Is investing in wine still worth it? Today we at Invest In The Stock present you an investment alternative that many underestimate, and it is precisely linked to the wine world, let’s see in detail how to invest in wine and the returns.
Wine as a source of investment
Wine is the oldest alcoholic beverage in the world, appearing on priceless paintings such as Leonardo Da Vinci’s Last Supper finished in 1498.
However, its history is even older, in fact according to some experts we can trace its first production around 9,000 and 10,000 years ago in the Caucasus area.
A very long time in history through which wine has been exported from one part of the world to another making it today a global drink and tasted on tables all over the world.
To date, the largest wine producing countries are: First of all Italy with an estimated production of 47.5 million hectoliters per year, in second place we find France with 42.1 million hectoliters, in third place Spain with a production of 33.5 hectoliters per year.
At this point it is easy to understand that the wine trade is an all-European primacy, which is exported from our countries all over the world, contributing to European economic growth.
To date, wine, given its importance, is a source of investment not only for wine growers but also for investors from all over the world who invest in wineries. In fact, wine is also listed on the stock exchange, some of the most important shares are as follows:
- Constellation Brands
- Brown Forman
- Willamette Valley Vineyards
- LVMH must meet Hennessy Louis Vuitton
- Andrew Peller
- Pernod Ricard
How to invest in wine
There are different ways of investing in wine, you can invest by taking over an existing company thus becoming direct players in wine production, or you can invest in wine shares, or perhaps create an export company that distributes for foreign markets.
Whatever the road taken, the world of wine is still growing and the numbers prove it, therefore for those who want to contribute to the growth of the oldest drink in the world, they can certainly still find a source of income.
Is it worth investing in wine?
Despite European proposals counterproductive for the wine market to apply a black label on bottles to highlight a presumed danger of the drink, national governments struggle to avoid absurd choices that could dent an industry already hit by inflation.
However, according to a recent study, a growth linked to the global wine market of +5.8% is expected for 2024, a figure that shows how the wine market still has a lot to give to its consumers.
The demand for wine is increasingly growing while supply risks being limited, this because production costs are starting to be high for companies, mainly due to the inflation which has recently affected our global economy.
All in all, investing in wine is still worthwhile with numbers in hand, however it is necessary that the states of the various producing countries protect the interests linked to the wine industry with a clear reduction in taxes weighing on workers and more resources to be put in place for producers .
In short, drawing the conclusions, investing in wine is still worthwhile today, despite the obstacles it risks encountering with an increasingly controlled and less liberal economy, wine is still today an excellent source of investment destined to be tasted on tables all over the world for a long time yet.
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