Tag: Wine Investment

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Jeb Dunnuck’s top-scoring Southern Rhône releases

  • Jeb Dunnuck recently reviewed two vintages from Southern Rhône – the 2021 in bottle and 2022 in barrel.
  • He described 2022 as a ‘clear step up over 2021’.
  • Château de Beaucastel’s Châteauneuf-du-Pape Roussanne Vieilles Vignes 2022 received 100 points from the critic, and prices for the label have risen 60% in the last five years.

Last week, Jeb Dunnuck released his latest Southern Rhône report, reviewing the 2021 vintage from bottle and the 2022 mostly from barrel.

The critic observed that ‘the time of truly bad vintages is mostly over’ given ‘the advances in viticulture and winemaking’. This is especially true for ‘a region like the southern Rhône, which has so much flexibility with grape varieties and different terroirs’.

2021 – drinking rather than collecting

The 2021 Southern Rhône vintage was marked by devastating springtime frosts, which dramatically reduced yields. A cool, rainy year led to ‘forward and charming [wines], with mid-weight, linear, fresher profiles,’ according to Dunnuck.

Dunnuck said that ‘2021 is not a great vintage’ when tasted next to a top 2019, 2016 or 2010. While he commended the accessibility and finesse of the wines, which would be ‘loved by sommeliers’, the critic noted that ‘it’s not a vintage to seek out or buy in massive quantities for the cellar’.

2022 – checks in ‘behind the greats’

Dunnuck described the 2022s as ‘a clear step up over 2021s’. He noted that the vintage bears some similarities ‘to 2020 and 2011, if not a more linear, mid-weight version of 2009’. For him, ‘2022 looks to check in behind the greats of 2019, 2016, 2010, and 2007’.

However, the critic concluded that ‘the divergent styles throughout the region make 2022 a difficult vintage to describe in broad statements, so it’s a vintage that readers will need to approach on an estate-by-estate basis’.

Dunnuck’s top-scoring wines across both years can be seen in the table below.

Across both years, Jeb Dunnuck found perfection in one wine – Château de Beaucastel’s Châteauneuf-du-Pape Roussanne Vieilles Vignes 2022. Awarding it 100 points, he called it ‘pure Beaucastel magic’. Average prices for the label have risen 101% over the last decade, and 60% in the last five years.

The Rhône’s investment performance in 2023

Prices for the top Rhône labels have been falling this year. Across the Liv-ex 1000 regional sub-indices, the Rhône 100 has experienced the biggest decline, down 18.1%.

However, young vintages like 2019 and 2020 have been in demand. Moreover, some wines from Southern Rhône such as Château de Beaucastel Châteauneuf-du-Pape Blanc have been on an upward trend, rising 32.8% on average.

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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Cautious optimism for Australian wine amid tariff review

  • Australia and China have agreed to a suspension of their ongoing dispute over the steep tariffs imposed on Australian wine since November 2020.
  • The tariffs had a profound impact on demand and price performance of Australian wine.
  • Australia’s best price performers have risen over 40% in value in the last year.

Australian wine tariffs under review

In a significant shift that could redefine trade relations between Australia and China, the two nations have agreed to a suspension of their ongoing dispute over the steep tariffs imposed on Australian wine since November 2020. This development comes ahead of Australian Prime Minister Anthony Albanese’s forthcoming trip to Beijing, marking a potential thaw in the trade tensions that have severely impacted Australia’s wine industry.

While the Chinese government has consented to an expedited five-month review of the punitive duties, which have plummeted Australia’s wine exports from over $1 billion to a mere $12 million, there remains a cautious optimism. Despite this progress, industry experts predict that even if the tariffs are promptly revoked, the Australian wine sector, which has undergone substantial restructuring in response to the lost Chinese market, would still require approximately two years to recuperate and effectively redistribute its current surplus.

Impact on Australia’s wine investment market

The Chinese tariffs, ranging from 180% to 200% on Australian wine imports, had a profound impact on Australia’s budding secondary market. The country has historically been the second most important fine wine player from the New World after the U.S., enjoying greater demand than South Africa, Chile or Argentina.

After a record-breaking year of trade in 2020, Australia’s investment market shrank in 2021. The number of different Australian wines traded on Liv-ex declined 32.2% year-on-year, as demand decreased.

