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En Primeur Report – Bordeaux 2022: Unfulfilled Potential

Bordeaux 2022

Bordeaux 2022 is a great vintage that, despite its high quality, failed to reverse the waning sentiment for En Primeur. The excitement of the new was counteracted by the value on offer.

Although there was a significant increase in the number of visitors at the En Primeur tastings this spring, the campaign did not succeed in capitalising on this positive momentum.

Our latest report, Bordeaux 2022: Unfulfilled Potential, delves into the reasons why the campaign didn’t quite deliver on hopes and the event’s place within the industry in coming years.

Key findings:

  • Bordeaux 2022 is a high-quality vintage that has surpassed expectations, given the challenges of the growing season.
  • Neal Martin’s average 2022 in-barrel score was below 2020, 2019, and 2016, with most critics noting that it is a vintage to be selective.
  • The En Primeur tastings saw a significant increase in the number of visitors this spring, indicating continued interest in the region.
  • Some wines managed to offer value and were met with high demand upon release, including Château Cheval Blanc, Château Beychevelle, and Château Lafleur.
  • Average price increases between 15% and 25%, and as high as 55%, did not resonate well with the soft Bordeaux market.
  • Bordeaux 2022 vintage failed to reverse the declining sentiment for En Primeur due to high release prices in the context of older vintages offering better value.
  • Producers should evaluate the market dynamics to navigate the evolving fine wine market, and the role of En Primeur within it.

 

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Champagne’s financial bubbles: rising costs spark concerns over affordability

Champagne
Champagne
  • Rising production costs and inflationary pressures in Champagne have raised concerns around its accessibility and its appeal to consumers.
  • Higher interest rates pose challenges for financing grape supplies, potentially eroding profit margins for smaller Champagne producers.
  • Champagne’s investment market has also been undergoing a similar shift, which has diminished its relative affordability compared to other fine wine regions.

Champagne has experienced a period of remarkable success, with a new record turnover set for the region in 2022, The Drinks Business highlighted in an article this week. However, leading figures in the region have noted that inflationary pressures and rising production costs could potentially make Champagne too expensive. This is a particular concern at the lower end of the market where fixed costs make up a larger proportion of the value of the wine and the need to keep prices affordable is more pronounced. But prices have come under pressure in the secondary market too, which has shifted its dynamics.

Champagne’s rising costs spark concerns among smaller producers

The escalating prices of grapes, along with increasing costs of labour, energy, packaging materials, and glass, have placed significant financial pressures on some Champagne houses. According to the article, the price of grapes from the 2022 harvest rose by as much as 10% compared to the much smaller 2021 vintage.

Rising interest rates, which were sitting below 1% two years ago and have now reached 3% and higher, have added extra pressure on financing grape supplies, potentially eroding profit margins of smaller producers. Meanwhile, various packaging materials, including paper, foils, cases, and glass, are up by around 40%.

The rising production costs may lead to further price increases for Champagne. This situation raises concerns around Champagne’s accessibility and its appeal to consumers. Some producers fear that higher prices could deter customers and potentially drive them towards alternative sparkling wines.

The shifting dynamics of Champagne’s investment market

The dynamics of Champagne’s secondary market have also been undergoing a clear shift. Previously, everything seemed to work in Champagne’s favour: abundant stock, strong distribution, consistent demand, and relative value compared to other fine wines.

Speculators have taken advantage of Champagne’s strengths, fuelled by a string of excellent vintages that increased demand. This has altered the traditional rules of the Champagne market, as speculators often hold onto their stock without consuming it, resulting in potential oversupply. The sustainability of rising prices in the face of a potential stock overhang can present a challenge.

Meanwhile, the rising price of Champagne has diminished its relative price advantage compared to other fine wine regions. Previously considered an affordable entry point into the world of fine wine, Champagne’s average prices now rival those of Bordeaux. For instance, the average case price of Krug Vintage Brut (£5,001) is higher than that of the First Growth Château Haut-Brion (£4,802).

Champagne vs Bordeaux

*Over the last five years, Champagne prices are up 76.8%, compared to 15.3% for Bordeaux. Champagne experienced stellar price performance between mid-2021 and the end of last year. Year-to-date, its index is down 9.1%.

