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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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How technology has democratised fine wine investment in 2024

Wine investment technology
  • Technology has democratised fine wine investment by opening new avenues and making the asset more accessible to novice investors.
  • Since last year, there has been a 32% increase in UK investor confidence in the market’s liquidity – a shift partly driven by technology.
  • 80% of UK investors believe that technology like blockchain will create more security and confidence in the sector.

In the world of fine wine, exclusivity has long defined the industry, which has historically attracted seasoned aficionados and connoisseurs with extensive resources and specialised knowledge.

In recent years, technology has democratised the sector, opening new avenues and making fine wine appeal to a more diverse investor demographic. 

According to our 2024 UK Wealth Report, technological advancements have contributed to fine wine going mainstream and thus expanding the market’s appeal to a broader audience, in particular, less experienced investors. Technology has simplified buying and selling processes, enhanced pricing transparency and improved the market’s overall liquidity.

Technology leads to an increase in investor confidence

Since last year, there has been a 32% increase in UK investor confidence in the market’s liquidity – a shift partly driven by technological advancements. In the US, this number is 14%. 

An increasing number of fine wine investors are leveraging data and technology to inform their buying and selling strategies and track the value of their portfolio.  

Online platforms, like WineTrack, have made it easier to identify investment opportunities, compare prices and critic scores and track a brand’s historic performance all in one place. Meanwhile, fine wine indices like the Liv-ex regional indices can help investors compare the performance of different regions and identify market trends.

UK Wealth Managers 2024 Statistics

Advanced technology’s role in fine wine trading

According to our survey, investors and wealth managers are increasingly receptive to new developments, like the use of blockchain technology, in the fine wine investment landscape.

80% of UK investors believe that technology like blockchain will create more security and confidence in the sector, up from 56% last year. In the US, 76% of investors recognise its benefits, up from 54% in 2023.

52% of the UK survey respondents think that blockchain will make reputable releases, such as En Primeur offers, more accessible for investors without using a third party. Still, 6% of them remain sceptical about how this would work in practice.

Meanwhile, 46% of US wealth managers think that blockchain will bring greater transparency in the supply chain, and further boost investor confidence.

As a growing number of new investors consider fine wine for its unique benefits diversifying traditional portfolios, technological innovations continue to redefine their overall experience and industry standards. 

From blockchain contributing to supply chain transparency to online wine investment platforms shaping decision-making, these technological advancements are evening out the playing field by creating new opportunities in the market and appealing to a broader audience. 

For those interested in exploring this trend further, WineCap’s 2024 Wealth Report offers an in-depth look into the top motivations for investing in fine wine, the trends shaping the market, and investor sentiment.

Download your complimentary copy here. 

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 growing importance of sustainability in fine wine investment

  • Sustainability is a major factor influencing investor decisions in the UK.
  • Fine wine producers are embracing sustainable viticulture techniques aimed at reducing their carbon footprint and making a social impact.
  • Fine wine is a forward-thinking sustainable investment choice.

Sustainability is a major factor influencing investor decisions in the UK. Fine wine producers are increasingly embracing sustainable viticulture techniques aimed at reducing their carbon footprint, making fine wine a forward-thinking investment choice.

The evolving landscape of fine wine investment

In recent years, the landscape of fine wine investment has undergone significant changes. Beyond the traditional allure of rarity and prestige, a new motivation is influencing investor decisions in the UK: sustainability.

This shift reflects a broader global trend where environmental, social, and governance (ESG) factors are increasingly shaping investment strategies across various asset classes, including fine wine. Investors are now looking at the environmental impact of their investments, and fine wine is emerging as a preferred choice for those who prioritise sustainability.

UK investors prioritise sustainability

Historically, investing in fine wine has mostly been driven by passion, financial gains, and the status of owning rare vintages from a select few vineyards. 

However, as society becomes more conscious of sustainability issues, there has been increased global demand for sustainable and impactful investing. Fine wine is ideally positioned to benefit from this shift.