Fewer wines from Australia made it into the rankings of the most powerful brands in the world. Australia’s leading label, Penfolds Grange, dropped in the 2021 Power 100 rankings, from fifth in 2020 to 45th place in 2021. In last year’s edition of the rankings, the wine fell further – from 45th to 55th place, while Henschke exited altogether. Part of the reason is that Penfolds has historically been heavily reliant on the Chinese market. In an attempt to rebuilt tariff-hit business, earlier this year Treasury Wine Estates, owner of Penfolds, announced the introduction of its first China-sourced premium wine.

Australian wine price performance

Since the tariff introduction, prices for some of the top wines have dipped, creating pockets of opportunity. For instance, the average price of Henschke Hill of Grace is down 4% in the last year; similarly, Penfolds Bin 707 is down 9%. While their trajectories are different, the long-term growth trend remains, with over 90% rise in the last decade.

Some Australian brands have seen impressive price performance despite the ongoing trade tension. The table below shows the five best performers on Wine Track in the last year, which have risen between 31% and 41% on average. Clarendon Hills Brookman Syrah leads the rankings, with an average price per case of £1,042. Two Hands Aphrodite has been the second-best performer, up 39%.

The cautious optimism for Australian wine will likely affect its secondary market performance. As demand rises, so will prices. It remains to be seen if a potential tariff suspension will bring back the momentum to a region that has quietened down in the last three years but nonetheless remains an important New World representative.

WineCap’s independent market analysis showcases the value of portfolio diversification and the stability offered by investing in wine. Speak to one of our wine investment experts and start building your portfolio. Schedule your free consultation today.

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Report

Q3 2023 Fine Wine Report

Our Q3 2023 report has now been released. The report examines mainstream market performance, the best buying opportunities in fine wine, releases from La Place de Bordeaux and the latest industry news.

Report highlights:

  • Investors leaned towards liquid assets like cash amidst the struggle between the Federal Reserve and inflation, contributing to an environment steeped in risk and uncertainty.
  • Q3 witnessed a marked slowdown and potential bottoming out of fine wine prices, with the Liv-ex 100 index showing modest signs of recovery.
  • The fine wine market morphed into a buyer’s market due to stock availability and dipping prices, especially visible in regions like Champagne.
  • The La Place de Bordeaux campaign, amidst an eleven-month market decline and global economic uncertainties, mirrored the earlier En Primeur campaign in its inability to energise the market, with offerings often misaligned with trade expectations.
  • Wines like Almaviva 2021 and Masseto 2020 stood out, providing relative value for money and showcasing a strong price performance history.
  • Investors should be looking at ‘pockets of opportunity’ where there is brand strength, value and liquidity.
  • Demand is likely to pick up in Q4 with Christmas around the corner and exciting vintage releases on the horizon.

Click below to download your free copy of our quarterly investment report.

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Learn

Key trends that shaped the fine wine market in Q3

The following article is an extract from our Q3 Fine Wine Investment report, which will be published next week.

  • Ongoing inflation and interest rate hikes led to increased volatility in mainstream markets.
  • The fine wine market in Q3 was a buyer’s market for two main reasons: availability of stock and falling prices creating value.
  • Two of the best value La Place releases were Almaviva 2021 and Masseto 2020.

High interest rates rattle global markets

Mainstream markets experienced a turbulent third quarter, mainly due to a marked rise in borrowing costs coupled with a substantial increase of nearly 30% in oil prices. As a major input in several industries, rising prices for crude oil led to overall increase in production costs, impacting profit margins and, ultimately, reducing stock prices. These developments created a challenging landscape for stocks and bonds, with investors opting for more liquid assets like cash that tends to be a safer short-term bet. This inclination towards liquid assets illustrated the unresolved struggle between the Federal Reserve and inflation, leaving investors navigating a path marked by heightened risk and uncertainty.

Fine wine’s downturn slows

Fine wine prices fell in Q3, but their declines gradually became smaller. For instance, the Liv-ex 100 index recorded dips of 3.1% in July, 1.3% in August and 0.1% in September, showing humble signs of recovery. The broader Liv-ex 1000 index dipped 3.9% in Q3. Italian wine fared well, thanks to strong performance from Tuscany and Piedmont, as well as older Bordeaux vintages which experienced slight rebounds. Global trading activity increased suggesting that interest is there for well-priced stock.

