There are just 6 alcohol stocks listed on the ASX. This article will give an overview of all six of these companies. Where appropriate, the market share of each company in their respective markets will also be discussed. If you are looking for an overview of ASX-listed food companies, click here [coming soon]. If you are looking for an overview of ASX-listed aquaculture companies, click here.

As you can see in the pie graph below, Treasury Wine Estates is by far the most significant ASX-listed alcohol company. The total market capitalisation of all ASX-listed alcohol companies is $14 billion, with Treasury Wine Estates accounting for $13.65 billion of the $14 billion market capitalisation.

Source: Author

Here is the list of all alcohol-related companies of the ASX:

Company NameMarket Capitalisation (Approximate)
Treasury Wine Estates Limited$13.65 billion
Australian Vintage Limited$135 million
Gage Roads Brewing Co Limited$105 million
Australian Whiskey Holdings Limited$62 million
Broo Limited$9.5 million
Digital Wine Ventures Limited$6.25 million

“Nobody has ever gone broke selling alcohol to Australians” – An Australian Proverb (maybe)

Treasury Wine Estates (ASX: TWE)

Treasury Wine Estates is the largest listed alcohol company on the ASX and one of the world’s largest listed wine producers. TWE was listed on the ASX in 2011 after it was demerged from Foster’s Group Ltd. Since then it has performed very well for those initial investors.

Source: Google

Over the years TWE has worked to premiumise it’s wine offering and expand its operations globally. One of TWE’s major acquisitions was the wine business of Diageo for $754 million in late 2015. This acquisition expanded TWE’s wine making operations and brands in the UK and US markets. TWE now has an impressive portfolio of wine brands including:

  • 19 Crimes
  • Acacia
  • Annie’s Lane
  • Baileys of Glenrowan
  • Beaulieu Vineyard
  • Belcreme de Lys
  • Beringer Vineyards
  • Blossom Hill
  • Chateau St John
  • Castello di Gabbiano
  • Coldstream Hills
  • Devil’s Lair
  • Etude
  • Fifth Leg
  • Greg Norman Estates
  • Heemskerk
  • Hewitt Vineyard
  • Ingoldby
  • Jamieson’s Run
  • Killawarra
  • Leo Buring
  • Lindeman’s
  • Matua
  • Meridian
  • Metala
  • Penfolds
  • Pepperjack
  • Provenance Vineyards
  • Rawson’s Retreat
  • Rosemount Estate
  • Run riot
  • Saltram
  • Samuel Wynn & Co
  • Secret Stone
  • Sappelt
  • Shingle Peak
  • Sledgehammers
  • Squealing Pig
  • St Huberts
  • Stags’ Leap Winery
  • Stellina de Notte
  • Sterling Vineyards
  • T’Gallant
  • Wolf Blass
  • Wynns Coonawarra Estate
  • The Walking Dead Wine
  • Yellowglen

Unlike some other wine companies, TWE is vertically integrated. TWE’s activities can be divided into three parts:

  1. Growing and sourcing grapes
  2. Producing wine
  3. Marketing and distributing wine

TWE sources its grapes from around the world to mitigate climate related risks and better manage vintage variation.

Source: Treasury Wine Estates 2019 Annual Report Pg 11

TWE sells its wine in over 100 countries around the world and produces wine from 127 vineyards and owns 17 wineries across Australia, New Zealand, the Americas and Europe.

Source: Treasury Wine Estates 2019 Annual Report Pg 1

In Australia, wine production is still primarily made up of medium-sized usually family-owned enterprises. There has been a trend towards increased publicly company ownership but this trend has not had much of an impact on overall wine production facility ownership. The largest wine producer in Australia is Pernod Ricard Australia, part of French wine and spirit giant Pernod Ricard. TWE is the second largest wine producer in Australia while Accolade Wines is the third largest by market share. Accolade Wines is owned by the Carlyl Group, an American private equity firm. Casella Wines is a large family-owned company based in the Riverina Region of New South Wales. Australian Vintage is an ASX listed company and will be discussed later.

Source: Graphic by Author made using IBISWorld data

Australian Vintage Limited (ASX: AVG)

Australian Vintage is a grape growing, wine production, wine marketing and distribution company with operations throughout Australia. Australian Vintage has been listed on the ASX since 1992. Like TWE, Australian Vintage is vertically integrated but unlike TWE Australian Vintage only grows grapes and produces wine in Australia. Australian Vintage sells this Australian produced wine throughout Europe, North America and Australia. The company has three main wine brands: McGuigan Wines, Tempus Two and Nepenthe.

