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Older vintages dominate 2024’s best-performing wines

Domaine Pegau wine bottle
  • The biggest price risers in 2024 reveal a strong preference for older vintages.
  • The best-performing wine came from the Rhône, having risen 80.5% in value year-to-date.
  • Tuscany, Ribera del Duero, Bordeaux and Sauternes also featured in the rankings.

The biggest price risers in 2024 reveal a strong preference for older vintages, underlining the importance of time in achieving wine investment returns.  

The Rhône leads performance

Although Rhône prices declined 9.9% on average this year, the region gave rise to some of the best-performing wines.

Domaine Pegau Châteauneuf-du-Pape Cuvée Réservée Rouge 2013 led the charge with an impressive 80.5% rise. Other regional standouts, including Clos des Papes Châteauneuf-du-Pape Rouge 2014 (61.2%) and Château de Beaucastel Rouge 2013 (31.1%), highlighted the enduring demand for Châteauneuf-du-Pape from highly rated mature vintages.

Highlights from Spain and Italy

While the Rhône claims several top spots, other regions also showcase the profitability of mature vintages. From Spain, the 2010 Vega Sicilia Unico achieved a notable 24.9% increase. Known for its high quality and limited production, Vega Sicilia continues to represent Spanish winemaking at its finest, cementing its status as a blue-chip investment wine.

Italy made a strong appearance with the 2014 Fontodi Flaccianello delle Pieve, which has risen 6.8% in value. This Tuscan gem, crafted from 100% Sangiovese, reflects the growing international appeal of Italy’s finest wines. Collectors are increasingly drawn to Italy not only for its iconic producers but also for its remarkable balance of accessibility and age-worthiness.

Top performing wines of 2024

Bordeaux’s resilience

No fine wine discussion is complete without Bordeaux, and 2024 is no exception. While price growth among Bordeaux wines in this dataset may be more modest, the region’s consistency remains its hallmark. The 2013 Ducru-Beaucaillou saw a solid 19.2% increase, while the 2012 Chateau L’Eglise-Clinet also featured among the top performers. 

Two Château Rieussec vintages, the 2015 and 2014, reflected Sauternes’ consistent market performance, although the category is often overlooked.

The allure of maturity

The unifying thread across these top-performing wines is their maturity. Each wine has benefited from time in the bottle, allowing its market value to increase. Mature vintages offer an enticing combination of drinking pleasure and investment potential, a dual appeal that drives demand among collectors and investors alike.

This preference for older wines reflects a broader trend within the fine wine market: a growing appreciation for provenance and readiness to drink. As global markets for fine wine continue to mature, buyers are prioritising wines with a proven track record, both in terms of quality and price appreciation.

What this means for investors

The list of the best-performing wines of 2024 shows the importance of patience and long-term approach when it comes to investing. Additionally, diversification across regions and styles can help mitigate risk and enhance returns.

The performance of these wines provides a clear takeaway: older vintages remain at the forefront of the fine wine market. 

For more read our latest report “Opportunities in uncertainty: the 2024 fine wine market and 2025 outlook”.

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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Report – Opportunities in uncertainty: the 2024 fine wine market and 2025 outlook

Executive summary

  • Q4 was marked by political developments, changing economic policies, and geopolitical events, including the re-election of President Trump.
  • The strengthened US dollar boosted fine wine demand across the pond.
  • Fine wine prices fell 11% across major regions in 2024, reflecting a continued market correction. 
  • Italy was the most resilient fine wine region, while Burgundy experienced the biggest adjustment.
  • Rhône wines dominated the list of the best performing wines in 2024, with Domaine Pegau Cuvée Réservée Rouge 2013 leading (80.5%).
  • Older vintages (2010-2014) performed well, reflecting the market’s preference for mature, proven wines, while new releases struggled when not priced correctly.
  • Optimism for market recovery is focused on premium regions like Piedmont, Champagne, and Burgundy.
  • Economic uncertainties and mixed performance in Bordeaux are expected to persist, but continued interest in fine wine signals resilience and potential for long-term growth.

Q4 in context: political and economic drivers

It has been an eventful quarter, marked by political developments, changing economic policies, and geopolitical events. The re-election of President Donald Trump in November prompted a rapid response in global markets. US equities reacted positively to the outcome, as investors anticipated business-friendly policies and potential fiscal stimulus, particularly benefiting sectors like manufacturing and technology. However, concerns over increased tariffs created uncertainties for multinational corporations.

Rising US Treasury yields, driven by expectations of future interest rate hikes, attracted capital inflows, strengthening the US dollar. While this reinforced investor confidence in U.S. economic policies, it also raised concerns about higher borrowing costs and their potential drag on economic growth. Emerging market currencies faced downward pressure as fears of US trade measures and capital outflows grew.

In late November, a US-France-brokered ceasefire between Israel and Hezbollah took effect, reducing immediate geopolitical risks after over a year of hostilities. Despite the agreement, markets remained cautious, keeping a close watch for potential disruptions to the fragile stability.

Markets in 2024: the year that was

Bitcoin made headlines this month by surpassing the $100,000 mark for the first time, peaking at an all-time high of $104,000 on Coinbase. The surge was fuelled by growing investor optimism around a favourable regulatory environment under President-elect Donald Trump, who has signalled support for cryptocurrencies through key appointments and policy proposals.

Equity markets have also enjoyed a strong year, bolstered by a resilient US economy and easing inflation pressures. These conditions have allowed central banks to pause or slow rate hikes. Strong corporate earnings, particularly in the technology and AI sectors, have further propelled the S&P 500’s stellar performance.

The global energy market in 2024 has experienced notable fluctuations. Concerns over a potential global economic slowdown, driven by weak demand from China and other developed economies, have weighed on crude oil prices. While OPEC’s production cuts have provided some price support, they have not been sufficient to fully offset the impact of declining demand.

