Month: February 2025

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Understanding Burgundy’s quality and ownership divisions

Burgundy wine region

Following on from our guide on Burgundy’s sub-regions, we turn our focus to the region’s quality and ownership divisions, which are equally integral to understanding what makes Burgundy’s wines so exceptional.

Quality divisions

Grand Cru
At the pinnacle of Burgundy’s wine hierarchy are the 33 Grand Crus, which represent around 2% of total production. These wines are the epitome of excellence, with yields restricted to a maximum of 35 hectolitres per hectare (hl/ha) and often far lower. Revered for their age-worthiness, these wines generally require five to seven years to begin showing their potential, with many capable of aging for decades. Grand Cru wines are among the most prestigious and collectible in the world.

Premier Cru
Premier Cru wines, comprising 12% of Burgundy’s production, are crafted from 640 officially recognized superior vineyard sites. With permitted yields of up to 45 hl/ha, these wines showcase the terroir’s expressive character. They typically require three to five years of aging but can develop even greater complexity with extended cellaring. These wines are highly regarded by connoisseurs for their balance of quality and accessibility.

Village Wines
Village wines account for 36% of Burgundy’s production and are produced under 44 communal appellations. These wines can be blends from various vineyards within a village or from single, unclassified plots. With a yield allowance of 50 hl/ha, Village wines offer excellent value for money and are known for their approachable nature. While they are often enjoyed young, many can be aged for two to four years or more, depending on their origin and vintage.

Regional Appellations
Regional appellations, collectively known as Vin de Bourgogne, make up nearly half of Burgundy’s total production. With yields of up to 70 hl/ha for reds and 75 hl/ha for whites, these wines are ideal for everyday enjoyment. While they lack the investment potential of higher classifications, they offer an accessible introduction to the region’s styles and are valued for their straightforward appeal.

Ownership Divisions

Monopoles
Monopoles are vineyards with a single owner, a rarity in Burgundy where fragmented ownership is the norm. There are fewer than 50 monopoles in the entire region, and many are associated with some of the most iconic wines. Examples include Domaine de la Romanée-Conti’s Romanée-Conti, Domaine du Comte Liger-Belair’s La Romanée, and Domaine du Clos de Tart’s Clos de Tart. These monopoles exist across Grand Cru, Premier Cru, and Village levels, and their exclusivity adds to their allure.

Domaine Wines
A domaine refers to an estate that grows its own grapes and produces its wine in-house. This approach allows the producer complete control over viticulture and winemaking, ensuring consistency and quality. Domaine wines are highly esteemed for their reflection of the estate’s unique terroir and meticulous craftsmanship. These wines are considered benchmarks of Burgundy’s artisanal winemaking tradition.

Négoce Wines
A négociant is a merchant who sources grapes, juice, or finished wine from growers and produces wine under their own label. While some perceive négociant wines as inferior, many are of exceptional quality due to the long-standing relationships between négociants and growers. This collaborative model enables access to fruit from top-tier vineyards, allowing skilled winemakers to craft extraordinary wines. Prestigious négoce producers, such as Maison Leroy, often rival their domaine counterparts in quality and acclaim.

Looking for more? Read our Burgundy Regional Report, which delves into the fundamentals of this fascinating region and the development of its investment market.

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Italy | Regional Report

Italy Regional Report

Italy is the world’s largest wine producer, responsible for over 6.5 billion bottles annually across nearly two million acres of vineyards. While its dominance in the mass wine market is undisputed, Italy’s fine wine sector has undergone a transformative journey over the last half century. The introduction of ‘Super Tuscans’ like Sassicaia and Tignanello marked the beginning of a revolution in the 1970s, elevating Italy’s global reputation.

Today, Italy stands as one of the most dynamic and resilient regions in the global fine wine investment market. Once overshadowed by Bordeaux and Burgundy, Italy now commands over 15% of the secondary fine wine trade by value, with a growing number of investment-grade wines. The dual appeal of Piedmont and Tuscany, alongside emerging regions such as Veneto and Sicily, has positioned Italy as a compelling choice for portfolio diversification.

Our Italy Report delves into the fundamentals of this fascinating region, including the development of its investment market, historic performance, and key players.

