Vinum tempus nunc - wine's time is now. As a 6,000-year-old CPG time is on a different scale, but as a public investment wine is back.
The wine industry is fragmented with 10,000 wineries, but it is on the path of consolidation. Since the pandemic, consolidation has accelerated. The public markets will facilitate the consolidation. Wine never left the public markets, but there have not been pure-play investment vehicles to publicly invest in wine growth in decades. Then last year four wine companies went public.
Many investors had come to believe that wine companies do not belong in the public markets, because there were not any. There are wine companies listed on foreign exchanges, small caps listed in the U.S., and wineries owned by much larger diversified companies. The market was missing wine growth companies, consolidators gaining scale advantages. Scale matters in wine like it does in many CPG categories. In most CPG categories a few large brands and private label dominate, while smaller and regional brands try to carve a niche. Where wine is unique is growing the raw commodity while also processing and marketing the final, differentiated product.
We will present a deep dive into the wine category. Our Black Book will cover:
- the current state of the market
- demographic trends
- channel power
- the importance of scale
- M&A
- and where we see the sector in five and ten years.
We will also present our long investment case for Vintage Wine Estates (VWE) and Constellation Brands (STZ), as well as the short case for the Duckhorn Portfolio (NAPA).
|
CLICK HERE for the live webcast and to download the materials. |