Meanwhile, gold has reaffirmed its role as a safe-haven asset in 2024. Persistent geopolitical tensions, inflation concerns, and financial market volatility have driven demand for the precious metal, supporting its strong performance throughout the year.

Market performance in 2024

*Current values: 06/12/2024

The fine wine market in 2024

The fine wine market in 2024 continued its downward trajectory from 2023, with broad declines across major indices. The Liv-ex 100 has fallen 9.2% year-to-date, while the Liv-ex 50, which tracks First Growth Bordeaux, is down 10.9%.

Despite these overall declines, the market showcased notable regional disparities and emerging opportunities. Examined at more length in the following section, Italy has been a beacon of resilience, while ‘overheated’ regions like Burgundy have readjusted.    

Notably, prices did not fall because of lower demand for fine wine. Market activity remained high, with the number of fine wine trades in 2024 surpassing 2023 by 7.9%. 

Regional fine wine performance

Regional fine wine indices performance in 2024

The fine wine market saw mixed performances as the year drew to a close. Italy stood out as the most resilient region, with prices falling 6% – a fraction of the 11.1% average decline in the Liv-ex 1000 index. High-scoring releases buoyed Italy’s secondary market, while diverse offerings such as Antinori Brunello di Montalcino Vigna Ferrovia Riserva (38%) underscored the country’s stability and value. Italy’s growing influence was evident in the 2024 Power 100 rankings, where it claimed 22 spots – nine more than last year – closing the gap on Burgundy and Bordeaux in terms of investor interest and price performance.

Burgundy has faced the greatest readjustment among all regions, with prices declining by 14.4% year-to-date. This correction followed years of meteoric growth and reflects a market adjustment as prices recalibrate. The decline has created opportunities for investors to acquire rare and prestigious labels at more accessible prices. Burgundy’s reputation as a cornerstone of fine wine investment remains intact despite this year’s setbacks, with long-term demand likely to persist.

Champagne also experienced a challenging year, with prices falling 9.8%. However, the region showed signs of stabilisation toward the end of the year. Older vintages led this recovery, with labels such as Taittinger Brut Millesime up 29%, signalling enduring interest in high-quality, aged Champagne. 

Bordeaux, the largest and most liquid fine wine region, saw an 11.3% decline. Liquidity remains Bordeaux’s strength, but it no longer guarantees safety in today’s market. Recent vintages in particular have struggled, with many trading below their release prices. 

California wines fell 8.6% but showed positive momentum in November. The region’s growing presence in the fine wine investment space has been driven by the rising popularity of brands like Dominus, Joseph Phelps, and Promontory.

Spanish wine also benefitted from surging US demand, with Vega Sicilia Unico taking the top spot as the most powerful fine wine brand in 2024. Two other Spanish wines also made the rankings – Dominio de Pingus and R. Lopez de Heredia – a testament to Spain’s growing investment potential.  

The best-performing wines in 2024

Top-performing wines of 2024

The Rhône dominated this year’s top-performing wines, claiming four of the ten spots on the list. Domaine de Pegau Cuvee Reservee Rouge 2013 led the charge with an impressive 80.5% rise. Other regional standouts, including Clos des Papes Châteauneuf-du-Pape Rouge 2014 (61.2%) and Château de Beaucastel Rouge 2013 (31.1%), highlighted the enduring demand for Châteauneuf-du-Pape from highly rated, older vintages.

Beyond the Rhône, Spain’s Vega Sicilia Unico 2010 (24.9%) showcased the strength of Ribera del Duero as a rising force in the wine investment market. Vega Sicilia also ranked as the most powerful wine brand in the 2024 Power 100 rankings. 

Bordeaux and Sauternes also featured. Château Rieussec took two spots with its 2015 (10%) and 2014 (7.2%) vintages. Meanwhile, Ducru-Beaucaillou 2013 (19.2%) and Château L’Eglise-Clinet 2012 (3.9%) showed that Bordeaux’s established names have continued to attract investment interest where there has been value on offer.

A clear trend this year was the strong performance of older vintages, with wines from 2010 to 2014 dominating the list. Only two ‘younger’ vintages, 2015 and 2019, appeared on the list and no new releases. This aligns with a broader preference for mature wines, which offer proven track records and immediate drinkability.

2024 takeaways

The market downturn has presented opportunities to acquire premium wines at more accessible price points, offering a chance to diversify portfolios with an asset known for its historically strong long-term performance.

For another year, Bordeaux En Primeur struggled to attract significant interest with the release of the 2023 vintage, especially for wines where older proven vintages offered better value. Economic uncertainty further highlighted the appeal of the classics. Iconic Bordeaux vintages – such as 2000, 2005, and 2009 – and Italy’s Super Tuscans stood out as stable investment options. These wines offered a combination of historical performance and consistent demand, reinforcing their status as cornerstone assets in fine wine portfolios.

Declining prices also brought rare and prestigious wines back into circulation, offering investors the chance to secure assets that were previously inaccessible. This period allowed for strategic acquisitions of iconic labels at attractive price points, setting the stage for potential long-term gains as the market stabilises.

Below the surface of the downturn, 2024 presented great buying opportunities, making it a pivotal year for investors, whether looking to enter the market or enhance their existing portfolios.  

2025 market outlook

The 2025 fine wine market outlook is cautiously positive, driven by optimism for premium regions such as Piedmont, Champagne, and Burgundy. Insights from the 2024 Golden Vines Report show that 64% of industry professionals anticipate market growth, particularly for high-end Italian wines like Barolo and Barbaresco, which are increasingly viewed as alternatives to Burgundy.

Key trends include rising demand for sustainability and terroir-driven wines. According to the report, Piedmont (20%) leads in growth potential, followed by Champagne (17%), Burgundy (14%) and Tuscany (12%), while Bordeaux faces mixed prospects, with 27% of the respondents expecting further declines. Challenges like economic pressures and geopolitical uncertainties persist but continued strong fine wine demand signals resilience in the market.

Fine wine remains the most popular collectible celebrated for its diversification benefits, sustainability and stability through different market environments.

Stay tuned for our 2025 Wealth Report, which will examine wealth and investment managers’ views and sentiments towards fine wine early next year.

See also – WineCap Wealth Report 2024: UK Edition

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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Mouton Rothschild: 2022 label and market performance

Mouton Rothschild 2022 wine bottle label
  • The 2022 Mouton Rothschild label has been revealed. 
  • Mouton Rothschild is the best performing First Growth over the last decade. 
  • The wine has also outperformed the Liv-ex 100 and Bordeaux 500 indices.

Unveiling the 2022 label

Bordeaux First Growth Château Mouton Rothschild revealed its 2022 label design on December 1st.  Created by French artist Gérard Garouste, the original artwork commemorates the 100th anniversary of Baron Philippe de Rothschild’s leadership at the family estate. 

The label showcases the château’s iconic front wall and a grapevine, elegantly framed by a portrait of Philippe de Rothschild and a ram, his signature emblem.

The tradition of artist-designed labels began in 1945, when Baron Philippe de Rothschild marked the end of World War II with a special artwork featuring a ‘V’ for victory, designed by Philippe Jullian.

As previously explored, this practice has significantly enhanced Mouton Rothschild’s collectability, and the wine’s value has typically risen in the month following the label reveal. 

Mouton Rothschild 2022 wine bottle label

Mouton Rothschild: ahead of the pack

While the artist designed labels alone are not the key drivers of Mouton Rothschild’s investment performance, the wine does lead the way among its peers. It is the best performing First Growth over the last decade. 

Mouton Rothschild prices have risen 50.3%, compared to 42.3% for Margaux and 36.9% for Haut-Brion. Both Lafite Rothschild and Latour have increased by close to 30% over the same period.

Bordeaux First Growths Wine chart

From the market’s low in June 2014 to its peak in September 2022, Mouton Rothschild recorded a 76% increase. It was the first First Growth to recover from the correction following the China-driven wine boom. 

During the recent market downturn, Mouton Rothschild has exhibited relative resilience. Prices have fallen 13.8% since its peak. Only Haut-Brion has seen a smaller decline of 13.1%. The biggest faller has been Lafite Rothschild, down 22.8% since September 2022. 

Mouton Rothschild and the broader market

Mouton Rothschild is also nicely positioned in the broader wine investment market. It has outperformed the industry benchmark, the Liv-ex 100 index, which is up 40.9% over ten years. It has also fared better than the Liv-ex 50 (17.5%), which tracks the price movements of the First Growths, and the broader Bordeaux 500 index (27.8%).

Mouton Rothschild performance

Mouton Rothschild has demonstrated consistent strength in the fine wine market, supported by its established history and strategic positioning. The estate’s practice of commissioning artist-designed labels has enhanced its collectability, strengthened by its reputation for quality.

The release of the 2022 label marks another milestone in the estate’s history. Mouton Rothschild’s performance, both in terms of relative resilience during market downturns and long-term growth, highlights its role as a reliable component in a well-diversified wine investment portfolio.

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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The best wine investment regions in 2024

Super Tuscan wine region Italy
  • Italy’s market performance has been the most resilient across all fine wine regions.
  • Burgundy prices have fallen the most in the last year. 
  • Champagne is showing consistent signs of recovery.  

The market downturn has affected all fine wine regions, arguably making it a great time to invest while prices are low. Today we take a deep dive into the performance of individual regions – identifying the most resilient markets, the best opportunities, and the regions offering the greatest value.

Italy: the most resilient market

Prices for Italian wine have fallen 4.1% in the past year – less than all other fine wine regions. By comparison, fine wine prices have fallen 11.6% on average, according to the Liv-ex 1000 index. 

Italy’s secondary market has been stimulated by high-scoring releases, like Sassicaia and Ornellaia 2021. Beyond the Super Tuscans, which are some of the most liquid wines, the country continues to offer diversity, stable performance and relative value. 

Some of the best-performing wine brands in the last year are Italian – all with an average price under £1,300 per 12×75, like Antinori Brunello di Montalcino Vigna Ferrovia Riserva (£1,267, +38%).

Other examples under £1,000 per case include Le Chiuse Brunello di Montalcino (+28%), Gaja Rossj-Bass (+27%), and Speri Amarone della Valpolicella Classico Monte Sant Urbano (+25%).

Regional wine indices chart

Burgundy takes a hit

Burgundy’s meteoric rise over the past two decades made it a beacon for collectors, but its steep growth left it vulnerable to corrections. In the past year, Burgundy prices have fallen 14.7%, making it the hardest-hit region. This downturn has released more stock into the market, creating opportunities for investors to access wines in a region often defined by scarcity and exclusivity.

Wines experiencing the largest declines include include Domaine Jacques Prieur Meursault Santenots Premier Cru (-41%), Domaine Arnoux-Lachaux Nuits-Saint-Georges (-35%), and Domaine Rene Engel Clos de Vougeot Grand Cru (-28%). For new entrants, these price drops offer a rare chance to acquire prestigious labels at relatively lower costs.

Champagne: on the road to recovery

Champagne has changed its trajectory over the last year: from a fast faller like Burgundy to more consistency and stability. While prices are down 10.6% on average, the dips over the last few months have been smaller than 0.6%. The index also rose in February and August this year, driven by steady demand. 

Some of the region’s most popular labels have become more accessible for buyers like Dom Perignon Rose (-14%), Philipponnat Clos des Goisses (-13%) and Krug Clos du Mesnil (-12%).

Meanwhile, the best performers have been Taittinger Brut Millesime (+29%) and Ruinart Dom Ruinart Blanc de Blancs (+28%), which has largely been driven by older vintages such as the 1995, 1996 and 1998.

The fine wine market in 2024 reflects a unique moment of transition. Italy’s resilience, Burgundy’s price corrections, and Champagne’s recovery illustrate a diverse set of opportunities for investors. With prices across the board at lower levels, this could be an ideal time to diversify portfolios with high-quality wines from these regions, anticipating long-term growth as the market stabilises.

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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Neal Martin’s top-scoring Bordeaux 2020 wines from the Southwold tasting

Southwold wine tasting
  • Vinous published Neal Martin’s assessment of Bordeaux 2020 from the annual Southwold tasting.
  • Martin placed the 2020 vintage ahead of the 2018 but behind 2019 and 2022.
  • With 99 points, Pichon-Longueville Comtesse de Lalande was Martin’s top-scoring wine. 

The annual Southwold tasting presents major critics with the opportunity to blind taste a Bordeaux vintage four years on in peer groups, mostly within appellations. 

Last week, Vinous published Neal Martin’s assessment of Bordeaux 2020 – a vintage ‘born in a tumultuous world,’ due to the onset of the Covid-19 pandemic. Despite the challenges, the critic argued that it bestowed ‘Bordeaux-lovers with a bevy of outstanding wines that should stand the test of time.’ 

Neal Martin’s thoughts on Bordeaux 2020

Martin described the dry whites as a ‘little hit-and-miss’ and the Sauternes as ‘very good rather than excellent.’ When it comes to the reds, however, the critic said that they ‘are going to give a great deal of pleasure.’

In terms of vintage comparisons, Martin placed 2020 ahead of 2018 but behind 2019 and 2022, which were more ‘crammed with legends in the making’. He wrote: ‘Perhaps 2020 doesn’t quite possess the vaulting ambition of those two vintages, though in some cases, it surpasses the best of both.’

His favourite appellation was Saint-Julien, which ‘raised the bar with a cluster of outstanding wines.’ The critic argued that this flight ‘solidified 2020 as a bona fide great vintage on the Left Bank.’ He described Margaux as ‘solid,’ with the ‘real superstar’ being the First Growth.

From Saint-Estèphe, Martin highlighted Montrose as ‘the standout of the appellation,’ with the biggest surprise being the 2020 Phélan Ségur, ‘one of the best values given its reasonable price.’

Neal Martin’s top-scoring Bordeaux 2020 wines

Due to the nature of the Southwold blind tasting – wines grouped by appellation – Martin’s scores were ‘a little lower than when [he] encountered these wines at the end of 2022’.

His top-scoring wine, Pichon-Longueville Comtesse de Lalande, received 99 points. He described it as ‘a fabulous Pauillac that flirts with perfection.’ 

The rest of the wines in the top ten received 98 points. The highest-scored First Growth was Margaux, which the critic claimed was ‘among the greatest wines of the 2020 vintage.’ The ‘captivating’ and ‘mesmerising’ Cheval Blanc also scored among the best wines from the vintage. So did Trotanoy (‘an outstanding Pomerol’), and Canon (‘God made wine so it can taste as good as this’).

Investing in Bordeaux 2020

All of Martin’s top 2020 wines have fallen in value since release, apart from Trotanoy. 

This is partly because of the overall market direction in the last two years, but also due to the availability of older and in some cases higher-rated vintages available at a discount.

As Martin rightly noted, ‘the top wines in this report not only compete against each other, but also with themselves in terms of alternative available vintages.’

The lower-than-average prices at the moment, however, present great buying opportunities, especially for brands with a positive long-term performance. 

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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The impact of trade wars and tariffs on fine wine investment

The impact of trade wars and tariffs on fine wine investment
  • As an internationally traded asset, fine wine is affected by economic and political factors including trade wars and tariffs.
  • Demand for certain wines and regions can shift as tariffs directly impact pricing, availability and liquidity.
  • Diversification and strategic investment are key to navigating the fine wine market amid trade wars and tariffs.

Over the past two decades, fine wine has transitioned from a luxury product to a well-established internationally traded investment asset. Like any asset enjoying global demand, fine wine is subject to the economic and political forces that shape international trade. 

Legislative decisions, such as changes in taxation and import duties, can directly impact its pricing and accessibility. Trade wars, tariffs, and protectionist policies further add layers of complexity, affecting demand, market stability, and ultimately, investment returns. This article explores how these trade factors influence the fine wine investment market and what investors need to consider.

How trade wars affect wine demand and pricing

Trade wars often involve the imposition of tariffs or import duties on goods traded between countries, which can create a ripple effect across industries and markets. When tariffs are imposed on wine, they can create price volatility, limit access to certain markets, and reduce liquidity, which can impact the investment performance of the affected wines and regions.

For example, in the ongoing trade tensions between the United States and the European Union, wine has frequently been a target for tariffs. In 2019, the USA imposed a 25% tariff on certain European wines in response to a dispute over aircraft subsidies. This tariff included wines under 14% alcohol, impacting popular wine-producing regions such as France, Spain, and Germany, but excluded Champagne and Italy. As a result, Champagne and Italy took an increased market share in the US; when the tariffs were lifted, Bordeaux and Burgundy enjoyed an immediate uptick.  

Market impact of the 2019 US tariffs on European wine: In 2019, Bordeaux accounted for 48% of the US fine wine market on average, according to Liv-ex. From October 2019 to the end of 2020, Bordeaux’s average share of US buying fell to 33%. Burgundy’s share also declined – from 13% before the tariffs to 8%. Conversely, demand for regions exempt from the tariffs rose significantly during this time. Champagne rose from 10% to 14%, Italy from 18% to 25% and the Rest of the World from 4% to 10%. Regions exempt from the 25% US tariffs also saw the biggest price appreciation in 2020. For the first time on an annual basis, Champagne outperformed all other fine wine regions. This led to its global surge. 

Market impact of the 2020 Chinese tariffs on Australian wine: In 2020, China imposed tariffs on Australian wine amid a series of blows to Australian exports, which had a profound impact on Australia’s budding secondary market. Since the tariff introduction, prices for some of the top wines dipped, creating pockets of opportunity. For instance, the average price of Henschke Hill of Grace fell 4%, while Penfolds Bin 707 went down 9%. Since the tariff suspension earlier this year, Australian wine is coming back into the spotlight. 

When it comes to pricing, tariffs can drive up the end cost of imported wine, particularly impacting markets where fine wine demand is driven by consumers with limited domestic alternatives. When tariffs make imported wines prohibitively expensive, consumers may turn to other regions or domestic products. 

From an investment perspective, the unpredictability of trade policies requires a strategic approach that accounts for potential regulatory changes in key markets.

Strategic wine hubs in tariff-influenced markets

In response to tariffs, some regions have positioned themselves as strategic wine trading hubs by offering tariff-free or reduced-tariff environments for wine trade. Hong Kong, for example, abolished its wine import duty in 2008, aiming to become the “wine trading hub” of East Asia. 

This decision has proven instrumental for the fine wine market in Asia, as investors from mainland China and other countries can access European wines without the additional costs that would apply if purchased domestically. As a result, Hong Kong has emerged as a leading location for wine auctions and a key destination for collectors and investors in Asia.

The role of trade agreements

For regions with established wine industries, trade agreements and economic alliances play a significant role in shaping wine tariffs and market access. The European Union, for instance, has trade agreements with multiple countries, allowing for reduced tariffs on wines imported from places like Australia and Chile. However, Brexit has introduced new complexities, as the United Kingdom – one of the largest fine wine markets – now operates independently from the EU. 

For investors navigating the fine wine market amid trade wars and tariffs, diversification and strategic storage are essential. Diversifying across different wine regions and vintages can help minimize exposure to trade barriers affecting specific countries. 

Additionally, storing wine in bonded warehouses can mitigate the risk of sudden tariff impositions on wine imports, preserving the asset’s value. Monitoring geopolitical developments is also crucial, as policy shifts can happen quickly and have immediate effects on wine prices. 

While trade wars and tariffs present complexities, they also create opportunities in the fine wine investment market. In a politically charged landscape, understanding the influence of trade policies on wine markets is critical. By staying agile and responsive to policy changes, investors can better navigate the complexities of wine investment in a globalised yet fragmented market.

Want to learn more about fine wine investment? Download our free guide.

 

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James Suckling’s top wines of 2024

James Suckling 2024 top wine Bertani Amarone della Valpolicella Classico 2015
  • American critic James Suckling has released his top 100 wines of 2024 list.
  • His wine of the year is Bertani Amarone della Valpolicella Classico 2015. 
  • Italy dominates the rankings followed by France and the US.

American critic James Suckling has released his top 100 wines of 2024 list, along with his wine of the year. The highest accolade went to Bertani Amarone della Valpolicella Classico 2015, which according to the critic, is a classical wine that embodies ‘the greatness of time and place’.

Regional distribution

Suckling and his team tasted and rated over 40,000 different wines over the past twelve months. The majority were from Italy, which accounted for over 9,100 of the reviewed wines, followed closely by France with 9,000, the US with 6,800, Spain – 3,800, Argentina – 2,300, Germany – 2,000, Australia – 1,700, and Chile nearly 1,550. They also tasted wines from other regions worldwide including Greece, Hungary, Canada and Uruguay.

Italy also dominated the list of their favourites, featuring with 26 wines in the top 100, followed by France (18), the United States (15), Germany (12), Argentina (6), Spain (6), Chile (6), Australia (5), Austria (4), South Africa (1) and China (1).

Suckling’s top 10 wines of 2024

James Suckling’s wine of the year is the 2015 Bertani Amarone della Valpolicella Classico, which he described as ‘full-bodied and elegant on the palate due to ripe, filigree tannins with long acidity and a toasty, savory aftertaste’. He called it ‘one of the great Amarones’ and gave it a 100-point score.

James Suckling top wine scores 2024

The top wines of the year were chosen on the basis of quality, price, and what Suckling calls the “wow factor,” an emotional impact a wine can have on the drinker. Most wines on the list scored between 97 and 100 points, with nine wines priced between $30 and $60 (£23 and £46), emphasising affordability alongside quality. Wines on the list were required to have a minimum production of 5,000 bottles, with a median price below $500 (£385).

Regional standouts

Germany had a standout year in 2023, particularly for its dry Riesling, with the Künstler Riesling Rheingau Hölle GG 2023 ranking second on the list and exemplifying the structured, balanced nature of this vintage.

Austria continued to gain critical recognition, especially for its white wines, with F.X. Pichler Riesling Wachau Ried Kellerberg 2023 taking the third spot. 

China was also present on the list with Ao Yun Shangri-La 2020, a wine from Moët Hennessy’s Yunnan winery, signaling the country’s growing role in the fine wine market.

Accessibility and value

Suckling noted that many of his favourite wines offer high quality at accessible price points. The focus on value addresses current concerns about the market’s downturn. For example, the wine that took the second spot is priced around $65 (£50), while Italian whites such as the Manincor Sauvignon Blanc Alto Adige Tannenberg 2022 are available for approximately $40 (£31).

