Andrew Peller offers a combination of defensive consumer‑staples exposure while operating across multiple price points and channels such as retail, licensee, and big‑box customers. This reduces its reliance on any single product or customer and supports long‑term brand equity. Its national distribution network, significant real estate holdings and inventory base create barriers to entry.
The stock trades at just 10.4 times the company’s forward earnings forecast. That’s reasonable thanks to normalized earnings recovering from prior‑year pressures, asset backing in the form of owned wineries, vineyards and real estate; and a sustainable, well‑covered dividend.
ANDREW PELLER LTD. (Toronto symbols ADW.A (non-voting)) is Canada’s second-largest wine producer, after Arterra Wines. The company features a portfolio of national and regional brands and is vertically integrated from vineyards and production through to retail and hospitality.
Peller imports some of its wine, concentrates and packaging materials from a wide range of other countries, including the U.S., so tariffs could increase its costs. However, in response to U.S. tariffs on Canadian products, provincial liquor boards have stopped importing U.S. wines. That should help spur sales of Peller’s products.
Peller reported higher sales for its latest quarter, thanks to strong sales at its wineries in Western Canada. The company also launched Lay low, a new wine with lower alcohol and less sugar. In its fiscal 2025 third quarter ended December 31, 2025, Peller’s sales rose 3.3%, to $108.8 million from $105.4 million a year earlier. Earnings in the quarter also gained 3.1%, to $7.92 million from $7.68 million. Due to more shares outstanding, per-share earnings were unchanged at $0.18.
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Peller’s high yield and low earnings multiple are attractive
Andrew Peller’s outlook is positive. The company continues to emphasize its portfolio of approximately 50 brands, including Peller Estates, Wayne Gretzky, Gray Monk and Black Hills. These are supported by a national distribution footprint spanning more than 11,000 points of sale.
In response to rising costs for glass bottles, packaging materials and other materials, Peller continues to improve its efficiency. As a result, it will probably earn $0.51 a share for all of fiscal 2026, up from $0.26 in 2025. The class A shares trade at just 10.4 times that 2026 estimate.
Peller also continues to pay a quarterly dividend of $0.0615 a share; the annual rate of $0.246 yields a high 4.7%.
Recommendation in The Successful Investor: Andrew Peller Ltd. is a buy.