Some producers have also displayed an ambition to raise prices. Notable brands, such as Philipponnat’s Clos des Goisses and Lanson’s Le Clos Lanson, have joined La Place de Bordeaux, signaling their intent to push their brands. Last year, François Pinault’s Artemis Group acquired a majority stake in Champagne Jacquesson. While this highlighted Champagne’s investment potential, it also indicated a departure from offering wines at entry-level prices.

All of this presents a complex landscape for Champagne’s future pricing and market positioning; particularly, for smaller more affordable producers, less able to spreads costs over multiple products and absorb the rising costs. Is the era of affordable Champagne over?

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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Bonds vs fine wine: what should you invest in?

  • Both bonds and fine wine can help to mitigate short-term risk in a portfolio.
  • After ten years the average bond delivers a 15% return, while fine wine – 78%.
  • Fine wine is an inflation-resistant asset, unlike bonds.
  • Bonds are generally much more liquid than fine wine.

Bonds are one of the most popular ways to invest. For decades, investment managers would opt for a strategy known as “60/40”, where 60% of the portfolio was allocated to equity and 40% to debt instruments. The idea was that the riskier equity (stocks and shares) would shield against inflation while helping to generate returns. By contrast, the more stable debt instruments (bonds and credit) would ground the portfolio and prevent it from plummeting during market downturns.

However, a lot has changed since then. Today, many experts comment that the 60/40 rule no longer applies. Instead, investors need to diversify much more to achieve more market stability. And they need to go further afield – into alternative assets – to find true inflation resistance.

In this article, we’ll compare the risk, value drivers, return, liquidity, and inflation characteristics between bonds and fine wine.

Both wine and bonds can mitigate short-term risk

Bonds come with many different risk levels. Some borrowers – like fledgling start-ups – are extremely likely to default. While there are others – like the governments of developed nations or blue-chip companies – that are almost definitely going to meet the repayments.

Occasionally investment managers will opt for extremely risky debt – known as a High Yield Bond strategy. But generally, most will allocate a greater portion of the portfolio to low-risk bonds, which tend to be rated AAA or Aaa by specialist agencies. This is usually to anchor the portfolio and help bring in stable fixed income.

Like bonds, fine wine is also generally a low-risk investment. Because the value is intrinsic, it is unlikely to plummet overnight. After all, fine wine will always be valuable. No matter what’s going on in the stock market, somebody will almost always want to buy it.

Investment managers will often add a small allocation to fine wine to help preserve wealth and mitigate risk. We have noticed that the wealthier the client, the higher the proportion tends to be. So, ultra-high net worth (UHNW) individuals and family offices generally have more fine wine in their portfolios.

The sources of value are different

While AAA bonds and fine wine may have similar risk levels, their revenue sources couldn’t be more different.

Investors make money from debt instruments like bonds by collecting the repayments from the initial sum, plus interest (the extra interest is known as “coupons”). With bonds, investors get regular revenue, which is why the asset falls under the category of “fixed income”. The repayments and coupons are usually paid quarterly.

By contrast, fine wine investors generally need to wait until they have sold the cask or bottle before they can access any returns. However, the returns are usually much more lucrative than bonds.

Wine has a stronger return profile

The average annual return of a bond is 1.6%. Usually, bonds will last for longer than a year though. Short-term bonds are around three years, mid-term is about five years and long-term is anything over a decade. Over ten years, investors gain an average of 15% returns. This means that if you invested £1,000, you could expect to get around £1,150 back.

One of the useful things about a bond is that investors should be able to clearly know how much they will get in advance. This is because the repayment terms and interest are already agreed upon, it does not depend on the ebbs and flows of market sentiment.

Like bonds, fine wine can also take some time to realise its return potential. But, on average, it’s much more profitable for investors than bonds. Figures from the Liv-ex 1000 index show that the average bottle of fine wine already brings returns of 23% after two years. After five years, that increases to 34%, and after ten to 78%. So, if you had invested £1,000, you could expect to get back £1,780%.

Liv-ex Fine Wine 1000 ten years

You can follow how specific bottles have performed over the past decade with Wine Track.

Bonds are more liquid than fine wine

There are two main ways to invest in bonds. You can buy them on the primary market and lend money directly to borrowers, or you can trade bonds on the secondary market. In the secondary market, the new buyer will then own the debt and pick up the repayments. This makes bonds quite liquid, meaning they are fairly easy to sell and turn into cash if you suddenly need the money. For publicly traded loans (rather than private debt) you should usually be able to sell a bond and expect the money in your bank account within a week.

Fine wine investors also have a primary and secondary market, but the process of trading is not usually so quick. For the best results, investors should wait until the wine matures before selling. But this can mean that the money is locked-up for months or years at a time. Some vintages, for example, can take upwards of twenty years to peak. If you sell early, you could miss out on valuable returns.

Before investing in wine, always consider your liquidity needs. It can be helpful to add-in some cash or cash-like investments into your portfolio in case you need to access funds quickly.

Fine wine is more inflation-resistant than bonds

Inflation occurs when the value of money decreases. Usually, this is because a central bank (like the Bank of England) prints more money to help the economy overcome a crisis, known as Quantitative Easing. While this measure may help to prevent a recession, sooner or later it usually needs to be reversed. When the economy is red hot, central banks normally need to hike up the interest rates to cool things down again. This can be painful for debt investors, and especially those holding long-term bonds.

Imagine that in 2019, you bought a ten-year bond to lend £1,000. At this time, the bank rate was set at 0.75%. Today (in 2023), you would still have six years left on your bond, but the bank rate has soared to 4.5%. The borrower will still be paying you the rate that was agreed in 2019. You could be paying more for your own mortgage or credit card than you’re getting back from your investment.

What’s more, the initial sum is becoming worth less by the day as high inflation of 8.7% grips the economy. If the inflation continues, by the time the bond is repaid, that £1,000 is the real value equivalent of just £740.55 today.

The downside of investing in bonds is that they don’t really protect you from inflation, especially over the long term.

Fine wine, on the other hand, is a good example of an inflation-resistant asset. Over the years, the value of precious bottles tends to keep up or even outpace Quantitative Easing.

There are many reasons for this. First and foremost, it is a physical asset like property and art, which acts like a wealth store. It is rare and depleting. Furthermore, the passionate and global market usually keeps prices at a healthy level.

The best approach is probably a mix of investments

As Nobel-prize laureate Harry Markowitz famously quipped, “Diversification is the only free lunch in finance”. This philosophy marks the cornerstone of modern portfolio theory. The idea is that you should invest in as many different revenue sources as possible to mitigate against risk. This means that for most portfolios there should be a blend of equity, debt (like bonds), alternative investments (like fine wine), real estate and some cash. Usually, the allocation to cash is about 5%.

Both bonds and fine wine have different investment characteristics. The trick is to use them in the most beneficial way to investors. For example, if you’re looking to grow your wealth over the long-term, fine wine is probably a better option. However, if you’re looking to generate regular income, investing in bonds could be a better bet.

There are interesting examples of bonds and fine wine working together within retirement portfolios. Fine wine is increasingly used as a growth generator to boost the investor’s wealth at the start of their pension journey. Meanwhile, bonds normally provide stable and regular income after the investor retires.

 

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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Investment opportunities in back vintage Bordeaux

Investment in Bordeaux
  • Back vintages can often offer better investment prospects than new releases.
  • Looking at Bordeaux 2022 so far, the wines have been offered at a 16% premium on last year on average; some as high as 40%.
  • Prices for physical Bordeaux have declined since the start of the campaign, making older vintages even more affordable.

With the annual En Primeur campaign in full swing, many consider the investment opportunities in Bordeaux futures. What has become clearer in recent years, however, is that back vintages can often offer better prospects than the new releases.

For many châteaux, En Primeur is no longer the cheapest time to buy a bottle, with older vintages available in the market for less. This goes against the original premise of buying futures, which was an opportunity to acquire the wines at the lowest price possible.

Price and score inflation

Although Bordeaux has experienced improvements in quality, a trend evident in critic scores inflation, the price increases have been even more noticeable.

Looking at Bordeaux 2022 so far, the wines have been offered at a 15.6% premium on last year on average; some as high as 40%. For instance, Château Rauzan Segla was released with a 40.3% increase and Château Beau-Séjour Bécot – up 37.2%.

Château Climens, which did not produce wine in 2017, 2018 and 2021 due to weather challenges, launched its 2022 with a 139.4% increase on the 2016. As a result, back vintages like 2007, 2010 and 2011 enjoyed heightened demand, which in turn pushed prices. Château Climens has become one of the best-performing Bordeaux brands so far this year, according to Wine Track, rising 39%.

Prices for physical Bordeaux decline

Not all releases have enhanced a brand’s value. Since the start of the campaign, prices for physically available Bordeaux wines have declined 1.3% on average, according to the Liv-ex Bordeaux 500 index.

This is making back vintages look especially good value, in the context of rising En Primeur prices.

Take for instance one of the most recent releases, Château Lynch-Bages 2022, which was offered at £1,280 per 12×75, up 20.8% on last year. The 2022 surpasses the price of any vintage younger than 2010. The 2019 and 2016 look particularly good value, with higher critic scores and lower prices.

Lynch-Bages

Buyers will find opportunities in old vintage Bordeaux, such as 1995 and 1996, as well as the most recent years – 2021, 2020, 2019 and 2018. The recent trilogy of greats (2018-2020) offers plenty of options, with comparable quality to the new releases and lower prices.

For instance, the average Neal Martin score for the 2022 vintage is 94.8; in comparison, his 2019 is 95.2 and 2020 – 95.1.

The campaign’s successes

As discussed in a recent article, there have been some successful En Primeur releases such as Cheval Blanc, Beychevelle, and most recently, Les Carmes Haut-Brion. These wines were offered higher than last year but still represented an attractive point of entry into the brand, and immediately enjoyed demand.

Carmes Haut-Brion

Les Carmes Haut-Brion has become a collector’s favourite as quality has improved. Until 2010, 93-points was the highest score the wine had received. The newest release achieved 98-100 points from Antonio Galloni (Vinous) and 99-100 from Yohan Castaing (Wine Advocate). Neal Martin also credited it ‘as the best Carmes the new owners have overseen’. Its average score was higher than the more expensive Ausone, Haut-Brion, Lafite Rothschild, Margaux, Mission Haut-Brion and Le Pin.

At a quarter of the price of a First Growth, and half the price of wines like Léoville-Las Cases and Palmer, the wine has demonstrated considerable potential for continued appreciation. This has been reflected in the performance of its index, which has risen 41% over the last five years, making it one of the best-performing Bordeaux properties.

The successful 2022 releases have taken into consideration existing demand for the brand, vintage quality and, most importantly, offered value compared to back vintages.

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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En Primeur round-up: The best Bordeaux 2022 releases so far

Chateau Lafleur
  • Two weeks into the Bordeaux En Primeur campaign about a third of the most popular estates have released their 2022 vintage.
  • The releases so far have commanded 5% to 25% price premium on last year.
  • Some of the most successful releases included Beychevelle and Cheval Blanc.

The Bordeaux 2022 En Primeur campaign is now in full swing. The past two weeks have seen about twenty of the most important Bordeaux estates release their latest vintage, including Château Beychevelle, Château Cheval Blanc, Château Suduiraut and Château Lafleur.

The majority of the wines have been released at 5% to 25% premium on last year, with price rises often highlighting the relative value and better investment opportunities that back vintages offer.

The best new releases have represented an attractive point of entry into the brand, a combination of adequate pricing and good quality as measured by critic scores. Below we highlight four of them.

Château Beychevelle – ‘fabulous’

 

Beychevelle

Château Beychevelle 2022 was released En Primeur at €67.50 per bottle ex-négociant, representing a 17.2% increase on the 2021. The wine was offered at £836 per 12×75, up 18.4% on the 2021’s opening price (£706 per 12×75).

However, in the context of back vintages, the 2022 became one of the most attractive offerings in the market today. The wine boasts 95-97 points from Neal Martin (Vinous), who said it was ‘one of the most seductive Beychevelles I have tasted from barrel’ and ‘one not to be overlooked’. Antonio Galloni scored it 94-96 points and called it ‘fabulous’.

Beychevelle has been a brand on the move, seeing consistent price growth both in the shorter and longer-term. In the past year, prices are up 6% on average; they have increased 24% over the last three, and 68% in the past decade.

Château Cheval Blanc – ‘wine of the vintage?’

