<ul>
<li aria-level="1">One of the key characteristics that make fine wine an attractive diversifier is its low correlation to traditional financial markets.</li>
<li aria-level="1">Its scarcity and tangibility further drive up its value. </li>
<li aria-level="1">According to the WineCap Wealth Report 2025, 96% of UK wealth managers expect demand for fine wine to increase, a testament to its growing recognition as a valuable asset class. </li>
</ul>
Moreover, fine wine’s value is tied to its provenance, condition, and aging potential, making it a tangible investment with intrinsic worth. Unlike cryptocurrencies or speculative stocks, which can experience extreme fluctuations based on sentiment or market cycles, fine wine benefits from an established secondary market where demand remains steady among collectors, investors, and luxury buyers.
<h2>Inflation hedge and wealth preservation</h2>
Fine wine serves as a natural hedge against inflation, protecting purchasing power when traditional assets are eroded by rising costs. As inflation increases, the prices of hard assets like fine art, real estate, and fine wine tend to appreciate, maintaining their value in real terms.
Wealth managers increasingly recommend allocating a small percentage of a portfolio to alternative assets like fine wine to safeguard against economic turbulence.
<h2>Tax efficiency for UK investors</h2>
For UK-based investors, fine wine presents a significant tax advantage over traditional investments. Unlike stocks, real estate, or business assets that are subject to Capital Gains Tax (CGT), fine wine is classified as a &#8220;wasting asset&#8221;, meaning it has an anticipated lifespan of less than 50 years.
This classification makes fine wine exempt from CGT, allowing investors to realise profits without the same tax burdens as other asset classes.
For example, a traditional investment yielding a £5,000 profit could be subject to CGT at rates of up to 24%, reducing net returns. In contrast, a fine wine investment with the same £5,000 profit would be tax-free, maximising gains for high-net-worth investors.
This tax efficiency makes fine wine particularly attractive in wealth management strategies, especially as the UK government has lowered CGT allowances and increased tax rates in recent years.
<h2>Growing institutional and HNW investor demand</h2>
The perception of fine wine as a viable financial asset is rapidly evolving. Traditionally the domain of private collectors and enthusiasts, fine wine is now being incorporated into portfolios managed by wealth advisors, family offices, and institutional investors.
According to the WineCap Wealth Report 2025, 96% of UK wealth managers expect demand for fine wine to increase, a testament to its growing recognition as a valuable asset class. 
Additionally, AI-powered investment tools are making fine wine more accessible to a broader range of investors. Fine wine companies and professionally managed portfolios allow investors to gain exposure without needing deep industry expertise.
This institutional adoption further legitimises fine wine as a serious financial instrument, enhancing its liquidity and long-term viability.
<h2>Why fine wine deserves a place in your portfolio</h2>
Incorporating fine wine into an investment portfolio provides stability, tax efficiency, inflation protection, and strong diversification benefits. Its low correlation with traditional assets makes it particularly valuable during periods of market uncertainty, while its scarcity-driven appreciation ensures long-term value retention.
For investors seeking to protect and grow wealth, fine wine remains one of the most compelling alternative investments available today.

What makes fine wine a great portfolio diversifier?

It has been a volatile start to the year, with President Donald Trump’s return to the White House unsettling global markets. The fine wine market continued its measured slowdown, yet optimism persists: wealth managers increasingly view fine wine as a strategic diversifier, with demand expected to rise in 2025. Q1 saw a cautiously successful Burgundy 2023 En Primeur campaign and a mixed round of spring La Place releases – headlined by the highly anticipated, 6&#215;100-point Latour 2016.
This report explores the key trends that shaped Q1, from geopolitical tensions and shifting market sentiment to the top-performing wines and regional highlights.
<h2>Executive summary</h2>
<ul>
<li style="font-weight: 400;" aria-level="1">Mainstream markets faltered: 
At the time of writing, the S&amp;P 500 has fallen 7.2% year-to-date, Nikkei 225 dropped 20.5%, and crude oil is down 13.2%.</li>
<li style="font-weight: 400;" aria-level="1">Fine wine prices dipped: 
The Liv-ex 100 declined 2.0% in Q1 2025. The broader Liv-ex 1000 index is down 2.1%.</li>
<li style="font-weight: 400;" aria-level="1">Regional performance: 
Bordeaux and Burgundy were the weakest regions in Q1, each falling 2.9%. Italy continued to show resilience, down just 0.4%.</li>
<li style="font-weight: 400;" aria-level="1">Top performer: 
The best performing wine was Vieux Telegraphe La Crau Rouge 2021, which surged 22.7%.</li>
<li style="font-weight: 400;" aria-level="1">La Place spring campaign: 
Expanded further with new entrants. The Latour 2016, backed by six 100-point scores, stood out as one of the most successful and talked-about releases.</li>
<li style="font-weight: 400;" aria-level="1">Looking ahead: 
The Bordeaux 2024 En Primeur campaign, the key fine wine event of Q2, faces heightened price pressure and buyer caution amid broader economic headwinds. 
</li>
</ul>
<h2>The trends that shaped the fine wine market</h2>
Escalating trade war tensions
One of the most disruptive forces in Q1 2025 has been the re-escalation of global trade tensions, largely stemming from President Donald Trump’s newly announced tariffs. The dramatic return to tariffs has created significant headwinds for global markets, and fine wine has not been immune.
Tariffs fluctuated rapidly. In early April, Trump declared 54% tariffs on Chinese goods imported into the US, a figure he raised to 125% just days later. In the same breath, he confirmed 20% tariffs on European goods, before abruptly announcing a 90-day pause on April 9th, during which tariffs for all non-Chinese countries were lowered to 10%. While this provided short-term relief to EU producers, the volatility has caused widespread uncertainty. 
One thing seems clear: the coming months will be pivotal, with trade developments likely to dictate sentiment and demand in key markets.
Markets under stress
In Q1 2025, mainstream financial markets experienced significant volatility, largely driven by the abrupt changes outlined above. The S&amp;P 500 entered correction territory, declining over 10% from its February 19th high, before partially recovering in late March. The energy sector mirrored this instability. Oil prices plunged to a four-year low amid recession fears and heightened tariffs, only to rebound following announcements of tariff pauses. The rapid succession of policy shifts has led to a climate of uncertainty, making it difficult for investors to anticipate market movements.
Fine wine in Q1 2025
The fine wine market similarly felt the pressure. Prices fell 2% on average over the last three months. The broader Liv-ex 1000 index declined 2.1%, highlighting continued softness across the board. Regionally, Bordeaux and Burgundy were the weakest performers, each down 2.9%. Italy once again stood out for its resilience, declining 0.4%, thanks to consistent demand for top names and relatively stable pricing. The top performing wines in Q1 included Bruno Giacosa Barolo Falletto Vigna Le Rocche Riserva 2014 (72.1%), Château Léoville Barton 2021 (30.9%), and Château Rieussec 2019 (22.8%).
Pressure on En Primeur
The ongoing trade war comes at a particularly sensitive time for the Bordeaux 2024 En Primeur campaign, which is about to launch. The system has been under increasing scrutiny in recent years, with release prices often failing to offer meaningful value versus back vintages. The threat of added import costs, even if delayed, puts further pressure on producers and négociants to rethink pricing strategies. With confidence in En Primeur already eroding, this year’s campaign faces a delicate balancing act: justify pricing amid broader market weakness, or risk alienating already-cautious buyers.
<h2>Regional fine wine performance in Q1</h2>
<img loading="lazy" decoding="async" class="alignnone wp-image-2405 size-medium" src="https://wp.winecap.com/wp-content/uploads/2025/04/unnamed-375x236.png" width="375" height="236" srcset="https://wp.winecap.com/wp-content/uploads/2025/04/unnamed-375x236.png 375w, https://wp.winecap.com/wp-content/uploads/2025/04/unnamed.png 512w" sizes="auto, (max-width: 375px) 100vw, 375px" />
Since the start of the year, fine wine prices across major regions have fallen 2.1% on average. While some regions experienced temporary increases – the Rhône bounced back by 1.1% in March – the majority were in consistent decline. Burgundy and Bordeaux – the two dominant market forces – fell the most, down 2.9% in Q1. 
Despite falling prices, Liv-ex noted that trade activity is rising – total trade volume and value were up on Q1 2024.
<h2>The best-performing wines</h2>
<img loading="lazy" decoding="async" class="alignnone wp-image-2406 size-medium" src="https://wp.winecap.com/wp-content/uploads/2025/04/unnamed-1-375x122.png" width="375" height="122" srcset="https://wp.winecap.com/wp-content/uploads/2025/04/unnamed-1-375x122.png 375w, https://wp.winecap.com/wp-content/uploads/2025/04/unnamed-1.png 512w" sizes="auto, (max-width: 375px) 100vw, 375px" />
Q1’s top performers comprised a varied group from across Bordeaux, Piedmont, the Rhône, and Burgundy. The best performing wine was Vieux Telegraphe La Crau Rouge 2021, which surged 22.7%. Pichon Baron 2013 followed with a 22.6% rise. 
Two vintages of Guigal La Landonne also appeared in the rankings, the 2012 (11.1%) and 2014 (10.6%). 
From Barolo, the 2001 Bruno Giacosa Serralunga d’Alba made the top ten with a 21.2% rise in value over the past three months.
<h2>The spring La Place campaign</h2>
March saw just over 50 wine releases via La Place de Bordeaux, including new Burgundies, grower Champagne and big names like Promontory 2020, Ao Yun 2021 and Latour 2016. 
The latter was particularly notable as the first prime release to hit the market since the château abandoned the En Primeur system. The wine boasts a number of 100-points from major critics including Neal Martin, Antonio Galloni, Lisa Perotti-Brown MW, Jane Anson, Jeff Leve, and Tim Atkin.
The comparisons being made – to 1961, 1982, and 2010 – suggest the wine is already being framed within the estate’s historic lineage. What’s more, while the price reflects its stature, its positioning below recent back vintages like 2009 and 2010 suggests value for money.
In a campaign that highlighted the growing breadth of La Place, Latour served as a reminder of Bordeaux’s enduring ability to dominate the conversation, when it chooses to.
<img loading="lazy" decoding="async" class="alignnone wp-image-2407" src="https://wp.winecap.com/wp-content/uploads/2025/04/unnamed-2-375x248.png" width="400" height="265" srcset="https://wp.winecap.com/wp-content/uploads/2025/04/unnamed-2-375x248.png 375w, https://wp.winecap.com/wp-content/uploads/2025/04/unnamed-2.png 740w" sizes="auto, (max-width: 400px) 100vw, 400px" />
<h2>Fine wine enjoys resilient fundamentals and growing confidence</h2>
Beneath the surface of a softening market, confidence in fine wine as a long-term investment continues to strengthen. Our recent <a href="https://winecap.com/learn/winecap-wealth-report-2025-uk-edition">Wealth Reports</a> released in Q1 revealed a clear trend in investor attitudes: 96% of UK wealth managers expect demand for fine wine to increase in 2025, underscoring its growing role in diversified portfolios.
This optimism is rooted in fine wine’s defining characteristics – low correlation to mainstream markets, long-term price appreciation, and intrinsic scarcity. While short-term volatility and trade disruptions have created a subdued environment, many see this as an attractive entry point. With prices off their peak, the market now offers a rare opportunity to access top names at more favourable levels.
Fine wine is increasingly viewed as a maturing asset class – one that rewards patience rather than speculation. As macroeconomic uncertainty continues to rattle equities and bonds, fine wine’s stability and resilience are drawing renewed attention from high-net-worth individuals and wealth advisors.
<img loading="lazy" decoding="async" class="alignnone wp-image-2408 size-medium" src="https://wp.winecap.com/wp-content/uploads/2025/04/unnamed-375x347.jpg" width="375" height="347" srcset="https://wp.winecap.com/wp-content/uploads/2025/04/unnamed-375x347.jpg 375w, https://wp.winecap.com/wp-content/uploads/2025/04/unnamed-768x710.jpg 768w, https://wp.winecap.com/wp-content/uploads/2025/04/unnamed.jpg 1036w" sizes="auto, (max-width: 375px) 100vw, 375px" />
<h2>Q2 2025 market outlook</h2>
All eyes now turn to the Bordeaux 2024 En Primeur campaign – the most significant event in the fine wine calendar and a litmus test for buyer confidence in a fragile market. After a lacklustre few years, the system finds itself at a crossroads. Pressure is mounting for producers and négociants to reset expectations, as past campaigns have struggled to offer compelling value compared to back vintages already available on the secondary market. Adding to the challenge is the uncertain tariff environment. 
At the same time, there is cautious optimism. While prices across Bordeaux have softened, trade volume has increased – a signal that buyers are still engaged, albeit more selective. If producers respond with competitive pricing and clear value propositions, 2024 could mark a turning point for the campaign.
Beyond Bordeaux, Q2 is expected to bring continued price sensitivity, but also renewed interest from investors who see current levels as a buying opportunity. The long-term fundamentals remain intact: scarcity, brand equity, and an increasing role for fine wine in diversified portfolios. In short, while the market remains in a momentary phase of recalibration, Q2 may offer the first signs of recovery if the right tone is struck.
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

Q1 2025 Fine Wine Report

With vineyard temperatures on the rise in Bordeaux, WineCap spoke with leading Bordeaux estates about how they’re fighting back to protect both wine heritage and future generations.
<ul>
<li aria-level="1">Adaptive viticulture is a widespread method of coping with climate change.</li>
<li aria-level="1">Traditional and experimental moderating methods are both in use.</li>
<li aria-level="1">High temperatures can be beneficial for recent and, potentially, near-term vintage quality.</li>
</ul>
<h2>Vineyard layout, clones, rootstocks, and varietal proportion: Château Beau-Séjour Bécot, Château Margaux, Château La Conseillante, and Château Pavie</h2>
To moderate the impact of climate change, Julien Barthe, co-owner of Beau-Séjour Becot has implemented a radical vineyard layout change to prevent berry burn. ‘The vineyard was formerly planted in an east-west direction. From mid-day to 1 pm, the sun arrived on the west side, right on the berries. This is why we changed the orientation from north to south ­— to avoid the same effect.’
Philippe Bascaules, managing director of<a href="https://winecap.com/wine-track/france/bordeaux/margaux/chateau-margaux"> Château Margaux</a> has taken the same approach. ‘We decided to change the orientation of our rows,’ he told WineCap.
Barthe also explained that the house is using new clonal selections of Cabernet Franc to help retain the freshness in its Merlot-dominant blends.
Cultivating resilient vines was, similarly, the approach of Marielle Cazaux, the general manager of<a href="https://winecap.com/wine-track/france/bordeaux/pomerol/chateau-la-conseillante"> La Conseillante</a>. ‘Climate change is a big question. We are thinking long term about rootstocks and grape variety.’
Referring to early-ripening Merlot’s vulnerability to climate change, Cazaux stressed the importance of preserving its classic wine profile. ‘We are adapting the rootstock to be more resilient against hydraulic stress and thinking about changing the clones a little bit.’
Olivier Gailly from Château Pavie said that his team had already begun experimenting with climate-resistant proportions of grape varietals at the turn of the century. The house replanted its vineyards with an increased quantity of later-ripening Cabernet Sauvignon and similarly-behaving Cabernet Franc to blend with Merlot. This proportion has helped to maintain wine freshness as temperatures rise. 
<h2>Adaptive vineyard management: Château Cheval Blanc, Château Angelus, and Château Calon Segur</h2>
Traditional vineyard management techniques such as dense canopy cultivation, durable old vine revival, and biodiversity practices that support the mitigation of climate change have been intensified around Bordeaux since at least the millennium. While some methods have a short time frame, Pierre-Oliver Clouet, winemaker and technical manager at Château Cheval Blanc, which famously voluntarily withdrew from the Saint-Émilion classification system in 2021, spoke about the need for a long-term view.
‘We should adapt today to preserve Cheval Blanc in 20 years,’ he told WineCap. ‘Global warming is going to be a problem because, with two or three more degrees, the wine quality is still going to be good enough, but the identity will not be the same.’
Clouet said the château implements cover crop techniques to protect the soil from high temperatures, enhance soil nutrients and resilience, and to conserve rainwater more efficiently. He has also planted trees to expand cooling shade for vines and is training plants that are heat- and disease-resistant.
Saint-Émilion peer Château Angelus, which also opted out of the appellation’s classification system in 2022, uses a device that assists with hydrating and cooling vines in a region with stringent irrigation rules. President and CEO Stéphanie de Boüard-Rivoal explained: ‘For hail, we have a device that is a balloon that auto launches. It’s blown with helium and contains salt crystals so when it&#8217;s swollen by a cloud, it spreads out the salt and allows the ice to melt. Instead of having hail, we have rain,’ she told WineCap.
Cooling heat-stressed plants was also a priority for Vincent Millet, general manager of Château Calon Ségur. He told WineCap how he and his team are refining a mechanism to conserve cooling dampness in vineyard plots: ‘We are setting up specific enclosure systems which can trap and return humidity to the plant.’
<h2>Research and experimentation: Château La Dominique</h2>
While age-old vineyard methods are adapted to counter the perils of global warming, innovation is a key part of Château La Dominique’s philosophy.
General manager, Gwendoline Lucas, detailed the producer’s efforts in this area. ‘We are very concerned about climate change, so we started working with Bordeaux Sciences Agro years ago to do some research about how we can better manage our vineyard,’ she told WineCap. ‘We are also part of VitiREV, which is the first European fund specialising in viticultural ecological transition. We are like a laboratory testing new solutions from startups. We see a lot of proposals and when we think that something is quite interesting, we try it in our vineyard.’
<h2>Beneficial natural environment: Château Pavie, Château Canon, Cos d’Estournel, and Château Margaux</h2>
While acknowledging the potential hazards of climate change, several producers told WineCap that they had, to date, avoided any serious consequences of rising temperatures across Bordeaux by dint of resilient terroir. Whether location or soil composition, nature provides a mitigating influence to the heat, ensuring balance and traditional character in yield and wines.
‘We are fortunate to have this exceptional limestone terroir which really keeps a lot of freshness in the wine,’ said Olivier Gailly, commercial director of Saint-Émilion house Château Pavie. ‘Then we have the forests around the château which are very important to keep a bit cooler.’
Soil make-up was also cited by Nicolas Audebert, winemaker and general manager at fellow Saint-Émilion house, Château Canon. Referring to climate change, he said: ‘We see it in berry ripeness every day, but we still have a long way to go before we get into trouble because we are on a fantastic, limestone terroir.’
The water-retaining freshness of limestone guarantees that vines do not suffer severe heat stress, Audebert added, also noting the benefits of micro-practices.
‘There are a lot of fantastic wine producing regions in the world where the climate is warmer than here and they manage,’ he said. ‘I spent ten years in Argentina making wine so I have some experience of how we can evolve our viticulture to protect it. There are thousands of small things we can adapt to keep that elegant, vibrant, precise, style we like.’
Vineyard coolness was also cited by Charles Thomas, commercial director at <a href="https://winecap.com/wine-track/france/bordeaux/saint-estephe/cos-d'estournel">Cos d’Estournel.</a> ‘We are lucky enough to be in the north part of the Médoc where we have the Gironde River providing freshness to the vineyard.’
Not all Bordeaux producers regard climate change unfavourably and are optimistic that, with a responsive approach, the trials of the decades ahead will be overcome.
‘I think we are just at the beginning,’ Philippe Bascaules of Château Margaux told WineCap. ‘For the last ten years, summer drought and heat have helped us to make even better wine. But, of course, we know that if the temperatures continue to increase, we will be in big trouble because it will not only change the quantity of wine but also the style of the wine we want to produce.’
To this end, the chateau continues to be attentive and flexible in the face of global warming. ‘At least for the next 50 years, I&#8217;m quite optimistic that we will find the parameters and the techniques to continue to produce the wine of Château Margaux as it exists today,’ he said. ‘I don&#8217;t know about after that because who knows what the temperature will be in Bordeaux in 50 years?’
See also our <a href="https://winecap.com/learn/bordeaux-regional-report">Bordeaux I Regional Report</a>.

Part II Bordeaux climate change: adaptive viticulture the way forward?

Fine wine has cemented its position as the most sought-after collectible among UK high-net-worth individuals, according to the newly released 2025 UK Wealth Report. Drawing on fresh research from leading UK wealth managers and IFAs, the report explores how fine wine has continued to evolve from a niche passion asset into a strategic, tax-efficient component of diversified portfolios.
Key report findings:
<ul>
<li style="font-weight: 400;" aria-level="1">96% of wealth managers expect demand for fine wine to grow in 2025 &#8211; more than for any other luxury asset</li>
<li style="font-weight: 400;" aria-level="1">80% say fine wine’s exemption from Capital Gains Tax (CGT) is driving renewed investor interest amid tightening tax rules</li>
<li style="font-weight: 400;" aria-level="1">26% of portfolios now include fine wine in higher-risk strategies &#8211; up from 12% in 2024</li>
<li style="font-weight: 400;" aria-level="1">Fine wine is entering retirement planning for the first time, with allocations rising from 0% to 6%</li>
<li style="font-weight: 400;" aria-level="1">A generational shift is underway, with younger, tech-enabled investors embracing wine as a financial instrument 
</li>
</ul>
‘Fine wine is no longer reserved for collectors and connoisseurs &#8211; year after year our research shows that it is being viewed as a serious asset with strong fundamentals for growth, and valuable tax advantages,’ said Alexander Westgarth, Founder and CEO of WineCap. 
<h2>Market shifts and generational change</h2>
The report highlights a market in flux: seasoned collectors are beginning to liquidate long-held assets, creating increased supply and driving a slight dip in average portfolio allocations &#8211; from 10.8% in 2024 to 7.8% in 2025. However, this rebalancing is creating fresh opportunities for new entrants, particularly among Millennials and Gen Z investors who prioritise tangibility, transparency, and long-term performance.
<h2>Tax efficiency and diversification at the forefront 
</h2>
Fine wine’s unique tax status under UK law &#8211; classified as a ‘wasting asset’ and therefore exempt from Capital Gains Tax &#8211; makes it increasingly attractive at a time when HMRC has reduced tax-free allowances and raised effective rates. The report shows that 80% of wealth managers believe demand will rise due to this exemption alone.
The report further looks at the factors creating demand for fine wine, the impact of Trump’s policies on investment, and how AI is modernising the market. 
Download your complimentary copy of the 2025 WineCap Wealth Report and discover how fine wine can enhance your investment portfolio.

WineCap Wealth Report 2025: UK Edition

In a year marked by shifting interest rates, political uncertainty, and evolving investor mindsets, one asset is quietly holding its ground &#8211; and gaining new momentum: fine wine.
According to WineCap’s newly released 2025 Wealth Report, fine wine has once again claimed the top spot among collectible investments, with 94% of US wealth managers expecting demand to rise this year. 
<h2>Key report findings:</h2>
<ul>
<li style="font-weight: 400;" aria-level="1">94% of US wealth managers expect demand for fine wine to increase in 2025 (up from 84% in 2024)</li>
<li style="font-weight: 400;" aria-level="1">Fine wine now appears in 28% of high-risk portfolios</li>
<li style="font-weight: 400;" aria-level="1">72% say high interest rates are a supportive factor for fine wine investment</li>
<li style="font-weight: 400;" aria-level="1">98% of respondents value wine’s independence from the US dollar as a macro hedge</li>
<li style="font-weight: 400;" aria-level="1">46% cite strong long-term returns as a key reason for rising demand</li>
<li style="font-weight: 400;" aria-level="1">Portfolio allocations to wine now average 10.7%, reflecting more diversified investment strategies 
</li>
</ul>
‘Fine wine continues to prove itself as a robust and intelligent asset class,’ said Alexander Westgarth, Founder and CEO of WineCap. ‘While some seasoned collectors are selling to capitalise on earlier gains, we’re seeing younger, more data-driven investors enter the market &#8211; redefining how wine is used in wealth portfolios.’ 
<h2>Fine wine in the world of investment</h2>
According to the report, fine wine ranks higher than all other collectible investments for 2025. Confidence in its market stability, liquidity, and transparency places it above art, watches, whiskey, and luxury handbags.
In a post-pandemic landscape marked by inflation spikes, rate fluctuations, and policy shifts, wealth managers are increasingly recommending tangible assets with low correlation to equities. Fine wine’s appeal as an inflation-resistant, currency-independent, and globally traded asset makes it an attractive choice for investors seeking stability across economic cycles.
<h3>A maturing market</h3>
Despite a dip in average allocations from 13% to 10.7%, the report points to a healthy market recalibration &#8211; one where liquidity is improving, supply is expanding, and younger investors are driving new demand.
‘This is no longer a passion-driven niche &#8211; it’s a credible, data-backed, and globally relevant investment class,’ added Westgarth. ‘As the landscape evolves, we see fine wine becoming a cornerstone of modern portfolio diversification.’ 
The report further looks at the factors creating demand for fine wine, the impact of Trump’s policies on investment, and how AI is modernising the market. 
Download your complimentary copy of the 2025 WineCap Wealth Report and discover how fine wine can enhance your investment portfolio.
&nbsp;

WineCap Wealth Report 2025: US Edition

We have conducted our wealth management survey again in 2025. Here is what UK wealth managers expect to happen with investment demand under Trump’s policies.
<ul>
<li aria-level="1">94% of UK wealth managers favour US equities under Trump’s pro-business policies, and 90% predict growth in emerging markets.</li>
<li aria-level="1">82% see UK property as a strong hedge against inflation, signalling a shift toward stability-focused investment strategies.</li>
<li aria-level="1">58% of respondents highlight fine wine, art, and classic cars as attractive investments, reinforcing the trend toward tangible, wealth-preserving assets amid economic uncertainty.</li>
</ul>
With the return of Donald Trump to the White House in 2025, the global investment landscape is experiencing heightened volatility. Events could unfold in any direction given President Trump’s inherent unpredictability – making it more crucial than ever for investors to prepare for the unexpected.
His administration&#8217;s tax and trade policies – historically pro-business, protectionist, and favouring domestic production – are already creating ripple effects far beyond US borders. For UK investors, this means a reassessment of how political developments shape financial decisions.
While Trump’s policies could drive stock market rallies, lower corporate taxes, and encourage capital repatriation, they also pose potential risks – such as renewed tariff wars, increased market fragmentation, and a more aggressive stance on trade negotiations. 
The last time Trump held office, his administration imposed tariffs on European wines, disrupting trade and affecting fine wine markets in both the US and UK. In 2025, the geopolitical and economic landscape is vastly different, and while tariffs remain a possibility, the bigger picture suggests that alternative assets – including fine wine – may play an increasingly important role in UK investment strategies.
<h2>Investment trends forecast</h2>
The expected increase in demand for assets under Trump’s tax and trade policies underscores a broader flight toward stability, alternative assets, and tangible wealth preservation. The following results are based on a 2025 survey among UK wealth managers and independent financial advisors. 
<h2>Strongest performing asset classes</h2>
US stocks 
US equities are projected to see the biggest increase in demand, favoured by 94% of investors. This is a continuation of the 2024 trend, fuelled by expectations of corporate tax cuts, deregulation, and a more business-friendly environment. Historically, Trump’s economic policies have supported stock market growth, and investors appear confident in a similar outcome this time around.
Emerging market stocks 
Emerging markets follow closely, with 90% of respondents anticipating increased demand. During Trump’s first term, emerging markets posted positive results, achieving 13.6% annualised growth. However, with Trump&#8217;s history of trade wars and potential geopolitical tensions, investors are likely to tread cautiously, focusing on regions that align with US trade interests.
Property 
UK property is also enjoying rising demand, according to 82% of wealth managers. At the start of 2025, buyer activity rose 13% year-over-year, with new sales agreed up 12% over 2024. More properties are reaching sale-agreed status, and a 10% increase in listings suggests previously hesitant buyers are re-entering the market. As real estate remains a hedge against inflation, demand for prime and luxury properties is expected to strengthen further.
Cash 
The old adage ‘cash is king’ rings true for 80% of investors, reflecting a preference for liquidity amid economic and geopolitical uncertainty. With interest rates still elevated and market volatility expected, investors appear to be holding significant cash reserves, waiting for the right moment to deploy capital.
<h2>Alternative and safe-haven assets</h2>
Bonds 
As fiscal policy and interest rate expectations evolve, 72% of investors see bonds as an attractive asset class. With central banks adapting to economic shifts, fixed-income investments may serve as a stabilising force in portfolios.
Non-US developed market stocks 
While US stocks dominate, 72% of investors also foresee demand for non-US developed markets, particularly in regions that may benefit from a changing trade landscape.
Startups &amp; venture capital 
With Trump’s pro-business policies likely to fuel entrepreneurial activity, 70% of respondents see an uptick in demand for venture capital and angel investing. Lower corporate tax rates and deregulation could further incentivise innovation and high-growth sectors.
Luxury collectibles 
The category that includes fine wine, art, and classic cars is expected to see greater demand, with 58% of respondents highlighting it as an attractive asset class. Given fine wine’s historical resilience during economic downturns and inflationary periods, investors may see it as a store of value amid uncertainty.
<h2>Moderate to low confidence assets</h2>
Digital currency 
Despite Trump’s <a href="https://www.nytimes.com/2024/11/13/technology/trump-crypto-bitcoin.html">previous scepticism</a> toward cryptocurrency, his recent endorsement of digital assets may explain why exactly half of respondents see further growth in this sector. While regulatory uncertainty persists, crypto remains a potential high-risk, high-reward investment.
Precious metals 
Traditionally a go-to safe haven during market turmoil, precious metals received the lowest investor confidence in our survey. With only 48% forecasting increased demand, this suggests investors may be looking toward more dynamic, yield-generating alternatives rather than passive gold holdings.
Stay tuned for the 2025 edition of the WineCap Wealth Report &#8211; published next week.
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

2025 investment trends: Trump’s impact on global markets

WineCap spoke with leading Bordeaux estates on the much-discussed possibility of introducing new, heat-resistant grape varietals to this leading wine region to mitigate the impact of global warming.
<ul>
<li style="list-style-type: none;">
<ul>
<li style="font-weight: 400;" aria-level="1">Adaptive viticulture and winemaking were the prevalent answers to coping with climate change.</li>
<li style="font-weight: 400;" aria-level="1">The minority considered old resilient Bordeaux varietals and new grapes.</li>
<li style="font-weight: 400;" aria-level="1">Heritage and current appellation laws are significant.</li>
</ul>
</li>
</ul>
<h2> Adaptive winemaking: Château Pichon-Baron</h2>
Christian Seely, managing director of AXA Millésimes, owner of<a href="https://winecap.com/wine-track/france/bordeaux/pauillac/chateau-pichon-baron"> Château Pichon-Baron</a> was firm that the response to climate change was not the introduction of new cultivars but rather adaptive winemaking.
‘Here at Pichon, 25 years ago, the blend tended to be around 65% Cabernet Sauvignon, 35% Merlot. These days, it&#8217;s 80% or more Cabernet Sauvignon and 20% Merlot,’ he told WineCap. ‘It&#8217;s not an answer to climate change, but it&#8217;s how we&#8217;re adapting because we are having more hot, sunny years which enable us to get the Cabernets magnificently ripe. In the old days, when we hadn&#8217;t got the Cabernets perfectly ripe, a nice bit of ripe Merlot was a useful element in the blend. It’s still a useful element, but we need less of it.’
This approach also softens the grape alcohol content that has steadily risen along with warmer growing seasons. ‘Merlot grapes here will probably have one degree more of alcohol than Cabernet. If you want to keep your wines under 14% abv, which we do at Pichon, one way of doing that is to increase the proportion of Cabernet Sauvignon.’
<h2>Traditional vineyard management and quality over trend: Château Canon-la-Gaffelière and Château Calon Segur</h2>
Stéphane von Neipperg, proprietor of <a href="https://winecap.com/wine-track/france/bordeaux/saint-emilion-grand-cru/chateau-canon-la-gaffeliere">Château Canon-la-Gaffelière</a>, was uncompromising on his views about new varieties, preferring skilled, traditional viticulture instead.
‘Increasingly, some technical people are speaking about new varieties for wines. I&#8217;m just against it,’ he told WineCap. ‘They&#8217;re not proving that the quality is outstanding. They only prove that they don&#8217;t need to spray against mildew.’
Von Neipperg stressed the château’s effective practice of copper spraying which complements the composition of its vineyard soils and its cultivation of old vines that display hardiness to warmer summers.
‘We are well known for old vines. We have our own genetics and I think this is much more important than these new varieties.’
Vincent Millet, general manager of <a href="https://winecap.com/wine-track/france/bordeaux/saint-estephe/chateau-calon-segur">Château Calon Ségur</a> has a similar approach to dealing with rising temperatures: massal selection and a decades-long vineyard restructuring plan to be completed in 2035.
‘We recovered old Merlot vines from 1940, Petit Verdot from the 1930s, and Cabernet Franc from the 1970s. We have created our own collection,’ he told WineCap. ‘This collection allows us to preserve a genetic heritage…which allows us to try to resist the increases in temperature.’
Under this climate change-defying scheme, rather than planting new cultivars, the château plans to plant more Cabernet Sauvignon and adjust the quantities of the other traditional Bordeaux varietals.
<h2>Potential of resilient Bordeaux varieties: Château Saint Pierre and Château Beychevelle</h2>
For co-owner of Château Saint Pierre, Jean Triaud, there is the possibility of regional heat-tolerant grape varieties thriving in warmer climates, making a comeback. He cited Malbec, a varietal that originated and still grows in southwest France and now flourishes in Argentina and Carménère, formerly planted widely in the Médoc and now the flagship black grape of Chile.
‘Those great varieties come from Bordeaux, but finally work much better in other places thanks to the weather. Why not come back?’
However, referring to appellation laws, he acknowledged that the situation was complex. ‘But it&#8217;s not so easy because here we don’t decide all the rules,’ he added.
While acknowledging the strict limitations of the appellation system, Philippe Blanc of<a href="https://winecap.com/wine-track/france/bordeaux/saint-julien/chateau-beychevelle"> Château Beychevelle</a> had a similar perspective.
‘The most sensible thing would be to take varieties coming from the south, mainly Spain and Portugal, and see how they adapt here,’ he told WineCap. ‘It&#8217;s always this way. You go north and plant Pinot Noir in Sweden or Brittany or Chardonnay in Kent. Maybe it&#8217;s good to invest in Brittany or Normandy to make new vineyards in the future.’
<h2>Restrictive appellation laws: Château Beychevelle</h2>
General manager of Château Beychevelle, Philippe Blanc, is open to the possibility of introducing new heat-resistant grape varieties but recognises that the French appellation system is slow to react and evolve.
‘It takes a lot of time to reach an agreement. If I decide to plant Shiraz, I can make Vin de France, but I can&#8217;t make Saint-Julien. So, in terms of value, it&#8217;s difficult to do,’ he said. ‘I&#8217;ve got no new varieties but, we’ll keep an eye on this and as soon as we&#8217;re allowed to plant new grapes, even 2% or 3%, we&#8217;ll do it.’
<h2>Value of regional heritage and legacy: Château Margaux and Château Troplong Montot</h2>
Philippe Bascaules, managing director of<a href="https://winecap.com/wine-track/france/bordeaux/margaux/chateau-margaux"> Château Margaux</a> said that the estate has the possibility of cultivar changes in mind and a designated block of vineyard for experimentation with new varietals. However, he told WineCap, ‘it&#8217;s not decided’.
‘Cabernet Sauvignon is the core of the blend of Château Margaux. The decision to change that is a big one. I’m not considering doing it in the next 50 years.’
Commercial director of <a href="https://winecap.com/wine-track/france/bordeaux/saint-emilion-grand-cru/chateau-troplong-mondot">Château Troplong Montot</a>, Ferréol du Fou, was more direct about the option to use heat-resistant grapes as a buffer against climate change.
‘Burgundy has Pinot Noir. Bordeaux has Merlot, Cabernet Franc, Cabernet Sauvignon, and Petit Verdot. The solution is to work more in the vineyard, it&#8217;s not planting Tempranillo. It&#8217;s a plaster, it&#8217;s a bandage. We have to think about the next generation,’ he told WineCap. ‘Making Tempranillo in Bordeaux is stupid. I&#8217;m a bit harsh, but this is the truth for me.’
See also our <a href="https://winecap.com/learn/bordeaux-regional-report">Bordeaux I Regional Report</a>. 
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

Climate change in Bordeaux: are new varieties the answer?

