Constellation wines intend to delist from the ASX due "to the stock being so thinly traded".
This will leave AVG as one of the few large listed wine companies on the ASX which can be used to leverage to the coming balancing of supply and demand in the Australian wine industry. Stock levels are coming into balance(my analysis says by the end of the year at this rate) and wineries should be able to end the big wine buyers under cutting our wineries' prices and using their own brands to undercut prices further.
It was also nice to see in the report I recieved today that the Australian wine category in the UK is again growing by value, albeit with a small decline in volumes. This result is even better considering the second (USA) and third (France) declined in value.
I see AVG and the Australian wine industry in general as a nice hedge against potential trouble in the global market place. The company should benefit greatly from a falling AUD.
AVG Price at posting:
34.4¢ Sentiment: Buy Disclosure: Not Held
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