Recent research conducted for our 2024 UK Wealth Report found that sustainability has emerged as the most important factor influencing the preferences of both seasoned and novice investors in the fine wine market. 

UK investor motivations 2024

Our 2023 survey found that 56% of investors are attracted to fine wine because it is a sustainable asset class with a low carbon footprint. In 2024, this positive investor sentiment towards fine wine has increased in the UK, with 68% of the survey respondents citing sustainability as their top motivation to invest in fine wine. 

UK investors increasingly recognise the benefits of ethical alignment, accessibility, and financial viability that fine wine brings as an asset.

The benefits of sustainable investing

One of the most compelling selling points of fine wine investment lies in its low-carbon benefits. Many fine wine producers are embracing sustainable viticulture techniques aimed at reducing carbon footprints, as outlined in our Fine Wine Sustainability Report.

Vineyards leading the charge are implementing methods to preserve old vines, adapt to climate change, mitigate environmental impact, and promote biodiversity. These sustainable practices not only benefit the environment but also enhance the quality and longevity of the wine, making it an even more attractive investment.

The expanding appeal of sustainable investing is expected to grow, driven by environmentally conscious investors seeking resilient assets that offer both financial security and ethical value. This trend not only enhances the market appeal of fine wine but also reinforces its status as a forward-thinking investment choice.

A deeper dive into the changing fine wine investment attitudes

For those interested in exploring this trend further, WineCap’s 2024 Wealth Report offers an in-depth look into the top motivations for investing in fine wine, the trends shaping the landscape in the UK, and investor sentiment.

This comprehensive report provides valuable insights for both current and prospective investors, highlighting the growing importance of sustainability in the fine wine market.

Download a complimentary copy of WineCap’s 2024 Wealth Report to gain a deeper understanding of this evolving market and the role of sustainability in shaping its future.

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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WineCap Wealth Report 2024: UK Edition

WineCap UK Wealth Report 2024

As the investment landscape continues to evolve, so too does the appeal of alternative assets. The 2024 WineCap Wealth Report reveals a dynamic shift in the fine wine investment market, driven by changing demographics, technological advancements, and a growing emphasis on sustainability.

Methodology and demographic

In April 2024, we surveyed 50 UK-based full-time wealth and investment managers on their views and sentiments towards fine wine. 35 of the respondents classed themselves as wealth managers, eight as financial intermediaries/advisers and seven as independent financial advisers. The research was conducted via online questionnaire. For any annual comparisons in the report, we have taken into account wealth managers’ responses from the same survey conducted in April 2023.

Key findings

  • Changing demographics: Younger generations and less experienced investors are increasingly drawn to fine wine.
  • Rising demand for collectibles: Fine wine is the most popular collectible asset, with 92% of wealth managers anticipating demand to increase in the next year.
  • Enhanced market liquidity: The fine wine market is becoming more liquid, with a 32% increase in investor confidence in market liquidity. Advanced technology is enhancing the trading experience and security.
  • Sustainability: Fine wine is largely perceived as a sustainable investment, with 68% of respondents citing sustainability as a top motivation to invest in it.
  • Stability: Despite economic volatility, fine wine continues to act as a stable investment option and investors appreciate its uncorrelated market returns.
  • Capital Gains Tax (CGT) changes: Recent cuts to CGT have made fine wine more attractive, with 90% of respondents noting increased interest in fine wine investment.
  • Diversity: Survey respondents suggested that greater awareness of fine wine’s role in diversifying traditional portfolios could attract more clients.

The 2024 WineCap Wealth Report underscores the growing sophistication and accessibility of fine wine as an investment. As new generations of investors seek diversification and stability away from traditional financial markets, fine wine emerges not only as a stable asset but also as a leader in the collectibles market.

The integration of advanced technology, the expanding appeal of sustainable investing, and the strategic adjustments in response to economic conditions highlight fine wine’s unique position in the investment landscape.