<ul>
<li aria-level="1">Grape quality and winemaking are central to vintage calibre.</li>
<li aria-level="1">The importance of the vintage varies according to the region.</li>
<li aria-level="1">An ‘average’ vintage can also increase in value.</li>
</ul>
‘A year of extremes’, ‘good yields’, ‘a cool start and wet finish’, ‘poor’, ‘outstanding’. These are typical phrases that describe the character of a particular vintage – but how do they, ultimately, translate into quality? Anyone interested in wine investment needs to be aware of the vintage impact on price and performance.
This article explores the factors that shape a ‘great vintage’ – from vineyard conditions to winemaking methods. Key figures at Bordeaux estates also weigh in with their comments on their preferred vintages from their châteaux. 
<h2>What does vintage mean?</h2>
The vintage indicates the year grapes were harvested. The wine made from such fruit reflects the weather conditions that the vine growth cycle experienced. Features like terroir and winemaking methods also impact the quality and character of a wine. However, winemakers often comment that wine is made in the vineyard meaning that the condition of the fruit is the dominant factor in a wine’s profile, cellar-worthiness and, ultimately, value. 
<h2>Is vintage always important?</h2>
The vintage year is of vital importance in some regions but of little significance in others. This depends on the local climate. 
If a climate features variable weather conditions each season, the resulting wine will display different traits every year. For example, in one particular year, grapes could contain higher or lower acidity than in previous vintages, more or less fruit concentration, or different sugar levels. Such factors affect the quality and identity of the wine, its age-worthiness, its valuation and the potential for this valuation to grow.
Regions where weather conditions are inconsistent year-on-year include Bordeaux, Burgundy, Champagne, the Rhône Valley, Napa Valley, Tuscany, and parts of Australia. This is why vintages from these areas frequently feature in discussion on drinkability, ageing potential and wine investment opportunities.
In places where climate and weather are more stable and wine character more uniform, vintage is, generally, less important. Such wine-producing countries and regions include Argentina, Chile, Spain, parts of California and New Zealand.
<h2>What factors influence a vintage’s quality?</h2>
The natural factors that contribute to the quality of a particular vintage include optimal weather conditions. Throughout the growth cycle of the vine, a balance of adequate rainfall, warm and dry conditions during the growing season, and cool nights aid the development of quality fruit. This means that the harvested berries contain an ideal balance of acidity, sugars, and tannic potential for the style of wine being made. Extremes like frost, hail, heatwaves and heavy rain can negatively impact the delicate equilibrium of these features, influencing the calibre of the wine. 
On the occasions when all environmental conditions line up harmoniously, the result is exceptional fruit and what is often referred to as a ‘legendary’, ‘exceptional’ or ‘outstanding’ vintage. Such years are rare and, therefore, memorable with resulting wines much sought after. 
The human influence on vintage quality encompasses a wide spectrum of vineyard practices that are utilised whenever necessary to mitigate unfavourable weather. Skilled vineyard management includes:
<ol>
<li style="font-weight: 400;" aria-level="1">Protection against frost with vineyard heating strategies.</li>
<li style="font-weight: 400;" aria-level="1">Organic and/ or biodynamic practices that can affect wine quality and potential.</li>
<li style="font-weight: 400;" aria-level="1">Disease pressure tackling to help prevent damaging vine ailments like rot or mildew.</li>
<li style="font-weight: 400;" aria-level="1">Hydric stress or excess rainfall management implemented at key stages to ensure balanced grape flavour concentration.</li>
<li style="font-weight: 400;" aria-level="1">Canopy management and foliage thinning to enhance grape quality.</li>
<li style="font-weight: 400;" aria-level="1">Timely harvest for optimal flavour and ripeness balance.</li>
</ol>
These vineyard approaches are the outcome of years, decades and even centuries of vinicultural experience and constitute part of the heritage of each wine region, adding to a vintage’s esteem and worth. Winemaking expertise similarly contributes to enhancing the value of a vintage.
<h2>Can vintage value evolve?</h2>
In wine investment, the value of a vintage is not necessarily fixed. While great vintages tend to enjoy ongoing value growth, other years can also display value development potential.
In short, while vintage is an anchor for a wine’s value in regions where it is a factor, it does not bear the sole influence on valuation. Other important determinants include:
<ul>
<li style="font-weight: 400;" aria-level="1">Provenance</li>
<li style="font-weight: 400;" aria-level="1">Age-worthiness</li>
<li style="font-weight: 400;" aria-level="1">Producer/ winemaker/ brand reputation</li>
<li style="font-weight: 400;" aria-level="1">Critic scores</li>
<li style="font-weight: 400;" aria-level="1">Storage conditions </li>
<li style="font-weight: 400;" aria-level="1">Scarcity</li>
<li style="font-weight: 400;" aria-level="1">Market trends</li>
</ul>
<h2>The Bordeaux perspective</h2>
WineCap asked Bordeaux winemakers which of their own vintages they would purchase and why. The replies illustrated some of the elements that make a great vintage.
Stéphanie de Boüard-Rivoal, co-owner and CEO of <a href="https://winecap.com/wine-track/france/bordeaux/saint-emilion-grand-cru/chateau-angelus">Château Angelus</a> spoke of cellaring potential. ‘I would get a 2016,’ she said. ‘It is an incredible vintage, particularly for its depth, its complexity, and 100 years plus aging potential’.
Nicolas Audebert, winemaker and General Manager of Second Growth <a href="https://winecap.com/wine-track/france/bordeaux/margaux/chateau-rauzan-segla">Château Rauzan-Ségla</a> in Margaux mentioned how a vintage with a small crop led to an unexpectedly notable wine. ‘The concentration, the roundness, juiciness and intensity of the fruit in the 2018 is fantastic. It is a little bit outside of the classic, elegant style of Rauzan and Margaux, but so interesting in the reflection of the climate we had that year’.
Aline Baly, co-owner of <a href="https://winecap.com/wine-track/france/bordeaux/barsac/chateau-coutet">Château Coutet</a>, in the Barsac appellation highlighted excellent conditions and vineyard management for her choice: ‘The 2009 vintage is a combination of exceptional weather and exceptional work in the vineyard’.
For General Manager of Saint-Émilion Grand Cru Classé, <a href="https://winecap.com/wine-track/france/bordeaux/saint-emilion-grand-cru/chateau-la-dominique">Château La Dominique</a>, Gwendoline Lucas, provenance and reputation were key to her vintage selection. ‘That would be 2019, because it&#8217;s the first vintage we created with Yann Monties, the technical director and also it is the 50th vintage for the Fayat family because they bought the château in 1969. So it is a very good vintage in terms of quality, but also full of history’.
Rarity and value-for-money drove the choice for Stéphane von Neipperg, owner of Château La Mondotte, a Premier Grand Cru Classé house in Saint Emilion. ‘It is very difficult to find 2009 of <a href="https://winecap.com/wine-track/france/bordeaux/saint-emilion-grand-cru/la-mondotte">La Mondotte</a>, but a very outstanding vintage if you want to invest in it in the future. Also, it is not so expensive’. 
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

What makes a great vintage?

WineCap has spoken with key figures from leading Bordeaux estates on their wine investment preferences. They share their thoughts about where they would invest €10,000 today.
<ul>
<li> Vintage quality is cited as the main driver of choice.</li>
<li> There is a variety of investment-worthy vintages across the region.</li>
<li> All interviewees chose vintages younger than 2015. </li>
</ul>
<h2>Château Clinet, Pomerol – 2020 vintage</h2>
‘If I had €10,000 to spend on a vintage of <a href="https://winecap.com/wine-track/france/bordeaux/pomerol/chateau-clinet">Château Clinet</a> for collecting, that would probably be the 2020 vintage’, said Ronan Laborde, Managing Director and owner of the house. ‘The 2020 vintage is a wine with a lot of qualities. It is very smooth, highly complex and has lot of vibrating intensity.’ 
Laborde said that, in terms of recent vintages, it was probably the one he was most proud of and recognised that 2020 had been highly supported by great weather conditions – plus ‘sometimes you have luck on your side’. ‘When I taste the wine now, I say, wow, it is the one I would like to invest for collection,’ he told WineCap.
The 2020 vintage was an illustration of how optimal weather conditions throughout the growing season and harvesting support excellent wine quality. The wine received 94 points from Neal Martin and 95 points from Antonio Galloni (Vinous), who called it ‘hugely impressive, as it was from barrel’. Jeb Dunnuck awarded it 98 points, naming it ‘one of the finest Pomerols in the vintage’. The wine has fallen 13.5% in value since release. On a brand level, Clinet has enjoyed a 47% increase in the <a href="https://winecap.com/wine-track/france/bordeaux/pomerol/chateau-clinet">last decade</a>. 
<h2>Château Pontet-Canet, Pauillac – vintage diversity</h2>
Justin Tesseron, co-owner of <a href="https://winecap.com/wine-track/france/bordeaux/pauillac/chateau-pontet-canet">Château Pontet-Canet</a> had a more philosophical approach, emphasising ‘vertical’ cellaring for variety and value growth potential. ‘I would buy wine for every occasion…wine to drink now…wine to keep. I would buy wine for the future generations,’ he told WineCap.
‘But I think what is good in wine is to have one vintage for every kind of occasion. So, I would not spend €10,000 on one vintage. I would buy maybe the last ten vintages or similar.’
The majority of the last decade of Bordeaux vintages fell into ‘excellent’ and ‘legendary’ categories with 2015, 2016 and 2018 in Pauillac particularly notable years. When it comes to value and growth potential, the 2014, 2017 and 2020 vintages stand out. Prices for Pontet-Canet are up <a href="https://winecap.com/wine-track/france/bordeaux/pauillac/chateau-pontet-canet">11% in the last five years</a>, and 28% over the last decade.
<h2>Château Troplong Mondot, Saint-Émilion – 2015 &amp; 2019 vintages</h2>
For Ferréol du Fou, Commercial Director and Sales Manager of the château, dividing such a sum between collectible and ready-to-drink wines and among several vintages would be the best approach. 
‘If you have to invest, then invest in 2015,’ he said. ‘It still has a very good price and it will increase in the future, I&#8217;m sure. It is a huge vintage’. 
At the ten-year mark, critics have started to re-taste the 2015 vintage. The 2015 Troplong-Mondot currently sits 6.8% below its release price. For Antonio Galloni, it was ‘one of the stars of the vintage’ and ‘a viscerally exciting, resonant wine’. When writing for the Wine Advocate, Lisa Perrotti-Brown MW gave it 96-points and said: ‘This pedal-to-the-metal beauty is the ultimate indulgence for the hedonists!’
Ferréol du Fou also advised buying the 2019 vintage for investment, released during Covid: ‘It is first of all an amazing vintage. Plus it is one of the cheapest vintage from <a href="https://winecap.com/learn/bordeaux-regional-report">Bordeaux</a> and Troplong Mondot’. ‘So this is the one you have to invest as soon as possible to make sure to have first few bottles in your cellar and to feel that you have landed a good deal,’ said Fou. 
The wine is currently available 15.0% below its release price and remains one of the most undervalued Troplong-Mondot vintages in the market today. On average, prices for the brand have <a href="https://winecap.com/wine-track/france/bordeaux/saint-emilion-grand-cru/chateau-troplong-mondot">risen 49% in the last decade</a>.
<h2>Château Pichon Comtesse, Pauillac – 2019 vintage</h2>
Nicolas Glumineau, CEO and winemaker at <a href="https://winecap.com/wine-track/france/bordeaux/pauillac/chateau-pichon-longueville-comtesse-de-lalande">Château Pichon Comtesse</a> did not hesitate in his selection of an investment-friendly vintage. ‘I would have the 2019 Pichon Comtesse,’ he said.
Pichon Comtesse 2019 was one of only two wines during the En Primeur campaign to receive a potential perfect score from Vinous’s Neal Martin (98-100). The critic claimed that ‘you are not looking at a modern day 1982 or 2016, but something even better and more profound’. Upon tasting in bottle, Martin gave it 99 points, calling it ‘stunning’ and noting that ‘the nose reminds [him] of Latour’. Galloni was also full of praise: ‘One of the most elegant Pichon-Longueville Comtesse de Lalande I can remember tasting’. 
The vintage also presents great investment value. It is one of the best priced vintages, along with the lower-scoring 2014 and 2017. 
<h2>Château Lafon-Rochet, Saint-Estèphe – 2020 vintage</h2>
With €10,000, Basile Tesseron, General Manager of <a href="https://winecap.com/wine-track/france/bordeaux/saint-estephe/chateau-lafon-rochet">Lafon-Rochet</a>, would invest in a relatively recent vintage. ‘I would buy 2020 for keeping,’ he told WineCap.
The wine received 96 points from Antonio Galloni, who called it ‘superb’ and ‘one of the classiest, more refined Saint-Estèphes’. Neal Martin (93 points) also agreed that it was ‘excellent’.
The 2020 vintage has fallen in value since release and sits below the brand’s average price. Our <a href="https://winecap.com/wine-track/france/bordeaux/saint-estephe/chateau-lafon-rochet">Lafon-Rochet index</a> is up 57% in the last decade.
<h2>Cos d’Estournel, Saint-Estèphe – 2016, 2018 &amp; 2020 vintages</h2>
Charles Thomas, Commercial Director of <a href="https://winecap.com/wine-track/france/bordeaux/saint-estephe/chateau-cos-d'estournel/pagodes-cos">Cos d’Estournel</a> admitted that he did not see wine as an asset class but rather a product to be enjoyed with friends. ‘But if I had to, obviously I would take 2016, 2018 and 2020’.
Of these three vintages, only the 2016 is currently more expensive than at release, up 10.5%. The wine boasts three 100-point scores from Neal Martin, James Suckling and Lisa Perrotti-Brown MW. Meanwhile, the 2020 Cos d’Estournel is currently down 34.4% since release, and the 2018 – 43.8%. 
The <a href="https://winecap.com/wine-track/france/bordeaux/saint-estephe/cos-d'estournel">brand’s value</a> has risen 39% in the last decade. 
See also our <a href="https://winecap.com/learn/bordeaux-regional-report">Bordeaux I Regional Report</a>. 
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

Bordeaux winemakers reveal their top vintages for investment

Following on from our guide on Burgundy’s sub-regions, we turn our focus to the region’s quality and ownership divisions, which are equally integral to understanding what makes Burgundy’s wines so exceptional.
<h2>Quality divisions</h2>
Grand Cru 
At the pinnacle of Burgundy’s wine hierarchy are the 33 Grand Crus, which represent around 2% of total production. These wines are the epitome of excellence, with yields restricted to a maximum of 35 hectolitres per hectare (hl/ha) and often far lower. Revered for their age-worthiness, these wines generally require five to seven years to begin showing their potential, with many capable of aging for decades. Grand Cru wines are among the most prestigious and collectible in the world.
Premier Cru 
Premier Cru wines, comprising 12% of Burgundy’s production, are crafted from 640 officially recognized superior vineyard sites. With permitted yields of up to 45 hl/ha, these wines showcase the terroir’s expressive character. They typically require three to five years of aging but can develop even greater complexity with extended cellaring. These wines are highly regarded by connoisseurs for their balance of quality and accessibility.
Village Wines 
Village wines account for 36% of Burgundy’s production and are produced under 44 communal appellations. These wines can be blends from various vineyards within a village or from single, unclassified plots. With a yield allowance of 50 hl/ha, Village wines offer excellent value for money and are known for their approachable nature. While they are often enjoyed young, many can be aged for two to four years or more, depending on their origin and vintage.
Regional Appellations 
Regional appellations, collectively known as Vin de Bourgogne, make up nearly half of Burgundy’s total production. With yields of up to 70 hl/ha for reds and 75 hl/ha for whites, these wines are ideal for everyday enjoyment. While they lack the investment potential of higher classifications, they offer an accessible introduction to the region’s styles and are valued for their straightforward appeal.
<h2>Ownership Divisions</h2>
Monopoles 
Monopoles are vineyards with a single owner, a rarity in Burgundy where fragmented ownership is the norm. There are fewer than 50 monopoles in the entire region, and many are associated with some of the most iconic wines. Examples include Domaine de la Romanée-Conti’s Romanée-Conti, Domaine du Comte Liger-Belair’s La Romanée, and Domaine du Clos de Tart’s Clos de Tart. These monopoles exist across Grand Cru, Premier Cru, and Village levels, and their exclusivity adds to their allure.
Domaine Wines 
A domaine refers to an estate that grows its own grapes and produces its wine in-house. This approach allows the producer complete control over viticulture and winemaking, ensuring consistency and quality. Domaine wines are highly esteemed for their reflection of the estate’s unique terroir and meticulous craftsmanship. These wines are considered benchmarks of Burgundy’s artisanal winemaking tradition.
Négoce Wines 
A négociant is a merchant who sources grapes, juice, or finished wine from growers and produces wine under their own label. While some perceive négociant wines as inferior, many are of exceptional quality due to the long-standing relationships between négociants and growers. This collaborative model enables access to fruit from top-tier vineyards, allowing skilled winemakers to craft extraordinary wines. Prestigious négoce producers, such as Maison Leroy, often rival their domaine counterparts in quality and acclaim.
Looking for more? Read our <a href="https://winecap.com/learn/burgundy-regional-report">Burgundy Regional Report</a>, which delves into the fundamentals of this fascinating region and the development of its investment market.

Understanding Burgundy’s quality and ownership divisions

Italy is the world’s largest wine producer, responsible for over 6.5 billion bottles annually across nearly two million acres of vineyards. While its dominance in the mass wine market is undisputed, Italy’s fine wine sector has undergone a transformative journey over the last half century. The introduction of ‘Super Tuscans’ like Sassicaia and Tignanello marked the beginning of a revolution in the 1970s, elevating Italy’s global reputation.
Today, Italy stands as one of the most dynamic and resilient regions in the global fine wine investment market. Once overshadowed by Bordeaux and Burgundy, Italy now commands over 15% of the secondary fine wine trade by value, with a growing number of investment-grade wines. The dual appeal of Piedmont and Tuscany, alongside emerging regions such as Veneto and Sicily, has positioned Italy as a compelling choice for portfolio diversification.
Our Italy Report delves into the fundamentals of this fascinating region, including the development of its investment market, historic performance, and key players.
Discover more about:
<ul>
<li style="font-weight: 400;" aria-level="1">Italy’s accessibility and affordability</li>
<li style="font-weight: 400;" aria-level="1">The complimentary roles of Tuscany and Piedmont</li>
<li style="font-weight: 400;" aria-level="1">Italy’s top emerging regions</li>
<li style="font-weight: 400;" aria-level="1">The best-performing wines</li>
</ul>

Italy | Regional Report

WineCap has conducted a series of interviews with key figures at major Bordeaux estates. Today we shed light on their perspectives on the relevance of historic classifications. 
<ul>
<li aria-level="1">Left and Right Bank producers think the 1855 and 1955 classifications are still important reference for investors.</li>
<li aria-level="1">Branding influence represents a counter pattern. </li>
<li aria-level="1">Market forces bring lower-tier Growths to the fore but not trend-setting.</li>
</ul>
The majority of a tranche of wine producers interviewed by WineCap from both the Left and Right banks are confident that Bordeaux classification systems remain relevant, citing historical framework and terroir as the main factors in determining wine quality and value.
Châteaux also think that the 1855 Classification of Bordeaux and the Saint-Émilion Classification of 1955 will continue to have an impact on wine investor and consumer choices in the decades ahead.
‘This is the classification of terroir,’ said <a href="https://winecap.com/wine-track/france/bordeaux/saint-emilion-grand-cru/chateau-cheval-blanc">Château Cheval Blanc</a> CEO, Pierre-Oliver Clouet. ‘The (original) classification was very clear and continues to be the same today’.
<h2>The classification systems</h2>
The 1855 Classification of Bordeaux is a ranking of the top wines from the Left Bank’s Médoc region, Graves, Sauternes and Barsac. It was established to coincide with Napoleon III’s Exposition Universelle de Paris, with wines categorised according to reputation and market price from Fifth to the top ranking of First Growth. With the exception of minor changes, it has never been altered. The houses in the highest level are Latour, Lafite Rothschild, Mouton Rothschild, Margaux and Haut Brion.
On the Right Bank, a wine classification hierarchy was founded in 1955 covering Saint-Émilion and Pomerol. Updated every decade with the last review held in 2022, it grades wines into the top tier of Premier Grand Cru Classé A, Premier Grand Cru Classé B, and the broader category of Grand Cru Classé.
<h2>Staying power</h2>
Philippe Bascaules managing director of First Growth <a href="https://winecap.com/wine-track/france/bordeaux/margaux/chateau-margaux">Château Margaux</a> said soil was the defining factor in the 1855 ranking. ‘I think for 90%, it&#8217;s still relevant because the quality of the wine is given by the soil, and the soil doesn&#8217;t change’. 
Philippe Blanc General Manager <a href="https://winecap.com/wine-track/france/bordeaux/saint-julien/chateau-beychevelle">Château Beychevelle</a> referred to the enduring legacy of the 1855 system. The Saint-Julien house that he oversees is ranked as a Fourth Growth and he does not see this changing in the future. 
‘I don&#8217;t think any serious people have ever written that first growths didn&#8217;t deserve their place,’ he told WineCap. ‘I would say in 30 years’ time, stick to the 1855 classification in Médoc’.
Vincent Millet, General Manager at the Third Growth <a href="https://winecap.com/wine-track/france/bordeaux/saint-estephe/chateau-calon-segur">Château Calon Segur</a> in Saint-Estèphe agrees. ‘The 1855 classification was based not only on the observation of the winegrower through the constitution of his vineyard, but also of his wines,’ he said. ‘For me, it makes no sense to question it, because in a way, it reflects the potential of the different appellations’. 
Christian Seely is the managing director of AXA millésimes, the company that owns Second Growth <a href="https://winecap.com/wine-track/france/bordeaux/pauillac/chateau-pichon-baron">Pichon-Baron</a> in Pauillac. He hints at the foresight of the original ranking framework. ‘I would say that where around 80% of the châteaux were in the classification in 1855 is where they ought to be today. I don&#8217;t think another 20 years is going to change that’.
<h2>Brand over classification</h2>
However, as the global wine landscape shifts and changes, a significant number of Bordeaux winemakers are putting equal weighting in branding and, in some cases, over classification systems. 
Julien Barthe, the co-owner and managing director of Premier Grand Cru Classé B, <a href="https://winecap.com/wine-track/france/bordeaux/saint-emilion-grand-cru/chateau-beau-sejour-becot">Château Beau-Séjour Becot</a> in Saint-Émilion is of this number. ‘We were very lucky in Beau-Séjour Becot because we were classified as Premier Cru Classé in 1955. Why? Maybe because we are a good winemaker family, but for sure because we have unique and outstanding soil and terroir’. 
Despite his acknowledgment of ranked terroir quality, Barthe believes that a house’s brand is gaining traction. ‘Do you know Beau-Séjour Becot or do you not know Beau-Séjour Becot? I really think that the brand will be more important than the classification’. In the last decade, their average wine price has risen 60%, outperforming fellow estates, La Mondotte, Clos Fourtet and Larcis Ducasse.
Calon Segur’s Vincent Millet agrees: ‘What is most interesting today is not so much the classification, but the strength of the brand. For example, you have properties that are ranked fifth in the classification and which have a reputation. A strong brand can be more important than certain Second great classified growths of Margaux, for example. We at Calon Ségur have this strength, this brand that we maintain through the quality of our wines’.
General Manager of Saint-Émilion Grand Cru Classé, <a href="https://winecap.com/wine-track/france/bordeaux/saint-emilion-grand-cru/chateau-la-dominique">Château La Dominique</a>, Gwendoline Lucas said that both Right and Left Bank classifications were becoming irrelevant. ‘Today the consumer doesn’t drink First, Second or Third Growth or Saint-Émilion B or A. They drink a wine they know. They know the style of the wine, so they will drink Château La Dominique rather than Saint-Émilion Grand Cru Classé. So, I would say that the brand, the history and the wine itself, will override classification’. 
From an investing perspective, La Dominique has enjoyed a 96% price increase since 2015.
<h2>Lower tiers’ achievements</h2>
WineCap interviewees recognised the above-average performance of Growths from the lower end of the 1855 classification but were not certain that this constituted a solid trend.
Pichon-Baron’s Seely said: ‘You obviously get exceptional cases of some châteaux outperforming in relation to their classification. You have a Fifth Growth that performs like a Second Growth, and perhaps there are just one or two that perform a little lower than their original ranking. But those cases actually, I think, are the exceptions rather than the norm’. 
<h2>Evolution of Bordeaux’s investment performance</h2>
Bordeaux remains the most important wine investment region, accounting for over a third of the fine wine market by value today with a 200% average growth on top labels since 2005. The First Growths, their second wines and “super second” estates are often the cornerstones of investment portfolios. 
To find out more about the region, read our <a href="https://winecap.com/learn/bordeaux-regional-report">Bordeaux Regional Report</a>.

Are Bordeaux classifications still relevant for investors?

The price of fine wine is influenced by a combination of tangible and intangible factors. For anyone interested in wine investment, understanding these factors is essential to making informed decisions. This guide explores the key elements that determine the price of fine wine, from production to market dynamics.
<h2>Producer and brand reputation</h2>
The reputation of a winery or estate significantly impacts the price of its wines. Prestigious producers, often with centuries-old traditions and consistent track records of quality, command higher prices. These brands have established trust and recognition in the global market, creating demand that sustains their premium pricing. A bottle from a renowned producer like Château Margaux, Domaine de la Romanée-Conti, or Screaming Eagle is synonymous with luxury and excellence. Even wines from less prominent producers within these regions gain value by association, benefiting from the overall prestige of their appellation or terroir.
<h2>Vintage quality</h2>
The quality of the harvest in a particular year, known as the vintage, is one of the most critical factors in determining wine prices. Weather conditions during the growing season have a profound impact on grape quality, which in turn affects the wine’s flavor, aging potential, and market desirability. Exceptional vintages often garner high critical acclaim, making them highly sought after by collectors and investors alike. For example, Bordeaux’s 1982 vintage and Burgundy’s 2010 vintage are renowned for their excellence and have seen sharp price appreciation over time. On the other hand, wines from less favorable vintages may be priced lower initially or experience slower value growth.
<h2>Scarcity and production volume</h2>
Scarcity plays a pivotal role in determining the price of fine wine. Wines from small-batch producers or limited-production labels are often more valuable because demand outstrips supply. Additionally, the concept of “drink or hold” means that as bottles are consumed, the remaining supply becomes increasingly rare, further driving up prices. For example, cult wines from Napa Valley, which are produced in limited quantities, often experience rapid price increases due to their exclusivity. Over time, the scarcity of these wines enhances their desirability, making them a strong candidate for investment.
<h2>Critical scores and reviews</h2>
The opinions of influential wine critics and publications play a significant role in shaping a wine’s price. High scores or glowing reviews can lead to immediate surges in demand and pricing, while mediocre evaluations may suppress a wine’s market reception. A 100-point score from Robert Parker, for instance, can increase a wine’s price by 30-50% almost overnight. Wines with consistently high ratings from multiple critics maintain stronger long-term value, as these endorsements build buyer confidence and elevate the wine’s reputation in the market. Conversely, a lack of critical acclaim can limit a wine’s appeal, even if it has other desirable qualities.
<h2>Provenance and storage conditions</h2>
Provenance refers to the documented history of a wine’s ownership and storage. It is a crucial factor in maintaining and enhancing a wine’s value. Wines with impeccable provenance that have been stored under ideal conditions, such as controlled temperature and humidity, fetch higher prices at auction or in private sales. Poor storage or uncertain provenance can drastically reduce a wine’s worth, even if it is rare or highly rated. Auction houses and private collectors often highlight provenance as a selling point, justifying higher prices for bottles with a verifiable and pristine history. Wines sold directly from the producer or through trusted merchants also carry a premium for their authenticity and reliability.
<h2>Market trends and global demand</h2>
Broader economic and market trends significantly influence wine prices. Factors such as rising wealth in emerging markets, changing consumer preferences, and currency exchange rates can all impact global demand for fine wine. For example, growing interest in Burgundy from Asian markets over the past decade has driven exponential price increases for wines from this region. Shifts in consumer tastes, such as a preference for organic or biodynamic wines, can also affect pricing, as these categories attract a more environmentally conscious audience. Additionally, economic stability in key markets often correlates with increased investment in fine wine, further bolstering demand.
<h2>Age and maturity</h2>
The age and maturity of a wine are also critical in determining its price. As fine wine ages, its value often increases, especially as it approaches its optimal drinking window. Collectors are willing to pay a premium for wines that have been properly aged, as this reduces the time and risk associated with cellaring young wines. For example, a young Bordeaux might sell for $200 upon release but appreciate to $500 or more as it nears its peak drinking years. This appreciation makes aged wines particularly attractive to both collectors and investors seeking reliable returns.
<h2>Regional prestige and classification systems</h2>
Certain wine regions, such as Bordeaux, Burgundy, and Napa Valley, carry inherent prestige that significantly influences pricing. Classification systems, like Bordeaux’s 1855 Classification or Burgundy’s Grand Cru designations, further bolster a wine’s market position. For instance, First Growth Bordeaux, such as Château Latour, consistently commands higher prices than less prestigious classifications, regardless of vintage. Similarly, Burgundy’s Grand Crus outperform wines from lesser designations due to their perceived quality and exclusivity. This regional prestige not only affects initial pricing but also contributes to a wine’s long-term appreciation potential.
WineCap’s independent market analysis showcases the value of portfolio diversification and the stability offered by investing in wine. Speak to one of our wine investment experts and start building your portfolio. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

How is the price of fine wine determined?

<ul>
<li aria-level="1">2025 marks the Year of the Wood Snake, with previous vintages under the same zodiac sign including 2013, 2001, 1989, and 1977.</li>
<li aria-level="1">The Chinese zodiac has traditionally had an impact on wine demand in Asia, which in turn affects the price performance of highly sought-after wines. </li>
<li aria-level="1">We highlight the best regions and wines from past ‘Snake’ years.</li>
</ul>
The Chinese zodiac continues to influence fine wine trends in Asia, particularly around Lunar New Year. 2025 marks the Year of the Wood Snake, with previous vintages under the same zodiac sign including 2013, 2001, 1989, and 1977. Below we explore the best regions and wines from these ‘Snake’ years and their investment appeal.
<h2>The significance of the snake in Chinese culture</h2>
In Chinese tradition, the Snake symbolises wisdom, intuition, and elegance. The Wood Snake specifically reflects growth, creativity, and a steady rooted approach to success. These traits align well with the qualities sought after in fine wines: depth, complexity, and balance. Lunar New Year celebrations often include gifting wines that embody these ideals, making vintages from previous Snake years highly sought-after. 
<h2>Past ‘Snake’ vintages</h2>
2013
A cooler vintage in many wine regions, 2013 produced exceptional wines in Napa Valley, Burgundy and the Rhône. Burgundy excelled with refined reds and whites celebrated for their freshness and purity, with the best examples coming from notable producers such as Domaine de la Romanée-Conti and Comte Georges de Vogüé.
In Napa Valley, a warm, dry autumn contributed to standout Cabernet Sauvignon wines, including iconic labels like <a href="https://winecap.com/wine-track/united-states/california/opus-one/opus-one">Opus One</a>, <a href="https://winecap.com/wine-track/united-states/california/dominus/dominus">Dominus</a>, and <a href="https://winecap.com/wine-track/united-states/california/screaming-eagle/cabernet-sauvignon">Screaming Eagle</a> earning high critical appraisal. These highly sought-after wines are likely to enjoy increased demand and rising prices in light of the year of the Snake. 
The Rhône also over-delivered in 2013, with M. Chapoutier’s Ermitage Le Pavillon and Guigal’s single-vineyard wines demonstrating the vintage’s potential. In Italy, Barolo and Barbaresco shone brightly, with producers like Gaja and Vietti crafting wines with great ageing potential. 
2001
Hailed as a classic vintage across several regions, 2001 is especially prized for high-end Bordeaux, which is now reaching its peak. Highlights include renowned estates such as <a href="https://winecap.com/wine-track/france/bordeaux/pauillac/chateau-latour">Château Latour</a>, <a href="https://winecap.com/wine-track/france/bordeaux/margaux/chateau-margaux">Château Margaux</a>, and <a href="https://winecap.com/wine-track/france/bordeaux/sauternes/chateau-d'yquem">Château d’Yquem</a>. The latter achieved a perfect score from Robert Parker, cementing its status as one of the finest sweet wines of the century.
Italy’s Barolo region experienced a legendary year in 2001. Wines from Bruno Giacosa, Bartolo Mascarello, and Giuseppe Rinaldi are benchmarks of the vintage. Meanwhile, the Rhône delivered one of its best years, with Guigal’s La La wines setting new standards for Syrah.
1989
Widely regarded as one of Bordeaux’s greatest vintages, 1989 produced rich, opulent wines with excellent ageing potential. Standouts include <a href="https://winecap.com/wine-track/france/bordeaux/pessac-leognan/chateau-haut-brion">Château Haut-Brion</a>, which earned a perfect score from Robert Parker, and <a href="https://winecap.com/wine-track/france/bordeaux/pomerol/petrus">Pétrus</a>. In Sauternes, Château d’Yquem once again delivered a reference point for the region.
Beyond Bordeaux, Germany enjoyed a successful year for Riesling. The Mosel and Rheingau regions produced highly collectible wines, celebrated for their vibrant acidity and age-worthy structure. These Rieslings remain a cornerstone for those seeking top-quality German wines.
1977
1977 was a triumphant year for Port production, which has made vintage Port from producers like Taylor’s, Fonseca, and Graham’s a cornerstone for collectors focused on fortified wines. Noteworthy wines from other regions include Domaine Leroy in Burgundy and <a href="https://winecap.com/wine-track/france/bordeaux/pauillac/chateau-pichon-longueville-comtesse-de-lalande">Château Pichon Lalande</a> in Bordeaux still surprise with their enduring quality and long drinking windows.
<h2>Market appeal of ‘Snake’ vintages</h2>
Buyers can find regional highlights across all of these Snake-year vintages that are likely to see increased demand in 2025, whether it is 2013 Napa or 1989 Bordeaux. The cultural significance of the snake adds an extra layer of allure in Asian markets, where symbolism often plays a role in purchasing decisions.
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

‘Snake’ wines for Chinese New Year

Bordeaux has long been the most important fine wine region in the world. Its rich heritage, high-quality production, and unmatched ability to cultivate globally-recognised brands have all cemented its position at the pinnacle of the fine wine world. Already in 1787, Thomas Jefferson noted the collectible potential of the region’s top wines.
Bordeaux is, thus, naturally the cornerstone of the wine investment market as we know it today. At its peak in 2010, Bordeaux accounted for a staggering 96% of the fine wine market by value. The First Growths – Château Lafite Rothschild, Château Latour, Château Margaux, Château Haut-Brion, and Château Mouton Rothschild – drove the lion’s share of that dominance.
Despite the recent broadening of the market, Bordeaux remains the most influential player, with its performance often setting the tone for global fine wine investment.
Our Bordeaux Report delves into the fundamentals of this fascinating region, including the evolution of its investment market, historic performance, and key players.
Discover more about:
<ul>
<li style="font-weight: 400;" aria-level="1">The First Growths and their second wines</li>
<li style="font-weight: 400;" aria-level="1">En Primeur </li>
<li style="font-weight: 400;" aria-level="1">Bordeaux’s key appellations</li>
<li style="font-weight: 400;" aria-level="1">Bordeaux’s future in a diversified market</li>
</ul>

