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How different bottle sizes impact your wine investment returns

Luxury fine wine labels different size bottles
  • Larger bottles have a longer shelf life, meaning that there is more time for price appreciation.
  • They are also available in smaller quantities, adding an element of rarity that drives up demand and price.
  • Champagne and Bordeaux are the regions leading the investment market for big bottles. 

When choosing a wine for investment purposes, the region, producer reputation and vintage quality are among the first things to consider. However, one factor that is often overlooked but can have a significant impact on the investment value is the bottle size.

Investing in larger wine bottle formats can enhance the longevity and quality of the wine, and lead to higher returns compared to standard bottles. Below we explore the reasons why size matters in the world of wine investment.

How bottle size affects wine investment

The science behind bottle size and wine quality is well-established. Larger bottles have a smaller surface-area-to-volume ratio, meaning less exposure to oxygen, which slows the wine’s ageing process. This slower ageing allows the wine to develop more complexity over time, preserving its character better than smaller formats.

This benefit makes large-format bottles, such as magnums and jeroboams, highly sought-after. Not only can these bottles offer superior quality, but they also come with a scarcity factor that often results in significant price premiums. The rarity of these formats adds an element of collectability, making them a lucrative investment option.

The price performance of larger bottles

Larger bottles have enjoyed a growing demand in the wine investment world. The two main regions that dominate this market segment are Champagne and Bordeaux. 

During Champagne’s recent bull run (2021-2022), secondary market trade by value of big bottles rose from 7% to 15%, which in turn impacted prices. The average value of a magnum case rose an impressive 78%. 

Magnums of Louis Roederer Cristal 2008 saw a 54% premium over standard bottles, while Dom Pérignon 2008 magnums commanded an 18% price uplift. Larger formats like Methuselahs (6 litres) of Cristal 2008 enjoyed a staggering 175% premium. 

Meanwhile, some of the most sought-after Bordeaux wines in large format include the First Growths Château Lafite Rothschild and Château Mouton Rothschild, the latter of which has highly collectible, vintage-specific artist labels.

From Burgundy, Domaine de la Romanée-Conti produces large bottle formats that make them a prime choice for high-end collectors. Other in-demand large format bottles from the rest of the world include Penfolds Grange and Opus One. 

Size options and investment opportunities

Wine bottle sizes graphic

While standard bottles are more commonly traded, investing in magnums and larger formats offers several advantages. For example, three magnums of Pétrus 1995 traded for £17,200 in July this year, yielding a 16.5% premium compared to their 75cl counterparts.

Rare formats like Balthazars and Nebuchadnezzars can fetch even higher premiums due to their scarcity, particularly for sought-after vintages and regions.

Why larger formats can lead to better returns

There are several reasons why larger bottle formats can offer better investment returns. 

Slower ageing process: Larger bottles slow down the wine’s exposure to oxygen, allowing for better preservation and longer ageing. This makes the wine more desirable over time.

Rarity and collectability: Large-format bottles are often produced in smaller quantities, adding an element of rarity that drives up demand and price.

Increased longevity: Investors can hold onto these bottles for longer periods without worrying about the wine deteriorating. This allows them to take advantage of market peaks and secure higher returns.

Visual appeal: Large-format bottles make a statement at auctions or in private collections. Their grandeur and rarity often make them more attractive to high-end buyers.

Timing is everything

Given the current market conditions, larger formats are particularly attractive. Prices for these bottles are often discounted during dips in the market, making them an affordable entry point for investors looking to capitalise on future growth. As demand for rare and collectible wines continues to rise, investing in larger formats now could pay off significantly in the long run.

If you’re looking to diversify your portfolio, now may be the time to consider going big on bottle sizes.

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Beyond Bordeaux releases: why back vintages offer better value

Seña wine bottles wine cellar
  • This autumn sees the annual beyond Bordeaux campaign via La Place. 
  • Most of the wines have been released at the same price level as last year. 
  • This is not enough to stimulate buyers given the current dip in market prices across all regions. 