Download your complimentary copy of the 2024 WineCap Wealth Report and discover how fine wine can enhance your investment portfolio.

Please fill in the form below to download your complimentary copy of the report.

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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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Fine wine vs luxury handbags: the investment perspective

Luxury handbags vs fine wine
  • Luxury handbags are the second most popular collectible item among UK wealth managers in 2024, after fine wine.
  • Rising prices in the primary market for handbags have led to investment interest.
  • While valuations for brands like Chanel and Hermès have spiked dramatically, the secondary market is less established and more illiquid than the fine wine market.

Recent headlines have been filled with news about skyrocketing prices for luxury handbags. The price of the Chanel medium classic flap bag has risen close to 553% since 2005; and 4,809% since 1955.

With prices in the primary market reaching record highs, interest in handbags as a collectible has grown. The term ‘investment piece’ no longer serves to simply describe the timelessness of an item; for investors today, it has taken a much more literal meaning.

Meanwhile, fine wine remains a more established member of the ‘collectibles’ family. In recent years, fine wine has transitioned from a passion investment to a mainstream asset class.

This article explores the shift in investment trends, the rising popularity of luxury assets, and the risks and rewards associated with fine wine and luxury handbags.

A shift in investment trends

Traditionally, investments have been confined to stocks, bonds, and real estate. Now, they are sharing the spotlight with more tactile assets like fine wine and luxury handbags.

According to our recent survey among US and UK wealth managers, there has been a significant uptick in interest for collectibles. In 2024, 78% of US wealth managers expect demand for luxury handbags to increase, complemented by a strong ongoing interest in fine wine (84%).

In the UK, 86% anticipate growth in demand for luxury handbags, up 6% from 2023, while 92% expect sustained demand for fine wine.

The full findings of this survey will be released later this month.

Comparing fine wine vs luxury handbags

Fine wine is sought after for its stability and remains the top investment choice among alternative assets. Its secondary market is more established, offering increased liquidity and price transparency.

It does not lack impressive performers either; luxury Champagnes Salon Le Mesnil-sur-Oger Grand Cru has appreciated 304% over a decade, and Egly-Ouriet Brut Millésime Grand Cru has seen returns of 452%. Prestigious Burgundy wine, Domaine René Engel Vosne-Romanée is up 3,105% over the same period.

Although luxury handbags are a newer investment avenue, they have shown considerable promise. The valuation of iconic pieces like the Hermès Birkin and Chanel Flap Bag has spiked dramatically, reflecting their growing appeal among investors who value both fashion and finance.

Chanel bag prices

Celebrity endorsements

Celebrity endorsements have significantly influenced this market segment. For instance, the Louis Vuitton Pochette Accessoires bag retailed for $165 in 2001; today, it costs $1,520 – an increase of 821%. Over that period, celebrities like Paris Hilton, Nicole Richie, and even fictional character Carrie Bradshaw have boosted its value.

This phenomenon is less prevalent in the world of fine wine, though not entirely absent. Domaine Dujac, for instance, became a brand on the move (the highest riser in the 2018 Liv-ex Power 100 rankings) due to DJ Khaled’s endorsement in a music video.

Investor demographics

Another key distinction between these investment avenues lies in their typical investor demographics. According to the Financial Times, luxury handbags tend to attract younger female clients, who are drawn to both the fashion statement and the investment potential of these pieces. In contrast, the typical fine wine investor is often older and male, with a preference for the historical depth and long-term value appreciation that fine wines offer.

Risks and rewards

Investing in luxury handbags comes with its set of challenges. Unlike fine wine, which can be stored and aged with relative ease, handbags require meticulous care to maintain their condition and value.

Additionally, the market for luxury bags is more volatile, influenced heavily by trends and the limited number of high-value players like Hermès, Chanel, and Louis Vuitton. Future demand for specific models or brands can be unpredictable, and the resale market is often less liquid than that of fine wines.