Bordeaux | Regional Report

Burgundy &#8211; a region synonymous with some of the world&#8217;s finest wines &#8211; is a patchwork of complexity. Its intricate divisions span geography, quality, ownership, and production. Among these, the regional distinctions are perhaps the most foundational, forming the backbone of Burgundy&#8217;s identity as the most expensive fine wine region in the world. Today, we explore the five distinct regions of Burgundy, each offering a unique contribution to the region’s storied reputation.
<h2>Regional divisions</h2>
Burgundy is divided into four contiguous regions and one satellite. Although Beaujolais is geographically sometimes considered part of Burgundy, administratively it forms part of the Rhône region. The total area is around 30,000 hectares under vine, of which more than 80% is subject to some form of AOC classification. From this, Burgundy produces around one quarter of the volume of wine made in Bordeaux’s commensurate with a significantly smaller area under vine.
<h2>Chablis (Satellite)</h2>
The historic town of Chablis is located a mere two hours from Paris. The town and its historic vineyards live up to their reputation of creating a high calibre of Chardonnay.
Whether it is the limestone soil, the reticence towards oak ageing or the mineral quality that make the wines from the region so unique, the result is the same: the wines of Chablis are like no other. The area lay underneath a vast tropical sea some 200 million years ago that slowly transformed the seabed into limestone soils. Absorbing deposits of fossilised marine life — particularly seashells — those remnants live on in the rich, mineralised soil that is the region’s premier advantage.
Chablis is divided into four categories of excellence. In descending order, they are: Chablis Grand Cru, Chablis Premier Cru, Chablis and Petit Chablis. Grand Cru production is small and elusive; only seven ‘climats’ running parallel to the Serein River are elevated to Grand Cru status. These wines have low production and high price tags. In contrast to Grand Cru’s seven ‘climats’, Premier Cru claims 40 vineyards, including the highly desirable Vaillons, Montmains, Fourchaume and Vaulorent sites. Chablis is the most predominant appellation, with Petit Chablis, while still being praiseworthy, ranking last among the four.
<h2>Côte de Nuits</h2>
The Côte de Nuits is home to many of the greatest names in Burgundy wine. Situated in the Northern part of the Côte d’Or, it produces largely red wines and is a true paradise for Pinot Noir, accommodating a tremendous number of legendary Grand Crus. The terrain is essentially a narrow strip of hillside, sometimes just 200m wide, and the Grand Crus that adorn it are some of the smallest appellations in France.
The region has a rich history. As far back as the third century AD, viticulture has featured in the Côte de Nuits thanks to the Romans. Though a challenging terroir to manage, the wines of the area were the envy of the Roman Empire. Later on, under the care of the Benedictine and then Cistercian orders, the renown of the wines made famous the concept of unique terroir and its impact on expression. In the 17th century, much of the area came under ownership through the outlandish bidding wars of the bourgeoisie, but the French Revolution saw it sequestered and sold to independent ownership.
Its Grand Cru holdings include such internationally revered appellations as Chambertin, Clos Saint Denis, Clos de Vougeot, Échézeaux, Romanée-Conti and La Tâche to name just a few, and the Premier Cru holdings are also high-quality.
<h2>Côte de Beaune</h2>
The Côte de Beaune is situated around the town of Beaune and produces both white and red wines. Beaune, the second-largest town in the Côte d’Or, has been so closely associated with Burgundy’s wines that, for a time and well before the 1936 appellation was granted, all wines from this region were simply called ‘Beaune wines’. Because it is also based in the geographical heart of the wine trade industry, the area is one of the diverse few that offers a mix of farming and trade. Most of the activity takes place on the western side of Beaune as this is where the vineyards are located.
The appellation has a high proportion of Premier Cru plots, with over 40 ‘climats’ that stretch from north to south, uninterrupted by commerce or residential development. The wines from Beaune are predominantly red, but the trend towards Chardonnay has sparked a new increase in white wine production.
<h2>Côte Chalonnaise</h2>
Producing both ruby reds and graceful whites, Côte Chalonnaise lies to the south of the Côte de Beaune. A landscape punctuated by hills with southeast facing slopes, hot summers and generally dry weather sees grapes develop with excellent phenolic ripeness. Sharing similar soils to the Côte de Beaune, it is often considered a natural extension of the region.
Vines planted here are predominantly Chardonnay and Pinot Noir but are also home to the Aligoté grape in select areas. The reds are clean and firm and, though austere in their youth, will handle ageing well. Whites are clear and floral with fleshy and lively bodies.
Côte Chalonnaise is home to such celebrated appellations as Montagny, Givry, Mercurey and Rully. Sporting a good number of Premier Cru ‘climats’ among them, these areas have a number of poignant historical claims, including that Givry’s wines were the favourites of the French King Henri IV. In the early 19th century, négociants with vines in Mercurey and Rully hosted a man from the Champagne region. Shortly after, sparkling white wines were produced and Crémant de Bourgogne was born.
<h2>Mâcconais</h2>
Mâcconais is the southernmost of the five wine-producing regions of Burgundy. It is a pastoral rolling landscape nestled between two valleys. With the Grosne to the West and the Saône to the East, it is home to stony outcrops of monumental proportions.
Historically speaking, the Mâcconais was shaped by its religious significance, with the Benedictine tradition of prayer and labour encouraging the monks of the Abbey of Cluny to cultivate vineyards in 909. Thanks to the wealth generated by these vineyards, which stretched further north than the Abbey’s southern location, another abbey, the abbey of Cîteaux, was later founded in 1098. 
80% of the vines in the Mâcconais are planted as Chardonnay, with the remainder being largely Gamay and, to a much smaller extent, Pinot Noir. With its southern facing aspects it produces wines of tremendously rich and aromatic character and is home to such renowned appellations as Pouilly-Fuissé, Pouilly-Vinzelles, Saint-Véran and Viré-Clessé. 
Looking for more? Read our <a href="https://winecap.com/learn/burgundy-regional-report">Burgundy Regional Report</a>, which delves into the fundamentals of this fascinating region and the development of its investment market.

Understanding Burgundy’s regional divisions

<ul>
<li aria-level="1">The 2023 Burgundy vintage is bountiful but heterogeneous in quality.</li>
<li aria-level="1">Careful selection of reputable domains and top producers is necessary when making purchasing decisions.</li>
<li aria-level="1">In the secondary market, Burgundy prices have fallen 15.2% in the last year.</li>
</ul>
The Burgundy En Primeur 2023 campaign brings a vintage full of potential and expectations: potential due to the quality but mostly quantity of the vintage in a region defined by scarcity, and expectations for reduced pricing given <a href="https://www.thedrinksbusiness.com/2024/12/burgundy-2023-en-primeurs-cautious-optimism/">producers’ desire to sell</a>.
This article provides an overview of the 2023 Burgundy vintage and the market environment that surrounds its launch. 
<h2>A heterogeneous but plentiful vintage</h2>
The 2023 Burgundy vintage first made news for its volume, which surpassed the region’s average production levels by 30%. Despite heat, drought and flooding challenges, the overall perception is of success – large quantities and above-average quality. <a href="https://worldoffinewine.com/news-features/2023-burgundy-introduction">Sarah Marsh MW</a> summed it up: ‘The 2023 Burgundy was a bounteous but heterogenous vintage in which the white wines outshone the reds’. 
2023 saw a late-season heat spike that concentrated the fruit. Chardonnay benefited from earlier harvests before extreme heat, while Pinot Noir avoided dilution concerns and achieved natural alcohol levels of 13 &#8211; 13.5%. 
The vintage&#8217;s overall quality depended heavily on producer management, such as controlling yields for reds and maintaining freshness and acidity in whites. In comparison to the richer, more consistent 2022 vintage, the 2023s demonstrate greater precision, transparency and approachability. Growers and critics have suggested that the 2022/23 might mirror the 2015/16 or 2009/10 pairs.  
The highlights include Bonnes Mares, which stood out for its opulence and structure, with the best examples from Domaine de la Vougeraie and Domaine Dujac. For whites, cooler and mineral-driven sites like Puligny Caillerets and Meursault Perrières were particularly compelling, showcasing precision and vibrancy. Producers like Comte de Vogue, Jean Chartron, and Violot-Guillemard have garnered critical praise. 
<h2>Market context</h2>
The Burgundy En Primeur 2023 campaign unfolds against a backdrop of shifting market dynamics. Following a robust 2022 vintage and a successful campaign, producers are navigating a softened market. Burgundy prices have fallen 15.2% in the past year, more than any other fine wine region.
<img loading="lazy" decoding="async" class="alignnone wp-image-2315" src="https://wp.winecap.com/wp-content/uploads/2025/01/Burgundy-150-375x254.png" alt="Burgundy 150 index" width="420" height="284" srcset="https://wp.winecap.com/wp-content/uploads/2025/01/Burgundy-150-375x254.png 375w, https://wp.winecap.com/wp-content/uploads/2025/01/Burgundy-150-768x520.png 768w, https://wp.winecap.com/wp-content/uploads/2025/01/Burgundy-150-1536x1039.png 1536w, https://wp.winecap.com/wp-content/uploads/2025/01/Burgundy-150-2048x1385.png 2048w, https://wp.winecap.com/wp-content/uploads/2025/01/Burgundy-150-1200x812.png 1200w, https://wp.winecap.com/wp-content/uploads/2025/01/Burgundy-150-1980x1339.png 1980w" sizes="auto, (max-width: 420px) 100vw, 420px" />
Additionally, seven Burgundies dropped from the list of the most 100 most powerful brands in the world in 2024. Still, Burgundy continues to dominate the list, cementing its place as a powerhouse in the global fine wine market. The region’s market share also remains strong, hovering around 25% and sometimes reaching 30%.
<h2>Pricing strategies</h2>
As producers seek to gather momentum with the 2023 vintage, some are keeping stable pricing levels or even lowering prices. The sizable 2023 yields stand in contrast to the tiny harvests anticipated in 2024, further amplifying the value proposition of the current release.
The 2023 vintage can thus represent a strategic opportunity. Careful selection – looking both at quality and value compared to older vintages – will be necessary, especially as the downward market trend offers a window to secure high-quality Burgundy wines at more accessible price points. More and better priced stock from older vintages has become available, creating competition for the new releases. 
The current market dynamics, characterised by adjusted pricing and evolving consumer trends, create an intriguing context for the campaign. As Burgundy continues to adapt to market shifts and climatic challenges, its enduring prestige remains as compelling as ever.
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>

Burgundy En Primeur 2023 and the current market

<ul>
<li aria-level="1">Fine wine offers steady, long-term growth with controlled price fluctuations, while Bitcoin&#8217;s extreme volatility presents both high-risk and high-reward opportunities.</li>
<li aria-level="1">Fine wine&#8217;s centuries-old market is supported by scarcity, provenance, and established ecosystems, contrasting Bitcoin&#8217;s shorter, speculation-driven history.</li>
<li aria-level="1">Fine wine appeals to risk-averse investors seeking diversification, while Bitcoin caters to those pursuing rapid investments.</li>
</ul>
Bitcoin has recently captured investment interest as it surged past the $100,000 (£80,000) benchmark for the first time in December last year, up from $45,000 (£36,000) at the beginning of 2024. With its meteoric rise fuelled by regulatory approvals for cryptocurrency exchange-traded funds and mostly the results of the US presidential election, Bitcoin demonstrated its ability to deliver unparalleled gains. Yet, crypto remains a high-risk asset defined by dramatic volatility. From its genesis in 2009, Bitcoin has seen multiple boom-and-bust cycles, with price swings of over 50% in both directions within a single year not uncommon. 
By contrast, fine wine represents a markedly different asset class, appealing to those who prioritise stability and long-term appreciation. The fine wine market has a storied history spanning centuries, with values driven by scarcity, provenance, and global demand rather than speculative hype. While prices in the fine wine market can fluctuate, they tend to avoid the extreme volatility seen in cryptocurrencies. Instead, they enjoy steady growth that outpaces inflation and provides a reliable hedge against economic uncertainty.
<h2>Volatility</h2>
Bitcoin&#8217;s price chart tells a story of rapid ascents and precipitous falls. For example, its 2017 bull run saw prices climb from £800 ($1,000) to nearly £16,000 ($20,000) only to crash to £2,400 ($3,000) the following year. Similar patterns occurred in 2021 and again in 2024, leaving investors questioning when the next downturn might strike.
Fine wine, on the other hand, avoids such dramatic shifts. Prices typically rise or fall within a controlled range, supported by consistent demand from collectors and investors worldwide.
<h2>Historical context</h2>
Cryptocurrencies are a product of the digital age, with Bitcoin gaining widespread attention only over the past decade. Its rise has been driven by speculative interest, technological innovation, and the allure of decentralisation. However, its short history leaves it vulnerable to regulatory uncertainties, technological disruptions, and shifting investor sentiment.
Fine wine, conversely, boasts a legacy that stretches back centuries. Iconic regions like Bordeaux, Burgundy, and Tuscany have long been synonymous with quality and value. Investments in fine wine are supported by an established ecosystem of producers, merchants, and auction houses. This historical grounding provides a level of security that new asset classes like cryptocurrency struggle to match.
<h2>Market performance</h2>
One of the defining features of fine wine as an investment is the importance of <a href="https://winecap.com/learn/the-best-wine-investment-regions-in-2024">regional performance</a>. For instance, <a href="https://winecap.com/learn/burgundy-regional-report">Burgundy</a> has risen 550% on average over the last twenty years, with some wines achieving returns of over 1,500%. 
The world of fine wine has its own higher risk and higher return investments but it also offers a range of reliable long-term performers. This is why building a fine wine portfolio requires expertise and careful curation. A well-diversified portfolio includes big brands but also undervalued wines and vintages from a variety of regions which can see their value rise based on demand, critic scores, age or other intrinsic factors. 
<h2>Liquidity: fast vs steady</h2>
Liquidity is another key difference between fine wine and crypto. Bitcoin can be bought and sold 24/7 on global exchanges, making it one of the most liquid investments available. However, this liquidity can exacerbate price swings, with significant moves often triggered by news events or changes in market sentiment.
Fine wine, while less liquid, offers a more controlled market environment. Secondary sales typically occur through investment companies and trading platforms, with prices reflecting a stable and growing investor base. This slower pace can be an advantage for investors seeking to avoid speculative bubbles.
<h2>Diversification and portfolio strategy</h2>
In today’s investment landscape, fine wine and cryptocurrency appeal to very different investor profiles. Bitcoin caters to those seeking high-risk, high-reward opportunities, while fine wine offers steady, long-term growth and diversification. Incorporating both into a portfolio can provide balance, but the emphasis should align with an investor’s risk tolerance and financial goals.
Fine wine also underscores the importance of expertise. A portfolio focused on iconic regions and proven vintages can deliver strong returns, with minimal exposure to the broader market’s ups and downs. As seen in the <a href="https://winecap.com/learn/report-opportunities-in-uncertainty-the-2024-fine-wine-market-and-2025-outlook">market of 2024</a>, the best-performing wines relied on deep knowledge of regional trends and intrinsic dynamics.
WineCap’s independent market analysis showcases the value of portfolio diversification and the stability offered by investing in wine. Speak to one of our wine investment experts and start building your portfolio. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

Bitcoin cyrpto currency versus fine wine as an asset

Fine wine vs crypto? History, volatility and market returns

<ul>
<li aria-level="1">Vineyard prices in Pauillac have risen over 700% in the last 30 years.  </li>
<li aria-level="1">Sauternes has faced a 90% decline during the same period. </li>
<li aria-level="1">Pomerol has significantly outpaced Saint-Émilion, partly due to its compact size and luxury appeal.</li>
</ul>
The <a href="https://wine-economics.org/">American Association of Wine Economists</a> has released data on the evolution of Bordeaux vineyard prices from 1991 to 2023. Over this period, Bordeaux has become the centrepiece of a thriving, regulated wine investment market.
Global demand for Bordeaux wines has fueled remarkable growth, with top estates achieving iconic status as luxury brands. A 2011 valuation revealed that over 50 of Bordeaux’s leading châteaux belong to the €50 million club, with a combined market value exceeding €15 billion.
In the past two decades, Bordeaux fine wine prices have risen by an average of 200%, accompanied by significant increases in vineyard prices in its most sought-after appellations.
This article delves into the shifting dynamics of Bordeaux’s wine industry, examining their impact on vineyard prices and the contrasting trajectories of key sub-regions like Pauillac, Sauternes, Pomerol, and Saint-Émilion.
<h2><img loading="lazy" decoding="async" class="aligncenter wp-image-2299" src="https://wp.winecap.com/wp-content/uploads/2025/01/unnamed-375x342.jpg" alt=" American Association of Wine Economists Bordeaux vineyard prices" width="460" height="420" srcset="https://wp.winecap.com/wp-content/uploads/2025/01/unnamed-375x342.jpg 375w, https://wp.winecap.com/wp-content/uploads/2025/01/unnamed.jpg 512w" sizes="auto, (max-width: 460px) 100vw, 460px" /></h2>
<h2>Pauillac’s extraordinary growth</h2>
Pauillac’s vineyard prices have experienced extraordinary growth over the past three decades, surging by 700.6% from €374,700 per hectare in 1991 to €3 million in 2023. The region is home to the First Growths Lafite Rothschild, Latour, and Mouton Rothschild.
When compared to other regions, Pauillac’s relatively small size – spanning approximately 1,200 hectares under vine – is a key factor contributing to its high vineyard prices. This limited vineyard area, combined with the prestige of its châteaux, creates a scarcity effect that drives up demand and valuation. Despite its compact footprint, Pauillac has managed to consistently dominate the fine wine market.
The rise of Pauillac aligns with the global increase in demand for fine Bordeaux wines, particularly during the 2000s and early 2010s, when new markets like China became major consumers. However, this growth has slowed in recent years. This could stem from market saturation, with collectors shifting their attention to other Bordeaux appellations or entirely different regions such as Burgundy and Champagne. 
<h2>The decline of Sauternes</h2>
In stark contrast to Pauillac, Sauternes has suffered a decline, losing nearly 90% of its vineyard value since 1991. Once valued at €293,000 per hectare – higher than Saint-Émilion at the time – Sauternes vineyards are now priced at around €30,000 per hectare, according to AAWE. This fall can largely be attributed to waning consumer interest in sweet wines.
The production costs associated with Sauternes, which involve the labour-intensive process of harvesting botrytised (noble rot) grapes further compound the issue. While top producers like Château d’Yquem continue to uphold the region’s reputation, the broader market for Sauternes is facing challenges due to changing consumer preferences.
<h2>Pomerol and Saint-Émilion: a tale of two trajectories</h2>
Pomerol and Saint-Émilion present an interesting comparison, with Pomerol emerging as a high-growth luxury niche and Saint-Émilion maintaining steady performance. From 1991 to 2023, Pomerol vineyard prices rose by 213.4%, reaching €2 million per hectare, while Saint-Émilion saw only a modest 14.7% increase to €300,000 per hectare. These differences can be explained by several key factors.
<ol>
<li> Size and scale</li>
</ol>
Saint-Émilion spans a vast 5,400 hectares, compared to Pomerol’s much smaller 800 hectares. This sheer scale means Saint-Émilion includes a wide range of producers, from elite châteaux like Cheval Blanc and Ausone to lesser-known estates producing more affordable wines. In contrast, Pomerol’s compact size results in a higher concentration of prestigious vineyards, with fewer smaller players to dilute its overall market perception.
<ol start="2">
<li> Classification systems</li>
</ol>
Saint-Émilion’s classification system – updated every decade – categorises its estates into tiers such as Premier Grand Cru Classé A and B, and Grand Cru Classé. However, the frequent use of the &#8220;Grand Cru&#8221; designation (applied to over 60% of the region’s wines) might work against it, and partly diminish the exclusivity of this title.
Conversely, Pomerol lacks any formal classification system, allowing individual estates like Pétrus and Le Pin to dominate through their reputations alone. This lack of stratification has paradoxically bolstered the region’s image as a luxury appellation. Its reputation as a source of small-production, Merlot-dominant wines has further cemented its status as a ‘cult’ appellation among collectors and investors. 
<ol start="3">
<li> Smaller players and price dilution</li>
</ol>
Saint-Émilion’s large number of smaller, lesser-known producers contributes to its lower average vineyard price. These producers often operate outside the Grand Cru Classé system, pulling down the overall valuation of the region. In Pomerol, the scarcity of vineyards and the dominance of high-profile estates create a ‘halo effect’ that supports consistently high valuations, even for lesser-known properties.
<h2>Implications for the wine investment market</h2>
The contrasting trajectories of Bordeaux’s appellations highlight the complexity of the fine wine investment market. Pauillac’s recent plateau demonstrates that even the most prestigious regions are not immune to market saturation, while Pomerol’s steady growth underscores the enduring appeal of scarcity and exclusivity. In contrast, Sauternes illustrates the vulnerability of regions reliant on shifting consumer preferences. However, renewed efforts by producers to embrace sustainability, innovation, and rebranding may help revive interest in sweet wines and mitigate some of these challenges.
Despite fluctuations, Bordeaux’s iconic estates and global reputation remain a cornerstone of the fine wine market. For investors and collectors, navigating the nuanced landscape of vineyard prices and evolving market dynamics will be crucial to securing long-term success in this ever-changing industry.
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. <a href="https://winecap.com/schedule-a-call" target="_blank" rel="noopener nofollow noreferrer">Schedule your free consultation today</a>

The evolution of Bordeaux’s vineyard prices: what’s behind the price tag?

<ul>
<li aria-level="1">AI integration has been a significant driver of market activity in 2024.</li>
<li aria-level="1">US dollar surged following President Donald Trump&#8217;s re-election, but subsequent tariff announcements led to market volatility. </li>
<li aria-level="1">Fine wine solidified its status as the most popular collectible asset in 2024.</li>
</ul>
The global investment landscape in 2024 has been shaped by the interplay of technological innovation, geopolitical shifts, and a growing appetite for alternative assets. From the rapid integration of AI and rising interest in collectibles to the continued emphasis on sustainability and diversification, investors have navigated an evolving landscape with a focus on innovation, stability, and resilience. Below we examined the big investment themes that defined the year that was. 
<h2>AI adoption and mergers and acquisitions</h2>
<a href="https://www.reuters.com/technology/artificial-intelligence/ai-will-force-tech-investors-become-macro-aware-2024-11-21/?utm_source=chatgpt.com">The rapid adoption of AI</a> has been a significant driver of market activity in 2024. Major corporations across various sectors have invested heavily in AI infrastructure to enhance operational efficiency and innovation. This surge in AI integration has led to increased capital expenditures, with leading tech firms projected to spend over $200 billion on AI-related infrastructure, doubling their 2021 spending. 
The growing demand for AI expertise has spurred a wave of mergers and acquisitions among asset managers. A <a href="https://www.fnlondon.com/articles/ai-demand-set-to-spark-m-a-deals-frenzy-among-fund-managers-799f3dfd?utm_source=chatgpt.com">survey</a> by PwC revealed that 81% of global asset managers and institutional investors are considering strategic partnerships or acquisitions of AI-capable businesses by 2028. 
<h2>Sports investing gains momentum</h2>
Investing in sports has emerged as an attractive avenue, with major leagues&#8217; valuations outpacing the S&amp;P 500 by <a href="https://www.businessinsider.com/how-to-invest-in-sports-leagues-and-betting-markets-jpmorgan-2024-11?utm_source=chatgpt.com">up to five times</a>. Relaxed ownership rules and the rapid growth in valuations have drawn interest from top firms. Investment options include equity ownership in teams or franchises and credit through loans or structured equity for team or stadium development. However, the sector&#8217;s illiquidity and lack of extensive historical performance data require higher return expectations and a thorough understanding of investment projections. 
<h2>Currency volatility amid political developments</h2>
The U.S. dollar exhibited notable volatility throughout the year, influenced by political developments and economic policies. Following President Donald Trump&#8217;s re-election, the dollar initially strengthened against major currencies, driven by investor optimism over proposed tax cuts and infrastructure spending. However, subsequent announcements of tariffs on imports from Canada, Mexico, and China led to market jitters, causing fluctuations in the dollar&#8217;s value. 
<h2>Global market adjustments</h2>
<a href="https://www.thetimes.co.uk/article/the-likely-winners-and-losers-in-trump-presidency-87wbnj5n6?utm_source=chatgpt.com">Trump&#8217;s policies</a>, including tax cuts and increased tariffs, impacted global markets. U.S. Treasury 10-year bonds surged in yield, anticipating higher budget deficits and inflation, potentially decreasing the likelihood of Federal Reserve rate cuts. Sectors like defense, mining, and international firms earning in dollars were poised to benefit from the currency strength, while renewable energy companies and the automotive industry have faced challenges. 
<h2>Emphasis on diversification and alternative investments</h2>
In response to market uncertainties, there has been a heightened focus on diversification and alternative investments. <a href="https://www.barrons.com/advisor/articles/state-street-michael-arone-investment-strategy-2025-80691c8d?utm_source=chatgpt.com">Strategies</a> such as incorporating real assets like real estate, commodities, and infrastructure into portfolios have been recommended to hedge against inflation. Additionally, interest in <a href="https://www.businessinsider.com/mercer-advice-institutional-clients-invest-private-credit-2024-8?utm_source=chatgpt.com">private credit</a> has surged due to its attractive returns, with institutional investors seeking to capture higher yields and diversify portfolios with liquid alternatives and hedge funds. 
<h2>Fine wine – the most popular collectible</h2>
Fine wine has <a href="https://winecap.com/learn/winecap-wealth-report-2024-uk-edition">solidified its status</a> as the most popular collectible asset in 2024, driven by its unique blend of stability, sustainability, and market appeal. A remarkable 92% of wealth managers anticipate demand for fine wine to increase over the next year, reflecting its growing allure.
Several factors have contributed to fine wine’s investment appeal including supply and demand, and tax efficiency. Investor confidence in the market’s liquidity has also surged by 32% in 2024, bolstered by advanced technologies that improve trading experiences and ensure security. Fine wine is increasingly viewed as a socially and environmentally conscious investment, with 68% of wealth managers citing sustainability as a key motivation for their clients to invest in this asset. Finally, fine wine continues to offer a stable alternative amid economic volatility. These attributes position fine wine as a cornerstone in the broader trend toward alternative investments. 
<h2>Environmental, social, and governance (ESG) considerations</h2>
Sustainable investment considerations have remained a focal point, with changing regulatory disclosures and a growing emphasis on ESG factors. The EU continues to lead in the sustainable funds market, accounting for 84% of global assets in this sector. However, amid allegations of greenwashing and stricter regulations, there has been a notable decrease in funds incorporating ESG-related terms into their names, particularly in the United States. 
In summary, 2024 has been characterized by technological advancements, strategic corporate activities, and a cautious yet opportunistic investment approach amid political and economic uncertainties. 
See also: <a href="https://winecap.com/learn/special-report-2023s-big-investment-themes-fine-wine-and-beyond">Special report – 2023’s big investment themes: fine wine and beyond</a>
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

2024’s big investment themes

<ul>
<li aria-level="1">The biggest price risers in 2024 reveal a strong preference for older vintages.</li>
<li aria-level="1">The best-performing wine came from the Rhône, having risen 80.5% in value year-to-date.</li>
<li aria-level="1">Tuscany, Ribera del Duero, Bordeaux and Sauternes also featured in the rankings.</li>
</ul>
The biggest price risers in 2024 reveal a strong preference for older vintages, underlining the importance of time in achieving wine investment returns.  
<h2>The Rhône leads performance</h2>
Although Rhône prices declined 9.9% on average this year, the region gave rise to some of the best-performing wines.
Domaine Pegau Châteauneuf-du-Pape Cuvée Réservée Rouge 2013 led the charge with an impressive 80.5% rise. Other regional standouts, including Clos des Papes Châteauneuf-du-Pape Rouge 2014 (61.2%) and Château de Beaucastel Rouge 2013 (31.1%), highlighted the enduring demand for Châteauneuf-du-Pape from highly rated mature vintages.
<h2>Highlights from Spain and Italy</h2>
While the Rhône claims several top spots, other regions also showcase the profitability of mature vintages. From Spain, the 2010 Vega Sicilia Unico achieved a notable 24.9% increase. Known for its high quality and limited production, Vega Sicilia continues to represent Spanish winemaking at its finest, cementing its status as a blue-chip investment wine.
Italy made a strong appearance with the 2014 Fontodi Flaccianello delle Pieve, which has risen 6.8% in value. This Tuscan gem, crafted from 100% Sangiovese, reflects the growing international appeal of Italy’s finest wines. Collectors are increasingly drawn to Italy not only for its iconic producers but also for its remarkable balance of accessibility and age-worthiness.
<img loading="lazy" decoding="async" class="alignnone wp-image-2273" src="https://wp.winecap.com/wp-content/uploads/2024/12/top-wines-1-375x145.png" alt="Top performing wines of 2024" width="480" height="186" srcset="https://wp.winecap.com/wp-content/uploads/2024/12/top-wines-1-375x145.png 375w, https://wp.winecap.com/wp-content/uploads/2024/12/top-wines-1-768x298.png 768w, https://wp.winecap.com/wp-content/uploads/2024/12/top-wines-1.png 1081w" sizes="auto, (max-width: 480px) 100vw, 480px" />
<h2>Bordeaux’s resilience</h2>
No fine wine discussion is complete without Bordeaux, and 2024 is no exception. While price growth among Bordeaux wines in this dataset may be more modest, the region’s consistency remains its hallmark. The 2013 Ducru-Beaucaillou saw a solid 19.2% increase, while the 2012 Chateau L’Eglise-Clinet also featured among the top performers. 
Two Château Rieussec vintages, the 2015 and 2014, reflected Sauternes’ consistent market performance, although the category is often overlooked.
<h2>The allure of maturity</h2>
The unifying thread across these top-performing wines is their maturity. Each wine has benefited from time in the bottle, allowing its market value to increase. Mature vintages offer an enticing combination of drinking pleasure and investment potential, a dual appeal that drives demand among collectors and investors alike.
This preference for older wines reflects a broader trend within the fine wine market: a growing appreciation for provenance and readiness to drink. As global markets for fine wine continue to mature, buyers are prioritising wines with a proven track record, both in terms of quality and price appreciation.
<h2>What this means for investors</h2>
The list of the best-performing wines of 2024 shows the importance of patience and long-term approach when it comes to investing. Additionally, diversification across regions and styles can help mitigate risk and enhance returns.
The performance of these wines provides a clear takeaway: older vintages remain at the forefront of the fine wine market. 
For more read our latest report “<a href="https://winecap.com/learn/report-opportunities-in-uncertainty-the-2024-fine-wine-market-and-2025-outlook">Opportunities in uncertainty: the 2024 fine wine market and 2025 outlook</a>”.
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

Older vintages dominate 2024’s best-performing wines

<h2>Executive summary</h2>
<ul>
<li style="font-weight: 400;" aria-level="1">Q4 was marked by political developments, changing economic policies, and geopolitical events, including the re-election of President Trump.</li>
<li style="font-weight: 400;" aria-level="1">The strengthened US dollar boosted fine wine demand across the pond.</li>
<li style="font-weight: 400;" aria-level="1">Fine wine prices fell 11% across major regions in 2024, reflecting a continued market correction. </li>
<li style="font-weight: 400;" aria-level="1">Italy was the most resilient fine wine region, while Burgundy experienced the biggest adjustment.</li>
<li style="font-weight: 400;" aria-level="1">Rhône wines dominated the list of the best performing wines in 2024, with Domaine Pegau Cuvée Réservée Rouge 2013 leading (80.5%).</li>
<li style="font-weight: 400;" aria-level="1">Older vintages (2010-2014) performed well, reflecting the market’s preference for mature, proven wines, while new releases struggled when not priced correctly.</li>
<li style="font-weight: 400;" aria-level="1">Optimism for market recovery is focused on premium regions like Piedmont, Champagne, and Burgundy.</li>
<li style="font-weight: 400;" aria-level="1">Economic uncertainties and mixed performance in Bordeaux are expected to persist, but continued interest in fine wine signals resilience and potential for long-term growth.</li>
</ul>
<h2>Q4 in context: political and economic drivers</h2>
It has been an eventful quarter, marked by political developments, changing economic policies, and geopolitical events. The re-election of President Donald Trump in November prompted a rapid response in global markets. US equities reacted positively to the outcome, as investors anticipated business-friendly policies and potential fiscal stimulus, particularly benefiting sectors like manufacturing and technology. However, concerns over increased tariffs created uncertainties for multinational corporations.
Rising US Treasury yields, driven by expectations of future interest rate hikes, attracted capital inflows, strengthening the US dollar. While this reinforced investor confidence in U.S. economic policies, it also raised concerns about higher borrowing costs and their potential drag on economic growth. Emerging market currencies faced downward pressure as fears of US trade measures and capital outflows grew.
In late November, a US-France-brokered ceasefire between Israel and Hezbollah took effect, reducing immediate geopolitical risks after over a year of hostilities. Despite the agreement, markets remained cautious, keeping a close watch for potential disruptions to the fragile stability.
<h2>Markets in 2024: the year that was</h2>
Bitcoin made headlines this month by surpassing the $100,000 mark for the first time, peaking at an all-time high of $104,000 on Coinbase. The surge was fuelled by growing investor optimism around a favourable regulatory environment under President-elect Donald Trump, who has signalled support for cryptocurrencies through key appointments and policy proposals.
Equity markets have also enjoyed a strong year, bolstered by a resilient US economy and easing inflation pressures. These conditions have allowed central banks to pause or slow rate hikes. Strong corporate earnings, particularly in the technology and AI sectors, have further propelled the S&amp;P 500&#8217;s stellar performance.
The global energy market in 2024 has experienced notable fluctuations. Concerns over a potential global economic slowdown, driven by weak demand from China and other developed economies, have weighed on crude oil prices. While OPEC&#8217;s production cuts have provided some price support, they have not been sufficient to fully offset the impact of declining demand.
Meanwhile, gold has reaffirmed its role as a safe-haven asset in 2024. Persistent geopolitical tensions, inflation concerns, and financial market volatility have driven demand for the precious metal, supporting its strong performance throughout the year.
<img loading="lazy" decoding="async" class="alignnone wp-image-2260" src="https://wp.winecap.com/wp-content/uploads/2024/12/market-performance-375x260.png" alt="Market performance in 2024" width="300" height="208" srcset="https://wp.winecap.com/wp-content/uploads/2024/12/market-performance-375x260.png 375w, https://wp.winecap.com/wp-content/uploads/2024/12/market-performance.png 597w" sizes="auto, (max-width: 300px) 100vw, 300px" />
*Current values: 06/12/2024
<h2>The fine wine market in 2024</h2>
The fine wine market in 2024 continued its downward trajectory from 2023, with broad declines across major indices. The Liv-ex 100 has fallen 9.2% year-to-date, while the Liv-ex 50, which tracks First Growth Bordeaux, is down 10.9%.
Despite these overall declines, the market showcased notable regional disparities and emerging opportunities. Examined at more length in the following section, Italy has been a beacon of resilience, while ‘overheated’ regions like Burgundy have readjusted.    
Notably, prices did not fall because of lower demand for fine wine. Market activity remained high, with the number of fine wine trades in 2024 surpassing 2023 by 7.9%. 
<h2>Regional fine wine performance</h2>
<img loading="lazy" decoding="async" class="alignnone wp-image-2261" src="https://wp.winecap.com/wp-content/uploads/2024/12/Regional-indices-375x251.png" alt="Regional fine wine indices performance in 2024" width="400" height="268" srcset="https://wp.winecap.com/wp-content/uploads/2024/12/Regional-indices-375x251.png 375w, https://wp.winecap.com/wp-content/uploads/2024/12/Regional-indices-768x514.png 768w, https://wp.winecap.com/wp-content/uploads/2024/12/Regional-indices-1536x1029.png 1536w, https://wp.winecap.com/wp-content/uploads/2024/12/Regional-indices-2048x1371.png 2048w, https://wp.winecap.com/wp-content/uploads/2024/12/Regional-indices-1200x804.png 1200w, https://wp.winecap.com/wp-content/uploads/2024/12/Regional-indices-1980x1326.png 1980w" sizes="auto, (max-width: 400px) 100vw, 400px" />
The fine wine market saw mixed performances as the year drew to a close. Italy stood out as the most resilient region, with prices falling 6% – a fraction of the 11.1% average decline in the Liv-ex 1000 index. High-scoring releases buoyed Italy’s secondary market, while diverse offerings such as Antinori Brunello di Montalcino Vigna Ferrovia Riserva (38%) underscored the country’s stability and value. Italy’s growing influence was evident in the 2024 Power 100 rankings, where it claimed 22 spots – nine more than last year – closing the gap on Burgundy and Bordeaux in terms of investor interest and price performance.
Burgundy has faced the greatest readjustment among all regions, with prices declining by 14.4% year-to-date. This correction followed years of meteoric growth and reflects a market adjustment as prices recalibrate. The decline has created opportunities for investors to acquire rare and prestigious labels at more accessible prices. Burgundy’s reputation as a cornerstone of fine wine investment remains intact despite this year’s setbacks, with long-term demand likely to persist.
Champagne also experienced a challenging year, with prices falling 9.8%. However, the region showed signs of stabilisation toward the end of the year. Older vintages led this recovery, with labels such as Taittinger Brut Millesime up 29%, signalling enduring interest in high-quality, aged Champagne. 
Bordeaux, the largest and most liquid fine wine region, saw an 11.3% decline. Liquidity remains Bordeaux’s strength, but it no longer guarantees safety in today’s market. Recent vintages in particular have struggled, with many trading below their release prices. 
California wines fell 8.6% but showed positive momentum in November. The region’s growing presence in the fine wine investment space has been driven by the rising popularity of brands like Dominus, Joseph Phelps, and Promontory.
Spanish wine also benefitted from surging US demand, with Vega Sicilia Unico taking the top spot as the most powerful fine wine brand in 2024. Two other Spanish wines also made the rankings – Dominio de Pingus and R. Lopez de Heredia – a testament to Spain’s growing investment potential.  
<h2>The best-performing wines in 2024</h2>
<img loading="lazy" decoding="async" class="alignnone wp-image-2262" src="https://wp.winecap.com/wp-content/uploads/2024/12/top-wines-375x145.png" alt="Top-performing wines of 2024" width="400" height="155" srcset="https://wp.winecap.com/wp-content/uploads/2024/12/top-wines-375x145.png 375w, https://wp.winecap.com/wp-content/uploads/2024/12/top-wines-768x298.png 768w, https://wp.winecap.com/wp-content/uploads/2024/12/top-wines.png 1081w" sizes="auto, (max-width: 400px) 100vw, 400px" />
The Rhône dominated this year’s top-performing wines, claiming four of the ten spots on the list. Domaine de Pegau Cuvee Reservee Rouge 2013 led the charge with an impressive 80.5% rise. Other regional standouts, including Clos des Papes Châteauneuf-du-Pape Rouge 2014 (61.2%) and Château de Beaucastel Rouge 2013 (31.1%), highlighted the enduring demand for Châteauneuf-du-Pape from highly rated, older vintages.
Beyond the Rhône, Spain’s Vega Sicilia Unico 2010 (24.9%) showcased the strength of Ribera del Duero as a rising force in the wine investment market. Vega Sicilia also ranked as the most powerful wine brand in the 2024 Power 100 rankings. 
Bordeaux and Sauternes also featured. Château Rieussec took two spots with its 2015 (10%) and 2014 (7.2%) vintages. Meanwhile, Ducru-Beaucaillou 2013 (19.2%) and Château L’Eglise-Clinet 2012 (3.9%) showed that Bordeaux’s established names have continued to attract investment interest where there has been value on offer.
A clear trend this year was the strong performance of older vintages, with wines from 2010 to 2014 dominating the list. Only two ‘younger’ vintages, 2015 and 2019, appeared on the list and no new releases. This aligns with a broader preference for mature wines, which offer proven track records and immediate drinkability.
<h2>2024 takeaways</h2>
The market downturn has presented opportunities to acquire premium wines at more accessible price points, offering a chance to diversify portfolios with an asset known for its historically strong long-term performance.
For another year, Bordeaux En Primeur struggled to attract significant interest with the release of the 2023 vintage, especially for wines where older proven vintages offered better value. Economic uncertainty further highlighted the appeal of the classics. Iconic Bordeaux vintages – such as 2000, 2005, and 2009 – and Italy’s Super Tuscans stood out as stable investment options. These wines offered a combination of historical performance and consistent demand, reinforcing their status as cornerstone assets in fine wine portfolios.
Declining prices also brought rare and prestigious wines back into circulation, offering investors the chance to secure assets that were previously inaccessible. This period allowed for strategic acquisitions of iconic labels at attractive price points, setting the stage for potential long-term gains as the market stabilises.
Below the surface of the downturn, 2024 presented great buying opportunities, making it a pivotal year for investors, whether looking to enter the market or enhance their existing portfolios.  
<h2>2025 market outlook</h2>
The 2025 fine wine market outlook is cautiously positive, driven by optimism for premium regions such as Piedmont, Champagne, and Burgundy. Insights from the <a href="https://liquidicons.com/">2024 Golden Vines Report</a> show that 64% of industry professionals anticipate market growth, particularly for high-end Italian wines like Barolo and Barbaresco, which are increasingly viewed as alternatives to Burgundy.
Key trends include rising demand for sustainability and terroir-driven wines. According to the report, Piedmont (20%) leads in growth potential, followed by Champagne (17%), Burgundy (14%) and Tuscany (12%), while Bordeaux faces mixed prospects, with 27% of the respondents expecting further declines. Challenges like economic pressures and geopolitical uncertainties persist but continued strong fine wine demand signals resilience in the market.
Fine wine remains the <a href="https://winecap.com/learn/winecap-wealth-report-2024-uk-edition">most popular collectible</a> celebrated for its diversification benefits, sustainability and stability through different market environments.
Stay tuned for our 2025 Wealth Report, which will examine wealth and investment managers’ views and sentiments towards fine wine early next year.
See also – <a href="https://winecap.com/learn/winecap-wealth-report-2024-uk-edition">WineCap Wealth Report 2024: UK Edition</a>
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

Report – Opportunities in uncertainty: the 2024 fine wine market and 2025 outlook

<ul>
<li aria-level="1">The 2022 Mouton Rothschild label has been revealed. </li>
<li aria-level="1">Mouton Rothschild is the best performing First Growth over the last decade. </li>
<li aria-level="1">The wine has also outperformed the Liv-ex 100 and Bordeaux 500 indices.</li>
</ul>
<h2>Unveiling the 2022 label</h2>
Bordeaux First Growth Château Mouton Rothschild revealed its 2022 label design on December 1st.  Created by French artist Gérard Garouste, the original artwork commemorates the 100th anniversary of Baron Philippe de Rothschild’s leadership at the family estate. 
The label showcases the château’s iconic front wall and a grapevine, elegantly framed by a portrait of Philippe de Rothschild and a ram, his signature emblem.
The tradition of artist-designed labels began in 1945, when Baron Philippe de Rothschild marked the end of World War II with a special artwork featuring a ‘V’ for victory, designed by Philippe Jullian.
As <a href="https://winecap.com/news/the-impact-of-mouton-rothschilds-artist-labels-on-market-value">previously explored</a>, this practice has significantly enhanced Mouton Rothschild’s collectability, and the wine’s value has typically risen in the month following the label reveal. 
<img loading="lazy" decoding="async" class="alignnone wp-image-2245" src="https://wp.winecap.com/wp-content/uploads/2024/12/Mouton-label-375x279.png" alt="Mouton Rothschild 2022 wine bottle label" width="800" height="596" srcset="https://wp.winecap.com/wp-content/uploads/2024/12/Mouton-label-375x279.png 375w, https://wp.winecap.com/wp-content/uploads/2024/12/Mouton-label-768x572.png 768w, https://wp.winecap.com/wp-content/uploads/2024/12/Mouton-label.png 1074w" sizes="auto, (max-width: 800px) 100vw, 800px" />
<h2>Mouton Rothschild: ahead of the pack</h2>
While the artist designed labels alone are not the key drivers of Mouton Rothschild’s investment performance, the wine does lead the way among its peers. It is the best performing First Growth over the last decade. 
Mouton Rothschild prices have risen 50.3%, compared to 42.3% for Margaux and 36.9% for Haut-Brion. Both Lafite Rothschild and Latour have increased by close to 30% over the same period.
<img loading="lazy" decoding="async" class="alignnone wp-image-2246 size-full" src="https://wp.winecap.com/wp-content/uploads/2024/12/FG.png" alt="Bordeaux First Growths Wine chart" width="2924" height="1918" srcset="https://wp.winecap.com/wp-content/uploads/2024/12/FG.png 2924w, https://wp.winecap.com/wp-content/uploads/2024/12/FG-375x246.png 375w, https://wp.winecap.com/wp-content/uploads/2024/12/FG-768x504.png 768w, https://wp.winecap.com/wp-content/uploads/2024/12/FG-1536x1008.png 1536w, https://wp.winecap.com/wp-content/uploads/2024/12/FG-2048x1343.png 2048w, https://wp.winecap.com/wp-content/uploads/2024/12/FG-1200x787.png 1200w, https://wp.winecap.com/wp-content/uploads/2024/12/FG-1980x1299.png 1980w" sizes="auto, (max-width: 2924px) 100vw, 2924px" />
From the market&#8217;s low in June 2014 to its peak in September 2022, Mouton Rothschild recorded a 76% increase. It was the first First Growth to recover from the correction following the China-driven wine boom. 
During the recent market downturn, Mouton Rothschild has exhibited relative resilience. Prices have fallen 13.8% since its peak. Only Haut-Brion has seen a smaller decline of 13.1%. The biggest faller has been Lafite Rothschild, down 22.8% since September 2022. 
<h2>Mouton Rothschild and the broader market</h2>
Mouton Rothschild is also nicely positioned in the broader wine investment market. It has outperformed the industry benchmark, the Liv-ex 100 index, which is up 40.9% over ten years. It has also fared better than the Liv-ex 50 (17.5%), which tracks the price movements of the First Growths, and the broader Bordeaux 500 index (27.8%).
<img loading="lazy" decoding="async" class="alignnone wp-image-2247" src="https://wp.winecap.com/wp-content/uploads/2024/12/Mouton-vs-Lx-375x246.png" alt="Mouton Rothschild performance" width="899" height="590" srcset="https://wp.winecap.com/wp-content/uploads/2024/12/Mouton-vs-Lx-375x246.png 375w, https://wp.winecap.com/wp-content/uploads/2024/12/Mouton-vs-Lx-768x504.png 768w, https://wp.winecap.com/wp-content/uploads/2024/12/Mouton-vs-Lx-1536x1008.png 1536w, https://wp.winecap.com/wp-content/uploads/2024/12/Mouton-vs-Lx-2048x1343.png 2048w, https://wp.winecap.com/wp-content/uploads/2024/12/Mouton-vs-Lx-1200x787.png 1200w, https://wp.winecap.com/wp-content/uploads/2024/12/Mouton-vs-Lx-1980x1299.png 1980w" sizes="auto, (max-width: 899px) 100vw, 899px" />
Mouton Rothschild has demonstrated consistent strength in the fine wine market, supported by its established history and strategic positioning. The estate&#8217;s practice of commissioning artist-designed labels has enhanced its collectability, strengthened by its reputation for quality.
The release of the 2022 label marks another milestone in the estate&#8217;s history. Mouton Rothschild’s performance, both in terms of relative resilience during market downturns and long-term growth, highlights its role as a reliable component in a well-diversified wine investment portfolio.
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

Mouton Rothschild: 2022 label and market performance

<ul>
<li aria-level="1">Italy’s market performance has been the most resilient across all fine wine regions.</li>
<li aria-level="1">Burgundy prices have fallen the most in the last year. </li>
<li aria-level="1">Champagne is showing consistent signs of recovery.  </li>
</ul>
The market downturn has affected all fine wine regions, arguably making it a great time to invest while prices are low. Today we take a deep dive into the performance of individual regions – identifying the most resilient markets, the best opportunities, and the regions offering the greatest value.
<h2>Italy: the most resilient market</h2>
Prices for Italian wine have fallen 4.1% in the past year – less than all other fine wine regions. By comparison, fine wine prices have fallen 11.6% on average, according to the Liv-ex 1000 index. 
Italy’s secondary market has been stimulated by high-scoring releases, like Sassicaia and Ornellaia 2021. Beyond the Super Tuscans, which are some of the most liquid wines, the country continues to offer diversity, stable performance and relative value. 
Some of the best-performing wine brands in the last year are Italian – all with an average price under £1,300 per 12&#215;75, like <a href="https://winecap.com/wine-track/italy/tuscany/antinori-(pian-vigne)/brunello-montalcino-vigna-ferrovia-riserva">Antinori Brunello di Montalcino Vigna Ferrovia Riserva</a> (£1,267, +38%).
Other examples under £1,000 per case include <a href="https://winecap.com/wine-track/italy/tuscany/le-chiuse/brunello-montalcino">Le Chiuse Brunello di Montalcino</a> (+28%), <a href="https://winecap.com/wine-track/italy/piedmont/gaja/langhe-rossj-bass">Gaja Rossj-Bass</a> (+27%), and <a href="https://winecap.com/wine-track/italy/veneto/speri/amarone-valpolicella-classico-monte-sant-urbano-">Speri Amarone della Valpolicella Classico Monte Sant Urbano</a> (+25%).
<img loading="lazy" decoding="async" class="alignnone wp-image-2229" src="https://wp.winecap.com/wp-content/uploads/2024/11/Indices-375x257.png" alt="Regional wine indices chart" width="700" height="480" srcset="https://wp.winecap.com/wp-content/uploads/2024/11/Indices-375x257.png 375w, https://wp.winecap.com/wp-content/uploads/2024/11/Indices-768x527.png 768w, https://wp.winecap.com/wp-content/uploads/2024/11/Indices-1536x1053.png 1536w, https://wp.winecap.com/wp-content/uploads/2024/11/Indices-2048x1405.png 2048w, https://wp.winecap.com/wp-content/uploads/2024/11/Indices-1200x823.png 1200w, https://wp.winecap.com/wp-content/uploads/2024/11/Indices-1980x1358.png 1980w" sizes="auto, (max-width: 700px) 100vw, 700px" />
<h2>Burgundy takes a hit</h2>
Burgundy’s meteoric rise over the past two decades made it a beacon for collectors, but its steep growth left it vulnerable to corrections. In the past year, Burgundy prices have fallen 14.7%, making it the hardest-hit region. This downturn has released more stock into the market, creating opportunities for investors to access wines in a region often defined by scarcity and exclusivity.
Wines experiencing the largest declines include include <a href="https://winecap.com/wine-track/france/burgundy/domaine-jacques-prieur/meursault-santenots">Domaine Jacques Prieur Meursault Santenots Premier Cru</a> (-41%), <a href="https://winecap.com/wine-track/france/burgundy/domaine-arnoux-lachaux/nuits-saint-georges-rouge">Domaine Arnoux-Lachaux Nuits-Saint-Georges</a> (-35%), and <a href="https://winecap.com/wine-track/france/burgundy/domaine-rene-engel/clos-vougeot">Domaine Rene Engel Clos de Vougeot Grand Cru</a> (-28%). For new entrants, these price drops offer a rare chance to acquire prestigious labels at relatively lower costs.
<h2>Champagne: on the road to recovery</h2>
Champagne has changed its trajectory over the last year: from a fast faller like Burgundy to more consistency and stability. While prices are down 10.6% on average, the dips over the last few months have been smaller than 0.6%. The index also rose in February and August this year, driven by steady demand. 
Some of the region’s most popular labels have become more accessible for buyers like <a href="https://winecap.com/wine-track/france/champagne/dom-perignon/dom-perignon-rose">Dom Perignon Rose</a> (-14%), <a href="https://winecap.com/wine-track/france/champagne/philipponnat/clos-des-goisses">Philipponnat Clos des Goisses</a> (-13%) and <a href="https://winecap.com/wine-track/france/champagne/krug/clos-du-mesnil">Krug Clos du Mesnil</a> (-12%).
Meanwhile, the best performers have been <a href="https://winecap.com/wine-track/france/champagne/taittinger/brut-millesime">Taittinger Brut Millesime</a> (+29%) and <a href="https://winecap.com/wine-track/france/champagne/ruinart/dom-ruinart-blanc-de-blancs">Ruinart Dom Ruinart Blanc de Blancs</a> (+28%), which has largely been driven by older vintages such as the 1995, 1996 and 1998.
The fine wine market in 2024 reflects a unique moment of transition. Italy’s resilience, Burgundy’s price corrections, and Champagne’s recovery illustrate a diverse set of opportunities for investors. With prices across the board at lower levels, this could be an ideal time to diversify portfolios with high-quality wines from these regions, anticipating long-term growth as the market stabilises.
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.
&nbsp;

The best wine investment regions in 2024

<ul>
<li aria-level="1">Vinous published Neal Martin’s assessment of Bordeaux 2020 from the annual Southwold tasting.</li>
<li aria-level="1">Martin placed the 2020 vintage ahead of the 2018 but behind 2019 and 2022.</li>
<li aria-level="1">With 99 points, Pichon-Longueville Comtesse de Lalande was Martin’s top-scoring wine. </li>
</ul>
The annual Southwold tasting presents major critics with the opportunity to blind taste a Bordeaux vintage four years on in peer groups, mostly within appellations. 
Last week, <a href="https://vinous.com/articles/bordeaux-2020-the-southwold-tasting-nov-2024">Vinous</a> published Neal Martin’s assessment of Bordeaux 2020 – a vintage ‘born in a tumultuous world,’ due to the onset of the Covid-19 pandemic. Despite the challenges, the critic argued that it bestowed ‘Bordeaux-lovers with a bevy of outstanding wines that should stand the test of time.’ 
<h2>Neal Martin’s thoughts on Bordeaux 2020</h2>
Martin described the dry whites as a ‘little hit-and-miss’ and the Sauternes as ‘very good rather than excellent.’ When it comes to the reds, however, the critic said that they ‘are going to give a great deal of pleasure.’
In terms of vintage comparisons, Martin placed 2020 ahead of 2018 but behind 2019 and 2022, which were more ‘crammed with legends in the making’. He wrote: ‘Perhaps 2020 doesn’t quite possess the vaulting ambition of those two vintages, though in some cases, it surpasses the best of both.’
His favourite appellation was Saint-Julien, which ‘raised the bar with a cluster of outstanding wines.’ The critic argued that this flight ‘solidified 2020 as a bona fide great vintage on the Left Bank.’ He described Margaux as ‘solid,’ with the ‘real superstar’ being the First Growth.
From Saint-Estèphe, Martin highlighted Montrose as ‘the standout of the appellation,’ with the biggest surprise being the 2020 Phélan Ségur, ‘one of the best values given its reasonable price.’
<h2>Neal Martin’s top-scoring Bordeaux 2020 wines</h2>
Due to the nature of the Southwold blind tasting – wines grouped by appellation – Martin’s scores were ‘a little lower than when [he] encountered these wines at the end of 2022’.
His top-scoring wine, Pichon-Longueville Comtesse de Lalande, received 99 points. He described it as ‘a fabulous Pauillac that flirts with perfection.’ 
The rest of the wines in the top ten received 98 points. The highest-scored First Growth was Margaux, which the critic claimed was ‘among the greatest wines of the 2020 vintage.’ The ‘captivating’ and ‘mesmerising’ Cheval Blanc also scored among the best wines from the vintage. So did Trotanoy (‘an outstanding Pomerol’), and Canon (‘God made wine so it can taste as good as this’).
<img loading="lazy" decoding="async" class="aligncenter wp-image-2222" src="https://wp.winecap.com/wp-content/uploads/2024/11/NM-scores-1.png" width="750" height="447" srcset="https://wp.winecap.com/wp-content/uploads/2024/11/NM-scores-1.png 685w, https://wp.winecap.com/wp-content/uploads/2024/11/NM-scores-1-375x223.png 375w" sizes="auto, (max-width: 750px) 100vw, 750px" />
<h2>Investing in Bordeaux 2020</h2>
All of Martin’s top 2020 wines have fallen in value since release, apart from Trotanoy. 
This is partly because of the <a href="https://winecap.com/learn/q3-2024-fine-wine-report">overall market direction</a> in the last two years, but also due to the availability of older and in some cases higher-rated vintages available at a discount.
As Martin rightly noted, ‘the top wines in this report not only compete against each other, but also with themselves in terms of alternative available vintages.’
The lower-than-average prices at the moment, however, present great buying opportunities, especially for brands with a positive long-term performance. 
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

Neal Martin’s top-scoring Bordeaux 2020 wines from the Southwold tasting

<ul>
<li aria-level="1">As an internationally traded asset, fine wine is affected by economic and political factors including trade wars and tariffs.</li>
<li aria-level="1">Demand for certain wines and regions can shift as tariffs directly impact pricing, availability and liquidity.</li>
<li aria-level="1">Diversification and strategic investment are key to navigating the fine wine market amid trade wars and tariffs.</li>
</ul>
Over the past two decades, fine wine has transitioned from a luxury product to a well-established internationally traded investment asset. Like any asset enjoying global demand, fine wine is subject to the economic and political forces that shape international trade. 
Legislative decisions, such as changes in taxation and import duties, can directly impact its pricing and accessibility. Trade wars, tariffs, and protectionist policies further add layers of complexity, affecting demand, market stability, and ultimately, investment returns. This article explores how these trade factors influence the fine wine investment market and what investors need to consider.
<h2>How trade wars affect wine demand and pricing</h2>
Trade wars often involve the imposition of tariffs or import duties on goods traded between countries, which can create a ripple effect across industries and markets. When tariffs are imposed on wine, they can create price volatility, limit access to certain markets, and reduce liquidity, which can impact the investment performance of the affected wines and regions.
For example, in the ongoing trade tensions between the United States and the European Union, wine has frequently been a target for tariffs. In 2019, the USA imposed a 25% tariff on certain European wines in response to a dispute over aircraft subsidies. This tariff included wines under 14% alcohol, impacting popular wine-producing regions such as France, Spain, and Germany, but excluded Champagne and Italy. As a result, Champagne and Italy took an increased market share in the US; when the tariffs were lifted, Bordeaux and Burgundy enjoyed an immediate uptick.  
Market impact of the 2019 US tariffs on European wine: In 2019, Bordeaux accounted for 48% of the US fine wine market on average, according to Liv-ex. From October 2019 to the end of 2020, Bordeaux’s average share of US buying fell to 33%. Burgundy’s share also declined – from 13% before the tariffs to 8%. Conversely, demand for regions exempt from the tariffs rose significantly during this time. Champagne rose from 10% to 14%, Italy from 18% to 25% and the Rest of the World from 4% to 10%. Regions exempt from the 25% US tariffs also saw the biggest price appreciation in 2020. For the first time on an annual basis, Champagne outperformed all other fine wine regions. This led to its global surge. 
Market impact of the 2020 Chinese tariffs on Australian wine: In 2020, China imposed tariffs on <a href="https://winecap.com/news/cautious-optimism-for-australian-wine-amid-tariff-review">Australian wine</a> amid a series of blows to Australian exports, which had a profound impact on Australia’s budding secondary market. Since the tariff introduction, prices for some of the top wines dipped, creating pockets of opportunity. For instance, the average price of Henschke Hill of Grace fell 4%, while Penfolds Bin 707 went down 9%. Since the tariff suspension earlier this year, Australian wine is coming back into the spotlight. 
When it comes to pricing, tariffs can drive up the end cost of imported wine, particularly impacting markets where fine wine demand is driven by consumers with limited domestic alternatives. When tariffs make imported wines prohibitively expensive, consumers may turn to other regions or domestic products. 
From an investment perspective, the unpredictability of trade policies requires a strategic approach that accounts for potential regulatory changes in key markets.
<h2>Strategic wine hubs in tariff-influenced markets</h2>
In response to tariffs, some regions have positioned themselves as strategic wine trading hubs by offering tariff-free or reduced-tariff environments for wine trade. Hong Kong, for example, abolished its wine import duty in 2008, aiming to become the “wine trading hub” of East Asia. 
This decision has proven instrumental for the fine wine market in Asia, as investors from mainland China and other countries can access European wines without the additional costs that would apply if purchased domestically. As a result, Hong Kong has emerged as a leading location for wine auctions and a key destination for collectors and investors in Asia.
<h2>The role of trade agreements</h2>
For regions with established wine industries, trade agreements and economic alliances play a significant role in shaping wine tariffs and market access. The European Union, for instance, has trade agreements with multiple countries, allowing for reduced tariffs on wines imported from places like Australia and Chile. However, Brexit has introduced new complexities, as the United Kingdom – one of the largest fine wine markets – now operates independently from the EU. 
For investors navigating the fine wine market amid trade wars and tariffs, diversification and strategic storage are essential. Diversifying across different wine regions and vintages can help minimize exposure to trade barriers affecting specific countries. 
Additionally, storing wine in bonded warehouses can mitigate the risk of sudden tariff impositions on wine imports, preserving the asset’s value. Monitoring geopolitical developments is also crucial, as policy shifts can happen quickly and have immediate effects on wine prices. 
While trade wars and tariffs present complexities, they also create opportunities in the fine wine investment market. In a politically charged landscape, understanding the influence of trade policies on wine markets is critical. By staying agile and responsive to policy changes, investors can better navigate the complexities of wine investment in a globalised yet fragmented market.
Want to learn more about fine wine investment? <a href="https://winecap.com/learn/fine-wine-investment">Download our free guide</a>.
&nbsp;

The impact of trade wars and tariffs on fine wine investment

<ul>
<li aria-level="1">American critic James Suckling has released his top 100 wines of 2024 list.</li>
<li aria-level="1">His wine of the year is Bertani Amarone della Valpolicella Classico 2015. </li>
<li aria-level="1">Italy dominates the rankings followed by France and the US.</li>
</ul>
American critic <a href="https://www.jamessuckling.com/wine-tasting-reports/top-100-world-wines-2024-wine-year/">James Suckling</a> has released his top 100 wines of 2024 list, along with his wine of the year. The highest accolade went to Bertani Amarone della Valpolicella Classico 2015, which according to the critic, is a classical wine that embodies ‘the greatness of time and place’.
<h2>Regional distribution</h2>
Suckling and his team tasted and rated over 40,000 different wines over the past twelve months. The majority were from Italy, which accounted for over 9,100 of the reviewed wines, followed closely by France with 9,000, the US with 6,800, Spain – 3,800, Argentina – 2,300, Germany – 2,000, Australia – 1,700, and Chile nearly 1,550. They also tasted wines from other regions worldwide including Greece, Hungary, Canada and Uruguay.
Italy also dominated the list of their favourites, featuring with 26 wines in the top 100, followed by France (18), the United States (15), Germany (12), Argentina (6), Spain (6), Chile (6), Australia (5), Austria (4), South Africa (1) and China (1).
<h2>Suckling’s top 10 wines of 2024</h2>
James Suckling’s wine of the year is the 2015 Bertani Amarone della Valpolicella Classico, which he described as ‘full-bodied and elegant on the palate due to ripe, filigree tannins with long acidity and a toasty, savory aftertaste’. He called it ‘one of the great Amarones’ and gave it a 100-point score.
<img loading="lazy" decoding="async" class="alignnone wp-image-2203" src="https://wp.winecap.com/wp-content/uploads/2024/11/james-suckling-2024-top-wine-scores-375x164.png" alt="James Suckling top wine scores 2024" width="490" height="214" srcset="https://wp.winecap.com/wp-content/uploads/2024/11/james-suckling-2024-top-wine-scores-375x164.png 375w, https://wp.winecap.com/wp-content/uploads/2024/11/james-suckling-2024-top-wine-scores-768x335.png 768w, https://wp.winecap.com/wp-content/uploads/2024/11/james-suckling-2024-top-wine-scores.png 914w" sizes="auto, (max-width: 490px) 100vw, 490px" />
The top wines of the year were chosen on the basis of quality, price, and what Suckling calls the “wow factor,” an emotional impact a wine can have on the drinker. Most wines on the list scored between 97 and 100 points, with nine wines priced between $30 and $60 (£23 and £46), emphasising affordability alongside quality. Wines on the list were required to have a minimum production of 5,000 bottles, with a median price below $500 (£385).
<h2>Regional standouts</h2>
Germany had a standout year in 2023, particularly for its dry Riesling, with the Künstler Riesling Rheingau Hölle GG 2023 ranking second on the list and exemplifying the structured, balanced nature of this vintage.
Austria continued to gain critical recognition, especially for its white wines, with F.X. Pichler Riesling Wachau Ried Kellerberg 2023 taking the third spot. 
China was also present on the list with Ao Yun Shangri-La 2020, a wine from Moët Hennessy’s Yunnan winery, signaling the country’s growing role in the fine wine market.
<h2>Accessibility and value</h2>
Suckling noted that many of his favourite wines offer high quality at accessible price points. The focus on value addresses current concerns about the market’s downturn. For example, the wine that took the second spot is priced around $65 (£50), while Italian whites such as the Manincor Sauvignon Blanc Alto Adige Tannenberg 2022 are available for approximately $40 (£31).
<h2>Emerging trends</h2>
Suckling’s report further highlights an increasing interest in German and Austrian wines, especially among younger consumers, due to their quality and value. Events like Suckling’s Great Wines series, held across major cities globally, have drawn over 21,000 attendees this year. With wines from more established to emerging wine regions, Suckling’s 2024 list provides a guide to the critic’s top picks from across the globe.
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

James Suckling 2024 top wine Bertani Amarone della Valpolicella Classico 2015

James Suckling’s top wines of 2024

<ul>
<li aria-level="1">A diversified wine portfolio spreads the risk across different wines and regions.</li>
<li aria-level="1">Each wine region has its own unique characteristics, and its performance is largely influenced by its own market dynamics.</li>
<li aria-level="1">Investors can also diversify their portfolio by vintages, including older wines for stability and new releases for growth potential. </li>
</ul>
Fine wine is a popular investment for those seeking diversification and long-term growth. However, like any investment, building a successful fine wine portfolio requires strategic planning and a thorough understanding of the market.
This article explores key strategies for creating a balanced, diversified fine wine portfolio, and why it is important to include a variety of regions, brands and vintages.
<h2>Why diversification is key</h2>
As renowned economist Harry Markowitz put it, ‘diversification is the only free lunch in finance’. 
Diversification is fundamental to risk management in any portfolio, and fine wine investment is no exception. A diversified wine portfolio helps to reduce the impact of volatility, allowing investors to maximise returns by spreading risk.
While some wines may deliver higher returns, others can contribute to portfolio stability, as different regions tend to perform in cycles. This is why building a balanced fine wine portfolio requires selecting wines from a variety of regions, vintages, and holding periods. 
<h2>Diversifying by regions</h2>
Wine regions around the world offer unique characteristics, each with its own market dynamics. Including wines from multiple regions can help balance and strengthen an investment portfolio. 
Some primary regions to consider include:
Bordeaux: Bordeaux is undoubtedly the leader in the fine wine investment landscape, taking close to 40% of the market by value. The First Growths are its most liquid wines. In general, the classified growths are a staple in investment portfolios due to their established reputation and consistent performance.
Burgundy: Burgundy, driven by scarcity and rarity, is an investors’ paradise that has been trending in the last decade. Prices for its top Pinot Noir and Chardonnay have reached stratospheric highs and the region consistently breaks auction records.
Champagne: A market that attracts both drinkers and collectors, Champagne has enjoyed rising popularity as an investment in the last five years, thanks to strong brand recognition, liquidity and stable performance.
Italy: Italy continues to provide a mix of value, growth potential, and great quality. Its two pillars, Tuscany and Piedmont, are often included in investment portfolios for their balancing act – if Tuscany provides stability, top Barolo and Barbaresco tend to deliver impressive returns. 
California: Top Napa wines are among the most expensive in the market, while also boasting some of the highest critic scores, particularly from the New World. 
Emerging investment regions: As the market broadens, wines from other well-established regions are gaining traction in the investment world. Germany, Australia, and South America are some of the countries bringing a new level of diversity that can sometimes lead to higher returns.
<h2>Choosing vintages strategically</h2>
A well-diversified investment portfolio focuses on a range of vintages, as well as labels.
While older vintages offer stability and a more predictable market performance, younger vintages have a greater growth potential as they mature.
Older prime vintages: ‘On’ vintages, specific to each region, like Bordeaux’s 2000 or 2005, tend to have stable pricing due to their high quality and reputation. Including these in your portfolio can provide a foundation of reliability.
Younger vintages: Wines from recent years with high-quality (such as Bordeaux 2019) can offer growth potential over the long-term. As these wines age, their value often appreciates, providing long-term returns for investors willing to hold them.
Off-vintages: Investing in lesser-known or ‘off’ vintages can be worthwhile, particularly if the producer has a strong reputation. These wines are often priced lower but can perform well over time. Typically though not always they have a shorter holding period.
At the end, it is always a question of quality and value for money. 
<h2>Balancing short-term and long-term holdings</h2>
Fine wines vary in their optimal holding periods. Some wines reach peak quality and market value sooner, while others require decades of ageing. Creating a mix of wines with different holding periods allows for both short-term liquidity and long-term growth.
Short-term hold wines: These are typically wines from lesser-known producers, high-demand recent vintages or off vintages bought during periods of market correction.  These wines can be sold within a few years for a quick return.
Long-term hold wines: Wines from top producers, especially those known for longevity, are best held for 10+ years. For example, a Château Lafite Rothschild or Domaine de la Romanée-Conti can offer three figure returns if held over decades.
<h2>Active management for maximising portfolio success</h2>
Diversification is just one piece of the puzzle. Regular monitoring and occassional adjustments are essential for maximising returns in a fine wine portfolio.
Market conditions and wine values change over time, so staying informed and making adjustments ensures your portfolio remains aligned with your financial goals. Using tools like <a href="https://winecap.com/wine-track">Wine Track</a> or consulting with a wine investment advisor can provide valuable insights for rebalancing and enhancing your investment strategy.
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

How to build a diversified fine wine portfolio

<ul>
<li aria-level="1">Top Bordeaux labels are now approximately 20% below their peaks achieved during the last decade.</li>
<li aria-level="1">Lafite Rothschild has been the hardest hit, driven lower by classic vintages such as 2018, 2009 and 2000. </li>
<li aria-level="1">The recent fall in prices has brought many labels back to levels not seen in years.</li>
</ul>
As <a href="https://winecap.com/learn/q3-2024-fine-wine-report">recently explored</a>, the fine wine market has been on a downward trend, but what does this mean for individual labels? Today, we turn to Bordeaux’s top names, examining the recent performance of some of the most investable wines in the world.
<h2>Bordeaux after the peak</h2>
Top Bordeaux labels are now approximately 20% below their peaks, achieved during the last decade. 
<img loading="lazy" decoding="async" class="aligncenter wp-image-2182" src="https://wp.winecap.com/wp-content/uploads/2024/10/bordeaux-indices-375x246.png" alt="Bordeaux wine indices" width="420" height="275" srcset="https://wp.winecap.com/wp-content/uploads/2024/10/bordeaux-indices-375x246.png 375w, https://wp.winecap.com/wp-content/uploads/2024/10/bordeaux-indices-768x503.png 768w, https://wp.winecap.com/wp-content/uploads/2024/10/bordeaux-indices-1536x1006.png 1536w, https://wp.winecap.com/wp-content/uploads/2024/10/bordeaux-indices-2048x1341.png 2048w, https://wp.winecap.com/wp-content/uploads/2024/10/bordeaux-indices-1200x786.png 1200w, https://wp.winecap.com/wp-content/uploads/2024/10/bordeaux-indices-1980x1297.png 1980w" sizes="auto, (max-width: 420px) 100vw, 420px" />
The First Growths, which often serve as the barometers of the fine wine market, had been riding high, with September 2022 marking a peak in pricing for Lafite Rothschild, Mouton Rothschild and Margaux. 
However, since then, the landscape has changed dramatically. Lafite Rothschild, once the shining star, has fallen by 28.6%, the most severe decline among the top names. Margaux and Mouton Rothschild have also taken significant hits, falling by 17.1% and 17.5%, respectively.
On the Right Bank, the situation is no different. Petrus, which peaked in December 2022, has since dropped by 21.4%, while Le Pin, which reached its high in February 2023, has declined by 20.3%. These losses have brought prices to levels last seen several years ago.
First Growths peaked in September 2022, since then:
<ul>
<li style="font-weight: 400;" aria-level="1">Lafite is down 28.6% </li>
<li style="font-weight: 400;" aria-level="1">Mouton is down 17.5% </li>
<li style="font-weight: 400;" aria-level="1">Margaux is down 17.1% </li>
</ul>
On the Right Bank:
<ul>
<li style="font-weight: 400;" aria-level="1">Petrus is down 21.4% since its December 2022 peak</li>
<li style="font-weight: 400;" aria-level="1">Le Pin is down 20.3% since its February 2023 peak</li>
</ul>
<h2>The Lafite fall: a deep dive</h2>
Lafite Rothschild – the second most-searched-for wine on <a href="https://www.wine-searcher.com/top-wines">Wine-Searcher</a> – has seen the steepest decline since its peak, with prices plummeting 28.6% on average.
Which vintages have contributed to its fall over the last two years? The 2018 (WA 100 points) has been the hardest hit, down 35.9%. The wine was originally released at levels akin to the brand’s bull years, due to high critic scores, but failed to offer the best investment value. The recent price adjustment has made it a more attractive proposition. 
Older vintages that have had more time to grow have similarly fallen in value by over 30%. The classic 2009 Lafite, which boasts 99+ points from Robert Parker himself, is down 31.1% over the last two years. 
The millenial vintage, with a drinking window that extends well into the 2050s, is currently 32.6% below its peak. 
<img loading="lazy" decoding="async" class="alignnone wp-image-2183" src="https://wp.winecap.com/wp-content/uploads/2024/10/Lafite-vintages-375x123.png" alt="Lafite Rothschild wine vintages performance" width="400" height="131" srcset="https://wp.winecap.com/wp-content/uploads/2024/10/Lafite-vintages-375x123.png 375w, https://wp.winecap.com/wp-content/uploads/2024/10/Lafite-vintages-768x252.png 768w, https://wp.winecap.com/wp-content/uploads/2024/10/Lafite-vintages.png 853w" sizes="auto, (max-width: 400px) 100vw, 400px" />
<h2>Buying levels: back to the square one</h2>
The recent fall in prices has brought many labels back to levels not seen in years. Lafite, for example, has returned to its 2016 pricing levels, while Margaux and Mouton are back to 2020. On the Right Bank, Petrus and Le Pin have both returned to their 2021 levels.
While this might raise concerns on the surface, it presents a compelling opportunity. The scale of the correction suggests that Bordeaux wines, while still highly valued, may have been oversold in the last 18 months. 
For those looking to enter or expand their portfolios, this could represent a chance to acquire top-tier wines at a significant discount before prices start to rise again.
As with previous corrections, price declines are often followed by periods of recovery. For wealth managers and clients with a long-term investment horizon, the current situation may be seen as a momentary blip in an otherwise upward trajectory.
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

Bordeaux correction: top wines 20% below their peak

The fine wine market continued its downward trend throughout Q3 2024, but there are reasons for cautious optimism. Our Q3 2024 Fine Wine Report highlights the main themes that shaped the market, from regional performance to specific brand successes, and provides an outlook for the remainder of the year.
<h2>Executive summary</h2>
<ul>
<li>Since October 2022, fine wine prices have been in consistent decline, with a 4% drop on average in Q3 2024.</li>
<li>Bordeaux experienced the steepest fall at 4.4%, while Champagne defied the trend with a modest 0.4% increase last quarter.</li>
<li>Steady demand for fine wine continues to suggest a price recovery on the horizon.</li>
<li>Certain brands have outperformed the market, including Ruinart, Taittinger, and Château de Beaucastel.</li>
<li>Krug Vintage Brut 2004 has been the best-performing wine year-to-date, up 21.6%.</li>
<li>This year has already seen several broken auction records, including for high-profile Burgundy, which points to continued interest in fine wine.</li>
<li>Nine wines received perfect 100-point scores by Jane Anson in her recent Bordeaux 2009 and 2010 vintage retrospective.</li>
<li>France’s 2024 harvest is projected to be down 22% compared to last year, and 15% below the five-year average.</li>
<li>Looking ahead to Q4 2024, the market continues to present attractive buying opportunities, especially for investors with a long-term vision.</li>
</ul>
<h2>The trends that shaped the fine wine market</h2>
Global market recovery driven by rate cuts
In Q3 2024, global markets showed signs of recovery, bolstered by central banks pivoting towards interest rate cuts as inflation began to ease. Following turbulence in early August, stock markets rebounded, setting new records by the end of the quarter. Central banks, including the US Federal Reserve, the European Central Bank (ECB), and the Bank of England, all shifted their focus from inflation control to stimulating economic growth. The Fed’s September rate cut – the first since 2020 – catalysed a surge in US stocks, and similar moves from other central banks supported this global rebound. Despite lingering concerns about a potential US recession and Japanese market volatility, the overall global outlook improved, with lower rates and better economic conditions presenting growth opportunities.
Fine wine prices fall 4% in Q3
In contrast to the broader economic recovery, the fine wine market remained bearish, with a 4% average drop in prices in Q3. The Liv-ex 100 index saw its steepest fall of the year, down 1.7% in October. Bordeaux led the decline, with a 4.4% drop, although there was a slight uptick in Sauternes prices. Champagne offered a bright spot, rising 0.4% last quarter, with brands like Dom Ruinart Blanc de Blancs and Taittinger posting strong returns (over 30% in the last six months). This mixed performance underscores the complexity of the fine wine market, where price movements can vary widely by region and brand.
New fine wine releases beyond Bordeaux
As always, autumn brought the highly anticipated <a href="https://winecap.com/news/beyond-bordeaux-releases-why-back-vintages-offer-better-value">La Place de Bordeaux</a> campaign, with major New World brands such as Almaviva, Seña, and Penfolds Grange releasing their latest vintages. However, this year&#8217;s campaign fell flat, with many new releases priced similarly to last year, despite older vintages showing better value and investment potential due to price corrections. Investors may find more favourable opportunities in back vintages that boast higher critic scores at lower prices.
<h2>Regional fine wine performance in Q3</h2>
<img loading="lazy" decoding="async" class="alignnone wp-image-2172" src="https://wp.winecap.com/wp-content/uploads/2024/10/Regional-indices-375x253.png" width="700" height="473" srcset="https://wp.winecap.com/wp-content/uploads/2024/10/Regional-indices-375x253.png 375w, https://wp.winecap.com/wp-content/uploads/2024/10/Regional-indices-768x519.png 768w, https://wp.winecap.com/wp-content/uploads/2024/10/Regional-indices-1536x1038.png 1536w, https://wp.winecap.com/wp-content/uploads/2024/10/Regional-indices-2048x1384.png 2048w, https://wp.winecap.com/wp-content/uploads/2024/10/Regional-indices-1200x811.png 1200w, https://wp.winecap.com/wp-content/uploads/2024/10/Regional-indices-1980x1338.png 1980w" sizes="auto, (max-width: 700px) 100vw, 700px" />
The fine wine market has now returned to its 2021 levels, with prices declining across most regions in Q3 2024, except for Champagne, which recorded a modest 0.4% increase.
Bordeaux experienced the most significant drop, falling 4.4%, driven down primarily by the Second Wine 50 index, which plunged 6.6%, and the Right Bank 50 index, down 4.6%. Many wines from the 2019 vintage, which had previously appreciated in value, have now returned to their original release prices.
Despite this trend, Bordeaux is enjoying steady market demand, taking over a third of the market by value. Moreover, <a href="https://janeanson.com/">Jane Anson</a> recently revisited the 2009 and 2010 vintages, awarding nine wines 100 points – a move likely to stimulate demand and prices.
When it comes to other regions, Italy and Burgundy also saw a 2% drop in Q3. The Rhône was somewhat more resilient, experiencing a smaller decrease of 0.8%.
<h2>The best-performing wines</h2>
While the broader market continues to face challenges, certain wines buck the trend, reinforcing the importance of strategic, brand-specific investment decisions.
In Q3 2024, some brands have delivered exceptional returns. The table below showcases the best-performing wines year-to-date, with regions like Tuscany and the Rhône dominating the list.
Leading the pack is Krug 2004, which saw an impressive rise of 21.6%, reflecting the continued strength of Champagne in the investment market. Earlier this year, Antonio Galloni (<a href="https://vinous.com/wines?term=krug%202004">Vinous</a>) rescored the wine, giving it 98 points. He described it as a ‘gorgeous Champagne that is just beginning to enter its first plateau of maturity’.
Close behind is Domaine du Pégau’s Châteauneuf-du-Pape Cuvée Réservée 2012, which appreciated by 21.2%. Sassicaia 2011 follows with a 21% increase, while its 2015 vintage takes the tenth spot, with a 12.1% rise.
Vega Sicilia Único also features twice with its 2010 and 2011 vintages, demonstrating the increased demand for Spanish wines.
Wines from Bordeaux and the Rhône also make the list, showcasing the diversity of the wine investment market.
<img loading="lazy" decoding="async" class="alignnone wp-image-2173" src="https://wp.winecap.com/wp-content/uploads/2024/10/best-wines-ytd-375x136.png" width="600" height="218" srcset="https://wp.winecap.com/wp-content/uploads/2024/10/best-wines-ytd-375x136.png 375w, https://wp.winecap.com/wp-content/uploads/2024/10/best-wines-ytd-768x279.png 768w, https://wp.winecap.com/wp-content/uploads/2024/10/best-wines-ytd.png 1038w" sizes="auto, (max-width: 600px) 100vw, 600px" />
<h2>The most expensive wines in 2024</h2>
The world’s most expensive wines in 2024 are overwhelmingly dominated by Burgundy. At the top of the list is Domaine de la Romanée-Conti’s Romanée-Conti Grand Cru, with an average price of £221,233 per case. Following closely is Domaine d&#8217;Auvenay Chevalier-Montrachet Grand Cru, priced at £204,328.
Other notable entries include:
<ul>
<li>Domaine d&#8217;Auvenay, Criots-Bâtard-Montrachet Grand Cru at £141,979.</li>
<li>Liber Pater, from Bordeaux, priced at £140,009, stands out as the only non-Burgundy wine in the list.</li>
<li>Domaine Leroy, Richebourg Grand Cru, valued at £120,007, further establishes Burgundy&#8217;s dominance as a highly collectible wine region.</li>
</ul>
Burgundy producers such as Domaine Leroy and Domaine d&#8217;Auvenay appear multiple times on the list. The trend reflects how scarcity, reputation, and critical acclaim are key drivers of value, especially as the market for fine wine becomes increasingly selective in uncertain economic times.
Further entries include:
<ul>
<li>Domaine Leroy, Romanée-Saint-Vivant Grand Cru at £103,844.</li>
<li>Domaine d&#8217;Auvenay, Mazis-Chambertin Grand Cru at £93,818.</li>
<li>Domaine de la Romanée-Conti, Montrachet Grand Cru at £89,529.</li>
<li>Domaine Leroy, Corton-Charlemagne Grand Cru at £81,827.</li>
<li>Domaine d&#8217;Auvenay, Meursault Premier Cru, Les Gouttes d&#8217;Or at £80,715.</li>
</ul>
This dominance by Burgundy reflects its unmatched status in the global wine market, where scarcity and consistent quality continue to command premium prices.
For more information, visit <a href="https://winecap.com/wine-track">Wine Track</a>.
<h2>Fine wine news</h2>
The autumn La Place de Bordeaux release campaign
The 2024 La Place de Bordeaux campaign saw the latest releases from Masseto, Solaia, Seña, Penfolds Grange and many more. However, many of these new vintages were released at the same or slightly higher price levels as last year, despite a general market decline, making them less attractive from an investment perspective.
For instance, Masseto 2021 received a perfect 100-point score from Antonio Galloni but was priced at the same level as last year, with back vintages such as 2017, 2018 and 2019 offering better value. Meanwhile, the 100-point Solaia 2021 was released at a 15.7% premium on the 2020 vintage.
From Chile, the 2022 Seña and Viñedo Chadwick were offered at last year’s prices, but older, higher-scoring vintages such as Seña 2019 and Viñedo Chadwick 2021 remain more affordable. Penfolds Grange 2020 saw a small price increase, yet back vintages like the 100-point 2013 offer greater investment potential. Overall, back vintages, with comparable or higher critic scores, often provide better value for investors looking to capitalise on the current market dip.
Historically low yields in France 
The 2024 French wine harvest is projected to be one of the smallest in recent history, with regions like Burgundy and Bordeaux experiencing significant declines due to adverse weather conditions.
Burgundy&#8217;s output is projected to be down by 25% compared to 2023, while Bordeaux is facing a 10% drop, resulting in the region&#8217;s lowest production volume since 2017.
Historically, such scarcity in Burgundy has driven secondary market price increases, as collectors rush to secure rare wines. However, the economic downturn may temper this trend, making selectivity key for investors. In Bordeaux, while smaller harvests often support price stability for premium wines, the broader market conditions may limit price recoveries, especially for mid-tier labels.
<h2>Q4 2024 market outlook</h2>
The consistent decline in fine wine prices leaves many wondering when the market will stabilise. Despite this downward trend, several factors point toward potential recovery and attractive buying opportunities in Q4.
Firstly, strong demand for select wines persists, particularly for brands that continue to outperform the market. This year has already seen several broken auction records, including for high-profile Burgundy, which points to continued interest in fine wine.
While the market as a whole is facing challenges, strategic investment in the right wines can still yield impressive returns. Investors looking to capitalise on market lows should consider brands which have consistently shown growth despite broader regional declines.
The global economic backdrop also provides reasons for optimism. Central banks, led by the US Federal Reserve, have shifted towards interest rate cuts which could stimulate further investment in alternative assets like fine wine.
In terms of regional performance, the ongoing declines in key regions may start to stabilise, as already seen in Champagne. Despite a 4.4% drop in Q3, Bordeaux remains a dominant player with one-third of the market share by value. With critics such as Jane Anson awarding nine perfect 100-point scores to Bordeaux wines from the 2009 and 2010 vintages, we may see renewed interest in classic vintages.
In summary, Q4 2024 offers a unique window of opportunity for long-term investors. With the current decline, strategic investments in high-performing brands and undervalued vintages could offer substantial returns on the road to recovery.
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

Q3 2024 Fine Wine Report

<ul>
<li aria-level="1">The 2024 French wine harvest is shaping up to be one of the smallest of the century so far.</li>
<li aria-level="1">Burgundy’s 2024 vintage is estimated to be 25% lower than 2023, with scarcity being a key price driver for the region’s wines.</li>
<li aria-level="1">Bordeaux is also facing declines, reaching its lowest volume since 2017. </li>
</ul>
The 2024 French wine harvest is shaping up to be one of the smallest of the century so far, with regions like Burgundy and Bordeaux hit particularly hard by adverse weather conditions. According to forecasts from France’s Agreste statistics unit, overall national production may decline by up to 18%, with mildew, poor fruit set, and frost reducing output in key regions. 
What are the implications for the secondary market, especially considering the recent market downturn? This article explores how smaller volumes in 2024 could impact prices in Burgundy and Bordeaux, drawing on learnings from past vintages.
<h2>Scarcity in Burgundy</h2>
The 2024 vintage in Burgundy is being described as one of the most challenging in the past 50 years, according to Florent Latour from Maison Louis Latour. The Bureau Interprofessionnel des Vins de Bourgogne (BIVB) estimates harvest yields to be up to 25% lower than in 2023. The region has faced intense mildew pressure and adverse weather during flowering, resulting in poor fruit set.
Historically, supply constraints in Burgundy have driven price increases in the secondary market, as scarcity heightens demand among collectors. For example, the 2021 vintage, severely impacted by frost, saw a surge in auction prices for marquee producers like Domaine de la Romanée-Conti and Armand Rousseau. The same pattern could play out in 2024, as the prospect of another small vintage heightens the allure of top Burgundian wines.
However, this vintage presents complexities. While the scarcity narrative could support price gains, the <a href="https://winecap.com/news/the-state-of-the-fine-wine-market-so-far-in-2024">current economic downturn</a> might temper buying enthusiasm. Additionally, the challenging growing season could lead to quality variation across producers, making selectivity crucial for those looking to invest. 
<h2>Bordeaux market implications</h2>
In 2024, Bordeaux is reportedly facing a 10% decline, reaching its lowest volume since 2017. The Conseil Interprofessionnel du Vin de Bordeaux (CIVB) has described the 2024 harvest as &#8220;historically low,&#8221; with output expected to fall below the already reduced 3.8 million hectoliters of 2023. This is due to a combination of adverse weather conditions, including downy mildew and rain during harvest, as well as a reduction in vineyard areas through a government-supported grubbing-up plan.
Despite the challenges, smaller harvests can still support price stability for Bordeaux’s top-tier wines. In 2024, the scarcity of high-quality offerings might provide an opportunity for investment-grade wines, particularly from classified growths. Investors seeking value could focus on estates with a strong track record of producing excellent wines in challenging years. Yet, the <a href="https://winecap.com/news/the-state-of-the-fine-wine-market-so-far-in-2024">broader market downturn</a> might limit the extent of price recovery, especially for mid-tier labels that lack the same scarcity appeal as Burgundy.
<h2>Learning from past vintages</h2>
Looking back at smaller harvests like 2017 and 2021 gives an insight into what to expect from 2024. Both years saw production levels dip below 40 million hectolitres due to extreme weather events, leading to temporary price spikes in Burgundy’s secondary market. The 2017 vintage, for instance, saw price rises for top Burgundy wines, driven by fears of limited availability. In 2021, the impact of frost once again drove auction interest, with investors flocking to secure allocations. 
However, the 2024 market environment is different. With inflation and economic uncertainties weighing on consumer confidence, investors may be more selective, focusing on wines that promise both rarity and quality. Burgundy’s high starting prices could limit the scope of further price increases, while Bordeaux’s historically low output might stabilise prices for premium labels without igniting a full-fledged price surge.
<h2>The market environment</h2>
The 2024 vintage may not replicate the price exuberance of past short harvests, but it represents a moment of adjustment in the wine investment market. For Burgundy and Bordeaux, the interplay between reduced volumes, economic pressures, and strategic opportunities will shape the outlook. The true impact will become clearer once the wines are made, critics taste them, and the release prices are set, providing a more concrete sense of quality and investment potential.
WineCap’s independent market analysis showcases the value of portfolio diversification and the stability offered by investing in wine. Speak to one of our wine investment experts and start building your portfolio. <a href="https://winecap.com/schedule-a-call" target="_blank" rel="noopener nofollow noreferrer">Schedule your free consultation today</a>.

French wine production falls in 2024: Investment implications

<ul>
<li aria-level="1">Larger bottles have a longer shelf life, meaning that there is more time for price appreciation. </li>
<li aria-level="1">They are also available in smaller quantities, adding an element of rarity that drives up demand and price.</li>
<li aria-level="1">Champagne and Bordeaux are the regions leading the investment market for big bottles. </li>
</ul>
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.
<h2>How bottle size affects wine investment</h2>
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.
<h2>The price performance of larger bottles</h2>
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. 
<h2>Size options and investment opportunities</h2>
<img loading="lazy" decoding="async" class="wp-image-2155 aligncenter" src="https://wp.winecap.com/wp-content/uploads/2024/10/LI-TW-FB-Posts-375x196.jpg" alt="Wine bottle sizes graphic" width="500" height="261" srcset="https://wp.winecap.com/wp-content/uploads/2024/10/LI-TW-FB-Posts-375x196.jpg 375w, https://wp.winecap.com/wp-content/uploads/2024/10/LI-TW-FB-Posts-768x401.jpg 768w, https://wp.winecap.com/wp-content/uploads/2024/10/LI-TW-FB-Posts.jpg 1200w" sizes="auto, (max-width: 500px) 100vw, 500px" />
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.
<h2>Why larger formats can lead to better returns</h2>
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.
<h2>Timing is everything</h2>
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.

Luxury fine wine labels different size bottles

How different bottle sizes impact your wine investment returns

<ul>
<li>The most important factors that affect fine wine prices are production costs, climate change, market demand, and economic conditions. </li>
<li>Market demand is influenced by critic scores, rarity, producer reputation, vintage quality, and geopolitics.</li>
<li>Understanding the factors that affect fine wine prices is key to making smart investment decisions.</li>
</ul>
Fine wine is more than just a luxury product – it is an asset class, a status symbol, and for many, a serious investment. While buyers might be aware of the rising value of sought-after labels, understanding the factors that drive these prices (upwards or downwards) is key to navigating the fine wine market. 
In this article, we explore the primary factors affecting fine wine prices, including production costs, climate change, market demand, and broader economic conditions.
<h2>How production costs shape fine wine prices</h2>
At the heart of fine wine pricing are the production costs. The making of a high-end wine is a meticulous, labour-intensive process that is inevitably reflected in the price. So are the land costs, which can reach astronomic heights in famous fine wine regions like Burgundy, Napa or Bordeaux. 
For instance, the luxury conglomerate <a href="https://magazine.wein.plus/news/lvmh-pays-15-5-million-euros-for-1-3-hectares-in-burgundy-price-gouging-causes-outrage">LVMH recently acquired 1.3 hectares</a> of Grand Cru vineyards on the Côte d&#8217;Or for 15.5 million euros. The purchase includes half a hectare each in Corton-Charlemagne and Romanée-Saint-Vivant, as well as 0.3 hectares in Corton Bressandes.
Besides land costs, manual labour and vineyard management can further affect release prices. The more human intervention required – whether in the vineyard or the winemaking process – the more costs add up.
Finally, many fine wines are not ready for release for several years after production. Extended ageing means producers incur additional costs, which in turn drives up prices for wines that are stored for longer periods before hitting the market.
<h2>The impact of climate change on fine wine pricing</h2>
In many traditional wine regions, unpredictable weather patterns, such as frost, heatwaves, and hailstorms, have resulted in lower grape yields. For example, the devastating frost in Burgundy in 2021 significantly reduced production, leading to a scarcity of wines from that vintage. 
When yields are lower, the limited supply pushes prices higher, especially for in-demand producers. This scarcity effect can be seen in top wines like Domaine Leflaive or Domaine de la Romanée-Conti, where a challenging growing season can result in soaring prices.
Additionally, <a href="https://winecap.com/learn/the-impact-of-climate-change-on-wine-investment">climate change</a> is affecting the style of wines being produced. While some regions like Bordeaux are adapting to these new conditions, climate volatility has added another layer of unpredictability to wine prices. It has also facilitated the emergence of new wine regions, leading to a more competitive landscape.
<h2>Market demand and the rise of fine wine investment</h2>
Market demand is perhaps the most significant factor affecting fine wine prices. The most sought-after bottles usually rise in value, as quality improves over time and supply diminishes.
Producer reputation, vintage quality and <a href="https://winecap.com/learn/the-role-of-wine-ratings-in-fine-wine-investment">scores from major critics</a> like Robert Parker and Neal Martin play a key role here, informing buying decisions and pricing strategies. A 100-point wine often commands a significant premium to a 99-point wine. When it comes to the Bordeaux First Growths, for instance, the average difference between a 99-point and a 100-point wine is over £350 per case.
Market demand is also shaped by <a href="https://winecap.com/learn/the-pairing-of-old-wine-and-new-markets-demographic-shifts-and-emerging-trends">geopolitical factors</a>. The global nature of wine trading platforms means that market sentiment can affect wine prices faster than ever before. Demand from China largely contributed to Bordeaux’s pricing surge in 2011, and today interest is moving towards Burgundy and Champagne.
<h2>Economic forces that influence fine wine prices</h2>
While the fine wine market generally operates with its own dynamics, macroeconomic factors such as inflation, currency fluctuations, and recessions can all have an impact.  
In times of <a href="https://winecap.com/learn/how-fine-wine-hedges-against-economic-shocks-in-four-graphs">economic downturn</a>, discretionary spending often decreases, which can lead to short-term drops in wine prices. However, fine wine has historically shown remarkable resilience due to its tangibility, rebounding after economic dips. 
<a href="https://winecap.com/learn/navigating-currency-volatility-in-the-fine-wine-market">Currency fluctuations</a> also play a role; for instance, a weaker euro might make European wines more attractive to international buyers, spurring demand and increasing prices in markets like the US or Asia.
Changes in trade policies and tariffs can also have an impact. The Trump tariffs on European wines in 2020 temporarily raised the prices of French and Italian wines in the American market. While these tariffs have been reduced, ongoing changes in trade regulations can create volatility in wine pricing, particularly for internationally traded wines.
<h2>Understanding price fluctuations within fine wine</h2>
Fine wine prices are influenced by a complex interplay of factors, from the inherent quality of the wine itself to broader market forces and economic conditions. Understanding these factors is key to making informed decisions and maximising returns on investment.
Want to learn more about fine wine investment? <a href="https://winecap.com/learn/fine-wine-investment">Download our free guide</a>.

What factors affect fine wine prices?

<ul>
<li aria-level="1">This autumn sees the annual beyond Bordeaux campaign via La Place. </li>
<li aria-level="1">Most of the wines have been released at the same price level as last year. </li>
<li aria-level="1">This is not enough to stimulate buyers given the current dip in market prices across all regions. </li>
</ul>
This month’s <a href="https://winecap.com/news/what-to-expect-from-the-2024-la-place-de-bordeaux-campaign">La Place de Bordeaux campaign</a> 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 <a href="https://winecap.com/learn/what-is-a-market-dip-and-how-can-fine-wine-investors-take-advantage">market prices dip</a> 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.
<h2>Super Tuscan releases</h2>
The Super Tuscan <a href="https://winecap.com/wine-track/italy/tuscany/toscana/masseto/masseto">Masseto</a> 2021 kicked off this autumn’s La Place campaign at the same price as last year&#8217;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 (<a href="https://vinous.com/wines/masseto-masseto/2021">Vinous</a>) who said it was ‘the most exquisite, refined young Masseto’ he had ever tasted. Monica Larner (<a href="https://www.robertparker.com/wines/YGTe2Ji5ZDcZ64Nas/masseto-2021">Wine Advocate</a>), 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.
<img loading="lazy" decoding="async" class="alignnone wp-image-2138" src="https://wp.winecap.com/wp-content/uploads/2024/09/masseto-wine-prices-chart-375x196.jpg" alt="Masseto wine prices chart" width="600" height="314" srcset="https://wp.winecap.com/wp-content/uploads/2024/09/masseto-wine-prices-chart-375x196.jpg 375w, https://wp.winecap.com/wp-content/uploads/2024/09/masseto-wine-prices-chart-768x401.jpg 768w, https://wp.winecap.com/wp-content/uploads/2024/09/masseto-wine-prices-chart.jpg 1200w" sizes="auto, (max-width: 600px) 100vw, 600px" />
In contrast, <a href="https://winecap.com/wine-track/italy/tuscany/toscana/antinori/solaia">Solaia</a> 2021 from Marchesi Antinori came in at a 15.7% premium over the 2020 vintage, with a recommended price of £3,240 per 12&#215;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.
<img loading="lazy" decoding="async" class="alignnone wp-image-2139" src="https://wp.winecap.com/wp-content/uploads/2024/09/solaia-wine-prices-chart-375x196.jpg" alt="Solaia wine prices chart" width="600" height="314" srcset="https://wp.winecap.com/wp-content/uploads/2024/09/solaia-wine-prices-chart-375x196.jpg 375w, https://wp.winecap.com/wp-content/uploads/2024/09/solaia-wine-prices-chart-768x401.jpg 768w, https://wp.winecap.com/wp-content/uploads/2024/09/solaia-wine-prices-chart.jpg 1200w" sizes="auto, (max-width: 600px) 100vw, 600px" />
<h2>Chile’s iconic wines</h2>
Two of Chile’s most iconic wines were also released earlier this month, <a href="https://winecap.com/wine-track/chile/aconcagua/na/mondavi-&amp;-chadwick/sena">Seña</a> 2022 and <a href="https://winecap.com/wine-track/chile/central-valley/maipo-valley/errazuriz/vinedo-chadwick">Viñedo Chadwick</a> 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. 
<img loading="lazy" decoding="async" class="alignnone wp-image-2140" src="https://wp.winecap.com/wp-content/uploads/2024/09/mondavi-and-chadwick-sena-wine-prices-chart-375x196.jpg" alt="Mondavi &amp; Chadwick, Seña wine prices chart" width="600" height="314" srcset="https://wp.winecap.com/wp-content/uploads/2024/09/mondavi-and-chadwick-sena-wine-prices-chart-375x196.jpg 375w, https://wp.winecap.com/wp-content/uploads/2024/09/mondavi-and-chadwick-sena-wine-prices-chart-768x401.jpg 768w, https://wp.winecap.com/wp-content/uploads/2024/09/mondavi-and-chadwick-sena-wine-prices-chart.jpg 1200w" sizes="auto, (max-width: 600px) 100vw, 600px" />
Similarly, Viñedo Chadwick 2022 was released at last year’s price but remains the second most expensive vintage, following the 2015 Joaquín Hidalgo (<a href="https://vinous.com/wines/vinedo-chadwick-vinedo-chadwick/2022">Vinous</a>) 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.
<img loading="lazy" decoding="async" class="alignnone wp-image-2141" src="https://wp.winecap.com/wp-content/uploads/2024/09/errazuriz-vinedo-chadwick-wine-prices-chart-375x196.jpg" alt="Errazuriz Vinedo Chadwick wine prices chart" width="600" height="314" srcset="https://wp.winecap.com/wp-content/uploads/2024/09/errazuriz-vinedo-chadwick-wine-prices-chart-375x196.jpg 375w, https://wp.winecap.com/wp-content/uploads/2024/09/errazuriz-vinedo-chadwick-wine-prices-chart-768x401.jpg 768w, https://wp.winecap.com/wp-content/uploads/2024/09/errazuriz-vinedo-chadwick-wine-prices-chart.jpg 1200w" sizes="auto, (max-width: 600px) 100vw, 600px" />
<h2>Other notable releases</h2>
<a href="https://winecap.com/wine-track/france/rhone/chateauneuf-du-pape/famille-perrin/chateauneuf-du-pape-hommage-j-perrin">Château de Beaucastel Hommage à Jacques Perrin</a> 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 (<a href="https://vinous.com/wines/chateau-de-beaucastel-chateauneuf-du-pape-hommage-a-jacques-perrin/2022">Vinous</a>), who said it was ‘on track to rank alongside the spectacular 2020’. Still, the 2018, 2017 and 2015 present better value alternatives. 
<img loading="lazy" decoding="async" class="alignnone wp-image-2142" src="https://wp.winecap.com/wp-content/uploads/2024/09/beaucastel-chateauneuf-du-pape-hommage-j-perrin-wine-prices-chart-375x196.jpg" alt="Beaucastel, Chateauneuf du Pape Hommage J Perrin wine prices chart" width="600" height="314" srcset="https://wp.winecap.com/wp-content/uploads/2024/09/beaucastel-chateauneuf-du-pape-hommage-j-perrin-wine-prices-chart-375x196.jpg 375w, https://wp.winecap.com/wp-content/uploads/2024/09/beaucastel-chateauneuf-du-pape-hommage-j-perrin-wine-prices-chart-768x401.jpg 768w, https://wp.winecap.com/wp-content/uploads/2024/09/beaucastel-chateauneuf-du-pape-hommage-j-perrin-wine-prices-chart.jpg 1200w" sizes="auto, (max-width: 600px) 100vw, 600px" />
With a small increase of 1.3% on last year, Penfolds Grange 2020 was released at £4,740 per 12&#215;75. 
Erin Larkin (<a href="https://www.robertparker.com/wines/sxEdx6r5vf9bvLR7W/grange-2020">Wine Advocate</a>) described it as ‘lighter than the preceding 2019’ and gave it 95 points. It received the same score from Angus Hughson (<a href="https://vinous.com/wines/penfolds-shiraz-grange/2020">Vinous</a>) 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.
<img loading="lazy" decoding="async" class="alignnone wp-image-2143" src="https://wp.winecap.com/wp-content/uploads/2024/09/penfolds-wine-prices-chart-375x196.jpg" alt="Penfolds Grange wine prices chart" width="600" height="314" srcset="https://wp.winecap.com/wp-content/uploads/2024/09/penfolds-wine-prices-chart-375x196.jpg 375w, https://wp.winecap.com/wp-content/uploads/2024/09/penfolds-wine-prices-chart-768x401.jpg 768w, https://wp.winecap.com/wp-content/uploads/2024/09/penfolds-wine-prices-chart.jpg 1200w" sizes="auto, (max-width: 600px) 100vw, 600px" />
<h2>Back vintages remain an untapped opportunity</h2>
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. <a href="https://winecap.com/schedule-a-call">Schedule a consultation.</a>

Beyond Bordeaux releases: why back vintages offer better value

<ul>
<li>A market dip is a temporary decline in prices, caused by economic or market-specific factors. 
</li>
<li>Buying the dip is advised when the underlying market fundamentals are favourable.</li>
<li>This is arguably the best time to invest in fine wine in a decade.</li>
</ul>
A <a href="https://www.britannica.com/money/buy-the-dip">market dip</a> 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, <a href="https://en.m.wikipedia.org/wiki/List_of_stock_market_crashes_and_bear_markets">global mainstream markets</a> 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.
<h2>Buying the dip when the fundamentals are strong</h2>
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&#8217;s appetite for older vintages is still strong, and regions like Burgundy, Bordeaux and Champagne continue to break pricing records at auction.
<img loading="lazy" decoding="async" class="alignnone wp-image-2127" src="https://wp.winecap.com/wp-content/uploads/2024/09/market-dip-375x193.png" alt="Fine wine indices performance 2024" width="320" height="165" srcset="https://wp.winecap.com/wp-content/uploads/2024/09/market-dip-375x193.png 375w, https://wp.winecap.com/wp-content/uploads/2024/09/market-dip.png 518w" sizes="auto, (max-width: 320px) 100vw, 320px" />
<h2>Current macroeconomic environment and its impact</h2>
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.
<h2>Historical fine wine market rebounds</h2>
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. 
<img loading="lazy" decoding="async" class="alignnone wp-image-2128" src="https://wp.winecap.com/wp-content/uploads/2024/09/indices-20-years-375x238.png" alt="20 year performance of Liv-ex 100 and Liv-ex 1000" width="800" height="509" srcset="https://wp.winecap.com/wp-content/uploads/2024/09/indices-20-years-375x238.png 375w, https://wp.winecap.com/wp-content/uploads/2024/09/indices-20-years-768x488.png 768w, https://wp.winecap.com/wp-content/uploads/2024/09/indices-20-years-1536x977.png 1536w, https://wp.winecap.com/wp-content/uploads/2024/09/indices-20-years-2048x1302.png 2048w, https://wp.winecap.com/wp-content/uploads/2024/09/indices-20-years-1200x763.png 1200w, https://wp.winecap.com/wp-content/uploads/2024/09/indices-20-years-1980x1259.png 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
Similarly, Bordeaux&#8217;s peak in 2011 was followed by Burgundy&#8217;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.
<h2>How to take advantage of the dip in the fine wine market</h2>
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. <a href="https://winecap.com/schedule-a-call">Schedule a consultation.</a>

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

<ul>
<li>La Place de Bordeaux’s autumn campaign continues to expand, with new entries from Germany, France and the rest of the world. </li>
<li>The network offers producers logistics expertise and knowledge of the world’s fine wine markets. </li>
<li>Some of the top brands that enjoy sustained demand every year include Californian cult wines Opus One and Promontory, and the Super Tuscans Solaia and Masseto.</li>
</ul>
Following a mixed 2023 Bordeaux En Primeur campaign, which saw many châteaux lowering their prices compared to last year, this autumn will see the annual hors Bordeaux La Place campaign.
As the market for Bordeaux narrows, the system, originally designed purely to sell the wines from the region, continues to expand. However, it&#8217;s essential to recognise the challenges that lie ahead.
<h2>Current market sentiment</h2>
The fine wine market is currently navigating through a period of uncertainty. Economic downturns in key markets like China, where Bordeaux sales have plummeted by two-thirds since their peak in 2017, and the looming threat of a recession in the US, have created a cautious environment. This has significantly impacted confidence in the market, with many stakeholders bracing for a potentially attritional campaign this autumn.
<h2>Continued expansion of La Place de Bordeaux</h2>
For new producers, the benefits of joining the La Place distribution network are manifold. As <a href="https://areni.global/5-things-to-know-about-the-future-of-la-place-de-bordeaux/">Areni</a> put it in a recent article, ‘La Place offers fine wine producers something remarkable: a depth and breadth of fine wine expertise, coupled with a fine-grained knowledge of the world’s fine wine markets and plenty of logistics expertise. La Place also offers prestige, making it highly attractive to many of the world’s fine wine producers’.
According to Mathieu Chadronnier, president of Bordeaux négociant CVBG, ‘We will see more wines from beyond Bordeaux come to La Place. That trend is not going anywhere because the fundamental rationale that fine wine is one single category that embraces regions and countries of origin remains.’
This shift is particularly significant in light of the current market conditions. As Bordeaux faces challenges, the inclusion of international wines has become more crucial, providing a broader range of offerings and catering to an increasingly global market.
<h2>New entries on La Place</h2>
Ernst Loosen, the renowned Mosel-based producer, is entering La Place for the first time this year with a limited-production wine, Weingut Dr. Loosen, Zach. Bergweiler-Prüm Erben.
Meanwhile, Rheingau Riesling producer Schloss Johannisberg is advancing its strategy to expand the global reach of its premium Rieslings. This autumn, they will introduce Schloss Johannisberg Riesling Goldlack and Schloss Johannisberg Riesling Orangelack Kabinett to a broader international audience using the network’s global reach.
Additionally, Maison Georges Vigouroux will release the first Malbec from Cahors – Château de Haute-Serre Grand Malbec 2022 – through La Place de Bordeaux. This marks the first global &#8216;icon&#8217; wine from the appellation since phylloxera nearly eradicated the grape variety in France almost 200 years ago.
<h2>Top brands to watch</h2>
The coming weeks will see the release of the latest vintage from some of the hottest brands, including the Super Tuscans Solaia, Masseto and Bibi Graetz, Californian cult wine Opus One joined by estates such as Inglenook, Joseph Phelps and Promontory, the Chilean Almaviva, Viñedo Chadwick and Viña Seña.
From Australia, Wynns will release the 2021 John Riddoch, Cloudburst its Cabernet Sauvignon, Chardonnay and Malbec 2021, Jim Barry &#8216;The Armagh&#8217; Shiraz 2021, and Penfolds Bin 169 2022.
France will also see the release of the 2022 vintage of Le Petit Cheval Blanc, Y de Yquem and Château de Beaucastel Hommage à Jacques Perrin, Philipponnat Clos des Goisses 2015, and Latour 2009.
The table below shows the performance and price points of some of the top brands released via La Place de Bordeaux every autumn.
<img loading="lazy" decoding="async" class="alignnone wp-image-2120" src="https://wp.winecap.com/wp-content/uploads/2024/09/La-Place-brands-375x122.png" alt="La Place brands" width="800" height="261" srcset="https://wp.winecap.com/wp-content/uploads/2024/09/La-Place-brands-375x122.png 375w, https://wp.winecap.com/wp-content/uploads/2024/09/La-Place-brands-768x250.png 768w, https://wp.winecap.com/wp-content/uploads/2024/09/La-Place-brands-1536x500.png 1536w, https://wp.winecap.com/wp-content/uploads/2024/09/La-Place-brands-1200x391.png 1200w, https://wp.winecap.com/wp-content/uploads/2024/09/La-Place-brands.png 1741w" sizes="auto, (max-width: 800px) 100vw, 800px" />
<h2>Long-term prospects</h2>
Although prices for all these brands have fallen in the last year – creating the so called ‘<a href="https://winecap.com/news/the-state-of-the-fine-wine-market-so-far-in-2024">buyer’s market</a>’ – they remain great long term investments. Moreover, the new releases enjoy sustained demand year after year.
The current downturn in the market presents an opportunity for change. This period of uncertainty has led to more informed decision-making, a focus on quality, and a more selective approach to the new releases.
The 2024 La Place de Bordeaux campaign is set to be a dynamic and expansive event, showcasing a diverse array of global wines alongside the region’s traditional offerings. Despite the current challenges, the long-term prospects for La Place are promising, with the potential for significant growth and continued evolution in the years to come.
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

What to expect from the 2024 La Place de Bordeaux campaign?

