Alcohol: Making The Case For Champagne And Laurent Perrier

2025-01-15 08:00:00 ET

Summary

• Family-controlled alcohol companies have struggled due to slow volume growth, profit declines, and inability to pass inflationary costs to consumers.
• Champagne stocks, especially Laurent Perrier, offer potential due to their export focus, premiumization strategy, and conservative financial management.
• The tightly regulated champagne market, with controlled yields and defined luxury stratas, provides transparency and stability, making it an attractive investment.
• Laurent Perrier's strong export sales, high gross margins, and sensible marketing spend position it as a preferred investment in the champagne sector.

The following segment was excerpted from this fund letter.

We currently hold one “alcohol” stock – Laurent Perrier ( LPRRF ) – though held exposures to the sector through the barrel company TFF Group and LVMH’s sprits/champagne business via Christian Dior ( OTCPK:CHDRF )....

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