Discover more about:

  • Italy’s accessibility and affordability
  • The complimentary roles of Tuscany and Piedmont
  • Italy’s top emerging regions
  • The best-performing wines
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Are Bordeaux classifications still relevant for investors?

WineCap has conducted a series of interviews with key figures at major Bordeaux estates. Today we shed light on their perspectives on the relevance of historic classifications. 

  • Left and Right Bank producers think the 1855 and 1955 classifications are still important reference for investors.
  • Branding influence represents a counter pattern. 
  • Market forces bring lower-tier Growths to the fore but not trend-setting.

The majority of a tranche of wine producers interviewed by WineCap from both the Left and Right banks are confident that Bordeaux classification systems remain relevant, citing historical framework and terroir as the main factors in determining wine quality and value.

Châteaux also think that the 1855 Classification of Bordeaux and the Saint-Émilion Classification of 1955 will continue to have an impact on wine investor and consumer choices in the decades ahead.

‘This is the classification of terroir,’ said Château Cheval Blanc CEO, Pierre-Oliver Clouet. ‘The (original) classification was very clear and continues to be the same today’.

The classification systems

The 1855 Classification of Bordeaux is a ranking of the top wines from the Left Bank’s Médoc region, Graves, Sauternes and Barsac. It was established to coincide with Napoleon III’s Exposition Universelle de Paris, with wines categorised according to reputation and market price from Fifth to the top ranking of First Growth. With the exception of minor changes, it has never been altered. The houses in the highest level are Latour, Lafite Rothschild, Mouton Rothschild, Margaux and Haut Brion.

On the Right Bank, a wine classification hierarchy was founded in 1955 covering Saint-Émilion and Pomerol. Updated every decade with the last review held in 2022, it grades wines into the top tier of Premier Grand Cru Classé A, Premier Grand Cru Classé B, and the broader category of Grand Cru Classé.

Staying power

Philippe Bascaules managing director of First Growth Château Margaux said soil was the defining factor in the 1855 ranking. ‘I think for 90%, it’s still relevant because the quality of the wine is given by the soil, and the soil doesn’t change’. 

Philippe Blanc General Manager Château Beychevelle referred to the enduring legacy of the 1855 system. The Saint-Julien house that he oversees is ranked as a Fourth Growth and he does not see this changing in the future. 

‘I don’t think any serious people have ever written that first growths didn’t deserve their place,’ he told WineCap. ‘I would say in 30 years’ time, stick to the 1855 classification in Médoc’.

Vincent Millet, General Manager at the Third Growth Château Calon Segur in Saint-Estèphe agrees. ‘The 1855 classification was based not only on the observation of the winegrower through the constitution of his vineyard, but also of his wines,’ he said. ‘For me, it makes no sense to question it, because in a way, it reflects the potential of the different appellations’. 

Christian Seely is the managing director of AXA millésimes, the company that owns Second Growth Pichon-Baron in Pauillac. He hints at the foresight of the original ranking framework. ‘I would say that where around 80% of the châteaux were in the classification in 1855 is where they ought to be today. I don’t think another 20 years is going to change that’.

Brand over classification

However, as the global wine landscape shifts and changes, a significant number of Bordeaux winemakers are putting equal weighting in branding and, in some cases, over classification systems. 

Julien Barthe, the co-owner and managing director of Premier Grand Cru Classé B, Château Beau-Séjour Becot in Saint-Émilion is of this number. ‘We were very lucky in Beau-Séjour Becot because we were classified as Premier Cru Classé in 1955. Why? Maybe because we are a good winemaker family, but for sure because we have unique and outstanding soil and terroir’. 

Despite his acknowledgment of ranked terroir quality, Barthe believes that a house’s brand is gaining traction. ‘Do you know Beau-Séjour Becot or do you not know Beau-Séjour Becot? I really think that the brand will be more important than the classification’. In the last decade, their average wine price has risen 60%, outperforming fellow estates, La Mondotte, Clos Fourtet and Larcis Ducasse.

