Month: October 2022

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Insight

The DRC Ransom Plot

One of Burgundy’s most sought-out producers is Domaine de la Romanée-Conti (DRC). It was the Benedictine monks who were the first to recognise the Côte d’Or’s potential as a winegrowing area. They divided up and organised the parcels of land that produced the finest grapes. 

This piece of land was originally called ‘Le Cloux des Cinq Journaux’, then ‘Le Cros de Cloux’. After changing ownership many times after the monks tended the vines there, the plot was renamed as ‘La Romanée’ by the Croonembourg family. However, it wasn’t until 1760 that this legendary site was given its name that remains to this day. Louis-François of Bourbon – the Prince Le Conti – named it ‘Romanée-Conti’ when he purchased the 4.46 acre plot.

It is rumoured that the prince acquired the land as he discovered that his rival – Madame de Pompadour – who was also vying for the affection of the king, Louis XV, planned on buying the vineyard. The prince hired an agent to carry out his wishes and hoarded all the domaine’s wines for himself, throwing elaborate parties for his distinguished guests.

Domaine de la Romanée-Conti’s wines are some of the most eye-wateringly expensive in the world. Even having the means to purchase them doesn’t necessarily translate into being able to buy them as production levels are so low that only approximately 500 cases of La Romanée-Conti are made each year.

One villain – having discovered just how much the wines were retailing for – hatched a plan in 2010 to hold DRC’s co-owner and head winemaker, Aubert de Villaine, to ransom.

Having made detailed drawings of the vineyard and, shockingly, having poisoned two of DRC’s vines with herbicide already, the crook sent a ransom letter, addressed to Villaine. In it, they demanded €1.3 million from the estate, otherwise they would poison the remainder of the historic vines. 

It transpired that the culprit wasn’t as cunning as you’d have thought. Villaine enlisted the help of private investigators who delivered the ransom money to the specified location and a certain Jacques Soltys retrieved a parcel full of false notes and was met by police who were lying in wait.

After such an ordeal, things returned to normal at the estate. The grapes were picked, fermented and transformed into the 2010 vintage that, unsurprisingly, was proclaimed to be one of the all-time greatest years. 

Search for all of DRC’s wines and find out their performance on Wine Track. 

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Learn

3 Rules for Fine Wine Investors During Market Turbulence

Stocks on large screen

As a perfect storm of pandemics, war, inflation, climate change and unsteady politics collide, many investors are feeling the impact in their portfolios. With currencies, bonds and even equities zig-zagging downwards, it can be a stressful time.

For investors in fine wine, however, the tumultuous environment provides an opportunity not just to preserve wealth but to enhance it. In this article, we’ll uncover three essential rules to help maximise returns and avoid pitfalls.

1. Avoid emotional investing with a steadfast strategy

While most wine investors are deeply passionate about the industry, for the best returns it’s important to avoid emotions when trading.

When an asset is plunging, many investors fear that it will lose even more value unless they sell quickly. This reaction can lead to terrible investment decisions, like selling at the lowest possible prices. Likewise, when other assets are growing, many investors want to jump on the bandwagon to boost their returns. This fear and euphoria style is known as “emotional investing” and it costs investors around 3% of their returns each year[1]. During high-stress periods, like recessions or market downturns, emotional investing losses can increase to 6% or 7%[2]. Market noise and herd behaviour can ramp-up the emotional pressure exponentially.

To avoid suffering from needless losses, investors should try to stay cool when a market storm is brewing. In the words of world-leading investor, Warren Buffet, “To be a successful investor you must divorce yourself from the fears and greed of the people around you, although it is almost impossible.” Experts agree that the best way to do this is to create a risk-adjusted strategy, diversify and – no matter how you may be feeling that day – don’t deviate from the plan.

It can also help to remember that investments in fine wine have proved to be resilient against market shocks over the long-term. The Liv-ex Wine 1000, for example, has grown in value by 50.8% over the past five years. And since its inception in 2004, prices are up nearly five-fold.

