Category: Insight

Categories
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. 

Categories
Insight

Invest in Champagne

Worker riddling bottles of Champagne

Considering investing in Champagne?

It’s not necessarily the most costly, nor the rarest of fine wine. However, Champagne is supremely consistent, making it arguably one of the strongest and most appealing sectors of the fine wine market.

Its steadfast presence can be attributed to its brand strength, liquidity and an aura of exclusivity it maintains despite being well-known in the main. 200-plus years of expert marketing by the best producers is what arguably makes Champagne the most broadly understood luxury good in the world.

As with all fine wine, as Champagne ages, its quality improves. As it is consumed, its supply decreases. This virtuous circle drives prices over time. This luxurious bubbly tends to be released later than other investable wines and as consumption begins in earnest immediately, we can see the impact of this cycle faster.

Top Champagne Brands to look out for

For those considering investing in Champagne, the most important brands to keep in mind are Dom Pérignon, Cristal, Krug, Taittinger and Salon. Volumes produced vary considerably from producer to producer. Dom Pérignon is widely believed to make around 4,000,000 bottles a year across all their wines. In contrast, in 2020 Salon released just 8,000 bottles of their 2008.

The Best Champagne Vintages

The strongest vintages include 1996, 2002 and 2008. Unlike in Bordeaux or Burgundy, producers tend not to release vintage wines every year, emphasising the exclusivity. This means there are vanishingly few ‘bad’ Champagne vintages. Although of course, some are superior to others, it is no more necessary to focus on only exceptional vintages in Champagne than it is in other regions.

Over the past five years Krug’s value is up 75% and Dom Pérignon up by 65%. These numbers demonstrate that Champagne is a smart addition to any diversified investment portfolio and should no longer be considered just a celebratory indulgence.

Want to find out more about investing in Champagne? Read our in-depth report here.

Categories
Insight

Ten of the most Expensive Wines in the World

Rack of expensive wines

Wine has been a staple at the dinner table and in people’s lives for centuries, but did you know the quality of wine increases over time? Which subsequently leads to an increase in value? These factors have made wine collection a popular hobby for many.

Wine collectors will buy rare and expensive wines, store them for a number of years and then sell them for a higher price. This is known as wine investment.

In this article, we take a look at ten of the world’s most expensive wines, summarising their prices, types, grape varieties and regions.

What makes wine so expensive? 

Collectible wines, or investment-grade wines, are wines that could increase in price from their original cost as time goes on.

There are several elements to question to find out whether your wine is investment-grade or not, such as:

  • Is the brand well known? Reputable brands create high-quality wines that have a high demand, which can mean a higher price.
  • Does the wine have positive reviews from reputable critics?
  • Will the quality increase when the wine ages?
  • How many bottles of the wine have been produced? A limited-edition wine is going to be more expensive than a winemaker that produces many hundreds of thousands of bottles a year.

Ten of the world’s most expensive wines

Taking into account what is mentioned above, we have looked into ten of the most expensive wines in the world and why they carry such a high price tag.

Domaine Georges & Christophe Roumier, Musigny Grand Cru

Producer: Domaine Georges & Christophe Roumier

Average price: £13,595

Wine type: Red

Grape: Pinot Noir

Region: Burgundy, France

Domaine Georges Roumier is a wine producer that creates highly commended and expensive wines, based in the village Côte de Nuits in France. The vineyard consists of over approx. 28.5 acres of land across multiple regions of Burgundy.

‘Grand Cru’ is a classification of the quality of wines produced across Burgundy and Alsace and is the highest grade you can get. It means that the land the grapes grow on and the vineyard itself is of high quality, reaffirming the value of the wine.

Château Margaux

Producer: Château Margaux

Price: $225,000 (gained by insurance reimbursement in America)

Wine type: Red

Grape: Bordeaux blend

Region: Bordeaux, France

A bottle of this wine, created in 1787, was said to be a part of Thomas Jefferson’s personal collection.

A wine trader called William Sokolin later acquired it and took it to a dinner in Bordeaux, where the waiter knocked it off the table and smashed the bottle. Sokolin was later reimbursed with $225,000 by his insurance company, but the bottle was originally thought to be worth $500,000.

Domaine Leroy, Musigny Grand Cru

Producer: Domaine Leroy

Average price: £31,691

Wine type: Red

Grape: Pinot Noir

Region: Burgundy, France

Founded in 1868 by wine merchant François Leroy, the Domaine (vineyard) is now owned by Lalou Bize-Leroy, who also owns Domaine d’Auvenay.

This dry red wine is produced from Pinot Noir grapes and is the by-product of biodynamic farming. This ethical approach to farming provides nutrients to the plants by using their own composting measures, as opposed to using chemical fertilisers. Although more labour intensive, this method produces high-quality crops and is better for the environment.