A buyer’s market

The fine wine market in Q3 was a buyer’s market for two main reasons: availability of stock and falling prices creating value. This was particularly noticeable in regions like Champagne. Some of the top and most desirable brands, which have an impressive mid- to long-term performance saw small declines in Q3. Buyers took advantage of this opportunity and demand increased. Such is the case with Dom Pérignon 2013, which has fallen 7.1% in value since its release in January but has been the most traded wine this year. The brand’s overall trajectory is upwards, with Dom Pérignon prices rising 64% on average in the last five years, and 133% over the last decade.

Assessing the La Place de Bordeaux campaign

Over 110 fine wines were released through La Place de Bordeaux this September. The overall pricing strategy bore similarities to Bordeaux En Primeur earlier this year: price increases that failed to take the current market environment into account. Some critics expressed the opinion that there weren’t ‘as many hits as usual’. Two wines that stood out as good value were Almaviva 2021 and Masseto 2020; the latter immediately generated trading activity above its release price.

Over the last decade, Almaviva prices have risen on average 167%, while Masseto is up 107%.

Stay tuned – our Q3 Fine Wine Investment report will be published next week. The report contains further analysis on the best-performing and most in-demand wines, and Q4 investment outlook.

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Examining the investment potential of Salon 2013 amid heightened demand

  • Salon Le Mesnil Blanc de Blancs 2013 has enjoyed heightened demand shortly after release.
  • The 2013 offers good value compared to similarly scored back vintages, which come at a significant price premium.
  • Salon has delivered higher returns (71%) than the Champagne 50 index (62.8%) over the last five years.

The latest release from Champagne house Salon has already been met with heightened demand. Salon Le Mesnil Blanc de Blancs 2013 came to the market at the end of September, and featured among the most traded wines on Liv-ex shortly after. Below we examine the reasons behind this increased interest and the wine’s investment potential.

The ‘magnificent’ 2013 Salon release

The 2013 was the first vintage release following two unusual releases: the 2012 which the Champagne house initially said they would not offer, and the 2008 of which only 8,000 magnum bottles were released (about 1/3 of their normal production).

The wine received 99-points from Antonio Galloni (Vinous), who declared it ‘the most powerful, dense young Salon I have ever tasted’. The critic further noted: ‘Champagne of mind-bending complexity, the 2013 possesses tremendous mid-palate intensity and power from the very first taste’.

Meanwhile, the Wine Advocate’s Yohan Castaing awarded the wine 97-points, saying that 2013 is ‘more complex and incisive than the 2002 and exhibits similar power to the 2012 at this early stage’.

In terms of value, the 2013 stands out among other Salon vintages available in the market today. The only higher-scoring scoring wine is the 2008 at nearly twice the price. Other similarly scored back vintages such as the 1996, 1995, and 1990 also come at a significant premium to the 2013.

Salon brand performance

Perhaps the most coveted of all Champagne brands, Salon is certainly one of the rarest. Only around 50,000-60,000 bottles are made in most years, and fewer than 50 vintages in the last 100 years.

Salon is a wine defined by its singularity, representing a single vintage expression from one grape and one village. The wine was originally conceived as a private label for the consumption of its founder Eugène-Aimé Salon at a time when the making of Champagne was characterised by blending.

Salon’s exclusivity has been reflected in its investment performance. The wine has delivered higher returns (71%) than the Champagne 50 index (62.8%) over the last five years.

Even in the current climate that has seen prices fall across the board, Salon has fared better than average, down 7% compared to a 12.9% decrease for the broader index, which includes the likes of Krug and Cristal.

The long-term prospects for a wine as rare and highly regarded as Salon are more than promising. There is significant space for Champagne prices to rise in the medium term, and a wine like Salon is especially well placed to benefit.

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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Differences and similarities between the fine wine and financial markets

  • The fine wine market is not correlated with mainstream markets yet there are some notable similarities and differences between them.
  • Global events and the law of supply and demand affect both the fine wine and financial markets.
  • Some of the main differences are tangibility, liquidity, the impact of time and factors influencing their performance.

The world of fine wine and the broader financial market might seem like distinct universes at first glance. However, there are intriguing similarities and differences between the two, which we examine below. 