Both fine wine and luxury handbags offer intriguing opportunities for portfolio diversification, each with unique benefits and challenges. The consistent performance and security of fine wine make it a reliable choice for those seeking steady growth. In contrast, luxury handbags can provide the pleasure of owning a piece of high fashion, though they carry higher risks.

As the luxury investment landscape continues to evolve, the blend of passion and profitability remains a compelling draw for high-net-worth investors globally.

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. 

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Jeb Dunnuck on Bordeaux 2023 En Primeur

Chateau Montrose 2023
  • According to Jeb Dunnuck, ‘2023 is a good to very good, but not a great year for Bordeaux’.
  • He described most wines as ‘ripe yet not massive with more focused, linear profiles on the palate’.
  • Château Montrose received his highest barrel range of 97-100 points.

According to Jeb Dunnuck, ‘2023 is a good to very good, but not a great year for Bordeaux’. In his latest report, the critic delves into the growing season that shaped the vintage, comparisons with previous years, the En Primeur tastings and the current market for buying the new releases. Below we summarise his key findings. 

A heterogeneous vintage

An erratic growing season led to a divergence of styles between sub-regions and even neighbouring châteaux. Bordeaux 2023 witnessed ‘an incredibly successful flowering, huge mildew pressure in the spring, a slightly uninspiring summer that lacked sunlight, sporadic and very localised storms, and a heatwave at the end of August and September that sped up ripening and, according to many, saved the vintage’.

In terms of vintage comparisons, ‘some of the wines have a certain 2019-like sunny, easygoing style, while others can have a cooler, more structured, almost austere profile similar to 2020’. The common themes, according to the critic, are the ‘fully ripe aromatics and more focused, linear profiles on the palate’.

A Left Bank vintage?

Jeb Dunnuck pointed out that ‘at a high level, the Merlot is much riper and more opulent, and the Cabernets are slightly fresher and vibrant’. He suggested that the Left Bank had the upper hand in 2023, saying that ‘while there are unquestionably impressive wines from the Right Bank, the top Médoc and Graves seem to have another level of harmony and overall balance’.

In terms of overall quality and style, Dunnuck argued that Bordeaux 2023 ‘surpasses 2014, 2017, and 2021 yet is a solid step back from the incredible trio of 2018 through 2020, and most likely will be surpassed by 2022 as well’.

Jeb Dunnuck’s favourite Bordeaux 2023 wines

Dunnuck found potential for perfection in three wines, awarding a barrel range of up to 100 points. Château Montrose got his highest score (97-100), and he noted that ‘it has some similarities to the 2010 (or 2016?) and might end up being the wine of the vintage’.

Among the First Growths, only Château Margaux came close to perfection, with the critic saying that ‘it is clearly one of the greats in the vintage, and it actually reminds me a touch of the 1996, if not better’.

Regarding the 2023 Château La Mission Haut-Brion, Dunnuck remarked that ‘the overall balance paired with opulence here is something to behold, and it’s incredible to find this level of quality in the vintage’.

Jeb Dunnuck Bordeaux 2023

Should you buy Bordeaux 2023 En Primeur?

Dunnuck outlines four main reasons why you should buy a vintage En Primeur: ‘1) If it is a great vintage; 2) If the wines are expected to increase in price; 3) If quantities are limited; and 4) If you are buying wines in formats other than 750-milliliter bottles’.

He defined 2023 as a ‘a borderline case’. While ‘it’s not a truly great vintage […] there are a handful of gems in the vintage that will rival the best from 2016, 2018, 2019, and 2020,’ the critic said.

In terms of pricing, he observed that it seemed to ‘be coming back to 2019 levels’, still he reckoned that ‘the time of substantial early gains from purchasing En Primeur has largely sailed’.

Our En Primeur offers only highlight wines that present great value for money in the context of the market prices for vintages currently available on the market. These are wines that hold significant potential for future price appreciation, and where the scores match the price. 

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.