This month’s La Place de Bordeaux campaign has seen a mix of notable releases beyond the traditional Bordeaux wines, featuring the latest vintages from esteemed producers like Opus One, Masseto, Solaia, Penfolds, and Viñedo Chadwick. However, as market prices dip across multiple regions, many of these releases have seen limited appeal. The enhanced availability of older vintages at more competitive prices makes back vintages a more attractive investment option.

Super Tuscan releases

The Super Tuscan Masseto 2021 kicked off this autumn’s La Place campaign at the same price as last year’s vintage. It marks one of the last vintages overseen by Alex Heinz, who transitioned to CEO of Château Lascombes in Bordeaux in 2022. 

The wine received a perfect 100-point score from Antonio Galloni (Vinous) who said it was ‘the most exquisite, refined young Masseto’ he had ever tasted. Monica Larner (Wine Advocate), while giving it 95 points, described it as a ‘very rich and elaborate expression’.

However, better value can be found in back vintages such as 2017, 2018, and 2019, where critic scores are more aligned across publications.

Masseto wine prices chart

In contrast, Solaia 2021 from Marchesi Antinori came in at a 15.7% premium over the 2020 vintage, with a recommended price of £3,240 per 12×75. 

Despite strong reviews – 97 points from Larner and a perfect 100 from Galloni – this price positions the 2021 Solaia above several recent vintages. 

Buyers seeking better value might prefer the 2018, 2019, or even the 100-point Solaia 2015, which comes with the added advantage of age.

Solaia wine prices chart

Chile’s iconic wines

Two of Chile’s most iconic wines were also released earlier this month, Seña 2022 and Viñedo Chadwick 2022.

Although Seña 2022 was offered at the same price as last year, it is still the most expensive vintage currently in the market due to a drop in value of the previous vintages. The 2019 and 2018 vintages, for instance, both have higher scores from Wine Advocate and cost less.

Mondavi & Chadwick, Seña wine prices chart

Similarly, Viñedo Chadwick 2022 was released at last year’s price but remains the second most expensive vintage, following the 2015 Joaquín Hidalgo (Vinous) awarded it 98 points, praising its ‘finessed Bordeaux-oriented style with the plush tannins of Maipo’.

From an investment perspective, the 2021 offers a more affordable, higher-scored alternative, while the 2018 and 2019 vintages are also solid options.

Errazuriz Vinedo Chadwick wine prices chart

Other notable releases

Château de Beaucastel Hommage à Jacques Perrin 2022 is another wine released at the same price as last year, which has since fallen in value. This makes it the second most expensive after the 2016. 

It received a range of 96-98 points from Nicolas Greinacher (Vinous), who said it was ‘on track to rank alongside the spectacular 2020’. Still, the 2018, 2017 and 2015 present better value alternatives. 

Beaucastel, Chateauneuf du Pape Hommage J Perrin wine prices chart

With a small increase of 1.3% on last year, Penfolds Grange 2020 was released at £4,740 per 12×75. 

Erin Larkin (Wine Advocate) described it as ‘lighter than the preceding 2019’ and gave it 95 points. It received the same score from Angus Hughson (Vinous) who suggested that it would benefit from a ‘couple more years in the cellar [that] will bring all the pieces together before a two-decade drinking window’.

When it comes to back vintages, the 2012, 2014 and 2015 all look more attractive. The 100-point 2013 vintage is also cheaper and has entered its early drinking window.

Penfolds Grange wine prices chart

Back vintages remain an untapped opportunity

As the latest La Place de Bordeaux campaign reveals, many new releases are being offered at prices that do not necessarily align with current market conditions.

In contrast, back vintages – often with comparable or superior critic scores – can provide better value and greater investment potential. With the market dip creating opportunities for buyers, it is a good time to focus on older, well-regarded vintages that offer both affordability and maturity.

Get in touch to discuss your allocations or to start building your fine wine collection. Schedule a consultation.

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What is a market dip, and how can fine wine investors take advantage?