Similarities between fine wine and financial markets

Both fine wine and financial markets provide lucrative opportunities for investors. While the latter showcases a plethora of options like stocks, commodities, and currencies, the former provides an alternative avenue for diversification, offering tangible assets, valued not just for their financial potential but also their historical and cultural significance. In stark contrast to the complexity and varied strategic approaches inherent in the financial markets, the wine market is more straightforward, predominantly guided by a ‘buy and hold’ strategy. Moreover, the universe of investable wines is notably narrower, typically centering around a select group of regions and producers.

Driven by demand

The laws of supply and demand are central to price determination in both markets. A rare vintage from a renowned vineyard or a wine produced in small quantities can fetch astronomical prices due to limited supply, mirroring the price surge of a high-demand stock or asset. For instance, Hubert Lamy Saint-Aubin Premier Cru Derriere Chez Edouard Saint Aubin has risen 189% in value over the last year due to low supply. The singular wine comes from a tiny plot of 0.7 hectares in Derrière chez Edouard, which was planted 20 years ago at 30,000 vines per hectare. At such a density, the entire plot only yields enough juice to fill the contents of a single barrel. In the world of stocks, demand has played a key role too. Nvidia – the company of the AI-fueled market rally – has been the best-performer in 2023, up 198%.

Impact of global events

Economic downturns, political events, and global crises can influence both the fine wine and financial markets. However, fine wine is less susceptible to global crisis. In fact, events that induce uncertainty usually drive investors towards more stable, tangible assets, which can include fine wines.

For instance, the fine wine market hit new heights during the Covid-19 pandemic, which saw a shift away from risk assets. Prices rose due to heightened demand for fine wine, which demonstrated remarkable resilience during the pandemic.

Expert valuations

Just as financial analysts predict stock performances, wine experts gauge the potential value of wines, guiding investors’ decisions. Investors can also follow the historical performance of their wines of interest with tools like Wine Track, which shows the performance of different brands over various time periods, as well as average prices and scores.

Differences between the fine wine and financial markets 

Tangibility

Investing in fine wine is an investment in tangible assets. The very bottle that appreciates in value over the years can be held, showcased, and ultimately consumed. Contrarily, financial investments, such as stocks or bonds, epitomise intangible assets, wherein the investment is in a concept or a digital representation.

Liquidity

The fine wine and financial markets have different levels of liquidity, which are rooted in their inherent trading characteristics. Fine wine tends to be less liquid, due to its tangibility, with transactions often slowed by factors such as the necessity for physical transport, authentication of products, and a comparatively limited buyer market. Additionally, investment-grade wines often necessitate longer holding periods to realise their gains, further reducing their liquidity. Meanwhile, the financial market is commonly cherished for its high liquidity, with assets like stocks and bonds that can be rapidly traded on large-scale platforms, accommodating a broad, active base of buyers and sellers.

The impact of time

The relationship between wine and time also sets these markets apart. While fine wine can age (which impacts its quality and value), financial assets do not inherently bear such physical transformations. However, their value may be just as susceptible to the passage of time and shifts in market dynamics.

Storage and maintenance

Fine wines require specific conditions for storage to retain or enhance their value, incurring additional costs. In contrast, stocks or digital assets don’t require such maintenance.

Factors influencing performance

In the wine investment landscape, several factors, including vintage quality, expert reviews, provenance, and global demand, play pivotal roles in determining a wine’s value and investment potential. Often burgeoning markets exert a profound influence, dynamically shaping global demand and investment flows, like China’s love affair with Bordeaux.

On the other hand, the financial market is steered by economic indicators and central bank policies, technological advances and corporate actions, such as mergers and acquisitions. Each factor, be it micro or macro in scale, casts its influence over the market’s performance, underscoring the multifaceted nature of financial investments.

Investor profiles

Fine wine appeals to a myriad of audiences, including collectors, connoisseurs, and institutional investors seeking diversified, alternative investment portfolios. The allure of tangible, appreciative assets, coupled with a penchant for oenology, makes this market a vibrant tapestry of participants.

Conversely, the financial market is frequented by a diverse mix of retail and institutional investors, brokers, and analysts. The widespread availability of resources, platforms, and instruments in the financial domain makes it accessible to an extensive demographic.

While the fine wine market and the financial market operate in distinct realms, the parallels and contrasts between them offer valuable insights. As with any investment, potential investors in either market should conduct thorough research and seek expert advice. 

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 LVMH Champagnes

  • Recent LVMH Champagne releases offer a combination of high quality and relative value for money.
  • Dom Pérignon 2013 has been the most in-demand wine so far this year.
  • The current market environment has created plenty of Champagne buying opportunities, among which Krug 2006 stands out.

