Tag: Alternative Investments

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What makes fine wine a great portfolio diversifier?

  • One of the key characteristics that make fine wine an attractive diversifier is its low correlation to traditional financial markets.
  • Its scarcity and tangibility further drive up its value. 
  • According to the WineCap Wealth Report 2025, 96% of UK wealth managers expect demand for fine wine to increase, a testament to its growing recognition as a valuable asset class. 

Moreover, fine wine’s value is tied to its provenance, condition, and aging potential, making it a tangible investment with intrinsic worth. Unlike cryptocurrencies or speculative stocks, which can experience extreme fluctuations based on sentiment or market cycles, fine wine benefits from an established secondary market where demand remains steady among collectors, investors, and luxury buyers.

Inflation hedge and wealth preservation

Fine wine serves as a natural hedge against inflation, protecting purchasing power when traditional assets are eroded by rising costs. As inflation increases, the prices of hard assets like fine art, real estate, and fine wine tend to appreciate, maintaining their value in real terms.

Wealth managers increasingly recommend allocating a small percentage of a portfolio to alternative assets like fine wine to safeguard against economic turbulence.

Tax efficiency for UK investors

For UK-based investors, fine wine presents a significant tax advantage over traditional investments. Unlike stocks, real estate, or business assets that are subject to Capital Gains Tax (CGT), fine wine is classified as a “wasting asset”, meaning it has an anticipated lifespan of less than 50 years.

This classification makes fine wine exempt from CGT, allowing investors to realise profits without the same tax burdens as other asset classes.

For example, a traditional investment yielding a £5,000 profit could be subject to CGT at rates of up to 24%, reducing net returns. In contrast, a fine wine investment with the same £5,000 profit would be tax-free, maximising gains for high-net-worth investors.

This tax efficiency makes fine wine particularly attractive in wealth management strategies, especially as the UK government has lowered CGT allowances and increased tax rates in recent years.

Growing institutional and HNW investor demand

The perception of fine wine as a viable financial asset is rapidly evolving. Traditionally the domain of private collectors and enthusiasts, fine wine is now being incorporated into portfolios managed by wealth advisors, family offices, and institutional investors.

According to the WineCap Wealth Report 2025, 96% of UK wealth managers expect demand for fine wine to increase, a testament to its growing recognition as a valuable asset class. 

Additionally, AI-powered investment tools are making fine wine more accessible to a broader range of investors. Fine wine companies and professionally managed portfolios allow investors to gain exposure without needing deep industry expertise.

This institutional adoption further legitimises fine wine as a serious financial instrument, enhancing its liquidity and long-term viability.

Why fine wine deserves a place in your portfolio

Incorporating fine wine into an investment portfolio provides stability, tax efficiency, inflation protection, and strong diversification benefits. Its low correlation with traditional assets makes it particularly valuable during periods of market uncertainty, while its scarcity-driven appreciation ensures long-term value retention.

For investors seeking to protect and grow wealth, fine wine remains one of the most compelling alternative investments available today.

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How is the price of fine wine determined?

Bordeaux Chateau and vineyard

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

The reputation of a winery or estate significantly impacts the price of its wines. Prestigious producers, often with centuries-old traditions and consistent track records of quality, command higher prices. These brands have established trust and recognition in the global market, creating demand that sustains their premium pricing. A bottle from a renowned producer like Château Margaux, Domaine de la Romanée-Conti, or Screaming Eagle is synonymous with luxury and excellence. Even wines from less prominent producers within these regions gain value by association, benefiting from the overall prestige of their appellation or terroir.

Vintage quality

The quality of the harvest in a particular year, known as the vintage, is one of the most critical factors in determining wine prices. Weather conditions during the growing season have a profound impact on grape quality, which in turn affects the wine’s flavor, aging potential, and market desirability. Exceptional vintages often garner high critical acclaim, making them highly sought after by collectors and investors alike. For example, Bordeaux’s 1982 vintage and Burgundy’s 2010 vintage are renowned for their excellence and have seen sharp price appreciation over time. On the other hand, wines from less favorable vintages may be priced lower initially or experience slower value growth.

