Treasury Wine Estates: Grape Expectations

Chief Investment Officer and founder of Aitken Investment Management
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Treasury Wine Estates (TWE) delivered an excellent set of first half numbers and remains a core long-term holding in my opinion. In fact, I am of the view TWE is the number one alcoholic beverage exposure in the world due to its unique nature as a pure premium wine exposure. All other alcoholic beverage stocks we look at either have lower margin beer or spirits in their portfolio, which reduces their attractiveness.

TWE shares had rallied hard so far in 2017, and it wasn’t unsurprising to see a slight pullback in the stock in reaction to confirmation of strong earnings. A classic ‘sell the fact’ response from the trading community and fast money which provides another buying opportunity for investors in what I believe is a structural global growth stock.

Let’s look at the highlights of the 1H result:

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