Krug Vintage Brut Champagne

Producer: Krug

Price: Sold for £14,800

Wine type: Sparking wine

Grape: Champagne

Region: Champagne, France

Krug is known for being one of the renowned houses in the Champagne region, making their wines some of the most sought-after and expensive in the area.

In 2009, a bottle of Krug Vintage Brut Champagne, created in 1928, was sold at an Acker Merrall & Condit auction in Hong Kong. At the time, it was the most expensive bottle of Champagne ever sold at auction.

Screaming Eagle Sauvignon Blanc

Producer: Screaming Eagle

Average price: £4,610

Wine type: White

Grape: Sauvignon Blanc

Region: Oakville, USA

Although not the most expensive wine on the list, this is one of the most expensive white wines from the North Coast of the United States.

Established in 1986, Screaming Eagle is based in Napa Valley in the USA and is one of the original cult wines to be created in the area. Its higher prices stem from their low production numbers.

Domaine Leflaive, Montrachet Grand Cru

Producer: Domaine Leflaive

Average price: £12,430

Wine type: White

Grape: Chardonnay

Region: Burgundy, France

This particular domaine does sell wines that are significantly cheaper, but as these grapes are harvested from vineyards with a Grand Cru classification, therefore increases their value.

This barrel-fermented wine has a buttery and citrus flavour.

Liber Pater

Producer: Liber Pater

Average price: The 2015 variety had an average price of £27,500

Wine type: Red

Grape: Bordeaux blend

Region: Bordeaux, France

This vintage wine was created in 2015, and due to its very low production numbers and the use of grapes from ungrafted vines, that makes them some of the most expensive wines in the world.

Château d’Yquem

Producer: Château d’Yquem

Price: Sold for £75,000

Wine type: Dessert

Grape: Semillon & Sauvignon Blanc

Region: Sauternes, France

A bottle of Château d’Yquem, created in 1811, was sold in 2011 at the Ritz hotel by the Antique Wine Company, rare wine experts. It was sold for £75,000 to Christian Vanneque, and at the time, the Guinness Book of World Records stated that was the most expensive standard bottle of white wine to be sold at auction.

The wine bottle is said to be on display in Mr Vanneque’s restaurant in Bali, protected by bulletproof glass.

Domaine Leroy, d’Auvenay Chevalier-Montrachet Grand Cru

Producer: Domaine d’Auvenay (part of Domaine Leroy)

Average Price: £23,439

Wine Type: White

Grape: Chardonnay

Region: Burgundy, France

Domaine d’Auvenay is owned by Lalou Bize-Leroy, making it part of Domaine Leroy. This four-acre estate, which is not solely for this particular Chardonnay, means that production numbers are small.

Egon Müller, Scharzhofberger Riesling Trockenbeerenauslese

Producer: Egon Müller

Average Price: £12,147

Wine Type: Dessert

Grape: Riesling

Region: Mosel, Germany

Based in the Saar Valley in Germany, the producer Egon Müller’s family has solely worked with the Riesling grape since their inception in 1797, creating a sweet dessert wine with citrus flavours.

Why should I invest in wine?

Wine is a great alternative to traditional investment methods like buying stocks or bonds. Expensive wines have very little connection to the global stock market and is a lot more consistent than gold and real estate.

Investing in wine also gives you a great excuse to expand your wine collection!

Your wine investment journey starts here

WineCap gives you access to the top investible wine allocations. Once we have discovered your preferences, you will have access to a vast portfolio of the most investable wines stored in secure government bonds.

We don’t charge a management fee and our brokerage charges are very low, so you have access to rare wines at a fair price.

To start your wine investment journey, schedule a consultation with one of our experts.

Categories
Insight

Is Buying Bordeaux En Primeur still a Good Investment?

Barrel room at Chateau Lynch-Bages

Bordeaux – a treasured destination for wine lovers the world over and a renowned benchmark of the fine wine market. But are Bordeaux En Primeur wines still considered a good investment?

Whether you’re a seasoned connoisseur or a budding wine investor, this article will help you decide whether investing in Bordeaux En Primeur wines is a worthy addition to your portfolio.

How buying ‘En Primeur’ wine works

En Primeur, also called ‘wine futures’, is a method of purchasing newly produced wine early on before it’s even been bottled and released onto the market. En Primeur wines are usually shipped to the buyer between 18 months and three years after being bottled.

En Primeur wines are bought ‘In Bond’ (i.e., exclusive of Duty and VAT). They are often cheaper than the future price of those wines when they become available to the open market (10%-30% cheaper, on average) because they’re being bought a good two years before the wine has been bottled, meaning they have only been reviewed and scored by a few critics.

The attraction of Bordeaux En Primeur

Buying En Primeur wine is a custom that dates back hundreds of years exclusively to the world-renowned wine region of Bordeaux, France. Indeed, it is a concept that is still highly regarded today.

It’s no secret that the Bordeaux region produces some of the world’s most prized wines. In fact, Bordeaux has been a staple in the cellars of seasoned wine collectors for centuries.