Scarcity and production volume

Scarcity plays a pivotal role in determining the price of fine wine. Wines from small-batch producers or limited-production labels are often more valuable because demand outstrips supply. Additionally, the concept of “drink or hold” means that as bottles are consumed, the remaining supply becomes increasingly rare, further driving up prices. For example, cult wines from Napa Valley, which are produced in limited quantities, often experience rapid price increases due to their exclusivity. Over time, the scarcity of these wines enhances their desirability, making them a strong candidate for investment.

Critical scores and reviews

The opinions of influential wine critics and publications play a significant role in shaping a wine’s price. High scores or glowing reviews can lead to immediate surges in demand and pricing, while mediocre evaluations may suppress a wine’s market reception. A 100-point score from Robert Parker, for instance, can increase a wine’s price by 30-50% almost overnight. Wines with consistently high ratings from multiple critics maintain stronger long-term value, as these endorsements build buyer confidence and elevate the wine’s reputation in the market. Conversely, a lack of critical acclaim can limit a wine’s appeal, even if it has other desirable qualities.

Provenance and storage conditions

Provenance refers to the documented history of a wine’s ownership and storage. It is a crucial factor in maintaining and enhancing a wine’s value. Wines with impeccable provenance that have been stored under ideal conditions, such as controlled temperature and humidity, fetch higher prices at auction or in private sales. Poor storage or uncertain provenance can drastically reduce a wine’s worth, even if it is rare or highly rated. Auction houses and private collectors often highlight provenance as a selling point, justifying higher prices for bottles with a verifiable and pristine history. Wines sold directly from the producer or through trusted merchants also carry a premium for their authenticity and reliability.

Market trends and global demand

Broader economic and market trends significantly influence wine prices. Factors such as rising wealth in emerging markets, changing consumer preferences, and currency exchange rates can all impact global demand for fine wine. For example, growing interest in Burgundy from Asian markets over the past decade has driven exponential price increases for wines from this region. Shifts in consumer tastes, such as a preference for organic or biodynamic wines, can also affect pricing, as these categories attract a more environmentally conscious audience. Additionally, economic stability in key markets often correlates with increased investment in fine wine, further bolstering demand.

Age and maturity

The age and maturity of a wine are also critical in determining its price. As fine wine ages, its value often increases, especially as it approaches its optimal drinking window. Collectors are willing to pay a premium for wines that have been properly aged, as this reduces the time and risk associated with cellaring young wines. For example, a young Bordeaux might sell for $200 upon release but appreciate to $500 or more as it nears its peak drinking years. This appreciation makes aged wines particularly attractive to both collectors and investors seeking reliable returns.

Regional prestige and classification systems

Certain wine regions, such as Bordeaux, Burgundy, and Napa Valley, carry inherent prestige that significantly influences pricing. Classification systems, like Bordeaux’s 1855 Classification or Burgundy’s Grand Cru designations, further bolster a wine’s market position. For instance, First Growth Bordeaux, such as Château Latour, consistently commands higher prices than less prestigious classifications, regardless of vintage. Similarly, Burgundy’s Grand Crus outperform wines from lesser designations due to their perceived quality and exclusivity. This regional prestige not only affects initial pricing but also contributes to a wine’s long-term appreciation potential.

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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Fine wine vs crypto? History, volatility and market returns

Bitcoin cyrpto currency versus fine wine as an asset
  • Fine wine offers steady, long-term growth with controlled price fluctuations, while Bitcoin’s extreme volatility presents both high-risk and high-reward opportunities.
  • Fine wine’s centuries-old market is supported by scarcity, provenance, and established ecosystems, contrasting Bitcoin’s shorter, speculation-driven history.
  • Fine wine appeals to risk-averse investors seeking diversification, while Bitcoin caters to those pursuing rapid investments.

Bitcoin has recently captured investment interest as it surged past the $100,000 (£80,000) benchmark for the first time in December last year, up from $45,000 (£36,000) at the beginning of 2024. With its meteoric rise fuelled by regulatory approvals for cryptocurrency exchange-traded funds and mostly the results of the US presidential election, Bitcoin demonstrated its ability to deliver unparalleled gains. Yet, crypto remains a high-risk asset defined by dramatic volatility. From its genesis in 2009, Bitcoin has seen multiple boom-and-bust cycles, with price swings of over 50% in both directions within a single year not uncommon. 

By contrast, fine wine represents a markedly different asset class, appealing to those who prioritise stability and long-term appreciation. The fine wine market has a storied history spanning centuries, with values driven by scarcity, provenance, and global demand rather than speculative hype. While prices in the fine wine market can fluctuate, they tend to avoid the extreme volatility seen in cryptocurrencies. Instead, they enjoy steady growth that outpaces inflation and provides a reliable hedge against economic uncertainty.

Volatility

Bitcoin’s price chart tells a story of rapid ascents and precipitous falls. For example, its 2017 bull run saw prices climb from £800 ($1,000) to nearly £16,000 ($20,000) only to crash to £2,400 ($3,000) the following year. Similar patterns occurred in 2021 and again in 2024, leaving investors questioning when the next downturn might strike.

Fine wine, on the other hand, avoids such dramatic shifts. Prices typically rise or fall within a controlled range, supported by consistent demand from collectors and investors worldwide.

Historical context

Cryptocurrencies are a product of the digital age, with Bitcoin gaining widespread attention only over the past decade. Its rise has been driven by speculative interest, technological innovation, and the allure of decentralisation. However, its short history leaves it vulnerable to regulatory uncertainties, technological disruptions, and shifting investor sentiment.

Fine wine, conversely, boasts a legacy that stretches back centuries. Iconic regions like Bordeaux, Burgundy, and Tuscany have long been synonymous with quality and value. Investments in fine wine are supported by an established ecosystem of producers, merchants, and auction houses. This historical grounding provides a level of security that new asset classes like cryptocurrency struggle to match.

Market performance

One of the defining features of fine wine as an investment is the importance of regional performance. For instance, Burgundy has risen 550% on average over the last twenty years, with some wines achieving returns of over 1,500%. 

The world of fine wine has its own higher risk and higher return investments but it also offers a range of reliable long-term performers. This is why building a fine wine portfolio requires expertise and careful curation. A well-diversified portfolio includes big brands but also undervalued wines and vintages from a variety of regions which can see their value rise based on demand, critic scores, age or other intrinsic factors. 

Liquidity: fast vs steady

Liquidity is another key difference between fine wine and crypto. Bitcoin can be bought and sold 24/7 on global exchanges, making it one of the most liquid investments available. However, this liquidity can exacerbate price swings, with significant moves often triggered by news events or changes in market sentiment.

Fine wine, while less liquid, offers a more controlled market environment. Secondary sales typically occur through investment companies and trading platforms, with prices reflecting a stable and growing investor base. This slower pace can be an advantage for investors seeking to avoid speculative bubbles.

Diversification and portfolio strategy

In today’s investment landscape, fine wine and cryptocurrency appeal to very different investor profiles. Bitcoin caters to those seeking high-risk, high-reward opportunities, while fine wine offers steady, long-term growth and diversification. Incorporating both into a portfolio can provide balance, but the emphasis should align with an investor’s risk tolerance and financial goals.

Fine wine also underscores the importance of expertise. A portfolio focused on iconic regions and proven vintages can deliver strong returns, with minimal exposure to the broader market’s ups and downs. As seen in the market of 2024, the best-performing wines relied on deep knowledge of regional trends and intrinsic dynamics.

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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Top reasons to invest in fine wine in 2024

  • Stability, sustainability and increased market liquidity are the key drivers of investment interest in fine wine. 
  • UK investors are also attracted by the tax advantages of fine wine, which is classed as a ‘wasting asset’.
  • Meanwhile, passion investing is on the rise in the US, seeing an 8% uptick since last year.  

Our recent survey among UK and US wealth managers revealed the top reasons why investors are choosing fine wine in 2024. 

While there are differences in their motivations based on demographic, sustainability, stability through different economic environments, and increased liquidity came at the forefront in both markets.  

Fine wine’s stability during market volatility

In uncertain times, investors often seek tangible assets that offer stability. As WineCap’s CEO, Alexander Westgarth puts it, ‘In times of hardship, people want something solid. Literally. Tangible assets like property, gold or fine wine tend to feel more precious during market downfalls’. 

With US market sentiment being one of fear, according to the Fear & Greed index, 74% of US wealth managers chose stability as their top reason to include fine wine in client portfolios, marking a 6% increase from last year.

US investor motivations for fine wine

In the UK, stability came as the second most important factor driving demand for fine wine. It was cited by 56% of our survey respondents, up 16% since 2023. High inflation, slow economic growth and various macroeconomic headwinds have solidified fine wine’s position as a ‘safe haven’ asset, preferred by UK investors. 

Sustainable investing on the rise

Sustainability was the number one reason to invest in fine wine for UK wealth managers, and the second most important factor in the US. 

As we recently explored (‘The growing importance of sustainability in fine wine investment’), there has been a broader global trend where environmental, social, and governance (ESG) factors are increasingly shaping investment strategies across various asset classes, including fine wine.

Research from Morgan Stanley shows that more than half of individual UK investors plan to increase their allocations to sustainable investments in 2024, making fine wine a great investment option. 

According to our survey, 68% of UK investors invest in fine wine because of its low-carbon benefits, with many fine wine producers leading the charge in sustainable viticulture. 

Improved liquidity

Investors in both the UK and US recognise that the fine wine market is becoming more liquid. Advances in technology have opened up new avenues for investors, simplifying buying and selling processes, improving price transparency, and shifting perceptions of fine wine as an “illiquid liquid.”

As a result, UK investor confidence in the market’s liquidity has increased by 32% in 2024. As for the US, there has been a 14% increase from 2023. 

UK tax benefits

UK investors benefit from fine wine’s status as a ‘wasting asset’ making it a more tax-efficient investment. As of April 2024, UK investors pay up to 28% tax on profits over £3,000. Pre-2022, investors paid tax on anything above £12,300, but the past few years have seen the threshold slashed in a bid to plug the ‘fiscal black hole’. 

As a ‘wasting asset’, the HMRC does not consider fine wine an investment where the profit should be taxed. Investors recognise this benefit, with 90% of our survey respondents noting that the CGT changes will increase the attractiveness of fine wine.

Tax efficiency was the fourth most important reason for UK investors, cited by 38% of the respondents.

UK CGT changes and fine wine investment

The overlap between collecting and investing in the US

Fine wine, long seen simply as a passion asset, has managed to rebrand itself as a sound alternative investment choice. UK investors today focus less on ‘passion’, a motivation that has seen a 16% dip since last year. 

Still, in the US, many investors start out as collectors. ‘Passion investing’ has been on the rise across the pond, with 24% of the survey respondents being motivated by earning a profit and enjoying the experience that comes with owning a fine wine collection. 

For the full breakdown of the reasons why investors choose fine wine in 2024, read our UK and US Wealth reports.

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 of Dom Pérignon: top vintages and investment opportunities

  • Dom Pérignon is one of the most popular wine brands in the world, resonating with drinkers, collectors and investors.
  • This week saw the latest Dom Pérignon vintage release – the 2015. 
  • Dom Pérignon prices have risen on average 90% in the last decade.

Dom Pérignon is one of the most popular wine brands in the world. It consistently ranks in Wine-Searcher’s top five most searched-for wines, and its label resonates with drinkers, collectors and investors alike.

Latest vintage release: Dom Pérignon 2015

This week saw the latest vintage release from the renowned Champagne house – Dom Pérignon 2015, with a recommended retail price of £1,750 per 12×75 case. The wine boasts 96 points from Antonio Galloni (Vinous) who said that it ‘shows terrific energy’ and ‘is a fine showing in a vintage that has proven to be tricky’.

Brief history of Dom Pérignon

Dom Pérignon is named after a Benedictine monk, Dom Pierre Pérignon (1638–1715). As a cellar master at the Abbey of Hautvillers in the Champagne region of France, he significantly contributed to the quality and production methods of Champagne, such as blending grapes from different vineyards and improving clarity. Moët & Chandon introduced the Dom Pérignon brand as its prestige cuvée in the 20th century, with the first vintage released in 1921. Since then, the wine has become synonymous with luxury and celebration.

