How would NZX wine stocks benefit from Free Trade Agreement?

Highlights 

• Both NZ- and UK-based wine trade bodies have welcomed the FTA signed between the two nations, which would likely see the removal of tariffs on Kiwi wine exports to the British nation.
• Marlborough Wine Estates Group has announced to hold its ASM in the last month of the year.
• Foley Wines would conduct an online Annual Meeting next month.

Recently, the Free Trade Agreement signed between New Zealand and the United Kingdom would greatly benefit wine manufacturers as well as wine connoisseurs across both the countries.

UK authorities have announced removing tariffs and reducing trade barriers on a wide range of NZ goods, though exact details have not been disclosed.  

It is pointed out that NZ wines are the sixth-largest wine category by value in the British nation, and its wine drinkers love premium NZ wines like Sauvignon Blanc wine, etc., which could now be cheaper to purchase owing to the Free Trade Agreement.

With this backdrop, let us cast a glance at the top NZX wine stocks which are slated to draw benefits from the recent FTA between the two countries.

Image source: © 2021 Kalkine Media New Zealand Ltd, data source- EODHD/Others

Marlborough Wine Estates Group Limited (NZX:MWE)

The famous wine company has announced to organise a virtual 2021 Annual Meeting of Shareholders on 10 December.

How would NZX wine stocks benefit from Free Trade Agreement

Also, the Company has urged its shareholders to send nominations for the post of directors by 9 November.

Related Read: Look at these 5 dirt cheap NZX stocks under 50 cents

On 22 October, at the closing bell, Marlborough Wine Estates Group traded flat at NZ$0.280.

Foley Wines Limited (NZX:FWL)

One of the most acclaimed wine brands from New Zealand is Foley Wines Limited. The Company has notified its investors of conducting its ASM.

Due to a continuous rise in Delta cases, FWL would hold the said meeting online on 17 November.

Also, it intends to pass resolutions regarding the re-election of directors and empower its Board to determine auditors’ fees.

Do Read: 10 best food and beverage stocks of New Zealand

At the market close, on 22 October, Foley Wines climbed 3.70% at NZ$1.680.

Delegat Group Limited (NZX:DGL)

Headquartered in Auckland, Delegat Group Limited is another premium wine company in New Zealand. DGL has scheduled its Annual Meeting for 7 December in Auckland.

Other details regarding the same would be intimated later.

Also Read: Look at the 5 hot consumer stocks on NZX

Shares of Delegat Group gained 2.40% at NZ$14.500, on 22 October, at the end of the market session.

Bottom Line

The country’s wine industry constitutes one of the major exports producing sectors of New Zealand. With this FTA, NZ anticipates a further rise in its wine exports.