A name synonymous with luxury and quality, Louis Vuitton Moët Hennessy’s (LVMH) wines have become mainstays of any serious wine investment portfolio. Owners of iconic brands like Krug, Dom Pérignon, Ruinart, Veuve Clicquot and Ace of Spades, LVMH has set unparalleled standards in Champagne production.

Not only have their wines delivered quality, as affirmed by critic scores, but they have brought greater liquidity to the Champagne market. A common theme uniting some of their recent releases is the outstanding value they offer compared to back vintages.

Dom Pérignon 2013 – the most wanted wine this year

Dom Pérignon 2013 is the latest release from the most in-demand Champagne brand. The wine boasts 95+ points from the Wine Advocate’s William Kelley, who called it ‘a lovely wine, defined by the long, cool growing season’.

The remarkable value it offers – as the most affordable Dom Pérignon vintage in the market today – has led it to become the most traded wine by both value and volume this year. The wine’s price has fallen slightly since release (-7.1%), in line with the recent reconciliation in Champagne prices. The Champagne 50 index has dipped 13.1% year-to-date.

However, the brand’s overall trajectory is upwards, with Dom Pérignon prices rising 64% on average in the last five years, and 133% over the last decade, making it an opportune time to buy.

Latest Krug Grande Cuvée editions

The crowning jewel of LVMH, Champagne house Krug, also introduced its latest Grande Cuvée earlier this year. The 171st edition, blended meticulously from 30 different vintages dating back to 2000, represents the lowest-priced Krug GC.

Magnums of the 168th edition are also new to the market, with the hallowed 2012 as the base vintage. Older releases of such magnums are hard to find and command a hefty premium, once again underlining the value to be had here.

Opportunities in Krug 

The recent decline in Champagne prices has created buying opportunities for some of the top names. The latest Krug vintage, the 2008, has become more affordable after dipping 29.0% year-to-date. The wine received 97-points from Antonio Galloni (Vinous) who described it as a ‘nervy, electrifying Champagne, the likes of which has not emerged from Krug’s cellars since the magical 1996’.

However, the 2006 presents an even better investment opportunity. While it is the lowest-priced Krug vintage, its scores align with pricier alternatives such as 2002. The 2006 boasts 96-points from Neal Martin, 97-points from Galloni and 98-points from Kelley, making its value proposition even more evident.

Krug prices have risen 71% on average in the last five years (see more on Wine Track).

Buyers can find plenty of opportunities in LVMH’s Champagnes. Despite the recent dip in the Champagne market, the long-term trajectory of these illustrious brands indicates a steady and impressive rise. The value on offer in some of the most recent offerings makes them an even more lucrative acquisition.

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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La Place 2023: Critics’ verdict and top-scoring wines

  • Major critics have released their ‘Beyond Bordeaux’ reports, accessing the quality and value of this year’s La Place releases.
  • Tom Parker MW stated that there were ‘not as many hits as usual’.
  • Jane Anson awarded three wines 100-points.

As the La Place de Bordeaux campaign takes centre stage in September, major critics have shared their views on this year’s releases, including Jane Anson (Inside Bordeaux) and Tom Parker MW (JancisRobinson.com).

Both have commented on the quality of the wines but also on their pricing strategies and the value to be found. As discussed last week, a recurring theme in the campaign has been the price increases for the new releases, compared to previous vintages. This has done little to invigorate the market for buying at release for investment.

Tom Parker on the campaign’s ‘ambitious pricing’

In his ‘beyond Bordeaux’ assessment, Tom Parker MW expressed his wary view on the campaign’s strategy and pricing. He wrote that ‘the styles and regions are diverse, and the stories risk being lost in such a compressed release timetable’.

He added that ‘given the ambitious pricing for many of these wines, it is hard to see how they can all be sold through successfully’. Indeed, the campaign’s reception so far has been mediocre.

In terms of overall quality, Parker stated that ‘there were some excellent efforts though perhaps not as many hits as usual’.

Regional observations

Delving into individual regions, Parker noted the Californian producers’ split strategy, with ‘some releasing wines from the complicated 2020 vintage, with others choosing instead to offer museum releases and a few choosing to do both’. One such instance was Opus One, which opted for library release of its 2018 and 2019 vintages.

