Diamond Estates Wine & Spirits Inc. (DWS:TSXV)
DWS has completed the early stages of a turnaround, returning to profitability, with 1,800 bps of gross margin expansion since FY23, reaching positive EBITDA in FY25, and largely decreasing its debt.
DWS is now posting revenue growth due to acquisitions, new product initiatives, its strong position in Grocery and Convenience, enhanced VQA rebates, and cider pricing reform.
DWS is supported strategically by Lassonde Industries (LAS.A:TSX, $1.6B mkt cap) as its largest shareholder (~50%).
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