Australian Vintage has an estimated 3-4% market share of Australian wine production. This makes the company the second largest ASX listed wine producer in Australia. Australian Vintage is noticeably smaller than TWE.

Source: Graphic by Author made using IBISWorld data

Gage Roads Brewing Co Limited (ASX: GRB)

Gage Roads is a craft beer brewer established in 2002 and admitted to the ASX in late 2006. Gage Roads sells 12 million litres of craft beer per annum consisting of 4.2 million litres of proprietary brand sales and 7.8 million litres of contract brewing sales throughout Australia. Gage Roads is the company’s brand of craft beer. The company has a maximum brewing capacity of 17.4 million litres per annum. Gage Roads is currently implementing a 5 year strategy to increase higher margin proprietary brand sales and reduce lower margin contract sales as a proportion of total sales.

Compared to the overall Australian beer manufacturing market, Gage Roads is extremely small. The Australian beer market is dominated by Carlton & United Breweries- owned by Japanese giant Asahi, and Lion – soon to be owned by Kirin, Asahi’s major competitor in Japan. In July 2019 Asahi made a $16 billion buy-out of Carlton & United Breweries (CUB) from AB InBev, the world’s largest brewing company. It is expected that the ACCC will force Asahi to make some divestments, as this acquisition would bring Asahi’s share of the beer market above 50% (50.4% to be precise). More importantly for Gage Roads Brewing, both Lion and CUB have been increasing their offering of craft beer in recent years and this is the main threat to Gage Roads. Coopers Brewery along with Gage Brewing are the only two significant beer manufacturers which are Australian owned.

Source: Author based on IBISWorld data

In the craft beer market specifically, Gage Roads has an approximate 4% market share.

Source: Gage Roads Brewing Slides
Source: Gage Roads Brewing Slides

Australian Whisky Holdings (ASX: AWY)

Australian Whisky Holdings is a company which invests in the Australian craft distilling industry. The company owns the operations of the Lark, Nant, Overeem and Forty Spotted Gin distilleries (they only own 12% of Old Kempton). Australian Whisky Holdings focuses on investing in gin and whisky distilleries in Tasmania. The company owns the Nant, Lark, Old Kempton and Overeem brands of whisky and the Forty Spotted Gin brand of gin. These brands have won many awards locally and internationally.

Source: Australian Whisky Holdings Slides

Australian Whisky started whisky production in 1992 and was listed on the ASX in 2003.

Source: Australian Whisky Holdings Slides

Broo Limited (ASX: BEE)

Broo Limited is a small company focused on brewing and selling its Broo Premium Lager and Australia Draught brands of beer through distributors in Australia and China. The Broo beer sold in China is manufactured by Jinxing Beer Group Co, Ltd. Broo has distribution agreements with Australian Liquor Marketers Pty Ltd and major distributors to stock Broo beers in liquor stores throughout Australia. The company also owns the Mildura Brewery Pub in Mildura, Victoria and Sorrento Brewhouse in Sorrento, Victoria.

Source: Broo Beers

The company is focused on exporting its beer to China and recently signed a Binding Agreement with Beijing Jihua Information Consultant Ltd to exclusively market and distribute the Broo Premium Lager beer products in China for a period of 7 years. The Agreement is binding on a ‘Take or Pay’ basis for 1.5 Billion litres of Broo Premium Lager beer products over the 7 year period with Jihua paying a fixed rate per litre.

Broo is currently developing the ‘World’s Greenest Brewery’ in Ballarat, Victoria which will include a state-of-the-art brewery, Australian Beer Museum and cultural engagement hub. The company states that once the brewery is built the company will be able to produce its beer in large quantities and produce beer for third parties.

Digital Wine Ventures Limited (ASX: DW8)

Digital Wine Ventures provides wine distribution services in Australia and China. In China the company’s wine distribution platform is called DAWINE. This platform enables Chinese customers to easily purchase Australian wine via their computer or smart phone. In May 2019 Digital Wine Ventures acquired Wine Depot Holdings Pty Ltd (WINEDEPOT), a vertically integrated trading and logistics platform for the Australian wine industry. As part of the rollout of WINEDEPOT the company partnered with Australia Post.

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