Andrew Peller’s bright future reflects its strong operational execution cost cutting as well as its strategic positioning in Canada’s evolving beverage alcohol market.
The firm’s diversified operations across wine production, craft beverages, and multiple distribution channels provide defensive characteristics while enabling participation in growth segments of the Canadian beverage market. With production facilities in British Columbia, Ontario, and Nova Scotia, and sourcing from premium wine regions including the Niagara Peninsula and Okanagan Valley, Andrew Peller maintains competitive advantages in quality and supply chain control.
The company’s track record offers an attractive total return opportunity for investors seeking exposure to the Canadian consumer discretionary sector. With the stock trading at just 10.5 times the company’s forward earnings forecast, this is a buy.
ANDREW PELLER LTD. (Toronto symbols ADW.A; www.andrewpeller.com) is Canada’s second-largest wine producer after Arterra Wines.
In its fiscal 2025 fourth quarter, ended March 31, 2025, Peller’s sales fell 11.2%, to $75.5 million from $85.0 million a year earlier.
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That decrease is largely because the year-earlier quarter included $5.8 million in support payments from the Ontario government; in fiscal 2025, the company recorded those payments throughout the year instead of reporting all in the final quarter like it did the previous year.
Thanks to a cost-cutting plan, losses in the quarter improved to $0.02 a share (or a total of $747,000) from $0.17 a share (or $6.9 million). For all of fiscal 2025, the plan cut Peller’s costs by $10.7 million.
Dividend Stocks: Tariff effect should be offset by higher sales in Canada
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.
In fiscal 2026, the company will probably earn $0.47 a share, and the class A shares trade at a low 10.5 times that estimate.
Peller also continues to pay a quarterly dividend of $0.0615 a share; the annual rate of $0.246 yields a high 5.0%.
I have held this stock maybe 7 or 8 years ago when it was around $18 a share. As I hung in there I watched it drop down to $11 and change and exited the position. That wasn’t enough, looking at a chart, Peller dropped to an even lower level in Oct. of 2023 at $3.70. For the individuals that bought in then they have seen it rise to $5 plus. Should I trust this stock going forward. Obviously TSI does. Did COVID have anything to do with the drop?
Before that, the company reported rising sales during the pandemic. Sales for the year ended March 31, 2021, were $393.0 million, up 2.8% from the prior year.
Due to the COVID-19 pandemic, consumer purchasing patterns changed resulting in an increase in sales from the company’s new e-commerce platform, at provincial liquor stores and other retail channels. Partially offsetting the increase was the reduction in hospitality and licensee sales due to COVID-19 closures and lower duty-free export sales due to restricted travel.
The 2021 drop came as revenue began falling—likely as sales normalized after expanding during the pandemic.
What’s more, in particular, earnings were hurt as the supply-chain crisis took hold. The cost of raw materials such as imported wine, glass bottles and other packaging materials increased due to inflationary pressures while international freight and shipping charges were well above historical levels.
There were also increases in Ontario’s minimum wage, as well as higher interest expense as rates rose.
Meanwhile, going forward, we still see Andrew Peller as a buy.
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I have held this stock maybe 7 or 8 years ago when it was around $18 a share. As I hung in there I watched it drop down to $11 and change and exited the position. That wasn’t enough, looking at a chart, Peller dropped to an even lower level in Oct. of 2023 at $3.70. For the individuals that bought in then they have seen it rise to $5 plus. Should I trust this stock going forward. Obviously TSI does. Did COVID have anything to do with the drop?
Andrew Peller shares began dropping in mid-2021.
Before that, the company reported rising sales during the pandemic. Sales for the year ended March 31, 2021, were $393.0 million, up 2.8% from the prior year.
Due to the COVID-19 pandemic, consumer purchasing patterns changed resulting in an increase in sales from the company’s new e-commerce platform, at provincial liquor stores and other retail channels. Partially offsetting the increase was the reduction in hospitality and licensee sales due to COVID-19 closures and lower duty-free export sales due to restricted travel.
The 2021 drop came as revenue began falling—likely as sales normalized after expanding during the pandemic.
What’s more, in particular, earnings were hurt as the supply-chain crisis took hold. The cost of raw materials such as imported wine, glass bottles and other packaging materials increased due to inflationary pressures while international freight and shipping charges were well above historical levels.
There were also increases in Ontario’s minimum wage, as well as higher interest expense as rates rose.
Meanwhile, going forward, we still see Andrew Peller as a buy.