Investing in ASX wine shares

What are ASX wine shares?

ASX wine stocks are publicly-listed companies involved in producing, distributing, and selling wine. Given that only a couple of genuine winemakers are listed on the Australian Securities Exchange, the label 'wine stocks' often also includes other companies on the wine supply chain. 

Investors might consider a retail stock like Endeavour Group Ltd (ASX: EDV) a wine stock because the company owns the popular Dan Murphy's and BWS bottle shop networks. However, given the diversified nature of Endeavour Group's operations (it also operates pubs and hotels in addition to other retail liquor brands), its share price is affected by many factors outside the wine industry.

Why invest in wine shares?

Wine is big business, especially in Australia. According to information on the Federal Government's Wine Australia website, the wine industry contributes more than $51.3 billion to the Australian economy each year¹. In fact, Australia ranks as the fifth largest wine exporter in the world, with most of the wine produced by Australian winemakers destined for overseas markets. The industry also has a powerful flow-on effect: for every additional $1 million in gross output from the wine sector, the wider Australian economy gains $2.16 million.²

As of 2026, Australia remains one of the world's leading wine exporters, meaning some of the most recognisable labels in global wine (including Penfolds, Wolf Blass, and Pepperjack) — are accessible to investors through a single trade on the ASX. However, investors should be mindful of industry headwinds. Global wine consumption has been declining, with consumers in many key markets moderating their alcohol intake. This makes it worth paying close attention to how ASX-listed wine producers are diversifying their export markets and adapting to shifting consumer preferences.

Of course, whether you want to invest in wine shares may also come down to your personal ethics. Some investors might consider the alcohol industry detrimental to society in much the same way as the cigarette industry. In that case, you may wish to avoid investing in wine stocks.

Top wine stocks on the ASX

Somewhat surprisingly – depending on your attitude toward alcohol – wine stocks are usually grouped under the consumer staples market sector rather than consumer discretionary. This reflects the fact that consumers tend to keep up their alcohol purchases even when money is tight.

This can make wine stocks good shares to own during an economic downturn or recession. As demand for alcohol remains elevated throughout these periods, wine companies can continue to turn a decent profit, making them less risky shares to own. 

Here are three top ASX wine stocks ranked by market capitalisation from highest to lowest.

Endeavour Group

Although it may not strictly be a wine stock, Endeavour Group (ASX: EDV) still relies heavily on the strength of the Australian wine industry to turn a profit. Endeavour owns the Dan Murphy's and BWS brands, two of the country's most recognisable liquor store chains.

The group also has wine brands of its own through Paragon Wine Estates, a portfolio of wineries and vineyards across Australia and New Zealand, including Krondorf Wines in the Barossa, Riddoch Wines in the Coonawarra, and Josef Chromy in Tasmania.

As a diversified alcohol, gaming, and hotel company, Endeavour offers investors lower-risk exposure to the wine industry — its other revenue streams mean adverse events in wine have less impact on overall profitability.

That said, the business is in the middle of a reset, with management focused on price leadership, operational simplification, and investing in its hotel network. There are early signs of traction: hotel sales grew 4.4% and total retail sales rose 0.2% in the first half of fiscal year 2026. Broker Baker Young described the result as solid but retained a hold rating with a $3.65 price target, noting that heavy investment in price competition is likely to pressure margins in the near term.

For income investors, Endeavour's large portfolio of well-known assets and significant cash flow remain attractive — and if the reset delivers, it could support more reliable dividends over time.

Treasury Wine Estates

The most prominent pure-play winemaker on the ASX, Treasury Wine Estates (ASX: TWE) owns a portfolio of leading wine brands. Among its globally respected brands are Penfolds, Wolf Blass, Lindeman's, and 19 Crimes, which American rapper Snoop Dogg spruiks.

Treasury Wine has suffered through a difficult few years. Like all wine stocks, Treasury Wine shares plunged at the onset of the COVID-19 pandemic when social restrictions forced the closure of hospitality venues, stifling demand. 

Soon after, China imposed severe tariffs on Australian wines, further damaging the industry – particularly Treasury Wines. This was because the company had relied on sales to the Asian market, especially China, for a large proportion of its profit. Revenue from sales to China plunged to just $2 million for the half year ended December 31, 2021 compared with almost $80 million a year prior. 

While the Chinese tariffs have since been lifted, Treasury's challenges haven't fully resolved. The company has been battling weaker demand for luxury wines amid global cost-of-living pressures, and has faced distributor difficulties in the United States, a key growth market. Short interest in the stock has risen to 14.8%, reflecting scepticism that a near-term recovery is imminent.