Dom Pérignon investment performance

Dom Pérignon has been one of the most popular Champagne brands for investment for a reason. On average, prices have risen 90% over the last decade. The Dom Pérignon index hit an all-time high in November 2022 (up 136% since June 2014). Prices have since come off their peak making now an opportune time to buy, given the overall upward trend. 

Dom Perignon index

The average Dom Pérignon price per case is £2,260, making it more affordable than other popular investment-grade Champagnes like Krug, Louis Roederer Cristal, Pol Roger Sir Winston Churchill, Bollinger RD and Philipponnat Clos des Goisses, all the while providing similar returns.

The highest-scoring Dom Pérignon vintages 

The highest-scoring Dom Pérignon vintage from Galloni is the 2008 (98+), which he describes as ‘magnificent’ and a ‘Champagne that plays in three dimensions’.

The 2004 (‘one of my favourite Dom Pérignons’) and 2002 (‘speaks to opulence and intensity’) boast 98-points from the critic. Up next with 97-points is 2012, which he called ‘a dynamic Champagne endowed with tremendous character’, and the ‘beautifully balanced, harmonious’ 2006. 

From Wine Advocate, the top-scoring Dom Pérignon vintages include 1996 (98 pts), 1961 (97 pts), and several vintages scoring 96 points, such as 2008, 2002, 2006, 1976, 1990, 1982, and 2012.

The best value Dom Pérignon on the market today

Dom Perignon prices

The 2004 and 2012 Dom Pérignon vintages are two of the most popular, not least because they offer great value in the context of other vintages. They are two of the most affordable on the market today, while also boasting high scores. The 2004 further benefits from additional time in bottle; however, these earlier vintages are often harder to source than the new releases.

Regardless of the vintage of choice, and whether for investment or collecting, Dom Pérignon remains the pinnacle of the Champagne world. Its strong branding, outstanding quality and investment performance make it a top choice for wine enthusiasts and investors alike.

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 rising demand for collectibles

Fine wine collectible
  • The impending largest intergenerational wealth handover is driving the expansion of the collectibles market.
  • Demand is rising among younger investors looking to diversify their portfolios with assets that offer uncorrelated market returns. 
  • Fine wine is the most popular collectible among UK investors, followed by luxury handbags and jewellery. 

From luxury handbags to fine wine and whisky, the collectibles market is expanding and attracting rising demand from investors that is set to continue. 

This shift is driven by the onset of the largest intergenerational wealth handover in history and a growing appetite among younger investors to diversify their portfolios with assets that offer uncorrelated market returns. 

The evolution of the collectibles market

The allure of collectibles as investments is not a recent phenomenon. Historically, items like fine art, rare coins, and vintage wines have been appreciated for their aesthetic and cultural value. During periods of economic uncertainty, tangible assets like these often retained their value better than traditional financial instruments. For example, during the Great Depression, art and rare coins rose in price, providing a hedge against financial market volatility.

In the post-World War II era, the collectibles market began to gain more structure and legitimacy. Auction houses such as Sotheby’s and Christie’s played pivotal roles in establishing benchmarks for the value of fine art and antiques. The rise of specialised indices, such as the Mei Moses Art Index, helped quantify returns on art investments, further opening the market.

The collectibles market has further evolved in recent years with the help of technology. Technological advancements have democratised access to market information and trading platforms, making it easier for investors to track market trends and make informed decisions. Indices like Wine Track help prospective investors see the average price of a wine, critic scores and investment returns over different time periods for free and at a glance. 

A testament to the rising demand is the expansion of the market. According to investment bank Nomura, the art and collectibles category is now larger than private assets ($1.6 trillion) and more than twice the size of private debt markets ($0.8 trillion). 

The most wanted collectibles for portfolio diversification

Among collectibles, fine wine is king. 92% of UK wealth managers anticipate demand to increase in the next year. Compared to other luxury assets, the fine wine market is more established and less volatile, offering increased liquidity and price transparency.

The second most popular collectible in 2024 is luxury handbags, with 86% of wealth managers expecting demand to rise further. As recently explored, interest in handbags as an investment has grown in line with rising prices in the primary market. For instance, the price of the Chanel medium classic flap bag is up close to 553% since 2005, and 4,809% since 1955.