Emerging trends

Suckling’s report further highlights an increasing interest in German and Austrian wines, especially among younger consumers, due to their quality and value. Events like Suckling’s Great Wines series, held across major cities globally, have drawn over 21,000 attendees this year. With wines from more established to emerging wine regions, Suckling’s 2024 list provides a guide to the critic’s top picks from across the globe.

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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How to build a diversified fine wine portfolio

Fine wine investment portfolio
  • A diversified wine portfolio spreads the risk across different wines and regions.
  • Each wine region has its own unique characteristics, and its performance is largely influenced by its own market dynamics.
  • Investors can also diversify their portfolio by vintages, including older wines for stability and new releases for growth potential. 

Fine wine is a popular investment for those seeking diversification and long-term growth. However, like any investment, building a successful fine wine portfolio requires strategic planning and a thorough understanding of the market.

This article explores key strategies for creating a balanced, diversified fine wine portfolio, and why it is important to include a variety of regions, brands and vintages.

Why diversification is key

As renowned economist Harry Markowitz put it, ‘diversification is the only free lunch in finance’. 

Diversification is fundamental to risk management in any portfolio, and fine wine investment is no exception. A diversified wine portfolio helps to reduce the impact of volatility, allowing investors to maximise returns by spreading risk.

While some wines may deliver higher returns, others can contribute to portfolio stability, as different regions tend to perform in cycles. This is why building a balanced fine wine portfolio requires selecting wines from a variety of regions, vintages, and holding periods. 

Diversifying by regions

Wine regions around the world offer unique characteristics, each with its own market dynamics. Including wines from multiple regions can help balance and strengthen an investment portfolio. 

Some primary regions to consider include:

Bordeaux: Bordeaux is undoubtedly the leader in the fine wine investment landscape, taking close to 40% of the market by value. The First Growths are its most liquid wines. In general, the classified growths are a staple in investment portfolios due to their established reputation and consistent performance.

Burgundy: Burgundy, driven by scarcity and rarity, is an investors’ paradise that has been trending in the last decade. Prices for its top Pinot Noir and Chardonnay have reached stratospheric highs and the region consistently breaks auction records.

Champagne: A market that attracts both drinkers and collectors, Champagne has enjoyed rising popularity as an investment in the last five years, thanks to strong brand recognition, liquidity and stable performance.

Italy: Italy continues to provide a mix of value, growth potential, and great quality. Its two pillars, Tuscany and Piedmont, are often included in investment portfolios for their balancing act – if Tuscany provides stability, top Barolo and Barbaresco tend to deliver impressive returns. 

California: Top Napa wines are among the most expensive in the market, while also boasting some of the highest critic scores, particularly from the New World. 

Emerging investment regions: As the market broadens, wines from other well-established regions are gaining traction in the investment world. Germany, Australia, and South America are some of the countries bringing a new level of diversity that can sometimes lead to higher returns.

Choosing vintages strategically

A well-diversified investment portfolio focuses on a range of vintages, as well as labels.

While older vintages offer stability and a more predictable market performance, younger vintages have a greater growth potential as they mature.

Older prime vintages: ‘On’ vintages, specific to each region, like Bordeaux’s 2000 or 2005, tend to have stable pricing due to their high quality and reputation. Including these in your portfolio can provide a foundation of reliability.

Younger vintages: Wines from recent years with high-quality (such as Bordeaux 2019) can offer growth potential over the long-term. As these wines age, their value often appreciates, providing long-term returns for investors willing to hold them.

Off-vintages: Investing in lesser-known or ‘off’ vintages can be worthwhile, particularly if the producer has a strong reputation. These wines are often priced lower but can perform well over time. Typically though not always they have a shorter holding period.

At the end, it is always a question of quality and value for money. 

Balancing short-term and long-term holdings

Fine wines vary in their optimal holding periods. Some wines reach peak quality and market value sooner, while others require decades of ageing. Creating a mix of wines with different holding periods allows for both short-term liquidity and long-term growth.

Short-term hold wines: These are typically wines from lesser-known producers, high-demand recent vintages or off vintages bought during periods of market correction.  These wines can be sold within a few years for a quick return.

Long-term hold wines: Wines from top producers, especially those known for longevity, are best held for 10+ years. For example, a Château Lafite Rothschild or Domaine de la Romanée-Conti can offer three figure returns if held over decades.

Active management for maximising portfolio success

Diversification is just one piece of the puzzle. Regular monitoring and occassional adjustments are essential for maximising returns in a fine wine portfolio.

Market conditions and wine values change over time, so staying informed and making adjustments ensures your portfolio remains aligned with your financial goals. Using tools like Wine Track or consulting with a wine investment advisor can provide valuable insights for rebalancing and enhancing your investment strategy.

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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News

Bordeaux correction: top wines 20% below their peak

Left Bank Bordeaux vineyards
  • Top Bordeaux labels are now approximately 20% below their peaks achieved during the last decade.
  • Lafite Rothschild has been the hardest hit, driven lower by classic vintages such as 2018, 2009 and 2000. 
  • The recent fall in prices has brought many labels back to levels not seen in years.

As recently explored, the fine wine market has been on a downward trend, but what does this mean for individual labels? Today, we turn to Bordeaux’s top names, examining the recent performance of some of the most investable wines in the world.

Bordeaux after the peak

Top Bordeaux labels are now approximately 20% below their peaks, achieved during the last decade. 

Bordeaux wine indices

The First Growths, which often serve as the barometers of the fine wine market, had been riding high, with September 2022 marking a peak in pricing for Lafite Rothschild, Mouton Rothschild and Margaux. 

However, since then, the landscape has changed dramatically. Lafite Rothschild, once the shining star, has fallen by 28.6%, the most severe decline among the top names. Margaux and Mouton Rothschild have also taken significant hits, falling by 17.1% and 17.5%, respectively.

