Wine is back on the menu

Wineries suffered through the pandemic. One hospitality winery is expected to earn more this year. That’s why it remains a buy for a long-term share price recovery and dividends that provide a generous yield.

Andrew Peller Ltd. (TSX—ADW.A)

Grimsby, Ontario-based Key consumer stock Andrew Peller is one of Canada’s “leading producers and marketers of wines and craft beverage alcohol products”. It produces premium and ultra-premium wines as well as a number of popularly priced varietal offerings, wine-based liqueurs, craft ciders, beer and craft spirits”. The company owns and operates 101 independent retail locations in Ontario. It operates Andrew Peller Import Agency and The Small Winemaker’s Collection Inc., importers and marketing agents of premium wines from around the world. With a focus on serving the needs of all wine consumers, ADW produces and markets premium personal winemaking products.

Outlook favourable to the owner

Entrepreneurs such as Mr. John Peller are eternal optimists. He said, “We have performed well so far this year given all the challenges and uncertainties created by the pandemic. We have reacted well to the cycle of numerous openings and closings experienced through the year, and we continue to prudently invest in our properties, our facilities, our trade channels, our operating platform and our people. As a result, we will emerge from the pandemic stronger and more efficient than ever before.”

Mr. Peller is also optimistic about the company’s long-term future. He said, “Looking ahead, we expect the pandemic will continue to negatively impact our business through the balance of the year and into fiscal 2023, However, over the longer term, our vision and strategy remain the same – to capitalize on our robust and scalable operating platform and well-established network of trade channels to grow our business through the introduction of new products, new brands and new market categories while leveraging our strong reputation for quality.”

This is an edited version of an article that was originally published for subscribers in the April 22, 2022, issue of The Investment Reporter. You can profit from the award-winning advice subscribers receive regularly in The Investment Reporter.

The Investment Reporter, MPL Communications Inc.
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