The Treasury Wine Estates Ltd (ASX: TWE) share price took a bath on Thursday, falling around 5%.

Who Is Treasury Wines?

Treasury Wines is a world-leader in winemaking and brand marketing with some 13,000 hectares of vineyards available and around 3,400 employees across 70 countries. Some of Treasury’s more popular brands include Lindeman’s, Penfolds, Pepperjack, Rosemount, Yellowglen and Wolf Blass.

What Happened Today?

After the ASX’s close today, Treasury Wines released an update dealing with some potentially concerning overnight news which was hitting the share prices of global wine producers today.

Overnight, Fortune 500 wine and beer maker Constellation Brands Inc (NYSE: STZ) announced a below-expectations profit forecast for its 2019 financial year. Constellation’s CEO, Rob Sands, called the sharemarket’s 12% selloff a “total overreaction”.

Despite Mr Sands’ bullish words, Constellation’s weak wine sales spooked the market.

“We’ve have been challenged by the lower end of our [wine] business, which in totality has been flat or down,” incoming CEO Bill Newlands was quoted as saying by CNBC.

The forecast comes when the industry as a whole is feeling the impact of consumers opting for marijuana instead of alcohol.

Constellation has been toying with selling some of its wine brands following its $4 billion in Canada’s Canopy Growth Corp (TSE: WEED), a heavyweight in the marijuana industry.

What Now?

After the market’s close, Treasury Wines moved to calm shareholders by saying it is “very happy” with its trading performance across all of its operating regions and confirmed its 2019 half-year financial guidance.

“The results for 1H19 will reflect a performance above consensus EBITS of A$332m and will be within the range of A$335m to A$340m,” the company’s announcement read. Click here to learn what EBIT means.

From the surface, it appears Treasury Wines will notch up impressive growth in 2019. Its shares also sport a 2.5% dividend yield, which make it very tempting at current prices.

Having said that, Treasury Wines is not an ASX share I currently own in my portfolio. However, I do own one of the fast-growth shares in the free investing report below.

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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).