Jewellery is the third most popular collectible in 2024 for 84% of wealth managers, followed by coins (82%). The fifth spot is shared by watches and rare whisky at 78%.

When it comes to the latter, fine wine investment companies are already capitalising on this trend by branching out into spirits. While its secondary market is still in the early stages of its development, rare whisky has already set pricing records.

Earlier this year, a 30-year-old bottle of The Emerald Isle by The Craft Irish Whiskey Co. sold for a staggering $2.8 million, breaking the world record for the most expensive bottle ever sold. The previous record was held by a 1926 Macallan bottle priced at $2.7 million. These figures dwarf the record for the most expensive fine wine ever auctioned, the 1995 Domaine de la Romanée-Conti Grand Cru, which fetched $558,000. 

Collectibles vs mainstream investments

The rise in demand for collectibles comes at a time when traditional investments, like stocks and bonds, are facing heightened volatility and lower returns. Collectibles offer a unique proposition: they are not directly correlated with financial markets, providing a hedge against market downturns.

Moreover, collectibles have an intrinsic value tied to their rarity, cultural significance, and aesthetic appeal, which can appreciate over time independently of market conditions.

The stability and growth potential of these assets make them attractive alternatives to traditional investment avenues, and investors are increasingly perceptive of these benefits.

As the market for collectibles continues to evolve, clients are likely to find new and exciting opportunities in this dynamic sector.

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 of Bordeaux En Primeur 2023

Chateau Margaux Cellar
  • The best Bordeaux En Primeur releases offered a combination of quality and value. 
  • These are wines with high potential for future price appreciation.
  • Some châteaux have followed the En Primeur golden rule that the new release is the cheapest you can get. 

As this year’s Bordeaux En Primeur campaign draws to an end, we evaluate the best 2023 releases. These wines not only boast high quality, as measured by critic scores, but also offer value when compared to previous vintages. Below are our highlights from an investment perspective. 

Beychevelle 

Chateau Beychevelle En Primeur 2023

In the words of Château Beychevelle’s Philippe Blanc, ‘our golden rule is the En Primeur price is the cheapest you can get’. 

The rule was observed this year, with the 2023 representing the best priced vintage on the market today. 

The wine received 94-96 points from Antonio Galloni (Vinous), who said: ‘Beychevelle remains one of the most distinctive wines in all of Bordeaux. It is especially classy in this edition.’ 

Meanwhile, the Wine Advocate’s William Kelley (93-94 points) noted that ‘the 2023 Beychevelle has turned out especially well this year, exhibiting a more integrated, seductive style than recent vintages’.

Lafite Rothschild & Carruades de Lafite

Lafite Rothschild Bordeaux En Primeur 2023

For William Kelley, Lafite Rothschild appeared to be ‘the finest of the first growths this year’. The critic awarded it 97-99 points. The wine was launched at an impressive 32% discount on last year, making the new release the most affordable on the market today. Shortly after release, the wine found its way into the secondary market.

Carruades Lafite Bordeaux 2023 En Primeur

Its second wine also presented an enticing prospect to investors. As well as being the cheapest vintage, the wine was awarded a score of 91-93 from Neal Martin (Vinous), surpassing the 2022, 2016, and 2010. The critic remarked that this is ‘surely one of the best Carruades I have tasted at this stage’.

Mouton Rothschild & Petit Mouton

Mouton Rothschild Bordeaux 2023 En Primeur

In much the same vein as Lafite Rothschild, the 2023 Mouton Rothschild is the most affordable vintage available on the market today. Antonio Galloni gave it 96-99 points and declared that it ‘is shaping up to be one of the best wines of the vintage on the Left Bank’.

With 96-98 points from Neal Martin, its score looks set to match the 2022, 2020, 2019, and 2018. Only the 100-point 2016 has the upper hand but comes at a hefty 40% premium. 

Petit Mouton Bordeaux 2023 En Primeur

Once again, there is outstanding value to be found in the second wine. Petit Mouton 2023 is the best priced vintage available today by a healthy margin. And, according to Galloni, ‘it could easy be a Grand Vin at another address’.