 

Cheval Blanc

Château Cheval Blanc 2022 has been another of this year’s campaign successes. The wine is Neal Martin’s highest-scoring vintage ever and the latest well-priced release from the château, which seems to have created a sustainable En Primeur strategy.

When we spoke to Cheval Blanc’s technical director, Pierre-Olivier Clouet, he stated:

“The release price depends on many things. The quality of the vintage, the economic context in the world, and the price of new vintages available on the market. At the end, the definition of the price En Primeur is not something so difficult to do. This is something mathematical. 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.”

Cheval Blanc 2022 was released at €470 per bottle ex-négociant, up 20.5% on the 2021, and offered internationally for £5,760 per 12×75, up 21.5% increase on last year.

Numerous critics awarded the wine a potential 100-points, including Neal Martin (98-100), Antonio Galloni (98-100), Lisa Perrotti-Brown MW (98-100), Colin Hay (98-100), James Suckling (99-100), and Jean-Marc Quarin (100).

Other older vintages that represented good value for money included the 2021, 2020 and 2016. Prices on average have risen 20% in the last half decade.

Carruades de Lafite – ‘a real showstopper’

 

Carruades de Lafite

Carruades de Lafite, the second wine of Château Lafite Rothschild, is another anticipated release that enjoys high demand year after year. The 2022 was released at €180 per bottle ex-négociant, up 12.5% on the 2021. The wine was offered for £2,256 per 12×75, up 13.9% on the 2021 release, which has since risen in value.

Despite the price increases, the 2022 is the least expensive Carruades on the market today. This has not gone unnoticed and the wine has already traded at a premium of 21.2% on the secondary market.

Martin awarded it 90-92 points, and Kelley gave it 91-93. It also received 92-94 points from Galloni, who called it ‘a real showstopper’.

From an investment perspective, Carruades de Lafite prices have risen 22% over the last five years, and 63% in the last decade.

Château Lafleur – ‘intellectual and delicious’

 

Lafleur

In recent years, Château Lafleur has been offering considerable value in the high-rolling world of Pomerol. The latest release was no exception.

Lafleur 2022 was released at €610 per bottle ex-négociant, up 8.9% on the 2021. It was offered at £7,440 per 12×75, a 14.3% increase on the 2021 release, which has since experienced a significant price growth.

The 2022 received 97-99 points from Neal Martin, who said it was ‘an intellectual and delicious Lafleur – a lethal combination’. Galloni gave it 95-98 and noted that it was ‘shaping up to be majestic’.

The wine also received 98-100 points from Colin Hay and Jane Anson, and 100-points from Falstaff and Jean-Marc Quarin.

Lafleur prices have risen 38% in the last five years, and 83% in the last ten, making it an attractive investment wine.

You can now explore the historic performance of these wines on Wine Track. Our tool provides a clear overview of a fine wine’s track record, including critic scores, average price and investment returns.

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 as a value and growth asset

Fine wine value and growth asset

Fine wine offers the benefits of different asset classes. As a long-term investment, due to the inherent premise that it gets better with age, fine wine would traditionally fall under the ‘value asset’ category. This is especially true as investors tend to buy and hold wine for decades before selling at a premium. 

However, since fine wine is a highly sought-after and depleting investment, it shows tremendous growth characteristics too. Over the past year, fine wine has delivered strong returns, with some bottles increasing in value by as much as 550%. This makes it more akin to growth assets. 

Could fine wine be considered both a value and growth asset?

Value assets have intrinsic value and are usually undervalued

When investors talk about value and growth assets, they are generally referring to publicly-traded stocks. This could mean huge blue-chip corporations like Coco-Cola, Microsoft, or Tesla, or it could be little-known and up-and-coming stocks. Generally, the market is extremely efficient and so finding an underpriced stock is hard work. Those who dedicate time and research to discovering these undervalued assets are known as value investors. 

Warren Buffet is perhaps the most famous value investor of all time. “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price,” he declares. For Buffet, seeking intrinsic value is the only real way to invest. Perhaps that is why he is such a fan of fine wine investments. Buffet has reportedly said that every portfolio should have at least a 1% allocation to fine wine. 

The value of fine wine can’t be measured the same way as a stock

To understand whether an investment offers good value or not, investors usually need to crunch a lot of numbers. But the process is a little harder outside of the stock market. Unlike traditional stocks and shares, analysts would be hard-pushed to calculate the price-to-earnings, debt-to-equity, or price-to-book ratios of fine wine. 