High end wine label bottles
  • A market dip is a temporary decline in prices, caused by economic or market-specific factors.
  • Buying the dip is advised when the underlying market fundamentals are favourable.
  • This is arguably the best time to invest in fine wine in a decade.

A market dip is a temporary drop in prices. This is often caused by economic or market-specific factors. In the fine wine market, these dips are less frequent and less volatile compared to traditional financial markets like stocks or bonds. While the fine wine market has been bearish three times since the turn of the century, global mainstream markets have experienced many more significant crashes. 

However, when a dip does occur, and provided that the fundamentals are strong, it can present a unique opportunity for buyers. Investors can enter the market, adjust their allocations or expand their portfolios with high-value brands and rare vintages at discounted prices. Sellers may look to liquidate their stock, offering rare and premium wines from regions like Bordeaux, Burgundy, and Champagne at more attractive prices.

Currently, the fine wine market is benefitting buyers. While the temporary drop in prices might raise concerns on the surface, those who adopt a long-term, strategic approach can reap significant rewards by buying the dip.

Buying the dip when the fundamentals are strong

According to Sir John Templeton, the best time to invest is during ‘points of maximum pessimism’. With fine wine indices down over 20% from their 2022 peaks, this moment presents one of the best opportunities to buy in the last decade.

Fine wine fundamentals remain intact: wines improve with age, and become rarer over time as bottles are consumed. The market’s appetite for older vintages is still strong, and regions like Burgundy, Bordeaux and Champagne continue to break pricing records at auction.

Fine wine indices performance 2024

Current macroeconomic environment and its impact

The global economy is currently facing several challenges – rising inflation, high interest rates, and geopolitical tensions, all of which have contributed to the recent dip in fine wine prices. 

Despite these macroeconomic factors, fine wine remains less volatile than traditional markets. During times of economic uncertainty, fine wine’s tangible nature and intrinsic value have helped it weather storms better than more speculative assets like equities or cryptocurrencies. 

Additionally, the growing demand for luxury goods continues to support the fine wine market. This demand will likely drive the next phase of growth once global economic conditions stabilise.

Historical fine wine market rebounds

Another reason for confidence is that the fine wine market has consistently rebounded after periods of economic downturn. During the 2008 global financial crisis, the Liv-ex 100 index fell by 25% but had risen over 60% by mid-2011. 

20 year performance of Liv-ex 100 and Liv-ex 1000

Similarly, Bordeaux’s peak in 2011 was followed by Burgundy’s rise, showing that demand for fine wine remains strong even if it shifts on a regional basis. This is why diversity is key. 

The market is no longer dominated solely by top Bordeaux, and spreading your allocations across key wines and vintages can balance an investment portfolio and maximise returns.

How to take advantage of the dip in the fine wine market

For investors looking to capitalise on the current market dip, the strategy is clear: buy low and hold for the long term. 

Focus on proven performers: Wines from top regions like Bordeaux, Burgundy, Italy and Champagne have historically demonstrated resilience. Investing in top vintages and estates offers a measure of security.

Take advantage of fear-driven selling: As some sellers look to exit the market prematurely, investors can acquire undervalued wines with strong growth potential.

Diversify your portfolio: Spread your investment across different regions, producers, and vintages to mitigate risk and maximise returns.

Get in touch to discuss your allocations or to start building your fine wine collection. Schedule a consultation.

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Spanish wines: a growing investment opportunity

Marques de Murrieta winery
  • Demand for Spanish wines has surged, with the region’s trade by volume outpacing the USA. 
  • More Spanish wines are now offered on La Place since after Telmo Rodríguez’s ‘YJAR’ paved the way in 2021.
  • Marqués de Murrieta’s Castillo Ygay Gran Reserva is Spain’s top performer in the last decade.

Spanish wines are increasingly gaining recognition in the fine wine investment landscape. Liv-ex recently reported that Spain’s year-to-date trade share by value has more than doubled compared to the same period in 2023 (2.2% vs 0.9%). In volume terms, the country has traded 20.5% more than the US – but at lower average trade prices.

