Investing in Wine Stocks

For thousands of years, wine was often held in reserve for the social elite, an expensive luxury item inaccessible to the masses. Today, wine is enjoyed by hundreds of millions of consumers around the globe and is quite accessible -- as both a beverage and an investment. It isn't the highest-growth industry anymore (like it was in the 1970s when California's wine industry was upsetting long-held beliefs about good wine), but investors have a number of wine stocks that can be paired with the rest of their portfolio.

Wine has become a multibillion-dollar industry, and some estimates point toward average annual growth in the mid-single-digit percentages in the next decade. Even so, investing in wine stocks can be a good option for investors looking for more stable returns and some dividend income.

The sprawling luxury goods portfolio of France's LVMH Moët Hennessy Louis Vuitton has produced one of the world's richest people: CEO Bernard Arnault. Champagne and other ultra-high-end spirits feature prominently in this diverse portfolio of high fashion. The company's name indicates as much since champagne house Moët & Chandon is a premier beverage of the rich and famous, as well as a highly sought-after label for special occasions. Other premium champagne brands include Dom Pérignon, Krug, and Veuve Clicquot.

LVMH's wine and spirits segment reported 1.3 billion euros in revenue in the first quarter of 2025, a 9% year-over-year plunge. Despite what it referred to as a "disrupted geopolitical and economic environment," first-quarter total revenue only slipped 2% year over year.

Bear in mind that the wine and spirits segment represents less than 10% of LVMH's total business, so if you invest in this stock, you're investing in a far wider swathe of industries than alcoholic beverages.

The luxury conglomerate overall is a long-term growth stock, and its collection of high-end products from fashion and leather goods to perfume and cosmetics to watches and jewelry is in consistently high demand. In emerging markets such as China, ultra-high-end goods are growing at a rapid pace as the country is expected to continue expanding its role within the global luxury market.

Shares also pay a dividend that yielded 2.7% in mid-2025. While many indicators are looking better, the company is still struggling with increased competition and the after-effects of a buying binge that has left it with more than 75 brands.

Constellation Brands is best known for a Mexican beer portfolio that includes Corona, Modelo, and Pacifico. It also has several wine labels, including Kim Crawford and Robert Mondavi. Constellation Brands previously held a 40% stake in marijuana business Canopy Growth (CGC -4.38%), making this stock a broader-based play on the beverage industry.

It has since made changes to the Canopy arrangement, given the ongoing headwinds that the business is facing in the cannabis industry and the volatility across that market. In April 2024, Constellation Brands converted its stake to a new type of share where it is no longer entitled to payments from Canopy Growth, nor does it have voting power. It also withdrew its three directors from Canopy Growth's board. Still, Constellation controls around 23.6% of Canopy Growth's outstanding shares.

Until 2021, Constellation was a fast-growing company, thanks to its beer business, which makes up the majority of total revenue. Its portfolio of alcoholic beverages has matured, though, and this is likely to be more of a slow-and-steady business. It's also been a tough few years in the macro environment, with cash-strapped consumers tightening their wallets and scaling back purchases of alcoholic beverages.

Looking at the Constellation's fiscal 2025 that ended Feb. 28, wine and spirits net sales came to $1.7 billion, a 7% decline from the previous year. Operating income was down 18% to $325 million. Despite its troubles, the company predicts its wine and spirits group will deliver a 22% operating margin in its fiscal 2027, boosted by its June 2025 divestiture of brands including Woodbridge, Meiomi, Robert Mondavi Private Selection, Cook’s, SIMI, and J. Rogét sparkling wine.

The company also paid a dividend that yielded around 2.5% in mid-2025.

Australia has become one of the world's top wine producers, and Treasury Wine Estates is one of the largest players in the country. Treasury Wine Estates owns labels that include Penfolds, 19 Crimes, Stag's Leap, and Beaulieu Vineyard.

Treasury Wine Estates is a rare pure-play stock on wine, albeit smaller than its primary competitors. The company's revenues grew almost 13% in fiscal 2024, boosted by the removal of tariffs on Australian wine exports to China. The company currently claims a 5.1% dividend yield and could be worth a look if you want investment income.

This small, Oregon-based operation was founded in 1983, becoming one of Oregon's first vineyards since Prohibition. From humble, hand-watered beginnings, it's become one of the state's better-known providers of wine and is recognized as “One of America’s Great Pinot Noir Producers” from Wine Enthusiast Magazine.

While the stock's tiny $23.9 million market cap pales in comparison to some of the global wine behemoths, it's made a strong case for being one of the more popular wine providers in a wine-loving region. It went public in an unlisted 1989 offering, drawing 1,200 shareholders who invested an average of $1,700 each.

Like many other wineries, Willamette Valley boomed during the COVID-19 pandemic, but its stock has since come down to earth, hovering between $4 and $6 in mid-2025. The company's growth has been slowed by a younger generation that favors other types of alcoholic beverages, but it might offer a decent opportunity for investors seeking diversification into an industry that is likely to eventually return to favor.

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Investing in a luxury beverage for all

Wine stocks aren't for everyone. Much like other food and beverage stocks, wine isn't the fastest-growing industry out there. But as the global middle class expands, wine may offer some gradual growth in the years ahead, and a few wine holding companies dole out dividends, as well. Just remember to tread carefully and diversify any wine shares you might buy with other alcohol, beverage, and food stocks.