Calon Segur’s Vincent Millet agrees: ‘What is most interesting today is not so much the classification, but the strength of the brand. For example, you have properties that are ranked fifth in the classification and which have a reputation. A strong brand can be more important than certain Second great classified growths of Margaux, for example. We at Calon Ségur have this strength, this brand that we maintain through the quality of our wines’.

General Manager of Saint-Émilion Grand Cru Classé, Château La Dominique, Gwendoline Lucas said that both Right and Left Bank classifications were becoming irrelevant. ‘Today the consumer doesn’t drink First, Second or Third Growth or Saint-Émilion B or A. They drink a wine they know. They know the style of the wine, so they will drink Château La Dominique rather than Saint-Émilion Grand Cru Classé. So, I would say that the brand, the history and the wine itself, will override classification’. 

From an investing perspective, La Dominique has enjoyed a 96% price increase since 2015.

Lower tiers’ achievements

WineCap interviewees recognised the above-average performance of Growths from the lower end of the 1855 classification but were not certain that this constituted a solid trend.

Pichon-Baron’s Seely said: ‘You obviously get exceptional cases of some châteaux outperforming in relation to their classification. You have a Fifth Growth that performs like a Second Growth, and perhaps there are just one or two that perform a little lower than their original ranking. But those cases actually, I think, are the exceptions rather than the norm’. 

Evolution of Bordeaux’s investment performance

Bordeaux remains the most important wine investment region, accounting for over a third of the fine wine market by value today with a 200% average growth on top labels since 2005. The First Growths, their second wines and “super second” estates are often the cornerstones of investment portfolios. 

To find out more about the region, read our Bordeaux Regional Report.

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How is the price of fine wine determined?

Bordeaux Chateau and vineyard
  • Fine wine prices are influenced by a range of factors – from age to critical acclaim and storage conditions. 
  • Certain wine regions carry inherent prestige that elevates their pricing.
  • Bordeaux First Growths, Burgundy Grand Crus, and Napa cult wines typically hold the highest average prices due to global demand and scarcity.

Fine wine prices are shaped by a mix of tangible and intangible factors, each playing a crucial role in determining a wine’s market value. For collectors or investors treating wine as an alternative asset, understanding how these prices are established is essential. The fine wine market behaves differently from stocks or traditional commodities, yet follows clear principles around scarcity, quality, provenance, and demand.

In this guide, we break down the key influences behind fine wine prices, from production realities to global market trends and the behaviour of auction houses and collectors.

The price of fine wine is influenced by a combination of tangible and intangible factors. For anyone interested in wine investment, understanding these factors is essential to making informed decisions. This guide explores the key elements that determine the price of fine wine, from production to market dynamics.

Producer and brand reputation

One of the most powerful drivers of fine wine prices is producer reputation. In renowned regions such as Bordeaux, Burgundy, Tuscany, and Napa Valley, a small number of elite estates have built global prestige over centuries.

Producers such as Domaine de la Romanée-Conti, Château Latour, Masseto, and Screaming Eagle consistently command premium prices because:

  • their wines have a long track record of excellence

  • collectors trust their craftsmanship

  • demand outstrips supply year after year

Even wines from emerging or lesser-known estates within these regions benefit from the halo effect of high-prestige appellations.

Reputation is a form of currency in the fine wine markets – one that contributes significantly to long-term appreciation and price stability.

Vintage quality

The quality of a vintage year is a foundational element in determining fine wine prices. Weather conditions during the growing season impact grape ripeness, concentration, acidity, and overall structure.

Exceptional vintages often receive strong critical acclaim, accelerating early demand and pushing up prices in both primary and secondary markets. Examples include:

  • Bordeaux 1982, 2000, 2009, 2010

  • Burgundy 2005, 2010, 2015

  • Champagne 2008, 2012

  • Napa Valley 2013, 2016

These highly rated vintages often see long-term appreciation as collector interest endures.

On the other hand, weaker vintages may grow in value more slowly but can still appreciate over time if produced by top estates with strong brand equity.

Scarcity and production volume

Scarcity is one of the strongest long-term drivers of fine wine prices. Wines produced in limited quantities or from small vineyard sites can become highly collectible, especially when combined with rising global demand.