Graph showing the Liv-Ex 1000 growing since 2004

Source: Liv-ex

What’s more, according to 2021 data from Knight Frank, the average fine wine investment has returned a staggering 127% over ten years. Sticking to the strategy almost always pays off.

2. Remember fine wine can be a useful shield in recessions

It can be easy to get caught up in the mayhem of the outside markets, especially when there is so much noise and uncertainty. But investors should remember that fine wine is an alternative asset – and so it’s unlikely to be impacted.

Alternative assets are investments which derive their returns away from the public stock markets. Many will even increase in value during recessions. For example, while stock markets tumbled during the pandemic, fine wine enjoyed significant growth. Over the past two years, the Liv-ex Fine Wine 1000 has performed exceptionally well, delivering returns of 34.9%[3].

Other alternative assets include crypto assets, private equity, private debt, derivatives, collectables and precious metals like gold. Examples of less mainstream assets include litigation finance, art, domain names, whiskey, comic books, music royalties and of course, fine wine. These investments can help shield investors’ wealth from market shocks.

At the high-end, fine wine derives its value from two key streams: intrinsic factors and a self-contained marketplace.

Intrinsic factors include things like the quality of the vineyard, year of production, storage, or label. While the self-contained market is made up of a niche group of collectors and investors. These are often extremely wealthy and passionate people, who are probably less affected by inflation or interest hike scares. It’s also a global market, rising above any one region.

One of the superpowers of fine wine is that it’s a famously recession-resistant asset. During market downturns, it can be helpful to have a few premium bottles in a wealth portfolio.

3. Take advantage of fine wine’s inflation-shielding properties

Across the world – and especially in the UK – inflation is reaching record highs. In September 2022, the Consumer Price Index (a measurement of the change in prices) hit a whopping 8.8%[4]. What this means for investors is that debt, cash, and cash-like assets will erode in value faster than normal. But that’s not all.

To slow the economy and prevent lenders from abandoning their investments, central banks usually raise interest rates too. This can have a ripple effect across the markets, sometimes causing businesses to buckle and mortgages to falter. Many of the traditional “60% equity, 40% bonds” investment portfolios may suffer from losses during these turbulent times. Fine wine, however, is different.

This is because the value of fine wine – unlike debt, equity, and even property – is not directly impacted by inflation. As a sought-after and tangible asset, fine wine retains its worth. This makes it an excellent diversifier for investors, who are looking to shield their wealth from inflation.

The fine wine market is over-brimming with potential

The fine wine market is an exciting and vibrant space. Filled with passionate investors and recession-resistant bottles, it’s over-brimming with opportunities.

If you’re interested in finding out more about how you can diversify your wealth and shield against inflation, we’d love to hear from you. We offer complimentary 30-minute consultations where you can ask questions and discover more.

 

[1] Source: Oxford Risk and Financial Times

[2] Source: Oxford Risk and Financial Times

[3] Source: Liv-ex

[4] Source: UK ONS

Categories
News

Increased Global Demand for Fine Wines

Joseph Phelps bottles

Global wine sales are on the up as large retail outlets in Asia and the USA have begun purchasing a wider array of sought-after fine wines and distributing and selling them throughout their sites.

In Asia, South Korea’s Lotte Department Store has, according to local news outlets, started hiring world-class sommeliers who are buying fine wines from traditional wine regions. What’s more, its sommeliers are curating these selections to offer a point of difference to the wines usually available to buy on the domestic market. With mid-priced wines having had to make way for more premium ones, the department store chain announced that its wine sales grew over 20% in September. 

Shinsegae Property, the property arm of the Korean-based luxury company, purchased Napa’s Shafer Vineyards in February earlier this year, as well as  the nine-hectare Wildfoote Vineyard in the Stags Leap District of Napa Valley in August. Shinsegae’s aim is to supply fine wines from boutique producers to its Shinsegae Department Store.

