Got $1,000? You can buy 85 Treasury Wine shares… or one bottle of Penfolds Grange!

Happy smiling young woman drinking red wine whilst standing amongst the grapevines in a vineyard as the Treasury Wines share price rises todayHappy smiling young woman drinking red wine whilst standing amongst the grapevines in a vineyard as the Treasury Wines share price rises today

The Treasury Wine Estates Ltd (ASX: TWE) share price rose by 0.86% to finish the session at $11.70 today.

That’s a little better than the performance of the S&P/ASX 200 Index (ASX: XJO), which, after a volatile session, finished the day up 0.5%.

The current Treasury Wine share price means that if an investor had $1,000 to drop, they’d be able to nab themselves 85 shares, with some change left over.

But that same $1,000 would also get that investor just one bottle of Treasury’s flagship top-shelf wine – Penfolds Grange.

According to reporting in the Australian Financial Review (AFR), Treasury has just released the pricing for its latest Grange range.

The 2018 vintage is scheduled to be available to purchase from 4 August. But this is the first bottle of Grange that will be sold out of the gate with a four-figure price tag.

One bottle of Grange or 85 Treasury shares?

Vintage bottles of Grange have been known to sell for tens of thousands of dollars. One even undid a New South Wales premier a few years ago. But this value usually only comes with the benefit of hindsight, and years of ageing.

Penfolds’ 2016 and 2017 Grange vintages reportedly came with a price tag of $950. But Treasury has upped its pricing this year.

Perhaps this is due to inflation. After all, we have seen the highest inflation figures for decades over this year so far for the Australian economy.

But perhaps Treasury Wine is just upping its prices because, well, it can. Penfolds managing director Tom King did tell the AFR this:

It’s clear consumers continue to have a strong appetite for premium and luxury wines, with a shift over the last couple of years of buying less, but more expensive wine … We see increasing demand for Penfolds luxury wines in all markets around the world.

Either way, it’s certainly good news for the company, and for investors by extension. Wine lovers? Less so.

Treasury Wine share price snapshot

The Treasury Wine share price has struggled in recent years. The company remains down 6.4% in 2022 thus far, as well as down 1.9% over the past 12 months.

Treasury shares have also recorded a five-year loss of almost 8% on current pricing.

At the current price, this ASX 200 consumer staples share has a market capitalisation of $8.43 billion with a dividend yield of 2.4%.

The post Got $1,000? You can buy 85 Treasury Wine shares… or one bottle of Penfolds Grange! appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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