Margaux

Chateau Margaux Bordeaux 2023 En Primeur

The highest-scoring Bordeaux 2023 wine across major critics, Margaux presented great value.

Galloni awarded it a potentially perfect score of 97-100 points, calling it ‘fabulous, sensual, silky and exceptionally polished’. 

Meanwhile, Martin described it as a ‘quintessential Margaux’, awarding it a score of 97-99 points.

Cheval Blanc

Chateau Cheval Blanc Bordeaux 2023 En Primeur

There are few wines that transcend the vintage in 2023, and Cheval Blanc is certainly one of them. 

There were few wines capable of transcending the vintage in 2023, but Cheval Blanc was certainly one of them.

It is the second-highest-scoring Bordeaux 2023 wine across 12 leading critics. Winemaker Pierre-Olivier Clouet even goes so far as to say that it is superior to the 2022, as does the Wine Advocate’s William Kelley. 

Adding to its appeal is the value it offers. The 2023 is the most affordable option among top vintages. This is one of only two unambiguously ‘prime’ Cheval Blanc vintages available under £5,000 a case.

As these highlights show, there is value to be found during En Primeur with the right analysis tools. 

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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Piedmont on the move: rising stars under £1,000 a case

Piedmont Italy Fine Wine
  • Italy is the best-performing fine wine region year-to-date. 
  • Some Italian brands have recorded positive movement as high as 15% in the last six months.
  • Piedmont’s edge in the fine wine market can be attributed to historical significance, limited production, and an increase in global appreciation. 

Amid economic fluctuations and changing market trends, the wine investment landscape has seen varied performances across regions. However, Italy, and particularly the Piedmont, has stood out for its robustness and resilience, outperforming other regions in maintaining and even enhancing its investment appeal.

Italy’s performance in a bearish market

The Liv-ex Italy 100 sub-index, which tracks the price performance of the top 100 Italian wines, has shown resilience in the current bearish market. While the broader Liv-ex 1000 index, representing a wider range of global wines, has experienced a decline of 5.2% year-to-date, the Italy 100 sub-index has seen a relatively minor decrease of 1.7%. 

This indicates a sustained interest in Italian wines, despite broader market uncertainties. Some Italian brands have even recorded positive movement in the last six months as high as 15%.

The rising stars of Piedmont

A significant contribution to this trend comes from the Piedmont, specifically Barolo and Barbaresco. 

Produttori del Barbaresco, a renowned cooperative known for its high-quality production, has seen impressive gains across a range of its wines. The Rabaja Riserva has risen 15% since the start of the year. The wine has an average case price of £968 per 12×75, and a Wine Track critic score of 94 points. 

From the same producer, the more affordable Ovello Riserva is up 9%, while the Montestefano Riserva is up 8%. 

From Barolo, Cascina Fontana has shown consistent returns. It has appreciated 6% in the last six months and a remarkable 105% over the last decade. The wine’s affordability at £665 average price per case makes it a value-driven choice for investors.

Meanwhile, Elio Grasso’s Barolo Gavarini Chiniera has increased 4% in the past six months and an impressive 110% in the last decade. 

Why Italy, and why now?

The resilience of the Italian wine market, particularly in premium segments like Barolo and Barbaresco, can be attributed to several factors such as historical significance, quality, limited production, and growing global appreciation for the value on offer.

Wines from Piedmont are steeped in history and are globally recognised for their quality and complexity, attracting both connoisseurs and investors.

The limited production and exclusivity of certain labels ensure their demand remains high, even in less favourable economic conditions. While these wines are highly sought-after, the brands above continue to offer value – all being under £1,000 a case despite recent gains.

Finally, Italian wines continue to see growing appreciation in key markets such as the UK, USA and Asia, broadening the investor base.

As we navigate through fluctuating markets, Italy, especially Piedmont, holds firm, demonstrating potential for growth. For investors, Barolo and Barbaresco represent stability, quality, and a legacy that stands resilient against the tides of economic change.

