It depends on who you ask whether or not wine is a ‘staple’ however history tells us that demand goes up when economic conditions tighten. TWE has had a difficult few years, much of the pain coming from their exposure to China however a repositioning of the business and a focus on higher-margin markets has Treasury well-positioned for what comes next. We like this $8bn global wine business and while it doesn’t ‘scream value’ on an Est P/E of 24x, earnings have been depressed and year on year growth from this new base of 20% is very achievable.
MM is bullish TWE
Add To Hit List