That said, there is a case for the patient investor. Treasury still owns a portfolio of globally recognised brands with genuine pricing power, and the long-term premiumisation trend plays directly to its strengths. The stock is currently trading at around 12 times forecast FY2026 earnings, well below its historical multiples, suggesting much of the bad news may already be priced in. If US distribution issues are resolved and demand stabilises, today's share price weakness could eventually look like an overreaction.

Australian Vintage

Another winemaker, Australian Vintage (ASX: AVG) owns the award-winning McGuigan Wines and Tempus Two brands, among others. It is a global operator with vineyards and winemaking facilities across Australia and New Zealand, and its Buronga Hill winery boasts some of the most advanced winemaking equipment in the world.

Australian Vintage is considerably smaller than Treasury Wine Estates. FY25 revenue came in at approximately $257 million while its market capitalisation currently sits at around $30 million — making it a much riskier investment option than Treasury Wines, but one with meaningful upside if its turnaround strategy delivers.

The company has described FY2026 as a transformational year, pivoting toward lighter styles and innovative formats. Poco Vino small-format wine is now available in over nine countries, while McGuigan Zero is growing more than 20% in the UK — reflecting the company's push into the fast-growing no- and low-alcohol segment. The company posted a net loss in FY25, so risks remain, but management is executing on a clear strategy that could reward patient investors.

Pros and cons of investing in ASX wine shares

Pros

We've already discussed some of the benefits of investing in ASX wine stocks. 

Size and quality of the industry: The winemaking industry in Australia is one of the biggest in the world, and some of the world's best wine brands are available on the ASX. 

Defensive qualities: Wine shares can even be good defensive plays when the economy suffers a downturn. This is because people still tend to keep up their alcohol purchases, even when issues such as inflation force them to cut back their discretionary spending.

Cons

However, there are some cons to investing in wine stocks as well. 

Reliance on overseas markets: Australia exports most of its wine, which makes it heavily reliant on demand from overseas markets. The risks of this were laid bare when China imposed severe tariffs on Australian wine in 2021, causing export revenue to China to collapse from $1.1 billion to near zero. The good news is that China lifted those tariffs in March 2024, and the recovery has been meaningful — in the 12 months to March 2025, Australian wine exports to China reached $1.03 billion, with total export value rising 41% to $2.64 billion.³

However, investors shouldn't assume the path is smooth from here. Export volumes to China remain 44% below their 2018 peak, and exports to other key markets including the UK, US, and Canada have all declined. A new risk has also emerged: as of April 2025, Australian wine is subject to a 10% tariff on arrival in the United States following the Trump administration's broad tariff announcements, adding further uncertainty to one of Australia's most important wine export markets.

Grape quality can fluctuate: Sometimes, wine companies have an off year. Grape supplies aren't as bountiful, or the smoke from summer bushfires taints the fruit. Climate change also affects the types of grapes that can be grown successfully. Many wineries and vineyards face these risks, which can cause wine brands to fall out of favour with consumers.   

What does the future hold for Australia's wine industry?

The outlook for Australia's wine industry in 2026 is one of cautious optimism, but with significant challenges to navigate.

The lifting of China's tariffs in March 2024 has provided a meaningful boost. Wine exports rose 13% in value to $2.48 billion in the year to June 2025, driven largely by renewed trade with China, which more than doubled year-on-year to $893 million. However, that restocking demand is easing, and structural headwinds remain. Global wine consumption fell to a 63-year low of 21.4 billion litres in 2024, as younger generations increasingly turn to beer, spirits, and non-alcoholic alternatives.

The brightest opportunity lies in premiumisation — consumers are drinking less but spending more. ANZ's Agribusiness team believes the future lies in diversification, premiumisation, and adapting to new drinking habits, including a stronger focus on whites, sparkling, and emerging markets. ASX-listed producers that can adapt to these trends are likely to be better positioned than those reliant on high-volume, lower-price-point wines.

Are ASX wine stocks a good investment?

We've already discussed the many positives of investing in ASX wine shares. 

The industry contributes significantly to the Australian economy, and many award-winning wine brands are based here. There's also an argument that wine stocks are solid defensive shares to own to help recession-proof your portfolio.

All that being said, the tariffs imposed by China revealed some structural weaknesses in the industry, and the long-term outlook remains uncertain. 

So, before investing in ASX wine stocks, carefully consider your financial situation and ensure you fully understand the potential risks.