Similarly, the Hyundai Department Store has created Vino H, with the objective of sourcing, importing and distributing premium organic wines from around the globe especially for the South Korean market. 

According to a new report created by Rabobank, it predicts that super premium wines in the USA should weather a recession. Stephen Rannekleiv – Rabobank’s global strategist for beverages – commented that while his ‘expectation is that demand for super premium brands will soften notably in Q4 and turn noticeably negative in 2023 … we believe that the long-term growth trend of super premium brands remains intact.’

Rannekleiv also highlighted that, in the USA, merger and acquisitions have been rapidly taking place and, for the most part, this is in the premium tier. Some of the recent acquisitions include LVMH buying Joseph Phelps Vineyards and Treasury Wine Estates’ purchase of Frank Family Wines. 

With the global appetite for fine wines accelerating, more and more corporations are on the lookout to purchase these highly sought-after wineries and vineyards. In the USA, it’s rumoured that the amount paid to acquire estates’ recently has been incredibly high.

Want to learn more about the growing US market? Read our United States Report to find out the top regions, producers and wines to look out for.

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Learn

How Does Fine Wine React in a Recession?

Bottles of wine in rack

It’s impossible to know how exactly any asset – including fine wine – will react in a recession. Commonly defined as two consecutive quarters of shrinking Gross Domestic Product output, recessions can have many different causes and implications for the investment markets.

Fine wine, however, has a fascinating trend when it comes to economic downturns. Its characteristics make it a uniquely recession-resistant investment.

In this article, we’ll uncover some examples, and explore how the characteristics of fine wine make it such a useful asset during turbulent times.

A track record of performing well in recessions

Throughout history, as stock markets plummet, fine wine has tended to preserve or even grow in value.

For example, during the COVID-19 pandemic, the Liv-ex Fine Wine 100 index grew in value every month from June 2020 until June 2022. As stock markets around the world tumbled and economies cascaded into recession, the value of fine wine grew over 36%[1].

We saw a similar turn of events with the 2008-09 Financial Crisis. Between August 2008 and February 2009, prices in the S&P 500 index nose-dived by 52%[2] – the largest drop since World War II[3]. By contrast, after a brief dip, the fine wine market began rallying in November 2008. The positive performance of the Liv-ex market lasted until May 2011 and returns ballooned by 70%[4].

Throughout history, analysts have noticed this fascinating correlation. Fine wine and drinkable assets in general seem to be recession-resistant. Sometimes, they even flourish in these environments. So, what makes this delicious investment so robust? Experts have identified five key properties which could help to explain this fascinating success.

Characteristic 1: Tangible asset

Tangible assets – like fine wine – tend to do well in recessions, as investors look for reassurance in “real” valuables they can hold. They can also provide an excellent hedge against inflation over time.

Precious metals like gold, for example, tend to shine out for investors when the outside markets look gloomy. Recently, we saw this during the turbulent 2020-2022 coronavirus pandemic. On the 1st of January 2020, a kilogram of gold cost investors £36,807. By the 9th of September 2020, it had rocketed to £48,151, a 31% increase[5].

Another tangible asset is property. While there have been government stimuli such as Stamp Duty cuts at play, we can still infer that people tend to veer toward physical property or “real” estate during a recession. For example, the average cost of a UK home was £247,000 in January 2020[6], by July 2022, this rose to £292,000[7].

Because fine wine is a physical asset it can be extremely reassuring for investors. What’s more, as it is a scarce asset, with each vintage diminishing over time, it usually grows in value.

Characteristic 2: Scarcity

Owning something rare has always been appealing to investors. And when the object is depleting a little more every day, it can become even more precious. Fine wine certainly falls into this category, as a limited number of bottles are produced each year and then slowly consumed.

