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Cork dorks

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There are two companies which control 50% global market share of corks for wine bottles. That oligopoly market tends to be an area where one can make money. Though new synthetic products are challengers.

Biggest company is Corticeira Amorim listed on Portugal Stock Exchange and #2 player is Oeneo listed on Paris Euronext. Both are super high class companies, both have been 10X in the past 10 years. The growth has slowed down, however, leader is available at 13 PE and the #2 at 23PE.

The fascinating MOAT part according to me is that the Cork tree takes 25 years to grow plust two bad harvests (9*2 – 18 years) i.e. 43 years to deliver a good quality cork for wine bottle. Why would a farmer partner with anybody else if he is letting go of profits from the olives on his land in exchange of corks that will yield him  someone in the future, money after 43 years, effectively his next generation?

Here is an industry where you ought to plant the tree that provides shade another person.

Beautiful report “Turning Cork into Gold”



10X in 10 years


10X in 10 years

Oeneo also owns The most prestigious barrel brand in the world called Seguin Moreau, here is a short clip of the same.


The process of making barrels has become more mechanised but has not changed much in a 100 years.

Fascinating industry.

No positions.

Would aluminium / synthetic screw last 200 years?

The world’s leading cork producer, Amorim, has played a major role in the preservation of the 200-year-old champagne discovered off the coast of the Åland archipelago (between Sweden and Finland) earlier this year.

Specialist consultants to the Åland Government called on Amorim to assist in the preservation of the champagne after 168 bottles were recovered from a shipwreck at the bottom of the Baltic Sea.

Two bottles of the historic champagne were opened at a special event in Mariehamn, the capital of Åland, last week (17/11).

Amorim’s technical champagne team advised on the complex process of replacing the 200-year-old cork stoppers with new ones.

“The fact that the precious liquid in these bottles has been preserved at the bottom of the sea for 200 years stands as testimony to the unique ability of natural cork to protect the champagnes and wines of this world,” he said.

Alternatives have not yet been tested to last 200 years but cork has been. But the two leading companies have starting producing lower end versions.

Disclosure: No investment in the companies mentioned. Views are personal notions and do not represent any organisation or company. Investment in stock market can (and many a times do) result in loss of principal capital.

Written by amitdipsite

January 13, 2018 at 6:26 am

Posted in Uncategorized

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