Millennials are more interested in drinking wine than any previous generation. In recent times, wine consumption has increased, while beer consumption has dropped. With such positive signs, wine investments have improved significantly.
In 2019, these were the top-performing high yield investments in wine stocks and funds.
Vini Sileo Vineyard & Vinito Capital Management
One of the biggest investment yields in 2019 is from Vini Sileo Vineyard & Vinito Capital Management. This fund has exceeded the expectations of investors exceptionally. This vineyard fund provides diversification, low cost of acquisition, and great tax benefits. Investors also get to use the vineyard and villa os they and their families can experience life owning a vineyard.
Investors who desire vineyard investment exposure along with portfolio diversification can rely on this fund. Vini Sileo Winery avoids pesticides and chemicals to provide high-quality wine. This makes the winery reputed and popular among its customers. And, the demand ensures high yields for investors.
The total strength of this fund is 1,000,000€, in which you can invest a minimum amount of 5000€ for at least 5 years. In 2019, this fund attained a total market value of 1,006,085€. These solid returns obtained by Vinito Wine Funds are a courtesy to the high purchasing capacity of the company.
Based in California, Truett-Hurst has a total marketing capital of $5 million. This nano-cap producer is making mid-range, T-H label wines.
During the last January, Truett-Hurst experienced a rise in its stock price. This was majorly due to the decision of the company to purchase back the stock, giving liquidation prices. This allowed the existing shareholders to get a significant rise in the value. This decision has made Truett-Hurst a debt-free company. Now, the stock is a bundle of cash waiting for investors. The stock has moved from NASDAQ to OTC, which can also increase profits by reducing costs.
Diageo or DEO
One of the top distilling companies on a global level, Diageo is a London-based distilling company. They provide a wide range of distilled beverages such as Johnnie Walker, Smirnoff, Baileys, and others. The market cap of this company is massive at $99.13 billion.
While the major focus of this company is in beers and distilled spirits, they have invested in some of the prominent names in the wine industry. The product distribution covers the whole world, and the company knows how to align their products with the local demands of every region. The stock is predicted to have a steady growth, which was visible in 2019.
With $37.545 billion of market capitalization, Constellation Brand has shown a performance of around 7.82%. Popular wines produced by this company include Robert Mondavi. Along with that, the company also produces spirits such as SVEDKA vodka and beers like Corona and Modelo.
Since 2016, the revenue of the company has increased by 20% on a rough scale. At the same time, the company has also invested about $4 billion in the Canopy Growth Corp, a legitimate generator of cannabis.
This brewing company has existed since 1873 and has a leading position as a brewer in America. Brands like Molson Canadian, Coors Banquet, Coors Light, and others are produced by this company. The valuation of Molson Coors is appealing, as the earnings of 2019 have given a price-to-earnings ratio of 12.2. The stock has produced more than 4% of returns in 2019. And, the total expected returns annually are 12%, this stock has proven its place as one of the highest yielding investments.
So, these are the top profiting investments in vineyard and wine production. You should look into these performers in 2020 as well to enhance your returns. While the stocks have great performance, vineyard investment in a fund makes sense to diversify your portfolio.