What’s more, investors in fine wine tend to be passionate. They care deeply about what they’re buying, so unlike many antiques or other collectables, the value isn’t just theoretical. Fine wine investors are often willing to pay a premium for sought-after vintages. If the bottle is rare enough, it can even venture into hundreds of thousands of pounds at auction.

Scarcity – when demand far outstrips supply – is one of the major characteristics of fine wine. And it could be part of the reason why the asset tends to shrug off recessions. Regardless of the stock market outside, when a bottle is deeply sought-after it remains valuable. As vineyards are increasingly grappling with the logistics of climate change these bottles may become yet more scarce.

Characteristic 3: Edible asset

Edible assets such as food staples and alcohol tend to remain strong, especially in recessions. Even when consumers tighten their purse strings and steer away from luxury spending, they will still need to buy food from their local supermarket. And, when it comes to alcohol, this holds true as well. Recessions don’t stop people from drinking alcohol. Some studies even suggest that consumers ditch beer in favour of hard liquor in these tough times[8].

Fine wine is no exception. During the COVID-19 lockdown, many people were forced to create their own vacation and special occasion experiences at home, leading to a boost in fine wine sales. According to one survey cited by The Drinks Business, 73% of participants reported spending more on fine wine than at the start of the lockdown[9].

We can also see this trend in the dramatic rise of champagne sales over the COVID-19 period. Trade volumes for Magnums have particularly popped, increasing by a staggering 130% from March 2020 to June 2022[10]. This suggests that the resilience of fine wine market matches the resilience of its drinkers, people will always find a reason to celebrate … or drown their sorrows.

Characteristic 4: A self-contained market

The fine wine market is global, yet niche. In particular, the high-end rises above local and regional indices. And this could be another important factor behind its recession resistance. For example, if the FTSE-100 or S&P 500 takes a tumble, the high-end of the fine wine market shouldn’t be impacted because it is self-contained.

In an environment where so many assets and asset classes are connected to each other, this is a valuable characteristic. As the recession today thunders towards us, investors are expressing concern that traditional alternative investors are starting to behave more like mainstream assets. Cryptocurrency took a devastating blow earlier in the year, showing that in many ways it’s more sensitive and volatile than the public stock markets. And some economists are speculating that gold is also losing its sparkle as it slowly starts to mirror the wider markets.

Finding an asset with an independent self-fulfilling market is a rarity for investors and can offer exceptional diversification. Genuinely alternative asset classes are becoming harder to find.

Characteristic 5: Favourable tax

Another way that fine wine investors stay afloat during recessions is by keeping more of their returns. In the UK, for example, the drinkable asset should be exempt from Capital Gains Tax (CGT). This means that basic rate taxpayers could keep 10% more of their returns, and for higher rate payers that figure rises to 20% (after the annual exemption limit of £12,300 according to 2021/22 tax rules).

There are two main routes for fine wine investors to save on CGT. The first is if the fine wine has an expected life of fifty years or less. If so, it’s considered to be a “wasted chattel”, and is exempt. The second avenue is if the bottle is sold for less than £6,000. In this circumstance, the transaction is also outside the scope of CGT.

It’s worth noting that investors may still need to pay for storage costs, inheritance, and income tax. To find out more, download our complimentary 2022 Guide on Fine Wine Taxation. While this document is intended to be helpful, it is not advice. To find the best solution for you, speak to a tax advisor.

… Looking to get started?

If you’re interested in learning more about the benefits of investing in fine wine, we’re here to support you on your journey.

 

[1] Source: Liv-ex

[2] Source: Data from Yahoo Finance

[3] Source: Investopedia

[4] Source: Liv-ex

[5] Source: Gold price

[6] Source: ONS

[7] Source: ONS

[8] Source: Craft Brewing Business

[9] Source: The Drinks Business

[10] Source: Liv-ex

Categories
News

Masi Celebrates its 250th Harvest

Boscaini family in a vineyard

Masi is celebrating a significant milestone this year: the 250th harvest from its vineyards located in the ‘Vaio dei Masi’, a small valley in the heart of Veneto’s Valpolicella Classica region in Italy. The Boscaini family has tended the vines over the centuries to create today’s world-class wines.