On the Right Bank, the situation is no different. Petrus, which peaked in December 2022, has since dropped by 21.4%, while Le Pin, which reached its high in February 2023, has declined by 20.3%. These losses have brought prices to levels last seen several years ago.

First Growths peaked in September 2022, since then:

  • Lafite is down 28.6% 
  • Mouton is down 17.5% 
  • Margaux is down 17.1% 

On the Right Bank:

  • Petrus is down 21.4% since its December 2022 peak
  • Le Pin is down 20.3% since its February 2023 peak

The Lafite fall: a deep dive

Lafite Rothschild – the second most-searched-for wine on Wine-Searcher – has seen the steepest decline since its peak, with prices plummeting 28.6% on average.

Which vintages have contributed to its fall over the last two years? The 2018 (WA 100 points) has been the hardest hit, down 35.9%. The wine was originally released at levels akin to the brand’s bull years, due to high critic scores, but failed to offer the best investment value. The recent price adjustment has made it a more attractive proposition. 

Older vintages that have had more time to grow have similarly fallen in value by over 30%. The classic 2009 Lafite, which boasts 99+ points from Robert Parker himself, is down 31.1% over the last two years. 

The millenial vintage, with a drinking window that extends well into the 2050s, is currently 32.6% below its peak. 

Lafite Rothschild wine vintages performance

Buying levels: back to the square one

The recent fall in prices has brought many labels back to levels not seen in years. Lafite, for example, has returned to its 2016 pricing levels, while Margaux and Mouton are back to 2020. On the Right Bank, Petrus and Le Pin have both returned to their 2021 levels.

While this might raise concerns on the surface, it presents a compelling opportunity. The scale of the correction suggests that Bordeaux wines, while still highly valued, may have been oversold in the last 18 months. 

For those looking to enter or expand their portfolios, this could represent a chance to acquire top-tier wines at a significant discount before prices start to rise again.

As with previous corrections, price declines are often followed by periods of recovery. For wealth managers and clients with a long-term investment horizon, the current situation may be seen as a momentary blip in an otherwise upward trajectory.

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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Learn Report

Q3 2024 Fine Wine Report

The fine wine market continued its downward trend throughout Q3 2024, but there are reasons for cautious optimism. Our Q3 2024 Fine Wine Report highlights the main themes that shaped the market, from regional performance to specific brand successes, and provides an outlook for the remainder of the year.

Executive summary

  • Since October 2022, fine wine prices have been in consistent decline, with a 4% drop on average in Q3 2024.
  • Bordeaux experienced the steepest fall at 4.4%, while Champagne defied the trend with a modest 0.4% increase last quarter.
  • Steady demand for fine wine continues to suggest a price recovery on the horizon.
  • Certain brands have outperformed the market, including Ruinart, Taittinger, and Château de Beaucastel.
  • Krug Vintage Brut 2004 has been the best-performing wine year-to-date, up 21.6%.
  • This year has already seen several broken auction records, including for high-profile Burgundy, which points to continued interest in fine wine.
  • Nine wines received perfect 100-point scores by Jane Anson in her recent Bordeaux 2009 and 2010 vintage retrospective.
  • France’s 2024 harvest is projected to be down 22% compared to last year, and 15% below the five-year average.
  • Looking ahead to Q4 2024, the market continues to present attractive buying opportunities, especially for investors with a long-term vision.

The trends that shaped the fine wine market

Global market recovery driven by rate cuts

In Q3 2024, global markets showed signs of recovery, bolstered by central banks pivoting towards interest rate cuts as inflation began to ease. Following turbulence in early August, stock markets rebounded, setting new records by the end of the quarter. Central banks, including the US Federal Reserve, the European Central Bank (ECB), and the Bank of England, all shifted their focus from inflation control to stimulating economic growth. The Fed’s September rate cut – the first since 2020 – catalysed a surge in US stocks, and similar moves from other central banks supported this global rebound. Despite lingering concerns about a potential US recession and Japanese market volatility, the overall global outlook improved, with lower rates and better economic conditions presenting growth opportunities.

Fine wine prices fall 4% in Q3

In contrast to the broader economic recovery, the fine wine market remained bearish, with a 4% average drop in prices in Q3. The Liv-ex 100 index saw its steepest fall of the year, down 1.7% in October. Bordeaux led the decline, with a 4.4% drop, although there was a slight uptick in Sauternes prices. Champagne offered a bright spot, rising 0.4% last quarter, with brands like Dom Ruinart Blanc de Blancs and Taittinger posting strong returns (over 30% in the last six months). This mixed performance underscores the complexity of the fine wine market, where price movements can vary widely by region and brand.

New fine wine releases beyond Bordeaux

As always, autumn brought the highly anticipated La Place de Bordeaux campaign, with major New World brands such as Almaviva, Seña, and Penfolds Grange releasing their latest vintages. However, this year’s campaign fell flat, with many new releases priced similarly to last year, despite older vintages showing better value and investment potential due to price corrections. Investors may find more favourable opportunities in back vintages that boast higher critic scores at lower prices.

Regional fine wine performance in Q3

The fine wine market has now returned to its 2021 levels, with prices declining across most regions in Q3 2024, except for Champagne, which recorded a modest 0.4% increase.

Bordeaux experienced the most significant drop, falling 4.4%, driven down primarily by the Second Wine 50 index, which plunged 6.6%, and the Right Bank 50 index, down 4.6%. Many wines from the 2019 vintage, which had previously appreciated in value, have now returned to their original release prices.

Despite this trend, Bordeaux is enjoying steady market demand, taking over a third of the market by value. Moreover, Jane Anson recently revisited the 2009 and 2010 vintages, awarding nine wines 100 points – a move likely to stimulate demand and prices.