<ul>
<li aria-level="1">Demand for Spanish wines has surged, with the region’s trade by volume outpacing the USA. </li>
<li aria-level="1">More Spanish wines are now offered on La Place since after Telmo Rodríguez’s ‘YJAR’ paved the way in 2021.</li>
<li aria-level="1">Marqués de Murrieta’s Castillo Ygay Gran Reserva is Spain’s top performer in the last decade.</li>
</ul>
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.
<h2>The surging demand for Spanish wines</h2>
Spain has a long and diverse history on the wine investment market, masked under a low trade share. Given the <a href="https://winecap.com/news/the-state-of-the-fine-wine-market-so-far-in-2024">current buyer’s market</a>, 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. 
<a href="https://www.decanter.com/premium/blue-chip-spain-bottles-on-the-place-de-bordeaux-512574/">More Spanish wines</a> 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.
<h2>Spain’s top wine labels for investment</h2>
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 &#8216;Wine of the Year&#8217; 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. 
<img loading="lazy" decoding="async" class="alignnone wp-image-2117" src="https://wp.winecap.com/wp-content/uploads/2024/08/spanish-wine-indices-375x267.png" alt="Spanish wine indices" width="800" height="571" srcset="https://wp.winecap.com/wp-content/uploads/2024/08/spanish-wine-indices-375x267.png 375w, https://wp.winecap.com/wp-content/uploads/2024/08/spanish-wine-indices-768x548.png 768w, https://wp.winecap.com/wp-content/uploads/2024/08/spanish-wine-indices-1536x1096.png 1536w, https://wp.winecap.com/wp-content/uploads/2024/08/spanish-wine-indices-2048x1461.png 2048w, https://wp.winecap.com/wp-content/uploads/2024/08/spanish-wine-indices-1200x856.png 1200w, https://wp.winecap.com/wp-content/uploads/2024/08/spanish-wine-indices-1980x1412.png 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

Spanish wines: a growing investment opportunity

<ul>
<li aria-level="1">Nearly 30% of the UK’s high-net-worth (HNW) investors incorporate fine wine into their portfolios.</li>
<li aria-level="1">They tend to be cautious, but in 2024, investors with balanced risk profiles are increasingly dipping into the world of drinkable assets.</li>
<li aria-level="1">Since last year, the demographic has shifted a little towards less experienced investors, indicating that new HNWs could be getting involved with fine wine.</li>
</ul>
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.
<h2>Fine wine allocations in investment portfolios</h2>
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.
<h2>Investors’ risk profiles</h2>
Fine wine investors tend to be the cautious type. According to our <a href="https://winecap.com/news/the-state-of-the-fine-wine-market-so-far-in-2024">2024 wealth management survey</a>, 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. 
<img loading="lazy" decoding="async" class="aligncenter wp-image-2104" src="https://wp.winecap.com/wp-content/uploads/2024/08/Page-7-Graphic-352x354.jpg" alt="Fine wine investment risk profile UK 2024" width="400" height="403" srcset="https://wp.winecap.com/wp-content/uploads/2024/08/Page-7-Graphic-352x354.jpg 352w, https://wp.winecap.com/wp-content/uploads/2024/08/Page-7-Graphic-768x773.jpg 768w, https://wp.winecap.com/wp-content/uploads/2024/08/Page-7-Graphic.jpg 1134w" sizes="auto, (max-width: 400px) 100vw, 400px" />
<h2>Investment experience</h2>
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.
<img loading="lazy" decoding="async" class="aligncenter wp-image-2105" src="https://wp.winecap.com/wp-content/uploads/2024/08/Page-6-Graphic-263x354.jpg" alt="Fine wine investment experience UK 2024" width="400" height="539" srcset="https://wp.winecap.com/wp-content/uploads/2024/08/Page-6-Graphic-263x354.jpg 263w, https://wp.winecap.com/wp-content/uploads/2024/08/Page-6-Graphic-768x1035.jpg 768w, https://wp.winecap.com/wp-content/uploads/2024/08/Page-6-Graphic.jpg 1092w" sizes="auto, (max-width: 400px) 100vw, 400px" />
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 <a href="https://winecap.com/learn/winecap-wealth-report-2024-uk-edition">Wealth Report 2024: UK Edition</a>.
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

Profiling the fine wine investor in 2024

<ul>
<li>Fine wine remains a buyer’s market in 2024. 
</li>
<li>Burgundy prices have fallen the most, while Italy has been the most resilient region. </li>
<li>Some wines have outperformed the market, such as L’Église-Clinet 2012.</li>
</ul>
The fine wine market remains a <a href="https://www.thedrinksbusiness.com/2024/07/fine-wine-remains-buyers-market-during-q2/">buyer’s market</a> 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 <a href="https://winecap.com/wine-track/france/burgundy/chevalier-montrachet/henri-boillot/chevalier-montrachet-blanc">Henri Boillot Chevalier-Montrachet Grand Cru</a>, which is up 23% since the beginning of the year.
<h2>Regional wine performance so far in 2024</h2>
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. 
<img loading="lazy" decoding="async" class="alignnone wp-image-2097" src="https://wp.winecap.com/wp-content/uploads/2024/08/Regional-indices-375x228.png" alt="Liv-ex regional wine indices 2024" width="800" height="486" srcset="https://wp.winecap.com/wp-content/uploads/2024/08/Regional-indices-375x228.png 375w, https://wp.winecap.com/wp-content/uploads/2024/08/Regional-indices-768x467.png 768w, https://wp.winecap.com/wp-content/uploads/2024/08/Regional-indices-1536x934.png 1536w, https://wp.winecap.com/wp-content/uploads/2024/08/Regional-indices-2048x1245.png 2048w, https://wp.winecap.com/wp-content/uploads/2024/08/Regional-indices-1200x729.png 1200w, https://wp.winecap.com/wp-content/uploads/2024/08/Regional-indices-1980x1204.png 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
As we have <a href="https://winecap.com/news/piedmont-on-the-move-rising-stars-under-1000-a-case">previously explored</a>, 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%. 
<h2>The biggest risers this year</h2>
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. 
<img loading="lazy" decoding="async" class="alignnone wp-image-2098" src="https://wp.winecap.com/wp-content/uploads/2024/08/best-brands-375x108.png" alt="Best performing wine brands H1 2024" width="800" height="231" srcset="https://wp.winecap.com/wp-content/uploads/2024/08/best-brands-375x108.png 375w, https://wp.winecap.com/wp-content/uploads/2024/08/best-brands-768x222.png 768w, https://wp.winecap.com/wp-content/uploads/2024/08/best-brands-1200x347.png 1200w, https://wp.winecap.com/wp-content/uploads/2024/08/best-brands.png 1533w" sizes="auto, (max-width: 800px) 100vw, 800px" />
<h2>The best performing wines</h2>
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’ (<a href="https://vinous.com/wines?term=krug%202004">AG</a> 98 points) Krug 2004, up 26%. 
<img loading="lazy" decoding="async" class="alignnone wp-image-2099" src="https://wp.winecap.com/wp-content/uploads/2024/08/Best-performing-wines-375x102.png" alt="Best performing wines H1 2024" width="800" height="217" srcset="https://wp.winecap.com/wp-content/uploads/2024/08/Best-performing-wines-375x102.png 375w, https://wp.winecap.com/wp-content/uploads/2024/08/Best-performing-wines-768x208.png 768w, https://wp.winecap.com/wp-content/uploads/2024/08/Best-performing-wines-1536x417.png 1536w, https://wp.winecap.com/wp-content/uploads/2024/08/Best-performing-wines-1200x326.png 1200w, https://wp.winecap.com/wp-content/uploads/2024/08/Best-performing-wines.png 1563w" sizes="auto, (max-width: 800px) 100vw, 800px" />
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 <a href="https://winecap.com/learn/q2-2024-fine-wine-report">latest quarterly report</a>. 
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

The state of the fine wine market so far in 2024

<ul>
<li aria-level="1">Stability, sustainability and increased market liquidity are the key drivers of investment interest in fine wine. </li>
<li aria-level="1">UK investors are also attracted by the tax advantages of fine wine, which is classed as a &#8216;wasting asset&#8217;.</li>
<li aria-level="1">Meanwhile, passion investing is on the rise in the US, seeing an 8% uptick since last year.  </li>
</ul>
Our recent survey among <a href="https://winecap.com/learn/winecap-wealth-report-2024-uk-edition">UK</a> and <a href="https://winecap.com/learn/winecap-wealth-report-2024-us-edition">US</a> 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.  
<h2>Fine wine’s stability during market volatility</h2>
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 <a href="https://edition.cnn.com/markets/fear-and-greed">Fear &amp; Greed index</a>, 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.
<img loading="lazy" decoding="async" class="alignnone wp-image-2089" src="https://wp.winecap.com/wp-content/uploads/2024/08/US-Page-11-Graphic-375x227.jpeg" alt="US investor motivations for fine wine" width="800" height="484" srcset="https://wp.winecap.com/wp-content/uploads/2024/08/US-Page-11-Graphic-375x227.jpeg 375w, https://wp.winecap.com/wp-content/uploads/2024/08/US-Page-11-Graphic-768x465.jpeg 768w, https://wp.winecap.com/wp-content/uploads/2024/08/US-Page-11-Graphic-1536x930.jpeg 1536w, https://wp.winecap.com/wp-content/uploads/2024/08/US-Page-11-Graphic-2048x1240.jpeg 2048w, https://wp.winecap.com/wp-content/uploads/2024/08/US-Page-11-Graphic-1200x727.jpeg 1200w, https://wp.winecap.com/wp-content/uploads/2024/08/US-Page-11-Graphic-1980x1199.jpeg 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
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. 
<h2>Sustainable investing on the rise</h2>
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 (‘<a href="https://winecap.com/news/the-growing-importance-of-sustainability-in-fine-wine-investment">The growing importance of sustainability in fine wine investment</a>’), 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 <a href="https://www.morganstanley.com/ideas/sustainable-investing-on-the-rise">Morgan Stanley</a> 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. 
<h2>Improved liquidity</h2>
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. 
<h2>UK tax benefits</h2>
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.
<img loading="lazy" decoding="async" class="alignnone wp-image-2090" src="https://wp.winecap.com/wp-content/uploads/2024/08/Page-14-Graphic-375x318.jpg" alt="UK CGT changes and fine wine investment" width="800" height="678" srcset="https://wp.winecap.com/wp-content/uploads/2024/08/Page-14-Graphic-375x318.jpg 375w, https://wp.winecap.com/wp-content/uploads/2024/08/Page-14-Graphic-768x651.jpg 768w, https://wp.winecap.com/wp-content/uploads/2024/08/Page-14-Graphic-1536x1302.jpg 1536w, https://wp.winecap.com/wp-content/uploads/2024/08/Page-14-Graphic-2048x1736.jpg 2048w, https://wp.winecap.com/wp-content/uploads/2024/08/Page-14-Graphic-1200x1017.jpg 1200w, https://wp.winecap.com/wp-content/uploads/2024/08/Page-14-Graphic-1980x1678.jpg 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
<h2>The overlap between collecting and investing in the US</h2>
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 <a href="https://winecap.com/learn/winecap-wealth-report-2024-uk-edition">UK</a> and <a href="https://winecap.com/learn/winecap-wealth-report-2024-us-edition">US</a> 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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.
&nbsp;

Top reasons to invest in fine wine in 2024

<ul>
<li aria-level="1">Technology has democratised fine wine investment by opening new avenues and making the asset more accessible to novice investors.</li>
<li>Since last year, there has been a 32% increase in UK investor confidence in the market’s liquidity – a shift partly driven by technology.</li>
<li>80% of UK investors believe that technology like blockchain will create more security and confidence in the sector.</li>
</ul>
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 <a href="https://winecap.com/learn/winecap-wealth-report-2024-uk-edition">2024 UK Wealth Report</a>, technological advancements have contributed to fine wine going mainstream and thus expanding the market&#8217;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.
<h2>Technology leads to an increase in investor confidence</h2>
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 <a href="https://winecap.com/wine-track">WineTrack</a>, 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.
<img loading="lazy" decoding="async" class="alignnone wp-image-2084" src="https://wp.winecap.com/wp-content/uploads/2024/07/Page-15-Graphic-375x158.jpg" alt="UK Wealth Managers 2024 Statistics" width="800" height="336" srcset="https://wp.winecap.com/wp-content/uploads/2024/07/Page-15-Graphic-375x158.jpg 375w, https://wp.winecap.com/wp-content/uploads/2024/07/Page-15-Graphic-768x323.jpg 768w, https://wp.winecap.com/wp-content/uploads/2024/07/Page-15-Graphic-1536x645.jpg 1536w, https://wp.winecap.com/wp-content/uploads/2024/07/Page-15-Graphic-2048x860.jpg 2048w, https://wp.winecap.com/wp-content/uploads/2024/07/Page-15-Graphic-1200x504.jpg 1200w, https://wp.winecap.com/wp-content/uploads/2024/07/Page-15-Graphic-1980x832.jpg 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
<h2>Advanced technology’s role in fine wine trading</h2>
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, <a href="https://winecap.com/learn/winecap-wealth-report-2024-uk-edition">WineCap’s 2024 Wealth Report</a> 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 <a href="https://winecap.com/learn/winecap-wealth-report-2024-uk-edition">copy here</a>. 
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

How technology has democratised fine wine investment in 2024

<ul>
<li aria-level="1">Sustainability is a major factor influencing investor decisions in the UK.</li>
<li aria-level="1">Fine wine producers are embracing sustainable viticulture techniques aimed at reducing their carbon footprint and making a social impact.</li>
<li aria-level="1">Fine wine is a forward-thinking sustainable investment choice.</li>
</ul>
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.
<h2>The evolving landscape of fine wine investment</h2>
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.
<h2>UK investors prioritise sustainability</h2>
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 <a href="https://winecap.com/learn/winecap-wealth-report-2024-uk-edition">2024 UK Wealth Report</a> found that sustainability has emerged as the most important factor influencing the preferences of both seasoned and novice investors in the fine wine market. 
<img loading="lazy" decoding="async" class="alignnone wp-image-2076" src="https://wp.winecap.com/wp-content/uploads/2024/07/Page-10-Graphic-375x209.jpg" alt="UK investor motivations 2024 " width="800" height="445" srcset="https://wp.winecap.com/wp-content/uploads/2024/07/Page-10-Graphic-375x209.jpg 375w, https://wp.winecap.com/wp-content/uploads/2024/07/Page-10-Graphic-768x427.jpg 768w, https://wp.winecap.com/wp-content/uploads/2024/07/Page-10-Graphic-1536x854.jpg 1536w, https://wp.winecap.com/wp-content/uploads/2024/07/Page-10-Graphic-2048x1139.jpg 2048w, https://wp.winecap.com/wp-content/uploads/2024/07/Page-10-Graphic-1200x667.jpg 1200w, https://wp.winecap.com/wp-content/uploads/2024/07/Page-10-Graphic-1980x1101.jpg 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
Our <a href="https://winecap.com/learn/uk-wine-investment-report">2023 survey</a> 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.
<h2>The benefits of sustainable investing</h2>
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 <a href="https://winecap.com/learn/fine-wine-sustainability-report-part-i-how-is-fine-wine-sustainable">Fine Wine Sustainability Report</a>.
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.
<h2>A deeper dive into the changing fine wine investment attitudes</h2>
For those interested in exploring this trend further, <a href="https://winecap.com/learn/winecap-wealth-report-2024-uk-edition">WineCap’s 2024 Wealth Report</a> 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 <a href="https://winecap.com/learn/winecap-wealth-report-2024-uk-edition">WineCap’s 2024 Wealth Report</a> 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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

The growing importance of sustainability in fine wine investment

In an era of economic uncertainty and shifting investment trends, alternative assets are gaining unprecedented traction. The 2024 WineCap Wealth Report (US edition) offers a comprehensive analysis of the fine wine market, uncovering key trends that highlight its burgeoning appeal. As fine wine transitions from a passion asset to a mainstream investment, the report explores the demographic shifts, technological advancements, and the factors driving demand. 
<h2>Methodology and demographic</h2>
In April 2024, WineCap surveyed 50 US-based full-time wealth and investment managers to gauge their views and sentiments towards fine wine investment. The respondents included 35 wealth managers, eight financial intermediaries/advisers, and seven independent financial advisers. The research was conducted via an online questionnaire. For annual comparisons, the report takes into account responses from a <a href="https://winecap.com/learn/us-wine-investment-report">similar survey conducted in April 2023</a>.
<h2>Key findings</h2>
<ul>
<li style="font-weight: 400;" aria-level="1">Changing demographics: One in three high-net-worth individuals (HNWIs) in the US now invests in fine wine. While some begin as collectors, the majority are experienced investors drawn to fine wine for its stability. </li>
<li style="font-weight: 400;" aria-level="1">Rising demand for collectibles: Fine wine emerged as the leading collectible asset. According to our survey, 84% of US wealth managers anticipate an increase in demand over the next year.</li>
<li style="font-weight: 400;" aria-level="1">Enhanced market liquidity: There has been a 14% increase in investor confidence regarding market liquidity, driven by advanced technology that enhances the trading experience and security.</li>
<li style="font-weight: 400;" aria-level="1">Stability: 74% of respondents see fine wine’s stability through different market environments as the top reason to invest in it.</li>
<li style="font-weight: 400;" aria-level="1">Universal value: 92% of US wealth managers recognize the benefits of fine wine being an asset of universal value, not pegged to USD.</li>
<li style="font-weight: 400;" aria-level="1">Diversity: Survey respondents indicated that greater awareness of fine wine&#8217;s role in diversifying traditional portfolios could attract more clients.</li>
</ul>
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&#8217;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.

WineCap Wealth Report 2024: US Edition

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.
<h2>Methodology and demographic</h2>
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 <a href="https://winecap.com/learn/uk-wine-investment-report">same survey conducted in April 2023</a>.
<h2>Key findings</h2>
<ul>
<li>Changing demographics: Younger generations and less experienced investors are increasingly drawn to fine wine.</li>
<li>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.</li>
<li>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.</li>
<li>Sustainability: Fine wine is largely perceived as a sustainable investment, with 68% of respondents citing sustainability as a top motivation to invest in it.</li>
<li>Stability: Despite economic volatility, fine wine continues to act as a stable investment option and investors appreciate its uncorrelated market returns.</li>
<li>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.</li>
<li>Diversity: Survey respondents suggested that greater awareness of fine wine&#8217;s role in diversifying traditional portfolios could attract more clients.</li>
</ul>
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&#8217;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.

WineCap Wealth Report 2024: UK Edition

Our Q2 2024 report has now been released. The report examines the macroeconomic factors affecting fine wine prices, the Bordeaux 2023 En Primeur campaign, the best-performing wines, industry news and an outlook for Q3.
<h2>Executive summary</h2>
<ul>
<li style="font-weight: 400;" aria-level="1">The second quarter built on the successes of the first, with risk assets delivering another set of positive returns to investors.</li>
<li style="font-weight: 400;" aria-level="1">Global equity markets were buoyed by resilient economic growth and rising investor confidence.</li>
<li style="font-weight: 400;" aria-level="1">UK investment sentiment also improved after a landslide election win for the new Labour government.</li>
<li style="font-weight: 400;" aria-level="1">The fine wine market remains a buyers’ market, with Burgundy and Champagne priced down the most in Q2. </li>
<li style="font-weight: 400;" aria-level="1">Bordeaux back vintages enjoyed rising demand and prices, following the 2023 En Primeur campaign.</li>
<li style="font-weight: 400;" aria-level="1">The best-performing wine in Q2 was the 100-point Château Léoville Las Cases 2016.</li>
<li style="font-weight: 400;" aria-level="1">This year’s En Primeur yielded mixed results with few great successes despite the general price cuts. </li>
<li style="font-weight: 400;" aria-level="1">Some of the best releases included the First Growths and their second wines, Beychevelle, and Cheval Blanc.</li>
<li style="font-weight: 400;" aria-level="1">In other news, Sotheby’s Burgundy sale smashed wine auction records and Marchesi Antinori took full ownership of the Washington State winery Col Solare.</li>
<li style="font-weight: 400;" aria-level="1">In buying opportunities, Latour 2009 offers perfect scores at the best possible price on the market.</li>
<li style="font-weight: 400;" aria-level="1">Looking ahead, we anticipate the autumn La Place de Bordeaux campaign following a short summer lull.</li>
</ul>
<h2>The trends that shaped the fine wine market</h2>
Economic resilience boasts global markets
The second quarter delivered positive results for global equity markets which were buoyed by resilient economic growth, and supportive earnings and sales expectations. This strong economic foundation has allowed equities to advance, even as stubborn inflation poses potential challenges. Bond markets also appeared attractive; however, the same economic resilience that benefitted equities introduced near-term risks for fixed-income investments.
UK investment sentiment also improved following a landslide election victory for the new Labour government. The British pound, which has been the strongest major currency against the dollar this year, nudged higher when the scale of Labour&#8217;s victory became clear. The UK-focused FTSE 250 share index, which has outperformed the more global FTSE 100 year-to-date, rose to its highest level since April 2022, reflecting renewed investor confidence in the country’s economic prospects.
Fine wine – a buyer’s market
Meanwhile, fine wine prices continued to decline. The Liv-ex 1000 index, the broadest measure of the market, is currently at the level it was in August 2021 (388.28). Despite falling prices, trade volumes are higher than this time last year, suggesting that buyers are seizing opportunities to acquire wines at more favourable prices. Moreover, some of the best-performing wines this quarter rose as much as 20% in value. There are opportunities to be had if one follows closely.
En Primeur and Bordeaux’s falling prices
Some of these opportunities arose during the 2023 Bordeaux <a href="https://winecap.com/learn/what-is-en-primeur-a-short-guide-for-wine-investors">En Primeur</a> campaign. The best new releases offered a compelling mix of quality and value, with a significant potential for future price appreciation. These included Beychevelle, Cheval Blanc, and the First Growths’ Grand vins and second wines – still, few and far between given the scale of the campaign. In the secondary market, Bordeaux prices fell 1.8% in the second quarter, making back vintages even more attractive. The only index that rose in value as the campaign concluded was the Bordeaux Legends 40 – exceptional older vintages that enjoyed rising demand. 
<h2>Regional fine wine performance</h2>
<img loading="lazy" decoding="async" class="alignnone wp-image-2055" src="https://wp.winecap.com/wp-content/uploads/2024/07/lx-indices-375x252.png" alt="Liv-ex regional indices performance chart" width="800" height="538" srcset="https://wp.winecap.com/wp-content/uploads/2024/07/lx-indices-375x252.png 375w, https://wp.winecap.com/wp-content/uploads/2024/07/lx-indices-768x517.png 768w, https://wp.winecap.com/wp-content/uploads/2024/07/lx-indices-1536x1033.png 1536w, https://wp.winecap.com/wp-content/uploads/2024/07/lx-indices-2048x1378.png 2048w, https://wp.winecap.com/wp-content/uploads/2024/07/lx-indices-1200x807.png 1200w, https://wp.winecap.com/wp-content/uploads/2024/07/lx-indices-1980x1332.png 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
As the market’s focus shifted to new releases, prices in the secondary market fell in Q2. The broadest measure, the Liv-ex 1000 index, dipped 2.4%. It was led lower by the Burgundy 150 (-3.9%) and the Champagne 50 (-3.7%). The Rest of the World 60 and the Italy 100 indices experienced the smallest declines of 1.1% and 1.2% respectively.
As the chart above shows, Italy has shown relative resilience in the current bearish market. Despite broader market uncertainties, some Italian brands have even recorded positive movement in the last six months as high as 15%.
In June, the Bordeaux Legends 40 index recorded its first positive movement in almost a year, rising 0.3%. The index tracks the performance of a selection of 40 Bordeaux wines from exceptional older vintages (from 1989 onwards). As we have previously <a href="https://winecap.com/learn/bordeaux-en-primeur-2023-under-pressure">highlighted</a>, older vintages can often be a lucrative investment prospect, offering a combination of quality, value and bottle age. 
<h2>The best-performing wines in Q2</h2>
<img loading="lazy" decoding="async" class="alignnone wp-image-2056" src="https://wp.winecap.com/wp-content/uploads/2024/07/best-performing-wines-q2-2024-375x134.png" alt="Best performing wines Q2 2024" width="800" height="287" srcset="https://wp.winecap.com/wp-content/uploads/2024/07/best-performing-wines-q2-2024-375x134.png 375w, https://wp.winecap.com/wp-content/uploads/2024/07/best-performing-wines-q2-2024-768x275.png 768w, https://wp.winecap.com/wp-content/uploads/2024/07/best-performing-wines-q2-2024.png 1116w" sizes="auto, (max-width: 800px) 100vw, 800px" />
The best-performing wines this quarter were a diverse mix from Bordeaux, Burgundy, Piedmont, the Rhone and Champagne. Leading the charge was the 100-point (WA)<a href="https://winecap.com/wine-track/france/bordeaux/saint-julien/chateau-leoville-las-cases/leoville-las-cases"> Château Léoville Las Cases 2016</a>, with an impressive 19.4% increase. William Kelley described it as ‘one of the high points of this great vintage’. Close behind was <a href="https://winecap.com/wine-track/france/bordeaux/saint-emilion-grand-cru/chateau-angelus/angelus">Château Angélus 2019</a>, which saw a 19.1% rise.
From Burgundy, <a href="https://winecap.com/wine-track/france/burgundy/corton-charlemagne/domaine-bonneau-du-martray/corton-charlemagne-blanc">Domaine Bonneau du Martray Corton-Charlemagne Grand Cru 2020</a> came third, up 15.2%. Other wines from the region that rose in value included <a href="https://winecap.com/wine-track/france/burgundy/la-tache/domaine-de-la-romanee-conti/tache">Domaine de la Romanée-Conti La Tache Grand Cru 2017</a> and <a href="https://winecap.com/wine-track/france/burgundy/meursault/coche-dury/meursault-genevrieres">Coche-Dury Meursault 2018</a>. 
<a href="https://winecap.com/wine-track/france/champagne/na/dom-perignon/dom-perignon-rose">Dom Pérignon Rosé 2009</a> also made the rankings, with a 9.6% rise this past quarter. On average, prices for the wine have risen 83% in the last decade.
<h2>Fine wine news</h2>
Sotheby’s Burgundy sale smashes records
On July 5, 2024, Sotheby’s conducted its first exclusive single-owner Burgundy sale, breaking eight world records and achieving €2 million ($2.1 million). Held in the historic Caves du Couvent des Cordeliers in Beaune, the auction featured over 175 lots from Taiwanese entrepreneur Pierre Chen’s cellar.
Top highlights included six bottles of <a href="https://winecap.com/wine-track/france/burgundy/chevalier-montrachet/domaine-d'auvenay/chevalier-montrachet">Chevalier Montrachet d’Auvenay 2009</a>, which fetched €106,250 (£89,915), and 12 bottles of <a href="https://winecap.com/wine-track/france/burgundy/chambertin-clos-de-beze/domaine-armand-rousseau/chambertin-clos-de-beze">Domaine Armand Rousseau Chambertin Clos de Bèze 1990</a>, sold for €100,000 (£84,630). Among the record-setting sales were three bottles of <a href="https://winecap.com/wine-track/france/burgundy/echezeaux/domaine-de-la-romanee-conti/echezeaux">2005 DRC Échezeaux</a> at €10,000 per bottle and a magnum of <a href="https://winecap.com/wine-track/france/burgundy/la-tache/domaine-de-la-romanee-conti/tache">2005 DRC La Tâche</a> at €35,000.
Last month, Chen’s collection of fine and rare Champagne achieved €1.35 million (£1.14 million) at Sotheby’s in Paris, with notable sales including three magnums of <a href="https://winecap.com/wine-track/france/champagne/le-mesnil-sur-oger/salon/le-mesnil">Salon Le Mesnil Blanc de Blancs 1990</a> for €25,000 (£19,600) and a magnum of <a href="https://winecap.com/wine-track/france/champagne/na/dom-perignon/dom-perignon">Dom Pérignon P3 1966</a> for €23,750 (£20,100), both setting new records.
Sotheby’s expects Chen’s collection to fetch a record $50 million (£39.2 million) by the series&#8217; end, with upcoming auctions in New York and Hong Kong.
Antinori expands into Washington
Marchesi Antinori, one of Italy’s oldest family-owned fine wine producers, has taken full ownership of the Washington State winery Col Solare, which was established as a joint venture in 1995 with Ste. Michelle Wine Estate (SMWE). The acquisition includes the winery, the estate vineyard spanning 12 hectares planted primarily with Cabernet Sauvignon, and the brand, which produces around 5,000 bottles annually. Piero Antinori, president of Marchesi Antinori, expressed admiration for Red Mountain AVA&#8217;s unique terroir, emphasising the challenge and excitement of producing high-quality Washington red wines.
Juan Muñoz-Oca, COO of Antinori USA, highlighted the significance of this acquisition, reflecting Washington&#8217;s growing reputation for luxury wines. This move follows Antinori&#8217;s 2022 acquisition of Napa&#8217;s Stag’s Leap Wine Cellars, transitioning from a 15% to 100% stake after SMWE was sold to Sycamore Partners for $1.2 billion in 2021. Besides Stag’s Leap, Antinori owns Antica, a 200-hectare estate in Napa Valley, as part of their expansion in the states.
<h2>Buying opportunities: Latour 2009</h2>
<img loading="lazy" decoding="async" class="alignnone wp-image-2057" src="https://wp.winecap.com/wp-content/uploads/2024/07/latour-2009-chart-375x196.jpg" alt="Chateau Latour 2009 wine prices" width="800" height="418" srcset="https://wp.winecap.com/wp-content/uploads/2024/07/latour-2009-chart-375x196.jpg 375w, https://wp.winecap.com/wp-content/uploads/2024/07/latour-2009-chart-768x401.jpg 768w, https://wp.winecap.com/wp-content/uploads/2024/07/latour-2009-chart.jpg 1200w" sizes="auto, (max-width: 800px) 100vw, 800px" />
Château Latour 2009 currently represents a combination of perfect scores and perfect timing. The highest-scoring wine ever at the <a href="https://www.jancisrobinson.com/articles/southwold">annual Southwold tasting</a>, <a href="https://winecap.com/wine-track/france/bordeaux/pauillac/chateau-latour/latour">Latour 2009</a> is now at the best price it has been in almost a decade. 
The recipient of no less than five perfect scores from Robert Parker, Lisa Perrotti-Brown MW, Jeff Leve, James Suckling, and Falstaff, Latour 2009 is a stand-out wine among critics. Hailed by Robert Parker as the greatest vintage he’d ever tasted, more recently Neal Martin described it as ‘outstanding’ and a ‘Latour firing on all cylinders’.
Latour is also the highest-scoring 2009 Bordeaux on Cellar Tracker, where it’s also the second-highest-scoring wine of the entire decade, beaten only by Petrus 2000 at more than six times the price.
In terms of price performance, Latour has outperformed all the other First Growths over one, two and five years. 
The 2009 vintage, which is currently available at one of the lowest price points ever, offers value among other prime vintages. Its scores match the 1982 and 1961, both of which come at a significant premium.
It is more affordable than the 2010 as well as the 2000 and 1990 vintages but with superior scores than all of them. The 2009 Latour is a hidden gem that seems particularly good to seek out now.
<h2>Outlook for Q3</h2>
With the onset of the summer lull, the market is expected to experience a temporary slowdown as usual. Despite this seasonal dip, numerous opportunities remain available. The <a href="https://winecap.com/learn/the-rising-demand-for-collectibles">market for collectibles</a>, including fine wine, is gaining popularity among new investors looking for diversity and uncorrelated market returns.  
Over the next two months, the fine wine market will shift its focus to wines from around the globe as the autumn La Place de Bordeaux campaign takes centre stage. Esteemed producers such as Almaviva, Opus One, Vérité, Seña, Catena Zapata, Masseto, and Solaia will unveil their latest vintages on the international stage, accompanied by numerous other exciting releases.
As the campaign expands to include New World wines, the category is expected to see a surge in secondary market demand, potentially driving up prices. We will continue to spotlight the best investment opportunities where exceptional quality and brand prestige meet attractive pricing.
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

Q2 2024 Fine Wine Report

<ul>
<li aria-level="1">Dom Pérignon is one of the most popular wine brands in the world, resonating with drinkers, collectors and investors.</li>
<li aria-level="1">This week saw the latest Dom Pérignon vintage release – the 2015. </li>
<li aria-level="1">Dom Pérignon prices have risen on average 90% in the last decade.</li>
</ul>
Dom Pérignon is one of the most popular wine brands in the world. It consistently ranks in <a href="https://www.wine-searcher.com/top-wines">Wine-Searcher</a>’s top five most searched-for wines, and its label resonates with drinkers, collectors and investors alike.
<h2>Latest vintage release: Dom Pérignon 2015</h2>
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&#215;75 case. The wine boasts 96 points from Antonio Galloni (<a href="https://vinous.com/wines?term=Dom+P%C3%A9rignon+Dom+P%C3%A9rignon+France&amp;filters=&amp;sort=score&amp;page=2&amp;per_page=25">Vinous</a>) who said that it ‘shows terrific energy’ and ‘is a fine showing in a vintage that has proven to be tricky’.
<h2>Brief history of Dom Pérignon</h2>
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 &amp; 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.
<h2>Dom Pérignon investment performance</h2>
<a href="https://winecap.com/wine-track/france/champagne/na/dom-perignon/dom-perignon">Dom Pérignon</a> 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. 
<img loading="lazy" decoding="async" class="alignnone wp-image-2051" src="https://wp.winecap.com/wp-content/uploads/2024/07/DP-375x246.png" alt="Dom Perignon index" width="800" height="525" srcset="https://wp.winecap.com/wp-content/uploads/2024/07/DP-375x246.png 375w, https://wp.winecap.com/wp-content/uploads/2024/07/DP-768x504.png 768w, https://wp.winecap.com/wp-content/uploads/2024/07/DP.png 921w" sizes="auto, (max-width: 800px) 100vw, 800px" />
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.
<h2>The highest-scoring Dom Pérignon vintages </h2>
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 <a href="https://www.robertparker.com/search/wine?name=dom+p%C3%A9rignon&amp;date_last_tasted=788140800000+TO+1717084200000&amp;keyword=dom+perignon">Wine Advocate</a>, 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.
<h2>The best value Dom Pérignon on the market today</h2>
<img loading="lazy" decoding="async" class="alignnone wp-image-2047" src="https://wp.winecap.com/wp-content/uploads/2024/07/dom-perignon-wine-prices-375x196.jpg" alt="Dom Perignon prices" width="800" height="418" srcset="https://wp.winecap.com/wp-content/uploads/2024/07/dom-perignon-wine-prices-375x196.jpg 375w, https://wp.winecap.com/wp-content/uploads/2024/07/dom-perignon-wine-prices-768x401.jpg 768w, https://wp.winecap.com/wp-content/uploads/2024/07/dom-perignon-wine-prices.jpg 1200w" sizes="auto, (max-width: 800px) 100vw, 800px" />
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

The best of Dom Pérignon: top vintages and investment opportunities

<ul>
<li aria-level="1">The impending largest intergenerational wealth handover is driving the expansion of the collectibles market.</li>
<li aria-level="1">Demand is rising among younger investors looking to diversify their portfolios with assets that offer uncorrelated market returns. </li>
<li aria-level="1">Fine wine is the most popular collectible among UK investors, followed by luxury handbags and jewellery. </li>
</ul>
From <a href="https://winecap.com/learn/fine-wine-vs-luxury-handbags-the-investment-perspective">luxury handbags</a> 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. 
<h2>The evolution of the collectibles market</h2>
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 <a href="https://www.jstor.org/stable/41811143">Great Depression</a>, 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 <a href="https://winecap.com/wine-track">Wine Track</a> 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 <a href="https://www.nomuraconnects.com/focused-thinking-posts/investing-in-the-art-and-collectables-market-a-1-7-trillion-asset-class/#:~:text=read%20%7C%20August%202021-,Investing%20in%20the%20Art%20and%20Collectables%20Market%3A%20A%20%241.7%20Trillion,by%20securitization%20and%20technological%20improvements">Nomura</a>, 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). 
<h2>The most wanted collectibles for portfolio diversification</h2>
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. 
<h2>Collectibles vs mainstream investments</h2>
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

The rising demand for collectibles

<ul>
<li style="font-weight: 400;" aria-level="1">The best Bordeaux En Primeur releases offered a combination of quality and value. </li>
<li style="font-weight: 400;" aria-level="1">These are wines with high potential for future price appreciation.</li>
<li style="font-weight: 400;" aria-level="1">Some châteaux have followed the En Primeur golden rule that the new release is the cheapest you can get. </li>
</ul>
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. 
<h2>Beychevelle </h2>
<img loading="lazy" decoding="async" class="alignnone wp-image-2031" src="https://wp.winecap.com/wp-content/uploads/2024/06/chateau-beychevelle-2023-375x196.jpg" alt="Chateau Beychevelle En Primeur 2023" width="800" height="418" srcset="https://wp.winecap.com/wp-content/uploads/2024/06/chateau-beychevelle-2023-375x196.jpg 375w, https://wp.winecap.com/wp-content/uploads/2024/06/chateau-beychevelle-2023-768x401.jpg 768w, https://wp.winecap.com/wp-content/uploads/2024/06/chateau-beychevelle-2023.jpg 1200w" sizes="auto, (max-width: 800px) 100vw, 800px" />
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 (<a href="https://vinous.com/">Vinous</a>), who said: ‘Beychevelle remains one of the most distinctive wines in all of Bordeaux. It is especially classy in this edition.’ 
Meanwhile, the <a href="https://www.robertparker.com/">Wine Advocate</a>’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’.
<h2>Lafite Rothschild &amp; Carruades de Lafite</h2>
<img loading="lazy" decoding="async" class="alignnone wp-image-2032" src="https://wp.winecap.com/wp-content/uploads/2024/06/lafite-rothschild-2023-375x196.jpg" alt="Lafite Rothschild Bordeaux En Primeur 2023" width="800" height="418" srcset="https://wp.winecap.com/wp-content/uploads/2024/06/lafite-rothschild-2023-375x196.jpg 375w, https://wp.winecap.com/wp-content/uploads/2024/06/lafite-rothschild-2023-768x401.jpg 768w, https://wp.winecap.com/wp-content/uploads/2024/06/lafite-rothschild-2023.jpg 1200w" sizes="auto, (max-width: 800px) 100vw, 800px" />
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. 
<img loading="lazy" decoding="async" class="alignnone wp-image-2033" src="https://wp.winecap.com/wp-content/uploads/2024/06/carruades-lafite-2023-375x196.jpg" alt="Carruades Lafite Bordeaux 2023 En Primeur" width="800" height="418" srcset="https://wp.winecap.com/wp-content/uploads/2024/06/carruades-lafite-2023-375x196.jpg 375w, https://wp.winecap.com/wp-content/uploads/2024/06/carruades-lafite-2023-768x401.jpg 768w, https://wp.winecap.com/wp-content/uploads/2024/06/carruades-lafite-2023.jpg 1200w" sizes="auto, (max-width: 800px) 100vw, 800px" />
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 (<a href="https://vinous.com/">Vinous</a>), surpassing the 2022, 2016, and 2010. The critic remarked that this is ‘surely one of the best Carruades I have tasted at this stage’.
<h2>Mouton Rothschild &amp; Petit Mouton</h2>
<img loading="lazy" decoding="async" class="alignnone wp-image-2034" src="https://wp.winecap.com/wp-content/uploads/2024/06/mouton-rothschild-2023-375x196.jpg" alt="Mouton Rothschild Bordeaux 2023 En Primeur" width="800" height="418" srcset="https://wp.winecap.com/wp-content/uploads/2024/06/mouton-rothschild-2023-375x196.jpg 375w, https://wp.winecap.com/wp-content/uploads/2024/06/mouton-rothschild-2023-768x401.jpg 768w, https://wp.winecap.com/wp-content/uploads/2024/06/mouton-rothschild-2023.jpg 1200w" sizes="auto, (max-width: 800px) 100vw, 800px" />
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. 
<img loading="lazy" decoding="async" class="alignnone wp-image-2035" src="https://wp.winecap.com/wp-content/uploads/2024/06/petit-mouton-2023-375x196.jpg" alt="Petit Mouton Bordeaux 2023 En Primeur" width="800" height="418" srcset="https://wp.winecap.com/wp-content/uploads/2024/06/petit-mouton-2023-375x196.jpg 375w, https://wp.winecap.com/wp-content/uploads/2024/06/petit-mouton-2023-768x401.jpg 768w, https://wp.winecap.com/wp-content/uploads/2024/06/petit-mouton-2023.jpg 1200w" sizes="auto, (max-width: 800px) 100vw, 800px" />
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’. 
<h2>Margaux</h2>
<img loading="lazy" decoding="async" class="alignnone wp-image-2036" src="https://wp.winecap.com/wp-content/uploads/2024/06/chateau-margaux-2023-375x196.jpg" alt="Chateau Margaux Bordeaux 2023 En Primeur" width="800" height="418" srcset="https://wp.winecap.com/wp-content/uploads/2024/06/chateau-margaux-2023-375x196.jpg 375w, https://wp.winecap.com/wp-content/uploads/2024/06/chateau-margaux-2023-768x401.jpg 768w, https://wp.winecap.com/wp-content/uploads/2024/06/chateau-margaux-2023.jpg 1200w" sizes="auto, (max-width: 800px) 100vw, 800px" />
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. 
<h2>Cheval Blanc</h2>
<img loading="lazy" decoding="async" class="alignnone wp-image-2037" src="https://wp.winecap.com/wp-content/uploads/2024/06/cheval-blanc-2023-375x196.jpg" alt="Chateau Cheval Blanc Bordeaux 2023 En Primeur" width="800" height="418" srcset="https://wp.winecap.com/wp-content/uploads/2024/06/cheval-blanc-2023-375x196.jpg 375w, https://wp.winecap.com/wp-content/uploads/2024/06/cheval-blanc-2023-768x401.jpg 768w, https://wp.winecap.com/wp-content/uploads/2024/06/cheval-blanc-2023.jpg 1200w" sizes="auto, (max-width: 800px) 100vw, 800px" />
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&#8217;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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

The best of Bordeaux En Primeur 2023

<ul>
<li aria-level="1">Italy is the best-performing fine wine region year-to-date. </li>
<li aria-level="1">Some Italian brands have recorded positive movement as high as 15% in the last six months.</li>
<li aria-level="1">Piedmont’s edge in the fine wine market can be attributed to historical significance, limited production, and an increase in global appreciation. </li>
</ul>
Amid economic fluctuations and changing market trends, the wine investment landscape has seen varied performances across regions. However, Italy, and particularly the Piedmont, has stood out for its robustness and resilience, outperforming other regions in maintaining and even enhancing its investment appeal.
<h2>Italy&#8217;s performance in a bearish market</h2>
The <a href="https://www.liv-ex.com/news-insights/indices/">Liv-ex Italy 100 sub-index</a>, which tracks the price performance of the top 100 Italian wines, has shown resilience in the current bearish market. While the broader Liv-ex 1000 index, representing a wider range of global wines, has experienced a decline of 5.2% year-to-date, the Italy 100 sub-index has seen a relatively minor decrease of 1.7%. 
This indicates a sustained interest in Italian wines, despite broader market uncertainties. Some Italian brands have even recorded positive movement in the last six months as high as 15%.
<h2>The rising stars of Piedmont</h2>
A significant contribution to this trend comes from the Piedmont, specifically Barolo and Barbaresco. 
Produttori del Barbaresco, a renowned cooperative known for its high-quality production, has seen impressive gains across a range of its wines. The <a href="https://winecap.com/wine-track/italy/piedmont/barbaresco/produttori-del-barbaresco/barbaresco-rabaja-riserva">Rabaja Riserva</a> has risen 15% since the start of the year. The wine has an average case price of £968 per 12&#215;75, and a Wine Track critic score of 94 points. 
From the same producer, the more affordable <a href="https://winecap.com/wine-track/italy/piedmont/barbaresco/produttori-del-barbaresco/barbaresco-ovello-riserva">Ovello Riserva</a> is up 9%, while the <a href="https://winecap.com/wine-track/italy/piedmont/barbaresco/produttori-del-barbaresco/barbaresco-montestefano-riserva">Montestefano Riserva</a> is up 8%. 
From Barolo, <a href="https://winecap.com/wine-track/italy/piedmont/barolo/cascina-fontana/barolo">Cascina Fontana</a> has shown consistent returns. It has appreciated 6% in the last six months and a remarkable 105% over the last decade. The wine&#8217;s affordability at £665 average price per case makes it a value-driven choice for investors.
Meanwhile, <a href="https://winecap.com/wine-track/italy/piedmont/barolo/elio-grasso/barolo-gavarini-chiniera">Elio Grasso’s Barolo Gavarini Chiniera</a> has increased 4% in the past six months and an impressive 110% in the last decade. 
<h2>Why Italy, and why now?</h2>
The resilience of the Italian wine market, particularly in premium segments like Barolo and Barbaresco, can be attributed to several factors such as historical significance, quality, limited production, and growing global appreciation for the value on offer.
Wines from Piedmont are steeped in history and are globally recognised for their quality and complexity, attracting both connoisseurs and investors.
The limited production and exclusivity of certain labels ensure their demand remains high, even in less favourable economic conditions. While these wines are highly sought-after, the brands above continue to offer value – all being under £1,000 a case despite recent gains.
Finally, Italian wines continue to see growing appreciation in key markets such as the UK, USA and Asia, broadening the investor base.
As we navigate through fluctuating markets, Italy, especially Piedmont, holds firm, demonstrating potential for growth. For investors, Barolo and Barbaresco represent stability, quality, and a legacy that stands resilient against the tides of economic change.
WineCap’s independent market analysis showcases the value of portfolio diversification and the stability offered by investing in wine. Speak to one of our wine investment experts and start building your portfolio. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

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

<ul>
<li>Luxury handbags are the second most popular collectible item among UK wealth managers in 2024, after fine wine. </li>
<li>Rising prices in the primary market for handbags have led to investment interest. </li>
<li>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. </li>
</ul>
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 <a href="https://winecap.com/learn/uk-wine-investment-report">transitioned from a passion investment</a> 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.
<h2>A shift in investment trends</h2>
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.
<h2>Comparing fine wine vs luxury handbags</h2>
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 <a href="https://winecap.com/wine-track/france/champagne/le-mesnil-sur-oger/salon/le-mesnil">Salon Le Mesnil-sur-Oger Grand Cru</a> has appreciated 304% over a decade, and <a href="https://winecap.com/wine-track/france/champagne/na/egly-ouriet/brut-millesime">Egly-Ouriet Brut Millésime Grand Cru</a> has seen returns of 452%. Prestigious Burgundy wine, <a href="https://winecap.com/wine-track/france/burgundy/vosne-romanee/domaine-rene-engel/vosne-romanee">Domaine René Engel Vosne-Romanée</a> 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.
<img loading="lazy" decoding="async" class="alignnone wp-image-2018" src="https://wp.winecap.com/wp-content/uploads/2024/06/Chanel-bag-375x196.jpg" alt="Chanel bag prices" width="800" height="418" srcset="https://wp.winecap.com/wp-content/uploads/2024/06/Chanel-bag-375x196.jpg 375w, https://wp.winecap.com/wp-content/uploads/2024/06/Chanel-bag-768x401.jpg 768w, https://wp.winecap.com/wp-content/uploads/2024/06/Chanel-bag.jpg 1200w" sizes="auto, (max-width: 800px) 100vw, 800px" />
<h2>Celebrity endorsements</h2>
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. <a href="https://winecap.com/wine-track">Domaine Dujac</a>, for instance, became a brand on the move (the highest riser in the 2018 <a href="https://www.liv-ex.com/">Liv-ex</a> Power 100 rankings) due to DJ Khaled’s endorsement in a music video.
<h2>Investor demographics</h2>
Another key distinction between these investment avenues lies in their typical investor demographics. According to the <a href="https://www.ft.com/content/8fe517b2-928c-4ec8-b2b6-e166cd67b181">Financial Times</a>, 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.
<h2>Risks and rewards</h2>
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

Fine wine vs luxury handbags: the investment perspective

<ul>
<li aria-level="1">Bordeaux 2023 largely met trade expectations for reduced pricing but only some releases have stood out as offering fantastic value. </li>
<li aria-level="1">Price cuts slowed towards the end of the campaign, from 27.4% average discount in week one, to 23.3% in week four.  </li>
<li aria-level="1">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.</li>
</ul>
Over the last month, our <a href="https://winecap.com/news/bordeaux-2023-en-primeur-an-overview-of-the-current-campaign">news coverage</a> centered around the ongoing Bordeaux 2023 <a href="https://winecap.com/learn/what-is-en-primeur-a-short-guide-for-wine-investors">En Primeur</a> 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. 
<h2>En Primeur 2023 – back in vogue?</h2>
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 <a href="https://winecap.com/wine-track/france/bordeaux/pauillac/chateau-lafite-rothschild/lafite-rothschild">Lafite Rothschild</a>, <a href="https://winecap.com/wine-track/france/bordeaux/pauillac/chateau-lafite-rothschild/carruades-lafite">Carruades de Lafite</a>, <a href="https://winecap.com/wine-track/france/bordeaux/pauillac/chateau-mouton-rothschild/mouton-rothschild">Mouton Rothschild</a>, <a href="https://winecap.com/wine-track/france/bordeaux/pauillac/chateau-mouton-rothschild/petit-mouton">Petit Mouton</a>, <a href="https://winecap.com/wine-track/france/bordeaux/saint-julien/chateau-beychevelle/beychevelle">Beychevelle</a>, <a href="https://winecap.com/wine-track/france/bordeaux/saint-emilion-grand-cru/chateau-cheval-blanc/cheval-blanc">Cheval Blanc</a> and <a href="https://winecap.com/wine-track/france/bordeaux/pessac-leognan/chateau-haut-brion/haut-brion">Haut-Brion</a> delivered value and were met with high demand. 
<a href="https://www.liv-ex.com/">Liv-ex</a> 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’.
<h2>The En Primeur golden rule  </h2>
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&#8217;t get anything cheaper. Generally speaking, it&#8217;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&#8217;s going to be more difficult to find and it&#8217;s going to be more expensive.’ – Pierre-Olivier Clouet, Château Cheval Blanc
<h2>The price decrease trajectory</h2>
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.
<img loading="lazy" decoding="async" class="alignnone wp-image-2010" src="https://wp.winecap.com/wp-content/uploads/2024/05/EP-Socials-LinkedInAll-1-375x196.jpg" alt="Beychevelle En Primeur 2023 Prices " width="800" height="418" srcset="https://wp.winecap.com/wp-content/uploads/2024/05/EP-Socials-LinkedInAll-1-375x196.jpg 375w, https://wp.winecap.com/wp-content/uploads/2024/05/EP-Socials-LinkedInAll-1-768x401.jpg 768w, https://wp.winecap.com/wp-content/uploads/2024/05/EP-Socials-LinkedInAll-1.jpg 1200w" sizes="auto, (max-width: 800px) 100vw, 800px" />
<h2>The Bordeaux market slowdown</h2>
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.
<img loading="lazy" decoding="async" class="alignnone wp-image-2011" src="https://wp.winecap.com/wp-content/uploads/2024/05/Bdx500-vs-Bdx50-375x246.png" alt="Bordeaux En Primeur 2023 Prices" width="800" height="525" srcset="https://wp.winecap.com/wp-content/uploads/2024/05/Bdx500-vs-Bdx50-375x246.png 375w, https://wp.winecap.com/wp-content/uploads/2024/05/Bdx500-vs-Bdx50-768x504.png 768w, https://wp.winecap.com/wp-content/uploads/2024/05/Bdx500-vs-Bdx50-1536x1008.png 1536w, https://wp.winecap.com/wp-content/uploads/2024/05/Bdx500-vs-Bdx50-2048x1344.png 2048w, https://wp.winecap.com/wp-content/uploads/2024/05/Bdx500-vs-Bdx50-1200x788.png 1200w, https://wp.winecap.com/wp-content/uploads/2024/05/Bdx500-vs-Bdx50-1980x1299.png 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
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’.
<h2>The need to adapt</h2>
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&#8217;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&#8217;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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

Château Beychevelle Bordeaux 2023 En Primeur

Bordeaux En Primeur 2023: under pressure

<a href="https://harpers.co.uk/news/fullstory.php/aid/32786/30_Under_30:_Results_2024!.html">Harpers Wine &amp; Spirit</a>&#8216;s prestigious 30 under 30 list has been unveiled, showcasing the top talents in the UK wine trade. We are delighted to announce that our Head of Content, Desislava Lyapova, has been included in the rankings. 
The publication received over 100 nominations, ‘with each prospective star deserving recognition’ for their leadership, commitment, communication, innovation, and sustainability initiatives. Jo Gilbert of Harpers noted the industry&#8217;s challenges, highlighting the importance of the passion and talent that the nominees bring to their roles.
The judging panel is comprised of esteemed industry figures such as Katy Keating (Flint Wines), Kim Wilson (North South Wines), Michael Saunders (Coterie Holdings), Miles Beale (WSTA), Rachel Webster (WSET), Regine Lee MW (Indigo Wine), and Jo Gilbert (Harpers Wine &amp; Spirit). To make the shortlist, the judges convened over two days in separate groups, with scores averaged out. 
Desislava Lyapova stood out as the only wine investment specialist on this year&#8217;s list. During her tenure at WineCap, Lyapova has significantly boosted subscriber numbers through her PR efforts and comprehensive research reports, including those focusing on wealth management in the UK and US.
<img loading="lazy" decoding="async" class="alignnone wp-image-2007" src="https://wp.winecap.com/wp-content/uploads/2024/05/Desislava-Lyapolva-harpers-wine-and-spirit-30-under-30-375x323.png" alt="Desislava Lyapova Harper's Wine and Spirit 30 under 30" width="800" height="690" srcset="https://wp.winecap.com/wp-content/uploads/2024/05/Desislava-Lyapolva-harpers-wine-and-spirit-30-under-30-375x323.png 375w, https://wp.winecap.com/wp-content/uploads/2024/05/Desislava-Lyapolva-harpers-wine-and-spirit-30-under-30-768x662.png 768w, https://wp.winecap.com/wp-content/uploads/2024/05/Desislava-Lyapolva-harpers-wine-and-spirit-30-under-30.png 982w" sizes="auto, (max-width: 800px) 100vw, 800px" />
On the announcement, Alexander Westgarth, CEO of WineCap, congratulated Lyapova on her achievement:
‘I want to give a huge congratulations to all the winners of the Harpers Wine &amp; Spirit 30 under 30, especially our very own Desislava Lyapova. 
Desi has made a transformational impact at WineCap over the past two years. I can&#8217;t imagine anyone else who could have helped us achieve what she has. We are extremely proud to have Desi as a key member of our team.’
Before joining WineCap, Lyapova honed her skills as a Senior Writer at <a href="https://www.liv-ex.com/">Liv-ex</a>, the global marketplace for the wine trade. At WineCap, she has been pivotal in shaping the editorial direction, producing our Quarterly and Regional reports, leading En Primeur campaigns, and managing freelance and in-house teams, all the while enriching the content of the <a href="https://winecap.com/learn">Academy</a> and <a href="https://winecap.com/news">News</a> sections.

Harper's Wine and Spirit 30 under 30 2024

WineCap’s Head of Content named in Harpers Wine & Spirit 30 under 30

<ul>
<li>Three weeks into the Bordeaux 2023 En Primeur campaign, we examine the pricing trends of the releases so far.</li>
<li>In many cases, the current price cuts have highlighted the steady ascent of En Primeur release pricing in recent years.</li>
<li aria-level="1">The Bordeaux 2023 vintage is characterised by diverse critic scores and some high achievers.</li>
</ul>
This year’s Bordeaux En Primeur campaign kicked off early and rapidly gained momentum. The first 2023 releases landed in the last week of April, shortly after trade professionals had returned from the region and before the publication of most critic reports.
Pricing, as always, remained a central issue. Questions arose about whether châteaux would consider the current market conditions, whether anticipated price reductions would drive interest, and ultimately, whether the Bordeaux 2023 vintage would prove a worthy investment.
Three weeks into the campaign, several major châteaux, including First Growths like Haut-Brion, Mouton Rothschild, and Lafite Rothschild, have already launched their 2023 wines.
With most critic assessments now available and pricing trends becoming clearer, we delve into the details of the campaign so far.
<h2>Noteworthy releases</h2>
Château Léoville-Las Cases&#8217; 2023 release marked a promising start to this year&#8217;s En Primeur. On April 30th, the wine was offered at a 40% discount on the previous year&#8217;s release. However, some older vintages still presented better value.
The first ‘great value’ release came from Château Lafite Rothschild in the same week. Its second wine, Carruades de Lafite, represented the lowest priced offering from the estate on the market today, playing on En Primeur’s original premise.
Similarly, Mouton Rothschild and Petit Mouton presented attractive opportunities for investors, released at 34.6% and 25.1% discounts on last year’s offerings respectively.
As a result, Liv-ex reported that both Château Lafite Rothschild 2023 and Château Mouton Rothschild 2023 have made their way onto the secondary market – although they have traded below their original release prices.
In many cases, the current price cuts have highlighted the steady ascent of En Primeur release pricing in recent years.
The average price cuts so far have been 21.5% compared to last year, with reductions ranging from 40% to none. Despite these cuts, many older vintages remain more affordable and often boast similar or better ratings, including those from 2019, 2017, and 2014.
<h2>Diverse scores and high achievers</h2>
The Bordeaux 2023 vintage has received a wide array of scores from leading critics, demonstrating a spectrum of quality across various appellations and estates.
Château Margaux consistently received high acclaim, with scores of 97-100 from both Antonio Galloni and William Kelley, and 99-100 from James Suckling. Neal Martin rated it as his second- highest wine of the vintage.
Another high achiever, Le Pin, received top marks with a perfect 100 from Peter Moser of Falstaff and 99-100 from Suckling. Château Montrose is also noteworthy, with a barrel range of 97-100 from Kelley and 99-100 from Suckling.
The critical consensus indicates a preference for wines from the Left Bank, which are noted to have fared better overall. The vintage is characterised by wines that lean towards a classic style, marked by their freshness and moderate alcohol content.
Despite the mixed nature of the vintage, there are several standout wines that show considerable promise. These wines are not only great for adding to a collection due to their potential to appreciate in value, but they also offer the kind of quality that makes them worth seeking out for those looking to enjoy fine wines in the years to come.
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

Bordeaux 2023 En Primeur: an overview of the current campaign

<ul>
<li aria-level="1">According to Jeb Dunnuck, ‘2023 is a good to very good, but not a great year for Bordeaux’.</li>
<li aria-level="1">He described most wines as ‘ripe yet not massive with more focused, linear profiles on the palate’.</li>
<li aria-level="1">Château Montrose received his highest barrel range of 97-100 points.</li>
</ul>
According to <a href="https://jebdunnuck.com/2024/05/bordeaux-2023-en-primeur/">Jeb Dunnuck</a>, ‘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. 
<h2>A heterogeneous vintage</h2>
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’.
<h2>A Left Bank vintage?</h2>
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’.
<h2>Jeb Dunnuck’s favourite Bordeaux 2023 wines</h2>
Dunnuck found potential for perfection in three wines, awarding a barrel range of up to 100 points. <a href="https://winecap.com/wine-track/france/bordeaux/saint-estephe/chateau-montrose/montrose">Château Montrose</a> 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 <a href="https://winecap.com/wine-track/france/bordeaux/margaux/chateau-margaux/margaux">Château Margaux</a> 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 <a href="https://winecap.com/wine-track/france/bordeaux/pessac-leognan/chateau-la-mission-haut-brion/mission-haut-brion">Château La Mission Haut-Brion</a>, 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’.
<img loading="lazy" decoding="async" class="alignnone wp-image-1997" src="https://wp.winecap.com/wp-content/uploads/2024/05/JD-Bdx23-375x201.png" alt="Jeb Dunnuck Bordeaux 2023" width="800" height="428" srcset="https://wp.winecap.com/wp-content/uploads/2024/05/JD-Bdx23-375x201.png 375w, https://wp.winecap.com/wp-content/uploads/2024/05/JD-Bdx23.png 736w" sizes="auto, (max-width: 800px) 100vw, 800px" />
<h2>Should you buy Bordeaux 2023 En Primeur?</h2>
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

Jeb Dunnuck on Bordeaux 2023 En Primeur

<ul>
<li>According to Neal Martin (Vinous), Bordeaux 2023 is a heterogeneous vintage riddled with paradoxes. </li>
<li>Only one wine achieved his highest score of 98-100 points – L’Eglise Clinet.</li>
<li>Martin suggested that ‘deep [price] cuts’ are needed for the campaign to work.</li>
</ul>
 Now that the En Primeur campaign has kicked off, critics have started releasing their Bordeaux 2023 in-barrel scores. <a href="https://vinous.com/articles/the-dalmatian-vintage-bordeaux-2023-apr-2024">Vinous</a> recently published Neal Martin’s assessment of this ‘Dalmatian’ vintage, characterised by ‘spots of astounding quality’ but also ‘all manner of shortcomings’ – even in some of the region’s most famous names.
<h2>Bordeaux 2023 vintage overview</h2>
‘A season riddled with paradoxes,’ Neal Martin described Bordeaux 2023 as a heterogeneous vintage. According to him, it ‘would sit uncomfortably on a mantelpiece alongside 2016, 2020 and 2022’. However, the critic acknowledged that ‘some châteaux pulled out magical wines from their top hat, surpassing those aforementioned years in one or two cases’.
The keyword that defined 2023 is ‘classicism’, meaning ‘lower alcohol levels in the 13-something range,’ without the opulence of previous vintages.
Martin further noted that ‘the 2023s are relatively more tannic than we’ve become accustomed to, more linear and vertical, though endowed with greater fruit concentration than the 2021s’. He continued: ‘The best wines embrace these traits while maintaining sufficient fruit and grip, occasionally harking back to the kind of barrel samples encountered in the early days of my career, and I mean that in a good sense’.
Overall, Martin claimed that ‘despite the disparity in quality, it cannot be denied that it is bejewelled with a clutch of spellbinding wines’.
<h2>Top-scoring Bordeaux 2023 wines</h2>
Neal Martin’s top-scoring Bordeaux 2023 wines can be seen in the table below. Only one wine achieved the maximum barrel range of 98-100 points – the 2023 L’Eglise Clinet. Martin said that ‘it’s very harmonious and fans out brilliantly on the finish’.
Three wines received a barrel range of 97-99 points: Margaux, Lafleur and Le Pin. In his tasting note, Martin called the First Growth a ‘quintessential Château Margaux’ but noted that it ‘will require ten years in bottle to really show what it is capable of’.
Regarding Lafleur, he said it was ‘one of the few profound wines this vintage’. He described Le Pin as ‘so pure and refined, it seems to embrace and gently hug the senses’.
<img loading="lazy" decoding="async" class="alignnone wp-image-1991" src="https://wp.winecap.com/wp-content/uploads/2024/05/NM-375x204.png" width="800" height="436" srcset="https://wp.winecap.com/wp-content/uploads/2024/05/NM-375x204.png 375w, https://wp.winecap.com/wp-content/uploads/2024/05/NM.png 752w" sizes="auto, (max-width: 800px) 100vw, 800px" />
<h2>En Primeur and the global market</h2>
Despite the virtues of the vintage, the question of whether it will present value is pertinent in the current economic climate. For Martin, the ‘newborn wines blink open their eyes to survey a bleak economic landscape and finger-pointing between various factions as to who’s to blame’. He said that ‘deep cuts, not gestures, are the only thing that will open wallets’.
This week&#8217;s first releases have seen discounts of up to 40% on last year. However, back vintages of similar quality that remain available for less continue to challenge the En Primeur tradition.
Stay tuned for our analysis of the best value releases.
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

Neal Martin’s top-scoring Bordeaux 2023 wines

<ul>
<li>En Primeur is a three-tier system, involving châteaux, négociants, and courtiers. </li>
<li>It allows buyers to purchase wines early, while they are still in barrel.</li>
<li>It provides an opportunity to secure allocations of highly sought-after wines that might appreciate in value when bottled.</li>
</ul>
En Primeur, also known as ‘wine futures’, is a practice rooted deeply in the traditions of the French wine market, particularly prominent in Bordeaux. This unique system allows investors and wine enthusiasts to purchase wines early, while they are still in the barrel, well before they are bottled and released on the general market. This method not only provides a fascinating glimpse into the future of wine investment but also plays a critical role in the financial ecosystem of wine production.
<h2>Historical context</h2>
The concept of En Primeur dates back over 60 years and has its origins in the post-World War II landscape. During this period, French wine producers faced significant financial challenges. To alleviate these pressures, influential wine merchants, known as négociants, began purchasing wine while it was still maturing in barrels. This arrangement allowed them to lock in supplies at a potentially lower cost and gave the châteaux much-needed cash flow to continue operations.
<h2>The En Primeur campaign</h2>
Traditionally, the En Primeur campaign kicks off in the spring following the harvest. Wine merchants and critics are invited to sample the young, unfinished wines, which are still in the process of aging. Based on these tastings, they make decisions about purchasing the wines, several years before the final product will be ready for consumption.
The price of the wines can be influenced by several factors, including the perceived quality of the latest vintage, historical brand positioning, critic scores, and market conditions. Once the wine is eventually bottled and ready, it is shipped to the buyers, typically between 18 and 24 months after the sale.
<h2>Advantages for investors</h2>
Investing in En Primeur can offer several benefits. Firstly, it provides an opportunity to secure allocations of highly sought-after wines, which might be difficult to obtain after release due to limited quantities and high demand. Moreover, purchasing wines at this early stage can be cost-effective, as prices for these wines might significantly increase by the time they reach the market, following bottling and release.
Historically, certain vintages have shown high returns. For instance, the 2008 vintage has risen 79% in value on average since release. Such potential for appreciation makes En Primeur an attractive option for investors looking to diversify their portfolios.
<h2>Risks and considerations</h2>
However, investing in En Primeur is not without risks. The market can be volatile, and there is no guarantee that purchased wines will increase in value. Recent campaigns have seen negative returns in some cases; for instance, the average price of the 2020 vintage is down 10% since release, of the 2017 – 13%. This means that the wines are now cheaper in the physical market.
Economic downturns, changes in consumer taste, and low critic scores can affect the investment&#8217;s outcome. Additionally, buyers commit capital upfront without a guarantee of the wine&#8217;s quality at bottling.
The cost of participation can also be a barrier. En Primeur often requires purchasing by the case, which can be prohibitive for smaller investors. Furthermore, there are storage costs to consider, as these wines often need to be aged further in suitable conditions before reaching their optimal drinking window, which can span from five to fifty years.
<h2>The global influence of Bordeaux En Primeur</h2>
Still, the attention that Bordeaux En Primeur commands, and on a global scale, remains unrivalled. No other region attracts the same level of hype among press and trade. This success has inspired similar practices in other wine regions worldwide, including Burgundy, the Rhône Valley, and even non-French regions such as Italy, Spain, and parts of the New World. These regions have adopted the En Primeur model to varying degrees of success, influenced by their specific market demands and the exclusivity of the wines offered.
For buyers to take fill advantage of En Primeur, keen understanding of the wine market and insight into vintage variations is required. As with any investment, potential investors should perform due diligence, consulting with experts and considering their financial position and investment strategy.
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