‘This is the story of an inseparable bond of a surname, “Boscaini” and a place name “Vaio dei Masi”, driven by the work of those same members of the family who, over the generations, have cultivated the vines, transformed the grapes into wine and marketed it. At the same time, it is fused with the events involving that original, founding vineyard, how it was acquired and later integrated into ever greater properties, how its name has marked the human and entrepreneurial path taken by my family, through to today’s Masi Agricola S.p.A.’ commented President of Masi Agricola, Sandro Boscaini.

In honour of this landmark achievement, Masi threw a spectacular event with a guestlist that included seven generations of the Boscaini family, prominent Italian winemaking figures and international press. 

Masi’s ‘Monument to Amarone’

While recognising its past and Masi’s forefathers, the event was also an opportunity to showcase what the company’s new headquarters will look like, its construction delayed due to the pandemic. Named ‘Monteleone 21’, this new site will also encompass its ‘Masi Wine Experience’, helping visitors connect with this heritage-rich wine brand in a very modern building ‘powered by solar panels and geothermal energy’. The drying facility will undoubtedly be its biggest spectacle, with racks reaching some 12 metres high with bunches of Corvina, Molinara, Rondinella and Oseleta grapes drying out. Masi’s managing director, Federico Girotto, proclaimed it will be ‘a monument to Amarone’.

The event culminated in bottles of the 1997 Amarone being opened, with guests toasting to both this 250-year milestone and to the company’s future 250 years, which look sure to be full of innovation.

Interested in finding out more about investment-grade Italian wines? Read our article on Tuscan wines to invest in.

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Report

Q3 2022 | Report

Stock market screen

Our Q3 report, analysing the trends that shaped the fine wine market over the past three months, is available to download. The report examines the impact of currency volatility on fine wine prices, the consistent demand for Champagne, the brands on the move and the expansion of the autumn La Place de Bordeaux campaign.

The global economic slowdown intensified in the third quarter of the year, due to continued high inflation, supply chain problems and tighter financial market conditions. Contrary to the dim outlook for mainstream markets, alternative assets like fine wine performed well. The leading fine wine indices made gains this quarter, largely driven by Sterling weakness. The US Dollar hit historic highs against the pound, increasing the purchasing power of USD buyers who took advantage of the newly created opportunities.

Champagne was once again in prime focus. Its market share increased from 11.2% in Q2 to 15.8% in Q3, while its price index rose 5.4% over the past three months. It is now the best performing region over one year, outperforming even Burgundy. Bordeaux also enjoyed increased demand, particularly for ‘on’ vintages like 2009, 2010 and 2019. This autumn saw the anticipated revision of its Saint-Émilion classification, with the promotion of Château Figeac to Premier Grand Cru Classé A status. Following the announcement, many of Figeac’s older vintages like 2008 and 2013 set new pricing records.

All of the top-performing wines can be seen on Wine Track, which helps investors track wine prices over any given period.

The past three months also welcomed many new wine releases via La Place de Bordeaux, including the 2019 vintage of the Super Tuscans Masseto and Solaia and the Napa Valley icons Cardinale and Joseph Phelps Insignia. The campaign has now expanded to over 100 wines from 32 regions across 11 countries. Our Q3 report points out some of the best value opportunities.

WineCap’s independent market analysis showcases the value of portfolio diversification and the stability offered by fine wine. Download this report for your summary of the past quarter in fine wine.

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News

Rothschild Group to Expand into Central Otago

Akarua vineyard in the sun

The Bordeaux-based Edmond de Rothschild Heritage Group has received approval from New Zealand’s Overseas Investment Office to purchase the Akarua winery and vineyard. This takeover will enable the group to make its first organic wines.

The 52-hectare Akarua estate is located close to Cromwell in the Central Otago region. The group intends to convert the vineyard to organic viticulture. 

