Corby Spirit and Wine Ltd T.CSW.A

Grain cost and margin

[MrAnderson]

Should there be any concern that raising grain costs and energy costs could impact their margins? Or are they able to just pass it on with little impact?

[autofocus111]

CSW doesn't actually own the main distillery Hiram-Walker. PernodRicard owns that. CSW buys the booze from PR and collects a product commission for marketing and distribution to the liquor retailers. I'd guess they will fully pass through any price hikes PR decides to stick on the products.

[MrAnderson]

Thanks, I was wondering about that ownership part. So now the question for me to figure out is if people will reduce consumption due to higher prices, prices that may move up faster than general inflation as grain and energy are key driver in inflation right now. 

[autofocus111]

Booze and tobacco firms generally do okay regardless of the economic situation. People don't drink or smoke less even in tough times.Those in the lower end of the income scale may switch to lower quality/discount brands. I believe Corby has a product portfolio that spans a good portion of the price range. Most of their sales is in Canada. Canada is a large producer of commodities which

[MrAnderson]

Thanks for your opinion/analysis of the situation.