2021, and between then and 2028, it will grow at a compound annual growth rate (CAGR) of 6.2% to touch $600 billion by end of the forecast period. The research firm believes the industry will benefit from the growing popularity of e-commerce, with some of the world’s largest wine markets, such as those in the US, ordering their alcohol online.

For our article today, we take a look at some of the top wine stocks in the industry, and some of the best-known firms on our list include The Duckhorn Portfolio, Inc. (NYSE:NAPPA), Diageo plc (NYSE:DEO) and Constellation Brands, Inc. (NYSE:STZ).

Top 10 Wine Stocks to Invest in 2022

Top 10 Wine Stocks to Invest in 2022

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Our Methodology

We take a broad view of the wine industry and study factors such as dominant sectors and well-performing markets to select companies that are taking advantage of these windfalls. The companies themselves were then analyzed through their financial performance, market share and other metrics.

The best wine stocks to invest in 2022

10 Ingredients MGP Inc (NASDAQ: MGPI)

Kansas-based MGP Ingredients Inc (NASDAQ:MGPI) manufactures distilled spirits, wine, brand-name spirits, and food ingredients. Last month, Wells Fargo said in a note that Ingredients MGP Inc (NASDAQ: MGPI) the shares offer a “fair” valuation. The company likes the national and secular tailwinds of MGP, as well as the expansion of the margin. Wells Faro set a $126 target price for MGP shares based on a P/E multiple of 25X and an EV/EBITDA multiple of 17X. Several elite hedge funds tracked by Insider Monkey have holdings in Ingredients MGP Inc (NASDAQ: MGPI) at the end of the second quarter. These include Capital Driehaus, Capital of Arrow Street and Ken Griffin’s Citadel Investment Group.

9. Corby Spirit and Wine Limited (OTCMKTS: CRBBF)

Number of hedge fund owners: N/A

Corby Spirit and Wine Limited (OTCMKTS:CRBBF) is a Canadian wine company founded in 1859. The company manufactures and sells spirits and wines in Canada, the United States, the United Kingdom and other countries. Some of its best known brands include Chivas Regal, Absolut Vodka, and Mumm Champagne.

A key business strategy for Corby Spirit and Wine Limited (OTCMKTS:CRBBF) is to import its spirits and products into the US, and on this front the company is expected to benefit greatly from the aggressive policy of increasing of Federal Reserve interest rates. This has pushed the US dollar to its strongest level in decades and allows the company to buy more products to import.

Additionally, its latest fiscal year results revealed that while revenues grew by only 2%, cash flows increased by $4.7 million, indicating that management made astute decisions to reduce working capital requirements by a time when nearly every company is experiencing supply chain constraints and rising costs of doing business. These cash flows enabled Corby Spirit and Wine Limited (OTCMKTS:CRBBF) to declare a dividend of 24 cents for a 5% yield, with the dividend increasing 14% annually.

8. LVMH Moët Hennessy – Louis Vuitton, Société Européenne (OTCMKTS:LVMHF)

Number of hedge fund owners: N/A

LVMH Moët Hennessy – Louis Vuitton, Société Européenne (OTCMKTS: LVMHF) is a French luxury goods company headquartered in Paris. The firm is known for offering wine, champagne and spirits under various brand names such as Ruinart, Hennessy and Cape Mentelle.

LVMH Moët Hennessy – Louis Vuitton, Société Européenne (OTCMKTS: LVMHF) H1 2022 results revealed in late July 2022 were spectacular as the company posted double-digit growth rates across its portfolios of products. This solidifies our assessment at the beginning of this article that the world’s wealthiest have kept themselves spare even during times of historical inflation. During the first half of 2022, LVMH Moët Hennessy – Louis Vuitton, Société Européenne (OTCMKTS:LVMHF) revenue increased 21%, while second quarter revenue increased 27%.

Most of the second-quarter growth came organically, showing that the company expanded its market share rather than riding the inflation wave. During the first half of 2022, LVMH Moët Hennessy – Louis Vuitton, Société Européenne (OTCMKTS: LVMHF) wine business grew by 23%, of which 14% was organic growth.

Barclays increased the target price of LVMH Moët Hennessy – Louis Vuitton, Société Européenne (OTCMKTS:LVMHF) shares to €840 from €825 in September 2022.

7. Splash Beverage Group Inc. (NYSEAMERICAN:SBEV)

Number of hedge fund holders: 3

Splash Beverage Group Inc (NYSEAMERICAN:SBEV) manufactures tequilas, sports drinks and wine. The company recently said that Central Distributors of Las Vegas will now distribute its SALT Tequila brand throughout Nevada. The company is also signing several deals in other US cities and in Mexico.

Splash Beverage Group Inc (NYSEAMERICAN:SBEV) revenue increased more than 80% in the first quarter of 2022.

In June, Splash Beverage Group Inc (NYSEAMERICAN:SBEV) announced that it had acquired 80% of Pulpoloco Sangria, a Spanish beverage company. The deal would give Splash control over the manufacturing and distribution of Pulpoloco in the US.

A total of 3 hedge funds in our database of 895 funds have holdings in Splash Beverage.

6. Eastside Distilling Inc. (NASDAQ:EAST)

Number of hedge fund holders: 1

Eastside Distilling Inc. (NASDAQ:EAST) is a young wine company that was established in 2008 and is headquartered in Portland, Oregon, USA. It markets various types of alcoholic beverages and also provides canning and bottling services to the beer and cider industries.

Eastside Distilling Inc. (NASDAQ:EAST)’s latest quarter saw its sales fall, but at the same time, the company navigated both inflation-driven demand declines and supply chain uncertainties by managing to significantly increase its margins. Its digital can printer can print 100% recyclable cans, giving the company a unique advantage in today’s ESG-driven investment environment. During the second quarter, the company posted $1.5 million in gross profit, a strong year-over-year increase of $600,000 or almost 66%. At the same time, Eastside Distilling Inc. (NASDAQ:EAST) gross margins stood at 31% with its spirits segment leading the charge with gross margins of 53%.

The only Eastside Distilling Inc. (NASDAQ:EAST) investor in our database is Jim Simons’s renaissance technologies who owns 73,570 shares worth $51,000 as of the second quarter of 2022.

The Duckhorn Portfolio, Inc. (NYSE:NAPA), Diageo plc (NYSE:DEO), and Constellation Brands, Inc. (NYSE:STZ) meet Eastside Distilling Inc. (NASDAQ:EAST) on our list of favorite wine stocks .

Click here to continue reading and see Top 5 Wine Stocks to Invest in 2022.

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Disclosure: none. Top 10 Wine Stocks to Invest in 2022 was originally published on Insider Monkey.

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