A recent report from the Silicon Valley Bank Wine Division forecasts solid growth for the market in the coming years. The U.S. wine industry has experienced its largest growth period in history since 1994.
The industry has even been robust during recessions, only experiencing moderate flattening periods. There were over 750 million gallons of wine consumed in 2017 compared to under 400 million gallons in 1994.
The report projects that wine companies that will have success over the next 10 years will be able to adapt to shifting consumer value.
Consumers now are using the internet "in increasingly complex and interactive ways" and are willing to spend more on higher quality products.
Constellation Brands (NYSE:STZ) is one of the largest multi-category alcohol producers in the United States. The company has been in the news recently because of its foray into the cannabis industry and its partnership with Canadian cannabis giant Canopy Growth.
Constellation is expected to release its fourth-quarter and full-year results for 2018 on April 4.
Constellation Brands may move away from the highly competitive and chaotic wine market over the next decade, but it still boasts an impressive portfolio. The stock currently has an RSI of 45 which puts it in neutral territory in late March. It is trading at the lower end of its 52-week range.
Constellation is a sneaky pickup as it still boasts a strong footprint in the wine industry and is expanding into cannabis.
