The WTBA Equity Research Reports

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Stocks in the wine industry fall into the informal market category known as sin stocks, which also includes gambling and tobacco stocks. The nature of sin businesses typically translates to consistent demand and dependable revenues. The alcohol industry is usually less negatively impacted by economic downturns than other sectors, enough so that sin stocks are often thought of as defensive investments. Wine stocks generally enjoy a good-sized economic moat for a couple of major reasons. First, wines typically engender significant brand loyalty. Second, there are a number of barriers to potential new market entrants, including government regulations and the fact that it takes years to produce wines. That’s why we have decided to propose different coverages in the wine and spirits industry. For further information please contact us: