Being saying it for years: buy BRL. If ever there was a company that needed to be bought to realise its international potential, this was it. My only concern about the likely ‘merger’ with Constellation Brands (which is being referred to in the US as a ‘takeover’) is that other than a small number of very expensive wines such as Quintessa and Mount Veeder under the Franciscan brand, Constellation’s present US portfolio is weak on the ground at the quality end of the market. Only time will tell whether or not this might have an effect on BRL’s steadily improving high-quality wines. There’s presently a wide diversity of opinion within the Australian share trading community with respect to the actual value of BRL shares today. The range extends from $6 to around $10, which again proves my point that the share industry and the wine industry are perhaps not the most natural of partners. The wine industry has been saying it for years, but governments and now share traders simply fail to get the point: that it’s not a primary industry, it’s not a manufacturing industry, it’s not a luxury goods industry, it’s not a commodity industry, it’s not a tourism industry. It’s all of the above. Hang on to your BRL.
