Buying RMondavi would make TWE a very big player in the US. The purchase would be a good fit - and expensive.
I would be interested to know what proportion of the substantial premium RMondani would command can be attributable to quality physical assets and how much is goodwill - embedded (capitalised) prior marketing and brand-building. I am a little old-fashioned on this issue. It can be argued quality wines are all about premiumisation and the eye-watering multiples are justified. My point is, the enduring value is in the vineyards, cellars, grape contracts and distribution. These are worth buying at top price. The marketing skills walk out the door every night.
We can only await developments.
Ash
TWE Price at posting:
$16.53 Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)