Sought-after due to their ageing potential – among other factors – buying Bordeaux En Primeur can often be the best way to secure particularly good vintages with limited availability and the strong potential to appreciate over time.

Other benefits of investing in Bordeaux En Primeur wines include:

  • You may be able to request a specific format for the wine, be it halves, magnums, or larger bottles.
  • When you buy En Primeur wine, you’re guaranteed provenance, given that you’re buying directly from the winery.
  • Some Bordeaux wines are simply impossible to obtain if one does not purchase them at such an early stage.

What are the risks involved with buying Bordeaux wine En Primeur?

As with any endeavour to obtain assets, investing in Bordeaux wines En Primeur is not without its risks.

First and foremost, there is no guarantee that any wines you buy En Primeur – be it the latest Bordeaux vintage or otherwise – will appreciate over time. There is, however, always the potential for your En Primeur-purchased wine to lose value over time.

What’s more, some critics of the En Primeur system say that selling wines in their youth doesn’t accommodate a proper review and rating of the vintage in question.

Further, it has been suggested that the Bordeaux negociant system is a ‘delicate’ one, as it can tend to reward buyers with a well-established purchase history, which can make the process difficult for new buyers.

Is Bordeaux En Primeur still a worthy investment?

To answer that question, let’s take a look at the investment potential of the Bordeaux 2020 vintage.

According to the Bordeaux En Primeur 2020 Report, the 2020 vintage was of excellent quality and yielded many outstanding wines. Here are some additional highlights from that report:

  • Production is down slightly in comparison to the 10-year average. This is largely due to hot weather affecting the grapes.
  • Despite disruptive factors such as the coronavirus pandemic, it is a well-priced vintage overall, though less consistent than the previous vintage.

So, is Bordeaux En Primeur still a worthy investment? Here’s what Alex Westgarth, CEO of WineCap, thinks:

‘When it comes to buying Bordeaux wine En Primeur, it all depends on the vintage. Anyone considering it should be aware of the balance between quality and price in a vintage.’

In addition to those wise words, it’s also important to keep in mind that it’s still quite early to be drawing such conclusions about the Bordeaux 2020 vintage.

Talk to our wine investment experts

We can build you a bespoke wine investment portfolio based on your established goals and budget.

For reliable, expert wine investment advice, simply schedule a FREE 30-minute consultation with one of our wine investment specialists.

Schedule your free consultation.

Categories
Insight

Our Top List of Tuscan Wines for Investment

A Tuscan vineyard

Italian wine is increasingly becoming hot property when it comes to wine investment. Last year was one of the category’s strongest when it came to trades, with an increase of 7%. Tuscany also performed remarkably well and, because of this, we have put together a list of Tuscan wines that are highly respected, built to age for years and that are leading the charge when it comes to investment grade wine.

The classic ‘Super Tuscans’ – including producers such as Solaia, Ornellaia and Tignanello (all having increased in trades in 2020 by 15%, 10% and 9% respectively) – began making incredible wines in the 1960s and 70s. These producers created standout wines using Bordeaux grape varieties and paved the way for others who are now gaining more and more recognition using other grape varieties, including Sangiovese.

Tua Rita is widely regarded as the producer who spearheaded the second wave of Super Tuscans, with its flagship wine Redigaffi. Like some of the greatest things in life, Redigaffi was created entirely by accident. In 1984, Rita Tua and her husband Virgilio moved to the quiet Etruscan coast to retire and cultivate wines for fun. Years later, and with 30 hectares of Merlot under vine, Redigaffi is now considered one of Tuscany’s finest wines that commands respect. This wine continues to gain momentum and we believe it would make an excellent investment option for those wanting to diversify their portfolio.

Second on our list of Tuscan wines is the top-flight Chianti producer Fontodi. Keeping a steady hand on the tiller at the Fontodi estate are Marco and Giovanni Manetti who have been making its predominantly Sangiovese-based wines since 1979. Their vision, expertise and commitment to quality continue to reap rewards: Fontodi’s Flaccionella della Pieve 2017 was one of last year’s top ten most-traded Tuscan wines & in the top 15 most-traded Italian wines. It represents a great diversification into a wine investment category that’s accelerated in the past 12 months.

Biondi Santi is one of the old, traditional Tuscan wine estates whose pioneering work propagating the Biondi Santi Brunello di Montalcino clone of Sangiovese cemented it as one of the region’s legendary producers. As perhaps the greatest expression of Brunello di Montalcino, this 100% Sangiovese wine aged for at least 36 months in oak is built to last for decades, if not longer. With the Riserva 2012 having all three ingredients that we would expect to appreciate: a historic brand, immense ageing potential and one of their highest ever scores – 97 points – it offers excellent value compared to top tier wines from other regions.

If you want to find out more about investing in Italian wines – and the growing Tuscan category in particular – schedule a free consultation with one of our investment experts.