2202 GMT - Constellation Brands's 3Q result isn't great news for winemakers with U.S. operations such as Treasury Wine Estates. According to Jefferies, the result adds to the lengthening list of data pointing to weakness in U.S. wine. Analyst Michael Simotas says risks are building for Treasury Wine's Americas business. Still, Jefferies thinks "higher-priced wines are performing much better, and Treasury Wine's repositioning has left it with a much more premium portfolio than Constellation, implying it should perform better than the data suggest." It remains positive on Treasury Wine, citing potential upside from its DAOU and Frank operations in the U.S. and growth in its Penfolds business. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
January 13, 2025 17:02 ET (22:02 GMT)
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