Diamond Estates Wine & Spirits Inc. (DWS:TSXV)
DWS has completed the early stages of a turnaround, reaching profitability and outpacing the industry with strong topline revenue growth. Gross margins have increased from 32% in FY23 to 57% in Q3/26.
DWS is positioned to capitalize on a series of tailwinds that support Ontario-made wine. With access to over 1,000 grocery and 4,200 convenience stores, enhanced VQA rebates, and margin upside from cider reforms, the Company is poised to drive significant high margin growth.
DWS is backed by Lassonde Industries (LAS.A:TSX, $1.5B market cap), which owns 32.8M shares (~50%). This strategic alignment strengthens DWS’s positioning across grocery, big-box, and wholesale channels, while bringing valuable capital and operating expertise.
Diamond trades at a discount to both small and large-cap wine companies.
Investment Summary
Company Description
Diamond Estates is a producer of high-quality wines and ciders as well as a sales agent for over 120 beverage alcohol brands across Canada. The Company operates four production facilities, three in Ontario and one in British Columbia, that produce predominantly VQA wines under such well-known brand names as 20 Bees, Creekside, D'Ont Poke the Bear, EastDell, Lakeview Cellars, Mindful, Shiny Apple Cider, Fresh Wines, Red Tractor, Seasons, and Serenity.
Research