When it comes to other regions, Italy and Burgundy also saw a 2% drop in Q3. The Rhône was somewhat more resilient, experiencing a smaller decrease of 0.8%.

The best-performing wines

While the broader market continues to face challenges, certain wines buck the trend, reinforcing the importance of strategic, brand-specific investment decisions.

In Q3 2024, some brands have delivered exceptional returns. The table below showcases the best-performing wines year-to-date, with regions like Tuscany and the Rhône dominating the list.

Leading the pack is Krug 2004, which saw an impressive rise of 21.6%, reflecting the continued strength of Champagne in the investment market. Earlier this year, Antonio Galloni (Vinous) rescored the wine, giving it 98 points. He described it as a ‘gorgeous Champagne that is just beginning to enter its first plateau of maturity’.

Close behind is Domaine du Pégau’s Châteauneuf-du-Pape Cuvée Réservée 2012, which appreciated by 21.2%. Sassicaia 2011 follows with a 21% increase, while its 2015 vintage takes the tenth spot, with a 12.1% rise.

Vega Sicilia Único also features twice with its 2010 and 2011 vintages, demonstrating the increased demand for Spanish wines.

Wines from Bordeaux and the Rhône also make the list, showcasing the diversity of the wine investment market.

The most expensive wines in 2024

The world’s most expensive wines in 2024 are overwhelmingly dominated by Burgundy. At the top of the list is Domaine de la Romanée-Conti’s Romanée-Conti Grand Cru, with an average price of £221,233 per case. Following closely is Domaine d’Auvenay Chevalier-Montrachet Grand Cru, priced at £204,328.

Other notable entries include:

  • Domaine d’Auvenay, Criots-Bâtard-Montrachet Grand Cru at £141,979.
  • Liber Pater, from Bordeaux, priced at £140,009, stands out as the only non-Burgundy wine in the list.
  • Domaine Leroy, Richebourg Grand Cru, valued at £120,007, further establishes Burgundy’s dominance as a highly collectible wine region.

Burgundy producers such as Domaine Leroy and Domaine d’Auvenay appear multiple times on the list. The trend reflects how scarcity, reputation, and critical acclaim are key drivers of value, especially as the market for fine wine becomes increasingly selective in uncertain economic times.

Further entries include:

  • Domaine Leroy, Romanée-Saint-Vivant Grand Cru at £103,844.
  • Domaine d’Auvenay, Mazis-Chambertin Grand Cru at £93,818.
  • Domaine de la Romanée-Conti, Montrachet Grand Cru at £89,529.
  • Domaine Leroy, Corton-Charlemagne Grand Cru at £81,827.
  • Domaine d’Auvenay, Meursault Premier Cru, Les Gouttes d’Or at £80,715.

This dominance by Burgundy reflects its unmatched status in the global wine market, where scarcity and consistent quality continue to command premium prices.

For more information, visit Wine Track.

Fine wine news

The autumn La Place de Bordeaux release campaign

The 2024 La Place de Bordeaux campaign saw the latest releases from Masseto, Solaia, Seña, Penfolds Grange and many more. However, many of these new vintages were released at the same or slightly higher price levels as last year, despite a general market decline, making them less attractive from an investment perspective.

For instance, Masseto 2021 received a perfect 100-point score from Antonio Galloni but was priced at the same level as last year, with back vintages such as 2017, 2018 and 2019 offering better value. Meanwhile, the 100-point Solaia 2021 was released at a 15.7% premium on the 2020 vintage.

From Chile, the 2022 Seña and Viñedo Chadwick were offered at last year’s prices, but older, higher-scoring vintages such as Seña 2019 and Viñedo Chadwick 2021 remain more affordable. Penfolds Grange 2020 saw a small price increase, yet back vintages like the 100-point 2013 offer greater investment potential. Overall, back vintages, with comparable or higher critic scores, often provide better value for investors looking to capitalise on the current market dip.

Historically low yields in France

The 2024 French wine harvest is projected to be one of the smallest in recent history, with regions like Burgundy and Bordeaux experiencing significant declines due to adverse weather conditions.

Burgundy’s output is projected to be down by 25% compared to 2023, while Bordeaux is facing a 10% drop, resulting in the region’s lowest production volume since 2017.

Historically, such scarcity in Burgundy has driven secondary market price increases, as collectors rush to secure rare wines. However, the economic downturn may temper this trend, making selectivity key for investors. In Bordeaux, while smaller harvests often support price stability for premium wines, the broader market conditions may limit price recoveries, especially for mid-tier labels.

Q4 2024 market outlook

The consistent decline in fine wine prices leaves many wondering when the market will stabilise. Despite this downward trend, several factors point toward potential recovery and attractive buying opportunities in Q4.

Firstly, strong demand for select wines persists, particularly for brands that continue to outperform the market. This year has already seen several broken auction records, including for high-profile Burgundy, which points to continued interest in fine wine.

While the market as a whole is facing challenges, strategic investment in the right wines can still yield impressive returns. Investors looking to capitalise on market lows should consider brands which have consistently shown growth despite broader regional declines.

The global economic backdrop also provides reasons for optimism. Central banks, led by the US Federal Reserve, have shifted towards interest rate cuts which could stimulate further investment in alternative assets like fine wine.

In terms of regional performance, the ongoing declines in key regions may start to stabilise, as already seen in Champagne. Despite a 4.4% drop in Q3, Bordeaux remains a dominant player with one-third of the market share by value. With critics such as Jane Anson awarding nine perfect 100-point scores to Bordeaux wines from the 2009 and 2010 vintages, we may see renewed interest in classic vintages.

In summary, Q4 2024 offers a unique window of opportunity for long-term investors. With the current decline, strategic investments in high-performing brands and undervalued vintages could offer substantial returns on the road to recovery.

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.