In terms of the Rhône releases, he observed that ‘Hommage à Jacques Perrin was good rather than great, and newly added and renamed Domaine de la Chapelle (formerly Jaboulet’s Hermitage La Chapelle) left a little to be desired in the tricky 2021 vintage’.

For him, ‘Argentina produced two of the most exciting wines’. He awared 18 out of 20 points to Zuccardi’s Finca Canal Uco and 17+/20 for Adrianna Vineyard from Catena Zapata.

Parker also complimented Australian wines which were ‘technically immaculate’ and named Wynn’s John Riddoch ‘a personal favourite’.

His top Italian pick was Masseto (18/20), which he described as ‘almost a guilty pleasure in 2020’ though ‘only for those with the deepest pockets’. Although the wine was released at a 10% premium on last year, the new release still offered value in the context of back vintages.

Jane Anson awards three wines 100-points

Among the releases so far, Jane Anson awarded three wines 100 points – Bibi Graetz Colore 2021, Yjar 2019, and Giaconda Chardonnay 2021. The La Place newcomer Chappellet, Pritchard Hill Cabernet Sauvignon 2019 received a near-perfect score of 99-points from the critic.

Anson drew attention to Sicily as a region that offers both quality and value, saying that ‘Sicilian reds, as ever, offer some of the best value wines not just of the September Releases, but of the wine industry in general’.

She also acknowledged that ‘there’s no doubt that the wider economic stresses globally are both helping and hurting the September Releases’.

Once again, this highlights the importance of correct pricing in a broadening fine 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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New World releases from the autumn La Place de Bordeaux campaign

  • The La Place de Bordeaux campaign is in full swing, with releases from Chile, Italy, USA, France and more.
  • A recurring theme in the campaign has been the price increases for the new releases, compared to their previous vintages.
  • While La Place remains an exciting global marketplace for New and Old World wines, the ultimate value of the releases should be judged in a broader context.

The La Place de Bordeaux autumn campaign has gathered momentum over the past two weeks, with releases from Chile, Italy, USA, France and more.

The campaign kicked off with Paul Jaboulet Aîné’s Hermitage La Chapelle 2021, along with the re-release of some of its library vintages, namely 2013, 2011 and 2006. Napa Valley’s Opus One also re-released its 2018 and 2019 vintages, which led to heightened demand for the brand. Below we take a look at some of the recent New World releases from the campaign so far, examining their pricing and investment potential.

Seña 2021

The newly released 2021 vintage of Mondavi & Chadwick’s Seña is the highest priced wine across recent vintages from the brand.

Seña 2021 was released at €90 per bottle ex-négociant, up 5.9% on the 2020. The wine came with a recommended retail price of £1,344 per 12×75, representing a 30.6% increase on last year.

The 2021 Seña received 98+ points from The Wine Advocate’s Luis Gutiérrez, who described it as ‘one of the finest vintages’. Meanwhile, Joaquín Hidalgo (Vinous) gave it 96-points and said that ‘it will grow in the bottle’.

Other more attractively priced but similarly scored vintages include 2019 and 2018. Over the last ten years, Seña prices have increased 90% on average.

Almaviva 2021

Another release from Chile, Almaviva 2021, was offered via La Place at €122 per bottle ex-négociant, up 5.2% on the 2020. The wine was released internationally for £1,448 per 12×75. It received 96+ points from Luis Gutiérrez, and another 96-points from Joaquín Hidalgo, who praised its ‘enticing nose’ and ‘velvet texture’.

However, some back vintages such as the 2020, 2019 and 2018 offer better value. Our Almaviva index has recorded positive performance both in the short and the long term. Over five years, prices have risen 41%, and over ten – 147%.

Nicolás Catena Zapata 2020

The Argentinian wine Nicolás Catena Zapata 2020 was released at €53.30 per bottle ex-négociant, up 1.5% on the 2019. It has been offered internationally at £720 per 12×75, down 1.6% on the 2019’s opening price.

It received 95-points from Gutiérrez and 96-points from Hidalgo, who observed that this ‘meticulously crafted red achieves perfect balance in a warm vintage’. However, there are plenty of good value buying opportunities in back vintages, notably 2019, 2018 and 2016.

Nicolás Catena Zapata has enjoyed a positive performance over the last five (33%) and ten years (104%).