As we wrote in a recent member-only offer, Spanish wine represents some of the best value in the fine wine market and remains an underexploited sector by investors.

The surging demand for Spanish wines

Spain has a long and diverse history on the wine investment market, masked under a low trade share. Given the current buyer’s market, however, with investors looking for value, Spain is keenly poised for growth.  

Earlier this month, its trade share by value overtook the Rhône, which prompted Liv-ex to monitor its performance separately from the Rest of the World category, in which it previously belonged. 

In terms of regional distribution, Ribera del Duero and Rioja dominate the investment market for Spanish wines, being home to some of the most successful wine brands. 

More Spanish wines are now also offered through La Place de Bordeaux, after Telmo Rodríguez’s ‘YJAR’ paved the way in 2021, such as De La Riva, Algueira and Matallana.

Spain’s top wine labels for investment

Spain’s most established wines for investment are Vega-Sicilia Unico, Valbuena and Alion, Pingus and Flor de Pingus, Marqués de Murrieta Castillo Ygay Gran Reserva, La Rioja Alta Gran Reserva 904 and 890, and López de Heredia Viña Tondonia.

When it comes to price performance, Ygay Gran Reserva leads the way, with a 207.7% rise over the past decade. One of the region’s brightest stars, the brand benefitted from Wine Spectator’s recognition as ‘Wine of the Year’ in 2020. Since then, prices have risen sharply. 

The second-best performer has been La Rioja Alta Gran Reserva 904, up 151.8%. Meanwhile, Vega-Sicilia’s wines have been slower and steadier, increasing between 50%-65% over the last ten years. They offer some of the best value from Spain today. 

Spanish wine indices

As the fine wine market continues to expand and diversify, Spain has all the fundamentals for future success. 

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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Profiling the fine wine investor in 2024

London city high net worth individuals
  • Nearly 30% of the UK’s high-net-worth (HNW) investors incorporate fine wine into their portfolios.
  • They tend to be cautious, but in 2024, investors with balanced risk profiles are increasingly dipping into the world of drinkable assets.
  • Since last year, the demographic has shifted a little towards less experienced investors, indicating that new HNWs could be getting involved with fine wine.

Fine wine, historically a passion-driven investment, has predominantly attracted older, seasoned investors interested in both enjoying and preserving their wealth. However, recent trends indicate a shift as younger, less experienced investors in the UK are increasingly drawn to fine wine for different reasons – not least because the fine wine market has become more accessible.

Fine wine allocations in investment portfolios

In 2024, nearly 30% of the UK’s high-net-worth (HNW) investors incorporate fine wine into their portfolios.

66% are allocating up to 10% of their portfolio to fine wine, with the remaining 34% reserving over 11%. In 2024, 2% are allocating over a third of their portfolio to fine wine. This trend reveals a more polarising wealth distribution, considering that last year just half of wealth managers kept fine wine allocations under 10%, but none invested over 30% of their wealth in fine wine.

Investors’ risk profiles

Fine wine investors tend to be the cautious type. According to our 2024 wealth management survey, 88% of respondents incorporate fine wine into portfolios for investors with a ‘somewhat cautious’ or ‘extremely cautious’ risk tolerance. As fine wine can help provide stability, it can have a calming influence on overall performance. 

Cautious investment portfolios also generally contain a greater proportion of bonds and cash-like assets. The inflation-resistance of wine can help to buffer out some of the risks this can present over the long term. 

The remaining 12% tend to use wine for balanced portfolios (compared to 10% last year). None of the respondents use the asset for clients with higher risk tolerances.

In 2024, around 2% of respondents are using fine wine for ‘somewhat aggressive’ portfolios. As fine wine has historically exhibited strong growth during recessions and periods of high inflation, it could easily be used to diversify high-risk portfolios. 

Fine wine investment risk profile UK 2024

Investment experience

In line with this trend, over the past 12 months, fine wine has started to move beyond the realm of ‘very experienced’ investors. The slow spread towards ‘experienced’ and ‘somewhat experienced’ investors suggests that fine wine is becoming a more mainstream asset. 