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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Bordeaux En Primeur 2023: under pressure

Château Beychevelle Bordeaux 2023 En Primeur
  • Bordeaux 2023 largely met trade expectations for reduced pricing but only some releases have stood out as offering fantastic value. 
  • Price cuts slowed towards the end of the campaign, from 27.4% average discount in week one, to 23.3% in week four.  
  • Bordeaux’s ability to adapt does not only matter for its short-term sales but also for its long-term relevance in a highly competitive market.

Over the last month, our news coverage centered around the ongoing Bordeaux 2023 En Primeur campaign, examining critic scores and the investment potential of the new releases. 

Prior to the start of the campaign, Bordeaux châteaux faced considerable pressure from the trade to reduce release prices. Price cuts of around 30% were expected. In some cases, these expectations were met, with reductions of up to 40%. 

Now that the campaign is coming to a close, we weigh its success, considering the current state of Bordeaux’s investment market. 

En Primeur 2023 – back in vogue?

Critics of En Primeur contend that the system no longer meets buyer expectations, and the 2023 vintage wanted to rise to the challenge of defying the norm.

Partially it did. Wines like Lafite Rothschild, Carruades de Lafite, Mouton Rothschild, Petit Mouton, Beychevelle, Cheval Blanc and Haut-Brion delivered value and were met with high demand. 

Liv-ex reported immediate trades on its exchange for some of the releases. A developing secondary market is a positive sign for investors, although both Lafite Rothschild and Mouton Rothschild 2023 changed hands below their opening levels. 

According to Liv-ex, ‘it is clear there continues to be a market for Bordeaux En Primeur at the right price. What that price is, is perhaps less clear and will not always be agreed upon’.

The En Primeur golden rule  

For investors, an En Primeur release needs to be the most affordable wine among vintages with comparable scores to make sense. Where that isn’t the case, one should be cautious when buying. 

‘Our golden rule is the En Primeur price is the cheapest you can get. You can’t get anything cheaper. Generally speaking, it’s reasonably successful, not to say 100% successful, and then the price goes up.’ – Philippe Blanc, Château Beychevelle

‘En Primeur should be forever the lowest price you can find in your bottle. If you purchase later, it’s going to be more difficult to find and it’s going to be more expensive.’ – Pierre-Olivier Clouet, Château Cheval Blanc

The price decrease trajectory

The average price reduction among the top wines released in the first week of the campaign was 27.4%, going as low as 40% discount on the previous year.

In the fourth week of the campaign, this trajectory of offers slowed down. The average discount was reduced to 23.2%, the most significant being Château La Fleur-Pétrus 2023, down 33.6%, and the least significant, Beychevelle (-11.1%).

However, even though Beychevelle has seen one of the smallest discounts, it has still been one of the best value releases this campaign.

Beychevelle En Primeur 2023 Prices

The Bordeaux market slowdown

The pressure to reduce release pricing was largely owing to the current market environment. 

Over the past two years, Bordeaux prices are down 12%. Over the past five years, Bordeaux is one of the slowest growing markets, up 2.1%, considerably lagging behind Burgundy (25.2%), Italy (31.2%) and Champagne (45.5%). 

The market for top Bordeaux has suffered the most. First Growth prices are down 17.3% in the last two years, and 3.7% in the last five years.

Bordeaux En Primeur 2023 Prices

The region is also losing market share to its contenders. In 2023, Bordeaux accounted for 40% of the trade by value on Liv-ex compared to 60% in 2018.

This is further exacerbated by slowing demand. Liv-ex noted that today ‘there is more than three times as much Bordeaux for sale than the fine wine market is looking to absorb’.

The need to adapt

The 2023 En Primeur campaign has unfolded under the shadow of mounting pressure for Bordeaux to realign with market demands. The campaign highlighted the critical balance Bordeaux must maintain: offering wines at attractive prices for everyone in the chain. 

Successful examples from this year’s campaign, where price cuts coincided with high demand, underscore the potential for Bordeaux to adapt. However, the slower reduction rates towards the campaign’s end and varied responses from buyers reflect the ongoing debate about the optimal pricing strategy.

Ultimately, as Bordeaux grapples with these challenges, the 2023 En Primeur has underscored the importance of responsiveness to market dynamics. The region’s ability to adjust will not only determine its short-term sales but also its long-term relevance in a highly competitive and ever-evolving global wine market.

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.