Firstly, this is because bottles, casks or barrels of fine wine do not offer “earnings” in the stock market sense. Bottles cannot pay dividends, and so buyers instead collect all their returns when they sell the asset.

Secondly, prices are variable. As fine wine is usually traded privately or through prestigious auction houses, the final sum is not always predictable – especially if you have two or more extremely passionate bidders in the room. As a result, bid-ask spreads are significantly greater than you’d find on the stock market. 

Finally, forecasting these values can be unreliable because in some cases wine prices are not always publicly available. However, as industry leaders, we do have a lot of this information. If you would like to get an insider idea of the latest auction results and performances, check Wine Track. 

While we may not be able to scrutinize the value of fine wine in the traditional sense, we can analyse the general trends and characteristics. From here, we can see how they hold up against traditional value stocks. 

Fine wine shares many of the long-term characteristics of value investments

As an asset class, fine wine behaves like a value investment. Some of the main characteristics are the “buy low, sell high” strategies, the long-term investment horizon, and stable financial returns. 

  • “Buy low, sell high” strategies 

Value stocks are generally underpriced on the market, meaning investors expect to make profits over time as the asset realises its true worth. This is remarkably similar to fine wine investments. Many purveyors will purchase the wine en primeur before it is even bottled to secure the best price.

At the time of writing, wines such as Domaine d’Auvenay have already delivered returns of nearly 8,500% over a ten-year period. This shows the incredible power of buying wine early, and holding. 

  • Buy and hold over the long-term

As the adage goes, fine wine gets better with age. High-quality Bordeaux, for example, takes 20-30 years to mature. Successful investors will generally buy and hold fine wine over the long-term. 

This approach mirrors the “value” philosophy perfectly. As Buffet himself warns, “If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10 minutes”.

  • Steady returns

Stability is another key characteristic of value investments. These assets should be able to sail through all kinds of market storms with minimal or zero disruption. Fine wine has delivered exceptionally stable returns over the last year, holding up against recessions and incrementally gaining value despite stock market chaos. 

Fine wine has compelling growth attributes too

On the face of it, fine wine seems to be a value investment. It is a steady long-term asset which gains value over time. Yet, despite its famous stability, this investment has also delivered some impressive short-term returns and it is an alternative asset, which push it more into the growth category. 

  • Fine wine is an alternative asset 

Investors looking for growth assets tend to accept volatility risk, as part of the trade-off for superior returns. Because of this, they are more inclined to look away from the reassurance of the stock market to find new revenue streams. Increasingly, unlisted property, private equity, hedge funds, high yield credit, long-duration bonds and alternative debt are finding their way into growth funds and portfolios.

 As an alternative asset, fine wine seems to fit snugly into the “growth” category. Yet, unlike these investments, fine wine is generally not volatile. 

  • Exceptional short-term returns 

Wine can, however, deliver exceptional short-term returns. Over just five years, fine wines such as Hubert Lamy have seen values increase by 1,223%. This is an extraordinary performance. To put this it into context, it took value stock Coco-Cola 24 years to deliver returns like this. 

Some fine wines are even demonstrating market-beating returns in extremely short timeframes too. Some brands like Hubert Lamy have enjoyed increases of over 450% in just three months. If you’d like to explore the greatest gains and losses in the industry, Wine Track is a useful resource. As you read, please remember that experts do not recommend investing for less than five years. 

Fine wine offers the best of both worlds 

Fine wine is a fascinating alternative investment because it seems to offer the best of both value and growth without the downfalls.  

Fine wine is a buy-and-hold asset which increases in intrinsic value over several decades, while offering historically-superior returns. It also holds up well in recessions and fights back against inflation. These are all classic characteristics of value investments. 

Meanwhile, some bottles have proven to be extremely lucrative over the short-term. These boosts in value are likely to continue as climate change ramps-up demand for scarce flavours. High gains in short periods of time – especially from alternative assets – are usually more commonly associated with growth investments. 

Therefore, fine wine is an incredibly versatile asset, suitable for different kinds of investment strategies. Whether you’re looking for value, growth or both, fine wine could help you reach your goals faster. 

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