Top 3 ASX Wine Stocks to Watch in 2025

Discover the top ASX wine stocks to watch in 2025, including Treasury Wine Estates, Endeavour Group, and Australian Vintage. Get insights on market growth, global expansion, and premium wine trends.

Top 3 ASX Wine Stocks to Watch in 2025

The Australian wine industry continues to play a significant role in the nation's economy, particularly on the Australian Stock Exchange (ASX). As we approach 2025, it’s clear that there are some promising investment opportunities in the ASX wine market. Whether you’re a seasoned investor or someone just starting to explore the stock market, it’s crucial to identify stocks that are poised for growth. In this article, we’ll highlight three of the top ASX wine stocks to watch in 2025: Treasury Wine Estates, Endeavour Group Ltd, and Australian Vintage Ltd.

Each of these companies offers something unique, and understanding their market strategies and growth prospects can help investors make more informed decisions. Let’s take a deep dive into why these three ASX wine stocks are ones to consider for the year ahead.

1. Treasury Wine Estates (TWE)

An Industry Leader with a Global Reach

When it comes to ASX wine stocks, Treasury Wine Estates (TWE) (ASX: TWE) stands out as one of the largest and most established players in the market. With iconic brands like Penfolds, Wolf Blass, and Lindeman’s under its belt, TWE is a global leader in premium wine production. While TWE is well-known in Australia, its international presence—particularly in the United States, China, and Europe—is a major driver of growth.

Why TWE is Poised for Continued Success

- Focus on Premium Wines: TWE’s strategy of focusing on premium wine brands like Penfolds has helped the company cater to a growing demand for high-end wines. Luxury wine trends are rising globally, especially in markets like Asia and North America. As a result, TWE’s premium offerings continue to drive revenue growth.

- Expansion into Emerging Markets: As consumer demand for premium Australian wines grows globally, particularly in markets like China, TWE is well-positioned for further expansion. The company’s global distribution network and established reputation will support long-term growth.

- Commitment to Sustainability: TWE is increasingly focusing on sustainability, with initiatives to reduce its carbon footprint and embrace eco-friendly packaging. This aligns with consumer preferences for socially responsible investing and could make the company an appealing choice for investors interested in sustainability.

Recent Performance and 2025 Outlook

In its most recent annual report, Treasury Wine Estates reported a strong increase in revenue driven by robust demand for premium wines. With global wine consumption expected to continue growing, TWE’s strategy of premiumization positions it well for the future. By 2025, Treasury Wine Estates is likely to remain a dominant player in both the Australian and global wine markets, making it one of the best ASX wine stocks to watch.

Conclusion

As one of the top wine stocks on the ASX, Treasury Wine Estates remains an excellent option for investors looking to capture growth in the premium wine segment. Its global reach, sustainability efforts, and focus on luxury brands ensure that TWE is a strong contender for continued growth in 2025.

2. Endeavour Group Ltd (EDV)

A Diverse Player in Australia’s Alcohol Retail Market

While Endeavour Group Ltd (ASX: EDV) may not be solely focused on wine, its extensive portfolio of alcoholic beverages makes it a crucial player in the ASX wine stocks space. With brands like McGuigan Wines, Tyrrell’s, and a variety of retail operations such as Dan Murphy's and BWS, Endeavour Group holds a commanding position in Australia’s alcohol retail and distribution market.

Key Drivers of Endeavour’s Growth

- Expansion of E-Commerce and Retail Footprint: Endeavour is significantly expanding its e-commerce operations. With an increasingly digital consumer base, the company is ramping up its online retail capabilities, particularly for wine. This move is expected to drive future growth as more people shop for wine online, a trend that has accelerated post-pandemic.

- Hospitality Recovery: Endeavour’s pubs, hotels, and bars are seeing a resurgence as Australia’s hospitality sector recovers from the pandemic. As restrictions ease, the company is poised to benefit from increased demand for wine at its venues, further boosting its overall sales.

- Diversification into Premium Wines: While Endeavour is known for its broad range of alcohol offerings, its focus on premium wine brands like McGuigan and Tyrrell’s helps it tap into a growing demand for high-quality wines. This diversification within the wine segment is helping Endeavour strengthen its position in the ASX wine stock market.

Recent Performance and Outlook

In FY23, Endeavour Group saw a 7.5% growth in revenue, with particularly strong performance in its liquor retail division. The continued recovery of the hospitality sector and expansion of its premium wine offerings are expected to sustain growth into 2025.

Conclusion

Endeavour Group is a top ASX wine stock for those looking to invest in a diversified company with a significant presence in both retail and hospitality. Its continued focus on premium wine brands and e-commerce expansion makes it a strong contender for growth in the coming years.

3. Australian Vintage Ltd (AVG)

A Legacy of Quality and Innovation

Australian Vintage Ltd (ASX: AVG) is another key player in the Australian wine industry, with a portfolio that includes well-known brands like McGuigan Wines and Tempus Two. While it’s often overshadowed by larger companies like Treasury Wine Estates, Australian Vintage’s commitment to quality and innovation makes it a compelling investment option.

Growth Factors Driving Australian Vintage

- Emphasis on Innovation: Australian Vintage has long been known for its focus on innovation in both its wine-making techniques and its product offerings. The company is investing in new technologies to improve production and quality, which will allow it to stay competitive in the global market.

- Expanding International Presence: Australian Vintage is focusing on expanding its international export market, particularly in the UK, Europe, and the United States. With increasing demand for Australian wines globally, this expansion is expected to continue driving revenue growth.

- Sustainability Initiatives: Like many of its competitors, Australian Vintage has adopted eco-friendly practices, focusing on reducing its environmental impact. These initiatives resonate well with both consumers and investors who prioritize sustainability, making the company an attractive option in the ASX wine sector.

Recent Performance and 2025 Outlook

For FY23, Australian Vintage posted strong revenue growth, particularly in its flagship McGuigan Wines brand. With its continued emphasis on quality, innovation, and sustainability, the company is poised to maintain solid performance going into 2025.

Conclusion

If you’re looking for a growing ASX wine stock with a focus on innovation and international expansion, Australian Vintage Ltd is a strong option. Its premium wine offerings and sustainable practices make it an appealing choice for the 2025 investment horizon.

Conclusion: Why These ASX Wine Stocks Matter for Investors in 2025

As the global wine market continues to grow, the ASX wine sector offers several promising opportunities for investors. Treasury Wine Estates, Endeavour Group, and Australian Vintage Ltd each bring unique strategies to the table, from premiumization and global expansion to embracing sustainability and digital transformation.

For investors looking to diversify their portfolios with exposure to the Australian wine industry, these top ASX wine stocks are worth keeping an eye on. Whether you’re interested in the luxury end of the market with TWE, a diversified retail and hospitality approach with Endeavour Group, or a focus on innovation and international expansion with Australian Vintage, these companies are well-positioned for growth in the years ahead.

References:

- Treasury Wine Estates Annual Report 2023: www.tweglobal.com

- Endeavour Group Investor Relations: www.endeavourgroup.com.au

- Australian Vintage Annual Report: www.australianvintage.com.au