This move could be prompted by the demand to invest in sustainable and low-carbon assets. As this trend is particularly strong with younger investors, it fits that they could have less experience. 

This year, 52% of UK wealth managers rated their investment clients as ‘very experienced’ with fine wine, compared to 62% in 2023. Meanwhile, clients with medium or limited experience grew their fine wine investments.

Fine wine investment experience UK 2024

Fine wine has long been perceived as an exclusive, somewhat intimidating investment, traditionally reserved for a privileged few. But as our recent research indicates, attitudes are slowly changing.

For more information on the changing fine wine investors’ demographics, read our exclusive Wealth Report 2024: UK Edition.

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

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The state of the fine wine market so far in 2024

Chateau L'Eglise-Clinet vineyard
  • Fine wine remains a buyer’s market in 2024.
  • Burgundy prices have fallen the most, while Italy has been the most resilient region. 
  • Some wines have outperformed the market, such as L’Église-Clinet 2012.

The fine wine market remains a buyer’s market in 2024. All fine wine regions have experienced declines, with prices for Burgundy, Bordeaux, and Champagne falling the most. 

Still, some wine brands have outperformed the market by far – such as Henri Boillot Chevalier-Montrachet Grand Cru, which is up 23% since the beginning of the year.

Regional wine performance so far in 2024

The fine wine market’s downturn has continued into 2024. The broadest measure of the market, the Liv-ex 1000 index, is down 4.9% year-to-date. Within it, Burgundy (-7.0%) and the Rest of the World (-4.8%) sub-indices have fallen the most. 

The Champagne 50 index is also down 4.5%. However, the index rose 0.9% last month, buoyed by Dom Pérignon 2006 and 2012, Louis Roederer Cristal Rosé 2008 and various vintages of Pol Roger’s Cuvée Sir Winston Churchill. 

Liv-ex regional wine indices 2024

As we have previously explored, Italy has been the most resilient fine wine region, down 2.3% year-to-date. Its performance has been stabilised by brands from Piedmont, specifically Barolo and Barbaresco. 

The Rhône 100 index, which has been the perennial underperformer over the long term, has also experienced lesser declines this year, falling just 3.2%. Outside the Liv-ex 1000 index, the California 50 is down 3.8%. 

The biggest risers this year

Despite broader market uncertainties, some brands have risen by close to 30% in value since the beginning of the year (as of August 1st).

With an average case price of £720, Delas Hermitage Domaine des Tourettes Blanc is up 26% this year. It has been followed by a high-profile Burgundy – Henri Boillot Chevalier-Montrachet Grand Cru, which has risen 23%. 

The most expensive wine on the rankings, Domaine du Comte Liger-Belair La Romanée Grand Cru, has enjoyed an 11% rise. 

Best performing wine brands H1 2024

The best performing wines

When it comes to the best performing individual wines, Bordeaux leads the way with L’Église-Clinet 2012, up an impressive 38%. It has been followed by Cheval Blanc 1998, up 27%. 

Another top Bordeaux comes fourth – Gruaud Larose 2018 (19%). Sweet Bordeaux also features in the table with two vintages from Suduiraut, 2019 and 2010, and Climens 2015.  

Meanwhile, Champagne’s best performer is the ‘gorgeous’ (AG 98 points) Krug 2004, up 26%. 

Best performing wines H1 2024

While the fine wine market has continued to face declines across most regions in 2024, presenting great opportunities for lower-than-average prices, some wines have shown remarkable resilience. Even in a buyer’s market, excellence prevails.   

For more on the state of the fine wine market, read our latest quarterly report. 

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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Top reasons to invest in fine wine in 2024

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

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

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

Fine wine’s stability during market volatility

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

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

US investor motivations for fine wine

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

Sustainable investing on the rise

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

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

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

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

Improved liquidity

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

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

UK tax benefits

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

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

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

UK CGT changes and fine wine investment

The overlap between collecting and investing in the US

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

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

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

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

 

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The 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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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.