Key scarcity factors include:

  • small vineyard size (e.g., Burgundy Grand Cru parcels)

  • tiny production quantities (e.g., cult wines like Screaming Eagle)

  • ageing windows that encourage consumption, shrinking supply globally

  • strict allocations, limiting the volume released to each market

As bottles are opened worldwide, the remaining supply becomes increasingly rare. This dynamic is central to why fine wine is considered a reliable long-term luxury asset for investors looking to diversify their portfolios.

Critical scores and reviews

The influence of major critics – such as Robert Parker, Jancis Robinson, Neal Martin, and Antonio Galloni – extends across the wine market. High scores can increase a wine’s value almost overnight.

A wine that receives 100 points from a leading critic often experiences:

  • an immediate spike in demand

  • rapid price appreciation

  • greater visibility at wine auctions

  • a strong long-term reputation

Wines with consistently strong critical track records tend to demonstrate more resilient pricing across market cycles.

Conversely, wines with poor or average reviews may struggle to outperform, even if produced by respected estates.

Provenance and storage conditions

Provenance – the verified history of a wine’s ownership and storage conditions – is vital in determining its market value. Buyers pay a premium for wines with impeccable provenance, often stored in:

  • bonded warehouses

  • producer cellars

  • trusted merchant facilities

Perfect provenance assures collectors that the wine has been stored correctly, preserving quality and value. Auction houses frequently highlight provenance as a core selling point, and wines sourced directly from estates often achieve superior prices.

Market trends and global demand

Fine wine prices do not exist in isolation. Global market trends, economic conditions, and consumer behaviour all shape demand.

Factors influencing the broader wine market include:

  • widening wealth in emerging markets

  • shifting preferences toward Burgundy, Champagne, and Tuscany

  • currency fluctuations

  • macroeconomic stability

  • rising interest in biodynamic and organic wines

  • growth of digital trading and globalised auctions

For example, surging demand from Asia over the last decade has contributed to extraordinary appreciation in Burgundy prices. Similarly, Champagne’s increasing popularity as both a collectible and a safe-haven luxury asset has pushed demand for prestige cuvées like Dom Pérignon, Cristal, and Krug.

Tracking global demand helps investors anticipate future price movements and identify opportunities across regions.

Age and maturity

A wine’s age is closely tied to its market value. As fine wines mature, they often enter their optimal drinking window, increasing desirability.

Collectors will pay more for wines that are:

  • perfectly stored

  • approaching or at peak maturity

  • ready to drink immediately

For example, a young First Growth Bordeaux might sell for £400 on release, but reach £800–£1,000 once its drinking window opens. Much older wines can appreciate even more dramatically due to extreme scarcity.

This age-driven evolution is one reason many investors treat wine as a multi-year, low-volatility strategy rather than a short-term investment.

Regional prestige and classification systems

Certain wine regions carry inherent prestige that elevates their pricing. Fine wines from the regions below regularly outperform less renowned regions in terms of long-term appreciation.

  • Bordeaux

  • Burgundy

  • Champagne

  • Tuscany & Piedmont

  • Napa Valley

Formal classification systems – like the Bordeaux 1855 Classification or Burgundy’s Grand Cru hierarchy – further reinforce value by signalling quality and exclusivity.

Wines from higher classifications consistently command premium pricing and often show superior secondary-market performance.

FAQ: Fine Wine Prices

Why do fine wine prices differ so much between producers?

Producer reputation, track record, and regional prestige significantly influence pricing. Top estates with limited production naturally command higher values.

Do fine wine prices always increase over time?

Not always. While many investment-grade wines appreciate, price performance varies by vintage, producer, storage, and global market trends.

How do wine auctions affect fine wine prices?

Auction houses help establish benchmark pricing. Rare bottles with great provenance often achieve record prices, influencing global perceptions of value.

Is fine wine a safe alternative investment?

Fine wine is considered a low-volatility luxury asset with strong long-term performance, making it a popular portfolio diversifier.

What role does provenance play in wine prices?

Perfect provenance can dramatically increase a wine’s value.

Which regions tend to have the highest fine wine prices?

Bordeaux First Growths, Burgundy Grand Crus, and Napa cult wines typically hold the highest average prices due to global demand and scarcity.

