November was a great month for Treasury Wine Estates Ltd (ASX: TWE) and its share price.
While there was only one price-sensitive announcement from the company, it was more than enough to excite the market.
Over the course of November, the Treasury Wine share price gained 5.03% to finish at $12.10.
For context, the S&P/ASX 200 Index (ASX: XJO) fell 0.92% over the same period.
Let’s take a look at what the winemaker and distributor announced last month.
What drove the Treasury Wine share price in November?
The first and only time the ASX heard price-sensitive news from Treasury Wine in November was when it announced its latest acquisition.
On 18 November, it told the market that it had agreed to purchase California’s Frank Family Vineyards for $432 million.
The Treasury Wine share price soared 2.5% on the back of the news. It also gained 4% the following day.
The acquisition is the latest step in the company’s strategy to grow its Treasury Americas portfolio.
In October it stated that its American growth strategy involves divesting non-priority brands and seeking out bolt-on acquisitions.
Speaking of divesting, the company’s new purchase was partly funded by the proceeds of its divestment strategy. It also forked out cash and debt to cover the $432 million bill.
The company’s purchase of Frank Family Vineyards will also see it offering consumers luxury chardonnay – covering a gap in Treasury Americas’ portfolio.
And in non-price sensitive news, the company’s renowned Penfolds brand launched a non-fungible token (NFT) last month.
Through a partnership with BlockBar, Penfolds offered a single NFT representing a barrel of vintage 2021 for US$130,000 in late November.
The NFT will be able to be traded until October 2022, when it will be ‘bottled’ alongside the physical barrel of wine it represents.
The bottles will be traded on BlockBar from then and can be redeemed for a bottle of Penfolds vintage from October 2023.
As of the end of November, the Treasury Wine share price was 26.4% higher than it was at the start of 2021.
The post How did the Treasury Wine (ASX:TWE) share price perform in November? appeared first on The Motley Fool Australia.
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Motley Fool contributor Brooke Cooper 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 Bruce Jackson.
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