However, this is not The Rothschild Group’s first New Zealand purchase, it made a joint purchase in 2012 with Craggy Range of the 24-hectare Rimapere vineyard in Marlborough that is planted with Sauvignon Blanc.   

Commenting on the purchase, president of the Edmond de Rothschild Group – Ariane de Rothschild – highlighted that the Bannockburn soils were ‘on par with the Burgundy region’ and that they had the potential to create some of the world’s finest Pinot Noir.

Expanding further on the group’s strategy, she said: ‘The addition of our second New Zealand winery is part of our wider strategy to develop a portfolio of premium international wines from exceptional terroirs. Central Otago’s international reputation for Pinot Noir provides a unique opportunity for us to complete our range and move into the production of organic wines – one of the fastest growing categories.’

‘The purchase of Akarua has seen us add a winery with strong growth potential to our portfolio, expanding our Pinot Noir offering and solidifying our position as a premium producer that sells wines exclusively produced from our own vines,’ commented chairman of Edmond de Rothschild Heritage, Alexis de La Palme.

Sir Clifford Skeggs founded the Akarua estate in 1996. David Skeggs, managing director of the Skeggs Group, said of the recent acquisition: ‘It is not without sadness that we hand over the Akarua legacy to Edmond de Rothschild Heritage… But we are equally as excited to follow the brand’s future in New Zealand and overseas.’

Akarua currently produces over 60,000 bottles annually for both domestic and export markets. The wine will continue to be made and, from the 2023 vintage and beyond, certain elements of the Rothschild’s family crest will be included on the label. 

Edmond de Rothschild Heritage owns assets in wine, hotels and farming. Iconic wine brands in its portfolio include: Bordeaux’s Château Malmaison and a leading stake in Château Lafite Rothschild, Vega Sicilia in Spain and Rupert & Rothschild Vignerons – with the Rupert family – in South Africa’s Franschhoek Valley.

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Learn

Fine Wine & Sterling: Opportunities for Asian & American Investors

Investor working out sums on calculator

While the plummeting pound may be bad news for many stock market investors in the UK, overseas fine wine collectors can pick up once-in-a-lifetime bargains. In this article, we’ll uncover why the strong dollar and weak pound represent a unique opportunity for investors in the US and Asia.

The pound has fallen, fine wine has not

To avoid dealing with burdensome conversion rates, fine wine is generally traded in sterling. Bottles from all over the world are listed and compared in British pounds on the global market.

This means that as the foreign exchange rates ebb and flow, the prices of the wine can seem more or less expensive to overseas investors. For example, on the 12th of February 2018, a bottle costing £1,000 would have set back US buyers $1,402.60. The following month, on the 12th of March 2018, the same bottle costing £1,000 would have come to $1,394.30 [1]. Usually, with stable currencies, you would expect the differences to be relatively marginal. High-end investors probably wouldn’t give too much importance to a couple of dollars difference when they are spending thousands.

Recently, however, the value of sterling has fallen dramatically against the US dollar. The pound has nose-dived to the lowest value in forty years, which is excellent news for opportunistic investors overseas. Buyers who deal in dollars can pick up exquisite wine for exceptionally low prices. On Tuesday 27th September, the same £1,000 bottle would cost US investors just $1,080. For collectors over the pond, Black Friday has come early in the wine markets.

US & Asian investors surge forward

Data from Liv-ex shows that many overseas investors have already taken advantage of the plunge in prices. As the pound began to tumble on Friday 23rd September, US buyers became more active. By Monday morning, they had accounted for 39.1% of trade, more than double the previous weekend of 16.9% [2].

Investors in Asia also took part in the advantageous market. Some currencies such as the HK dollar are linked to the US dollar, so investors in Hong Kong could also ride the favourable FOREX wave. But even currencies which are not directly linked to the US currency could benefit from the low sterling.