WineCap’s independent market analysis showcases the value of portfolio diversification and the stability offered by investing in wine. Speak to one of our wine investment experts and start building your portfolio. Schedule your free consultation today.

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‘Snake’ wines for Chinese New Year

1989 Chateau Haut Brion wine bottle
  • 2025 marks the Year of the Wood Snake, with previous vintages under the same zodiac sign including 2013, 2001, 1989, and 1977.
  • The Chinese zodiac has traditionally had an impact on wine demand in Asia, which in turn affects the price performance of highly sought-after wines. 
  • We highlight the best regions and wines from past ‘Snake’ years.

The Chinese zodiac continues to influence fine wine trends in Asia, particularly around Lunar New Year. 2025 marks the Year of the Wood Snake, with previous vintages under the same zodiac sign including 2013, 2001, 1989, and 1977. Below we explore the best regions and wines from these ‘Snake’ years and their investment appeal.

The significance of the snake in Chinese culture

In Chinese tradition, the Snake symbolises wisdom, intuition, and elegance. The Wood Snake specifically reflects growth, creativity, and a steady rooted approach to success. These traits align well with the qualities sought after in fine wines: depth, complexity, and balance. Lunar New Year celebrations often include gifting wines that embody these ideals, making vintages from previous Snake years highly sought-after. 

Past ‘Snake’ vintages

2013

A cooler vintage in many wine regions, 2013 produced exceptional wines in Napa Valley, Burgundy and the Rhône. Burgundy excelled with refined reds and whites celebrated for their freshness and purity, with the best examples coming from notable producers such as Domaine de la Romanée-Conti and Comte Georges de Vogüé.

In Napa Valley, a warm, dry autumn contributed to standout Cabernet Sauvignon wines, including iconic labels like Opus One, Dominus, and Screaming Eagle earning high critical appraisal. These highly sought-after wines are likely to enjoy increased demand and rising prices in light of the year of the Snake. 

The Rhône also over-delivered in 2013, with M. Chapoutier’s Ermitage Le Pavillon and Guigal’s single-vineyard wines demonstrating the vintage’s potential. In Italy, Barolo and Barbaresco shone brightly, with producers like Gaja and Vietti crafting wines with great ageing potential. 

2001

Hailed as a classic vintage across several regions, 2001 is especially prized for high-end Bordeaux, which is now reaching its peak. Highlights include renowned estates such as Château Latour, Château Margaux, and Château d’Yquem. The latter achieved a perfect score from Robert Parker, cementing its status as one of the finest sweet wines of the century.

Italy’s Barolo region experienced a legendary year in 2001. Wines from Bruno Giacosa, Bartolo Mascarello, and Giuseppe Rinaldi are benchmarks of the vintage. Meanwhile, the Rhône delivered one of its best years, with Guigal’s La La wines setting new standards for Syrah.

1989

Widely regarded as one of Bordeaux’s greatest vintages, 1989 produced rich, opulent wines with excellent ageing potential. Standouts include Château Haut-Brion, which earned a perfect score from Robert Parker, and Pétrus. In Sauternes, Château d’Yquem once again delivered a reference point for the region.

Beyond Bordeaux, Germany enjoyed a successful year for Riesling. The Mosel and Rheingau regions produced highly collectible wines, celebrated for their vibrant acidity and age-worthy structure. These Rieslings remain a cornerstone for those seeking top-quality German wines.

1977

1977 was a triumphant year for Port production, which has made vintage Port from producers like Taylor’s, Fonseca, and Graham’s a cornerstone for collectors focused on fortified wines. Noteworthy wines from other regions include Domaine Leroy in Burgundy and Château Pichon Lalande in Bordeaux still surprise with their enduring quality and long drinking windows.

Market appeal of ‘Snake’ vintages

Buyers can find regional highlights across all of these Snake-year vintages that are likely to see increased demand in 2025, whether it is 2013 Napa or 1989 Bordeaux. The cultural significance of the snake adds an extra layer of allure in Asian markets, where symbolism often plays a role in purchasing decisions.

WineCap’s independent market analysis showcases the value of portfolio diversification and the stability offered by investing in wine. Speak to one of our wine investment experts and start building your portfolio. Schedule your free consultation today.