The Treasury Wine Estates Ltd (ASX: TWE) share price has continued to climb despite Goldman Sachs recently recommending shareholders sell their stock in the company.
The Treasury Wine share price was trading at $13.76 in late September when it was reported the investment bank declared it's time to sell.
On Friday, the Treasury Wine share price closed at $15.29, gaining about 11% since late September.
Treasury Wines, one of the world's largest wine companies, reported a net profit after tax of $269.1 million for FY17, up 55% on the previous year.
The company, with a market cap of $11.11 billion, also declared a final dividend of 13 cents per share, 50% franked, bringing the total dividend for FY17 to 26 cents per share, a yearly increase of 30%.
Treasury Wines has a portfolio of more than 70 brands, including Penfolds, Pepperjack and Lindeman's, with sales operations in more than 70 countries.
French wine growers have suffered recently on the back of unfavourable weather which has resulted in vineyards in iconic wine-growing regions such as Bordeaux and Champagne being damaged by frost.
As a result, the French Agricultural Ministry has reported wine production will fall by about 20%, leading to the lowest level of output in more than 60 years.
The International Organisation of Vine and Wine has reported that historic lows were also recorded in Italy and Spain.
The Organisation also reported that production in Germany decreased while production in Australia increased.
All that paints a promising picture for Treasury wines.
It also looks good for Australian Vintage Limited (ASX: AVG) which owns the McGuigan, Nepenthe, and Tempus Two wine brands.
Australian Vintage, with a market cap of $121.25 million, has seen its share price drop from 47 cents a year ago to close on Friday at 44 cents.
Perhaps the company can capitalise on new opportunities in the market.
Another company in the sector which is worth checking out is the Rural Funds Group (ASX: RFF).
Rural Funds Group, with a portfolio of properties which include cattle stations, nut farms and vineyards, has been a consistent performer over recent years.