A recurring theme in the campaign has been the price increases for the new releases, compared to their previous vintages. Similar to the spring Bordeaux 2022 campaign, often back vintages available at a discount hold better investment potential. While La Place continues to showcase the diversity of fine wine, and remains an exciting global marketplace for New and Old World wines, the ultimate value of the releases should be judged in a broader context.

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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Four key market trends from the 2023 Liv-ex Classification

  • The fine wine market is diversifying, with Argentina and Switzerland making new entries in the 2023 Liv-ex Classification.
  • Bordeaux’s influence is waning, now accounting for less than 30% of wines in the classification, while other regions like Champagne rise in prominence.
  • Internal shifts in Burgundy indicate changing buying preferences, driven by the search for value and stock.

The Liv-ex Classification is a ranking of the world’s leading fine wine labels, based solely on their price. The classification takes into account minimum levels of activity and number of vintages traded over one year to present a more accurate picture of the market today. Like the 1855 Bordeaux Classification, the wines are divided into five tiers (price bands).

The 2023 edition featured 296 wines from nine countries. It presented a broad overview of the state of the secondary market – what is trading, and at what price levels. As the market continues to evolve, we break down four key trends from the 2023 Liv-ex classification.

Continued expansion in the world of fine wine

While the number of wines that qualified for inclusion in the 2023 rankings was lower than in the previous 2021 edition (349) due to changes in the methodology, the fine wine investment market has continued to diversify.

Argentina re-entered the rankings with five wines compared to having just one in 2019. Switzerland also joined the classification for the first time with Gantenbein Pinot Noir. Meanwhile, Spain and Chile saw 40% and 100% respective increases in the number of wines entering.

Regional diversity was particularly noticeable in the second-lowest priced 4th tier (£456-£637 per 12×75), which featured wines from France (24), Italy (16), Portugal (3), Australia (2), Spain (1), the USA (1), and Argentina (1).

Bordeaux among global competitors

It is no secret that Bordeaux’s dominance in the fine wine investment market has been fading since its glory days in 2009-2010. The continued broadening of the market has meant that the region has become one of many players, accounting for under 30% of the wines in the 2023 classification.

This has been further aided by its mediocre price performance relative to other regions. The Bordeaux 500 index has risen just 2.9% over the last two years, compared to a 19% move for its parental Liv-ex 1000 index, and a 36.7% increase for Champagne, which has been the best performer. All considered, Liv-ex wrote that ‘this pattern may well continue in future editions’ as new entrants challenge Bordeaux’s monopoly.

While Bordeaux’s influence wanes, other regions like Champagne are capturing the limelight.

The stellar rise of Champagne prices

Champagne has experienced a significant price surge in recent years, which has been reflected in the global rankings.

The majority of Champagnes (10) in the classification entered the first tier – wines priced above £3,641 per 12×75. The remaining 12 were split between tier 2 (£1,002-£3,640) and tier 3 (£638-£1,001). There were no Champagnes in tiers 4 and 5 (wines below £1,000 per case).

The most expensive Champagne was Jacques Selosse Millésime, with an average trade price of £32,516 per case, followed by Krug’s Clos d’Ambonnay (£30,426) and Clos du Mesnil (£17,509). The latter has risen 105% in value over the last five years.

On average, Champagne prices are up 62.8% during this time. They peaked in October 2022, following a year and a half of steady ascent. Since then, the Liv-ex Champagne 50 index has entered a corrective phase – but not significant enough to change the region’s trajectory. Sustained demand has been further buoying its performance.

Internal reshuffling in Burgundy

Burgundy, home to the most expensive wines in the rankings, has been undergoing an internal shift. New entrants have replaced many of the labels in previous editions, signalling changes in buying preferences.

Heightened demand for the region in 2022 led buyers to explore different wines within Burgundy, seeking both value and stock availability. Some of the new entrants in the 2023 classification include Prieuré Roch Ladoix Le Clou Rouge, Domaine Louis Jadot Gevrey-Chambertin Premier Cru Clos Saint-Jacques and Domaine Trapet Père et Fils Latricières-Chambertin Grand Cru.

Interestingly, while these new labels have entered the ranking, they seem to have replaced older, perhaps less active, Burgundy labels. Indeed, the overall proportion of Burgundy wines in the classification has remained steady, even as specific labels fall in and out of favour.

As new players emerge and existing ones adapt, one thing is clear: the fine wine market will continue to diversify and evolve, promising a fascinating future for everyone involved.

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