Although the Chinese Yuan has also suffered historic lows against the US dollar recently, it’s still doing relatively better than the pound. Buying fine wine in sterling means these investors can also benefit from superior exchange rates. Over the weekend from the 23rd to the 26th of September 2022, Asian buyers also accounted for the larger share of Liv-ex trading volumes. Around 11.7% of all movements came from Asian investors in September, up from 8% in August.

More buyers are (probably) good for the market

As the old economic theory states, when demand exceeds supply, prices rise. Over the long-term, having a more varied and international group of buyers is likely to be a good thing for fine wine investors. It could lead to higher prices and more liquidity, which is almost always welcome.

As new buyers reveal themselves it will be interesting to see how they react to market events. At the time of writing, fine wine is a famously recession-resistant investment. This is partly because the market is niche and not susceptible to stock market fluctuations. However, if too many investors enter, seeking to shield from market shocks with short-term alternative income sources, this could reduce some of wine’s recession resistance.

Overall, however, more buyers – especially those who are less impacted by the value of the pound – are likely to bolster and raise the fine wine market.

How long will the low prices last?

It’s impossible to predict how long the weak sterling will last. What we can say with relative certainty is that the sudden drops over recent weeks have been triggered by internal political events. Specifically, the change of UK Prime Minister, radical tax plans and proposed national deficit increase have spooked investors.

On the morning of the 28th of September, the Bank of England stepped in to buy up government bonds. This saw a small uptick in the strength of the pound, which indicates that it is still possible for the pound to regain some of its power, with the right intervention. We also do not know at this stage if all of the proposed tax cuts and borrowing will go ahead. If they are abandoned, we could see the markets breathe a sigh of relief and the pound could resurface too.

For US and Asian investors looking to buy up exquisite wine at exceptional prices, there’s no time like the present. Precious bottles can also be an excellent shield against inflation, helping investors maintain the value of their wealth in spite of any market turmoil outside.

 

[1] Source: MacroTrends

[2] Source: Liv-ex

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News

Pinault Family forms Merger with Maisons & Domaines Henriot

Bottle of Henriot Champagne

The French billionaire and luxury goods magnate, Francois Pinault, has revealed a new merger with Maisons & Domaines Henriot. This deal will combine highly sought-after names in fine wine such as Bordeaux’s Château Latour, Burgundy’s Clos de Tart and Champagne Henriot all in one group.

This new group will adopt the name ‘Artémis Domaines’. With this new announcement, it was revealed that Francois Pinault will hold a 75% stake in the group, with the families behind Henriot controlling the remaining quarter.

This merger further consolidates the high-end French fine wine business. In recent years it has attracted investment from both foreign and corporate players, especially in regions such as Burgundy that historically was predominantly made up of boutique, family-run wineries. 

Brands that will now fall under Artémis Domaines include: Burgundy’s Clos de Tart and Domaine d’Eugenie – from the Pinault family – as well as Burgundy’s William Fèvre and Maison Henriot in Champagne, from Henriot. 

According to a statement, this new merger represents ‘a guarantee that a French group will ensure the long-term preservation’ of these brands and their winemaking expertise.

‘The merger of Maisons & Domaines Henriot and Artémis Domaines is a wonderful opportunity to bring together the treasures of our wine heritage under the same banner,’ Francois Pinault commented.

Further afield, Artémis Domaines will also be in charge of producers including Beaux-Frères in Oregon and Eisele Vineyard in California’s Napa Valley. Pinault is 86 years-old and has an estimated fortune of over $30 billion and is also an avid art collector, counting Christie’s in the family’s holdings also. 

This move sees Pinault strengthen the group against the other major luxury player in fine wine and fashion – LVMH – which owns Bordeaux’s Château d’Yquem and Château Cheval Blanc, as well as Burgundy’s Domaine des Lambrays and the Champagne brands Krug and Dom Pérignon. Read more about LVMH’s recent acquisition of California’s Joseph Phelps.