What is En Primeur? A short guide for wine investors

<ul>
<li>The first Bordeaux 2023 En Primeur releases are expected next week.</li>
<li>According to early reports, 2023 is a heterogeneous vintage shaped by climate extremes.</li>
<li>The market expects lower release prices that last year, given the broader economic context.</li>
</ul>
The trade is now in Bordeaux tasting the 2023 vintage En Primeur, and the first releases are expected already next week. The campaign is set to be fast-paced and shorter than usual, and the price forecasts suggest discounts of up to 30% year-on-year.
The vintage is shaping up to be one of measured optimism, tempered by both climate challenges and shifting market dynamics. In the following paragraphs, we delve into what we know so far in terms of quality, volumes and the broader context of Bordeaux 2023 in the global wine market.
<h2>A year of extremes</h2>
Weather patterns play a significant role in defining a vintage&#8217;s potential. According to Bordeaux correspondent Colin Hay for the <a href="https://www.thedrinksbusiness.com/2024/04/bordeaux-2023-vintage-part-i-quality-and-quantity-together-for-once/">Drinks Business</a>, 2023 was marked by uneven climatic conditions, with a particularly challenging start due to persistent rain and mildew threats. However, a shift in the latter half of the season brought drier, warmer conditions, providing a much-needed respite, and aiding in the maturation process. This dual phase growing season has resulted in a heterogeneous vintage that, while not exceptional, holds the promise of producing some truly outstanding wines.
Gavin Quinney&#8217;s comprehensive harvest report further underscores the impact of the weather, noting that despite the high mildew pressure similar to 2018, the consistent warmth towards the end of the season slightly tipped the scale towards better quality. The blend of early challenges and a fortuitous Indian summer echoes the sentiments of resilience and cautious optimism.
<h2>Bordeaux 2023 &#8211; quality and quantity</h2>
Major critics are yet to release their quality assessments after tasting in Bordeaux this month. Initial harvest reports suggest that 2023 is a good but not great year that may fall behind 2016, 2018, 2019 and 2020, but above 2017 and 2021 in terms of quality.
<a href="https://www.liv-ex.com/2024/04/bordeaux-2023-weather-crop-report/">Gavin Quinney</a> wrote that ‘everything points to what might be called a ‘classic’ Bordeaux vintage, one where the better wines show fruit and finesse over structure, richness and power’. He further noted that 2023 was ‘a year for fraîcheur (freshness) and équilibre (balance), brought about by terroir, gentle extraction, slightly lower alcohol and bright acidity’.
However, the varied impact of climate conditions has led to heterogeneity in grape quality, particularly between those estates that successfully managed mildew and those that did not.
When it comes to volumes, the overall production in 2023 was 384 million litres, below 2022 (411) and slightly above 2021 (377). However, this is considerably lower than the annual average of 487 million litres of the previous decade (2011-2020).
And while yields for the most prestigious appellations were comparatively generous, the volume of wine that may come to the market En Primeur might not be. Liv-ex noted that ‘many estates are reducing the amount of wine offered En Primeur in favour of drip-feeding the market with more mature vintages’. The average stock reduction in the already low-quantity 2021 vintage, for instance, was 30%.
<h2>The Bordeaux market and the role of En Primeur</h2>
The Bordeaux market has witnessed significant fluctuations over the past few years. The Liv-ex Bordeaux 500 index is down 13.8% in the past year, with many collectible wines seeing even sharper declines.
This trend underscores a shifting landscape where Bordeaux, despite maintaining a large share of the fine wine market, now competes more directly with other prestigious regions like Burgundy and the Napa Valley.
With the unfolding En Primeur tastings, the system itself faces scrutiny. Historically, En Primeur has offered an advantageous opportunity for all involved. While this system has benefited from ensuring early cash flow for producers and allowing buyers to secure potentially valuable wines at favourable prices, recent trends show a misalignment in pricing strategies. Recent back vintages are often available in the market at prices equal to or lower than release, raising questions about the future of the system.
<h2>Bordeaux 2023 &#8211; pricing and investment potential</h2>
Given the backdrop of a declining market and the historical data suggesting that many wines do not immediately appreciate in value post-release, pricing will be a crucial factor for the 2023 vintage. Industry insiders and potential investors will be looking closely at how châteaux price their offerings, seeking a balance between fair value and market dynamics. The hope is that producers will heed the market&#8217;s call for more reasonable pricing to reinvigorate interest in En Primeur purchases.
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

Bordeaux 2023: navigating climate challenges and market realities

Our Q1 2024 Fine Wine Report has now been released. The report offers a comprehensive overview of the fine wine market in the last quarter, including the impact of interest rates and geopolitical risks, the best-performing wines and regions, and analysis on the rising popularity of non-vintage Champagne as an investment.
Report highlights: 
<ul>
<li>Mainstream markets rallied in Q1 2024, driven by resilient economic growth and expectations for future interest rate cuts by central banks.</li>
<li>The first green shoots started to appear in the fine wine market towards the end of Q1.</li>
<li>Fine wine prices (Liv-ex 100 index) experienced a smaller decline of 1% in Q1, compared to a fall of 4.2% in Q4 2023.</li>
<li>Italian wine enjoyed rising demand amid a flurry of new releases, including the 100-point Sassicaia 2021.</li>
<li>A number of Champagne labels that experienced consistent declines last year have started to recover, including Dom Pérignon, Salon Le Mesnil, and Pol Roger.</li>
<li>The Burgundy 2022 En Primeur campaign delivered high quality and quantity, with about 10% of producers reducing pricing year-on-year due to the challenging market environment.</li>
<li>China lifted tariffs on Australian wine after more than three years.</li>
<li>Critics and trade are now preparing for the 2023 Bordeaux En Primeur campaign, which will dominate the news in Q2 2024.</li>
</ul>
Click below to download your free copy of our quarterly investment report.

Q1 2024 Fine Wine Report

The following article is an extract from our Q1 2024 Fine Wine Report which will be published in full later this week.
<ul>
<li>The industry benchmark Liv-ex 100 index fell 1% in Q1 2024, a milder decline than the 4.2% dip at the end of last year.</li>
<li>Bond and equity markets rallied in anticipation of interest rate cuts by major central banks.</li>
<li>Over the past twenty years, the Liv-ex 1000’s most significant year-on-year dip was only 15%, less severe than that of major stock indices like the S&amp;P 500 (-45%).</li>
</ul>
After a challenging start to the year, the global economy is showing signs of resilience and potential growth. As we moved past the first quarter of 2024, both bond and equity markets rallied in anticipation of interest rate cuts by major central banks. Notably, sectors like the fine wine market are <a href="https://winecap.com/learn/how-could-2024s-interest-rates-impact-fine-wine/">expected to benefit from these shifts</a>, although the impact has not yet materialised.
<h2>The fine wine market in Q1 2024</h2>
The industry benchmark, Liv-ex 100 index, saw a modest decline of 1% in Q1 2024, an improvement from the 4.2% dip observed at the end of the previous year. This index experienced a slight drop of 0.3% in January and 1.1% in February but recovered in March with a 0.4% increase, marking its first rise in twelve months. Influential movers included Promontory and Dominus from Napa Valley, Super Tuscan Sassicaia, and Clos des Papes Châteauneuf-du-Pape. Despite this recovery, the fine wine market&#8217;s performance still lags behind mainstream financial markets.
<h2>Comparing mainstream markets</h2>
Mainstream indices such as the Nikkei 225 and the S&amp;P 500 have shown remarkable strength over the past year. Their annual growth from March 2023 to March 2024 ranks in the top 10% of year-on-year periods this century.
However, bond and equity markets experienced heightened volatility at the beginning of the year, due to geopolitical risks like the Middle East conflict and ongoing uncertainty around interest rates. This confluence of factors boosted the safe-haven asset Gold which has extended its run on <a href="https://www.reuters.com/markets/commodities/gold-hovers-near-record-high-market-focus-turns-us-data-fed-minutes-2024-04-09/">buying momentum</a>.
<img loading="lazy" decoding="async" class="alignnone wp-image-1973" src="https://wp.winecap.com/wp-content/uploads/2024/04/Chart-1-375x201.png" alt="Liv-ex 100 vs mainstream markets and Gold" width="800" height="430" srcset="https://wp.winecap.com/wp-content/uploads/2024/04/Chart-1-375x201.png 375w, https://wp.winecap.com/wp-content/uploads/2024/04/Chart-1-768x412.png 768w, https://wp.winecap.com/wp-content/uploads/2024/04/Chart-1-1536x825.png 1536w, https://wp.winecap.com/wp-content/uploads/2024/04/Chart-1-2048x1100.png 2048w, https://wp.winecap.com/wp-content/uploads/2024/04/Chart-1-1200x644.png 1200w, https://wp.winecap.com/wp-content/uploads/2024/04/Chart-1-1980x1063.png 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
<h2>A decade of the Liv-ex 1000 index</h2>
Celebrating ten years since its official launch in January 2014, the Liv-ex 1000 index provides two decades of insight into fine wine prices, encompassing a wide range of regions including Bordeaux, Burgundy, Champagne, the Rhône, Italy, and the rest of the world (Spain, Portugal, the USA, and Australia).
Over the past twenty years, while the Liv-ex 1000 has seen 64 year-on-year declines, its most significant drop was only 15%, considerably less severe than that of major stock indices like the S&amp;P 500, which once fell by 45%.
On the upside, the Liv-ex 1000&#8217;s best annual performance showed gains of 38%, comparable to those of major indices like the FTSE 100 and the Dow Jones, and its average growth rate of 8.4% is higher than many mainstream markets, only trailing behind the S&amp;P 500.
<img loading="lazy" decoding="async" class="alignnone wp-image-1974" src="https://wp.winecap.com/wp-content/uploads/2024/04/Performance-of-different-indices-375x120.png" alt="Liv-ex 1000 vs mainstream markets" width="800" height="256" srcset="https://wp.winecap.com/wp-content/uploads/2024/04/Performance-of-different-indices-375x120.png 375w, https://wp.winecap.com/wp-content/uploads/2024/04/Performance-of-different-indices-768x245.png 768w, https://wp.winecap.com/wp-content/uploads/2024/04/Performance-of-different-indices.png 1130w" sizes="auto, (max-width: 800px) 100vw, 800px" />
As the global markets navigate through turbulent waters, the nuanced performance of the fine wine sector, detailed in our comprehensive Q1 2024 report, continues to offer valuable perspectives on both the challenges and opportunities that lie ahead.
Stay tuned for the full report later this week. 
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

Fine wine market trends amid economic shifts in Q1 2024

<ul>
<li>The average First Growth case price is £5,300, while second wines come in at £1,941.</li>
<li>Le Clarence de Haut-Brion is the most affordable second wine.</li>
<li>Le Petit Mouton has been the best performer over the last decade.</li>
</ul>
Following our <a href="https://winecap.com/news/which-bordeaux-first-growth-has-the-lowest-price-per-point">article last week</a>, which examined the performance and value of the Bordeaux First Growths, we take a look at the data behind their second wines.
<h2>What are second wines?</h2>
Most Bordeaux châteaux produce more than one wine each vintage, and some might make three or four. Each château’s second wine draws on the expertise and knowledge that goes into the Grand Vin. Generally, second wines are made with fruit from younger vines, or vines and parcels that are not quite up to the quality of the Grand Vin in any given year.
However, they are often produced using grapes from the same vineyards as the flagship wines, receiving the same technical treatment in both vineyard and winery. Considerably less expensive than their siblings,  second wines represent a particularly attractive and accessible option for investors.
<h2>Second wines – at what price?</h2>
<img loading="lazy" decoding="async" class="alignnone wp-image-1964" src="https://wp.winecap.com/wp-content/uploads/2024/04/SW-POP-table-375x94.png" alt="Second wines prices and scores" width="800" height="199" srcset="https://wp.winecap.com/wp-content/uploads/2024/04/SW-POP-table-375x94.png 375w, https://wp.winecap.com/wp-content/uploads/2024/04/SW-POP-table-768x192.png 768w, https://wp.winecap.com/wp-content/uploads/2024/04/SW-POP-table.png 1191w" sizes="auto, (max-width: 800px) 100vw, 800px" />
White the average First Growth case price is £5,300, second wines come in at less than half the price (£1,941).
Interestingly, prices of the first and the second wine are not always rising in unison. For instance, Château Latour is the second most expensive Grand Vin after Château Lafite Rothschild. <a href="https://winecap.com/wine-track/france/bordeaux/pauillac/chateau-latour/forts-latour">Les Forts de Latour</a>, however, sits directly in the middle, with <a href="https://winecap.com/wine-track/france/bordeaux/pauillac/chateau-mouton-rothschild/petit-mouton">Le Petit Mouton</a> and <a href="https://winecap.com/wine-track/france/bordeaux/pauillac/chateau-lafite-rothschild/carruades-lafite">Carruades de Lafite</a> being pricier.
When it comes to value for money, Le Clarence de Haut-Brion has the lowest price per point of £16, similar to its Grand Vin. As examined last week, Château Haut-Brion is the most affordable of the First Growths, while also boasting the highest average Wine Track score. Yet while Le Clarence is also the most affordable of the second wines, its Wine Track score is lower.
But looking purely at scores is not the best indicator of value when it comes to the second wines. Second wines differ from the Grand Vins, as the dominant relationship is between price and age, not price and quality. As time passes, their value rises, following the traditional wine investment dynamic.
Moreover, this group of wines is often bought by collectors and investors as they present access to a brand. Though suitable for aging, these wines are built for earlier consumption, offering an alternative to opening bottles of the Grand Vin as soon as they are delivered.
<h2>Performance of the second wines</h2>
In the last decade, Le Petit Mouton de Mouton Rothschild has been the best-performing second wine, up 111.9%.
The most affordable, Le Clarence de Haut-Brion, has delivered the second-best returns of 76.2%. It has been followed by Carruades de Lafite (64.7%) and <a href="https://winecap.com/wine-track/france/bordeaux/margaux/chateau-margaux/pavillon-rouge">Pavillon Rouge</a> (63.1%).
<img loading="lazy" decoding="async" class="alignnone wp-image-1966" src="https://wp.winecap.com/wp-content/uploads/2024/04/SW-performance-1-375x254.png" alt="Second wines performance" width="800" height="542" srcset="https://wp.winecap.com/wp-content/uploads/2024/04/SW-performance-1-375x254.png 375w, https://wp.winecap.com/wp-content/uploads/2024/04/SW-performance-1-768x520.png 768w, https://wp.winecap.com/wp-content/uploads/2024/04/SW-performance-1-1536x1040.png 1536w, https://wp.winecap.com/wp-content/uploads/2024/04/SW-performance-1-2048x1387.png 2048w, https://wp.winecap.com/wp-content/uploads/2024/04/SW-performance-1-1200x813.png 1200w, https://wp.winecap.com/wp-content/uploads/2024/04/SW-performance-1-1980x1341.png 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

Finding value in the Bordeaux second wines

The following article is an extract from our <a href="https://winecap.com/learn/burgundy-regional-report">Burgundy regional wine investment report</a>.
<ul>
<li>Burgundy is the region with the highest average bottle prices.</li>
<li>It is the best-performing fine wine region, considerably outperforming industry benchmarks. </li>
<li>This article analyses its historic performance, the drivers behind its success, and what this might meant for the future of the region.</li>
</ul>
Burgundy has earned an impressive reputation in the fine wine investment landscape. The region is the outright leader when it comes to average bottle prices and the long-term performance of its wines.
The Burgundy 150 index, which tracks the prices of the last ten vintages across 15 Burgundy brands, is the leading Liv-ex regional index, continually outperforming Bordeaux, Italy and Champagne. It is up over 650% since its inception.
Although the index only comprises a narrow pool of highly traded wines, it provides an indication of the direction of Burgundy prices. During its impressive rise, the index experienced only one significant drop of 15%, giving investors confidence that its punctuated equilibrium will continue.
<img loading="lazy" decoding="async" class="alignnone wp-image-1958" src="https://wp.winecap.com/wp-content/uploads/2024/04/Liv-ex-100-and-Liv-ex-1000-vs-Burgundy-150-375x230.png" width="800" height="490" srcset="https://wp.winecap.com/wp-content/uploads/2024/04/Liv-ex-100-and-Liv-ex-1000-vs-Burgundy-150-375x230.png 375w, https://wp.winecap.com/wp-content/uploads/2024/04/Liv-ex-100-and-Liv-ex-1000-vs-Burgundy-150-768x470.png 768w, https://wp.winecap.com/wp-content/uploads/2024/04/Liv-ex-100-and-Liv-ex-1000-vs-Burgundy-150-1536x940.png 1536w, https://wp.winecap.com/wp-content/uploads/2024/04/Liv-ex-100-and-Liv-ex-1000-vs-Burgundy-150-2048x1254.png 2048w, https://wp.winecap.com/wp-content/uploads/2024/04/Liv-ex-100-and-Liv-ex-1000-vs-Burgundy-150-1200x735.png 1200w, https://wp.winecap.com/wp-content/uploads/2024/04/Liv-ex-100-and-Liv-ex-1000-vs-Burgundy-150-1980x1212.png 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
<h2>Historic performance of Burgundy prices</h2>
The Liv-ex Burgundy 150 index doubled from early 2006 to mid/late 2008 — the first awakening of the Burgundy market as a new generation of wealthy consumers started to dominate the collectors’ market. This was at least in part driven by the volume of information available to them online from reviewers like Robert Parker and Allen Meadows and a greater focus on fine wine from the major auction houses.
After the 2008 financial crisis, Burgundy was somewhat left in the shadow. With the opening of the Chinese market, Bordeaux grew massively between 2008 and 2011. When Bordeaux fell from its 2011 peak, a new generation of investors flocked to Burgundy, seeking growth and breadth to their holdings.
From 2016 to late-2018, the value of the Burgundy 150 index doubled again. This can be attributed to growing liquidity in the sector and its recognition as a viable high-return investment. The region experienced a period of decline in 2019/2020, after a 15-year period without any significant downward movements. Some of this retreat has been related to profit taking and, later on, to the Covid-19 pandemic. Burgundy quickly made up for lost time in 2021 and 2022, with factors such as increased at-home consumption of fine wine, growing online trade, and rising liquidity contributing to its success. The index hit an all-time high in October 2022 at 909.4.
The market at large experienced another period of contraction in 2023, due to a combination of macroeconomic factors such as geopolitical conflicts, the lasting effects of the pandemic, high inflation and rising interest rates. Burgundy was the hardest hit region.
However, the overall direction of prices remains upwards as the trendline in the chart below shows. Such periods are advantageous times for Burgundy buyers who are usually able to find more stock at lower prices.
<img loading="lazy" decoding="async" class="alignnone wp-image-1959" src="https://wp.winecap.com/wp-content/uploads/2024/04/Burgundy-150-and-price-trendline-375x243.png" alt="Burgundy 150 and price trendlines" width="800" height="519" srcset="https://wp.winecap.com/wp-content/uploads/2024/04/Burgundy-150-and-price-trendline-375x243.png 375w, https://wp.winecap.com/wp-content/uploads/2024/04/Burgundy-150-and-price-trendline-768x498.png 768w, https://wp.winecap.com/wp-content/uploads/2024/04/Burgundy-150-and-price-trendline-1536x996.png 1536w, https://wp.winecap.com/wp-content/uploads/2024/04/Burgundy-150-and-price-trendline-2048x1328.png 2048w, https://wp.winecap.com/wp-content/uploads/2024/04/Burgundy-150-and-price-trendline-1200x778.png 1200w, https://wp.winecap.com/wp-content/uploads/2024/04/Burgundy-150-and-price-trendline-1980x1284.png 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
To find out more about the investment market for Burgundy wines, <a href="https://winecap.com/learn/burgundy-regional-report">read the full report here</a>.

History of Burgundy’s price performance

<ul>
<li>The price-per-point metric allows for a comparison of wines based on their market price and perceived quality.</li>
<li>This article examines the prices per point of the most liquid group of wines – the Bordeaux First Growths.</li>
<li>It also looks at their historic market performances.</li>
</ul>
Price per point is an indicator of value; it is calculated by dividing the average case price of a given wine by its average critic score. For some wines, prices and points line up. Typically, a 100-point wine will cost more than a 95-point one, though not always. The price-per-point metric allows for a comparison of wines based on both their market price and perceived quality, offering a nuanced view of their value.
Today we examine the price-per-point ratios of the most liquid and popular group of wines – the Bordeaux First Growths. Which Grand Vin has the lowest price per point and thus offers the best value as a brand?
<h2>First Growths – price per point</h2>
An average case price of £4,429 makes <a href="https://winecap.com/wine-track/france/bordeaux/pessac-leognan/chateau-haut-brion/haut-brion">Château Haut-Brion</a> the most affordable of the First Growths. Meanwhile, it has the highest average <a href="https://winecap.com/wine-track">Wine Track score</a> of 95.9 points. While there is divergence in prices and scores on a vintage-specific level, Château Haut-Brion has the lowest price per point among the First Growths overall.
<img loading="lazy" decoding="async" class="alignnone wp-image-1952" src="https://wp.winecap.com/wp-content/uploads/2024/04/Table-375x106.png" alt="First Growths average prices and scores" width="800" height="227" srcset="https://wp.winecap.com/wp-content/uploads/2024/04/Table-375x106.png 375w, https://wp.winecap.com/wp-content/uploads/2024/04/Table-768x218.png 768w, https://wp.winecap.com/wp-content/uploads/2024/04/Table.png 1120w" sizes="auto, (max-width: 800px) 100vw, 800px" />
At the other end of the spectrum, <a href="https://winecap.com/wine-track/france/bordeaux/pauillac/chateau-lafite-rothschild/lafite-rothschild">Château Lafite Rothschild</a> has the highest price per point of £64, owing to the highest average case price of £6,129 and a Wine Track score of 95.8.
<h2>What does this mean for the wines’ performance?</h2>
Historically, the First Growths have followed a similar trajectory of highs and lows. They all peaked during the China-led bull market (H1 2011) and experienced a subsequent downfall. Prices started to rise again following the Brexit referendum and have since largely maintained their level. They have fallen in the last year in line with the broader market (the <a href="https://www.liv-ex.com/news-insights/indices/">Liv-ex 50</a> which tracks the First Growths is down 15.3% over one year – the same as the broadest measure, the Liv-ex 1000 index).
<img loading="lazy" decoding="async" class="alignnone wp-image-1953" src="https://wp.winecap.com/wp-content/uploads/2024/04/Chart-375x254.png" alt="First Growths performance" width="800" height="542" srcset="https://wp.winecap.com/wp-content/uploads/2024/04/Chart-375x254.png 375w, https://wp.winecap.com/wp-content/uploads/2024/04/Chart-768x520.png 768w, https://wp.winecap.com/wp-content/uploads/2024/04/Chart-1536x1040.png 1536w, https://wp.winecap.com/wp-content/uploads/2024/04/Chart-2048x1387.png 2048w, https://wp.winecap.com/wp-content/uploads/2024/04/Chart-1200x813.png 1200w, https://wp.winecap.com/wp-content/uploads/2024/04/Chart-1980x1341.png 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
Of the five First Growths, Lafite has risen the most, with our index peaking in February 2011. Recently, however, it has been the biggest faller, dipping 19% in the last year. Haut-Brion, which has been a more modest performer without delivering the same heights, has dipped the least of the First Growths (10%) during the same period. With a more stable market performance, Haut-Brion offers further opportunities for investors and collectors where the price per point remains comparatively low.
<h2>Wines that offer value perform the best</h2>
In the case of Haut-Brion, value plays an important role in market performance. POP wines (those with a lower price per point) have outperformed the rest over 15 years. These include vintages 2002, 2004, 2006, 2007, 2008, 2011, 2012, 2013, 2014, 2017 and 2019 (the only prime vintage among the POP wines).
The second-best-performing index comprises older ‘prime’ vintages – wines with high scores pre-2000. However, this index has shown higher volatility due to the limited availability and trading volumes of these wines.
The index comprising younger ‘on’ vintages like 2015, 2016, 2018 and 2020 has underperformed the rest of the pack. However, these wines have also had less time in the market and their evolution is yet to be seen.
<img loading="lazy" decoding="async" class="alignnone wp-image-1954" src="https://wp.winecap.com/wp-content/uploads/2024/04/Haut-Brion-vintage-performance-375x254.png" alt="Haut-Brion vintage performance" width="800" height="542" srcset="https://wp.winecap.com/wp-content/uploads/2024/04/Haut-Brion-vintage-performance-375x254.png 375w, https://wp.winecap.com/wp-content/uploads/2024/04/Haut-Brion-vintage-performance-768x520.png 768w, https://wp.winecap.com/wp-content/uploads/2024/04/Haut-Brion-vintage-performance-1536x1040.png 1536w, https://wp.winecap.com/wp-content/uploads/2024/04/Haut-Brion-vintage-performance-2048x1387.png 2048w, https://wp.winecap.com/wp-content/uploads/2024/04/Haut-Brion-vintage-performance-1200x813.png 1200w, https://wp.winecap.com/wp-content/uploads/2024/04/Haut-Brion-vintage-performance-1980x1341.png 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
In conclusion, looking at price per point gives an indication of value and quality. However, historic market performance is telling for investors looking for stability or higher risk and potentially higher rewards.
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

Which Bordeaux First Growth has the lowest price per point?

<ul>
<li>Champagne has enjoyed rising popularity as an investment in recent years, which has been reflected in its price performance.</li>
<li>The Liv-ex Champagne 50 index has considerably outperformed industry benchmarks.</li>
<li>While quality is important, brands and age are the most significant drivers behind its performance.</li>
</ul>
Champagne has enjoyed rising popularity as an investment in recent years, which has been reflected in its price performance. The Liv-ex Champagne 50 index, which tracks some of the most sought-after wines including Krug Vintage Brut, Bollinger La Grande Année, Dom Pérignon, Louis Roederer Cristal, and Taittinger Comtes de Champagne among others, has significantly outperformed global benchmarks. Over the last decade, the Champagne 50 index is up 108.9%, compared to 41.4% for the Liv-ex 100 and 64.3% for the broader Liv-ex 1000 index.
These numbers clearly demonstrate that Champagne is a smart addition to any diversified investment portfolio and should no longer be considered just a celebratory indulgence.
<h2>Champagne’s price performance</h2>
Much of Champagne’s remarkable performance happened between mid-2020 and the end of 2022, when the index appreciated 90.9% (May 2020 – October 2022). This period was marked by great uncertainty, from the Covid-19 pandemic, through war in Ukraine, rising inflation and recession. As the ultimate ‘luxury good’ in the fine wine market, Champagne performed particularly well and its rising prices did little to temper demand.
Since then, prices have calmed but demand remains strong. Champagne dominated the list of the top-traded wines on <a href="https://www.liv-ex.com/">Liv-ex</a> in 2023, with Louis Roederer Cristal 2015 leading the value rankings, and Dom Pérignon 2013 – by volume.
<img loading="lazy" decoding="async" class="alignnone wp-image-1948" src="https://wp.winecap.com/wp-content/uploads/2024/03/Champagne-375x249.png" alt="Champagne vs fine wine indices" width="800" height="532" srcset="https://wp.winecap.com/wp-content/uploads/2024/03/Champagne-375x249.png 375w, https://wp.winecap.com/wp-content/uploads/2024/03/Champagne-768x510.png 768w, https://wp.winecap.com/wp-content/uploads/2024/03/Champagne-1536x1021.png 1536w, https://wp.winecap.com/wp-content/uploads/2024/03/Champagne-2048x1361.png 2048w, https://wp.winecap.com/wp-content/uploads/2024/03/Champagne-1200x797.png 1200w, https://wp.winecap.com/wp-content/uploads/2024/03/Champagne-1980x1316.png 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
<h2>Supply and demand dynamics</h2>
Demand for Champagne has led to increases in its overall production from 50 million bottles in the 1970s to over 300 million today. Of these, Moët &amp; Chandon contributes over 30 million bottles per year, making it the world&#8217;s largest Champagne producer.
Despite relatively healthy production volumes, the availability of vintage Champagne is limited (due to its staggering consumption market, which includes hospitality and entertainment industry buyers). This further enhances its desirability as an investment.
As it ages, its quality improves; as it is consumed, its supply decreases. This dynamic brings about an inverse supply curve – the ideal scenario for investors.
Smaller initial costs are another positive, as Champagne offers both new and experienced investors relative affordability. Although prices have moved considerably in recent years, the average case of top Champagne costs less than a case of the top wines of Bordeaux, Burgundy, California or Italy. Meanwhile, the region offers better returns.
<h2>What makes Champagne investment unique</h2>
The fine wine market has long been influenced by major critics. While critics do play a part in the evolution of Champagne prices, brands and age have proven to be more significant performance drivers.
Champagne houses that have an established and historically proven identity are already ahead of the game; however, endorsements from sources such as royal weddings, celebrities and high-visibility restaurants have paved the way for emerging cuvées.
Champagne is a more direct market than ones like Bordeaux as there are no négociants; the structure in Champagne is such that over 90% of producers are now also distributors.
Thanks to its artisanal qualities, ‘grower Champagne’ is a newly expanding sector (small estates where the brand identity is centred around the vigneron themselves). Leading this group are the likes of Jacques Selosse, Egly-Ouriet and Ulysse Collin.
An added benefit to Champagne’s appeal is its drinkability. If an investor simply cannot resist popping the cork, Champagne can be readily consumed much earlier than premium investment wines, further diminishing supply and driving prices up.
To find out more about the investment market for Champagne, <a href="https://winecap.com/learn/champagne-report">read the full report here</a>.

Inside Champagne’s wine investment market

<ul>
<li>Neal Martin recently reviewed Bordeaux 2014 ten years on.</li>
<li>The critic noted that many of the wines have evolved faster than expected.</li>
<li>He declared it a Left Bank vintage and gave his highest score to Mouton Rothschild.</li>
</ul>
<a href="https://vinous.com/articles/test-of-endurance-bordeaux-2014-ten-years-on-mar-2024">Vinous</a> recently published Neal Martin’s assessment of Bordeaux 2014 following two consecutive tastings, including the annual Southwold 10-years-on event.
Martin’s overall impression was that the wines were ‘more unpredictable than other vintages’, and ones to ‘approach with modest expectations’. For him, many of them deserve drinking in the near future, but some are yet to deliver more.
On the question of Left vs Right Bank, the critic noted that the Left Bank has proven to be more consistent. When it comes to best-performing appellations, his pick was Saint-Julien.
<h2>Bordeaux 2014 ageing potential</h2>
Ten years on, the 2014 vintage has ‘evolved faster than envisaged’, according to Martin. The critic said that ‘it twinkled brightly in its youth, but many of its alumni were not predisposed toward longevity’. He further noted that ‘it certainly lacks the legs of, say, 2010 or 2016, perhaps even 2012 or 2017’.
Martin singled out wines that still have a life ahead of them and will be ‘intriguing to revisit at 15 years’, including Léoville Poyferré, Mouton Rothschild, Lafleur and Grand-Puy-Lacoste.
<h2>Favourite wines</h2>
For Martin, the wines that have ‘much more to offer’ and sit ‘up the hierarchy’ were Cheval Blanc, Figeac, Ausone and Pavie. ‘L’Eglise-Clinet, Lafleur and in particular, Vieux Château Certan, excel over in Pomerol, likewise Petrus and Clos l’Eglise,’ the critic added.
However, he warned that ‘none of the aforementioned ranks among their best wines’.
A personal favourite from Pessac-Léognan was Domaine de Chevalier. He also liked Pape-Clément and Haut-Bailly. His top-scoring wines can be seen in the table below.
<img loading="lazy" decoding="async" class="alignnone wp-image-1943" src="https://wp.winecap.com/wp-content/uploads/2024/03/Bdx-14-NM-375x150.png" alt="Neal Martin's top-scoring Bordeaux 2014 wines" width="800" height="320" srcset="https://wp.winecap.com/wp-content/uploads/2024/03/Bdx-14-NM-375x150.png 375w, https://wp.winecap.com/wp-content/uploads/2024/03/Bdx-14-NM-768x307.png 768w, https://wp.winecap.com/wp-content/uploads/2024/03/Bdx-14-NM.png 1006w" sizes="auto, (max-width: 800px) 100vw, 800px" />
Mouton Rothschild received the highest score of 97 points. Martin argued that it was ‘contender for wine of the vintage’ and ‘one of a handful of wines that transcends the limitations of the season, partly due to the skills of former winemaker Philippe Dhalluin’.
The critic also said that ‘the 2014 Grand-Puy-Lacoste is outstanding and performed neck-and-neck with the First Growths’.
<h2>Bordeaux 2014 – performance since release</h2>
While the vintage may not sit up with the very best like 2010 or 2016, many of the wines offer relative value and a lower-than-average entry point into Bordeaux’s top brands.
Moreover, some have delivered handsome returns since release. Beyond the obvious performers of <a href="https://winecap.com/wine-track/france/bordeaux/pauillac/chateau-lafite-rothschild/carruades-lafite">Carruades de Lafite</a> (208.3%) and <a href="https://winecap.com/wine-track/france/bordeaux/pauillac/chateau-mouton-rothschild/petit-mouton">Petit Mouton</a> (173.1%) and wines like <a href="https://winecap.com/wine-track/france/bordeaux/saint-emilion-grand-cru/chateau-figeac/figeac">Figeac</a> (164.5%) which have benefited from changing classification, there is considerable growth to be found in some 2014s. For instance, <a href="https://winecap.com/wine-track/france/bordeaux/saint-julien/chateau-beychevelle/beychevelle">Beychevelle</a> has risen 165.4%, <a href="https://winecap.com/wine-track/france/bordeaux/saint-estephe/chateau-calon-segur/calon-segur">Calon Ségur</a> – 113.4%, <a href="https://winecap.com/wine-track/france/bordeaux/pomerol/chateau-la-conseillante/conseillante">La Conseillante</a> – 93.0%, and <a href="https://winecap.com/wine-track/france/bordeaux/saint-emilion-grand-cru/chateau-canon-la-gaffeliere/canon-gaffeliere">Canon-La Gaffelière</a> – 80.3%. To see overall brand performances, visit <a href="https://winecap.com/wine-track">Wine Track</a>.
<img loading="lazy" decoding="async" class="alignnone wp-image-1944" src="https://wp.winecap.com/wp-content/uploads/2024/03/Bdx-14-wines-performance-375x238.png" alt="Bordeaux 2014 performance since release" width="800" height="508" srcset="https://wp.winecap.com/wp-content/uploads/2024/03/Bdx-14-wines-performance-375x238.png 375w, https://wp.winecap.com/wp-content/uploads/2024/03/Bdx-14-wines-performance-768x488.png 768w, https://wp.winecap.com/wp-content/uploads/2024/03/Bdx-14-wines-performance-1536x975.png 1536w, https://wp.winecap.com/wp-content/uploads/2024/03/Bdx-14-wines-performance-2048x1300.png 2048w, https://wp.winecap.com/wp-content/uploads/2024/03/Bdx-14-wines-performance-1200x762.png 1200w, https://wp.winecap.com/wp-content/uploads/2024/03/Bdx-14-wines-performance-1980x1257.png 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

Ten years on: Neal Martin reviews Bordeaux 2014

The following article is an extract from our <a href="https://winecap.com/learn/united-states-regional-report">USA regional wine investment report</a>. 
<ul>
<li>Today, the USA is one of the key fine wine investment regions.</li>
<li>Its share of secondary market trade has risen from 0.1% in 2010 to around 8% this year.</li>
<li>Demand has been stimulated by a string of good vintages in the past decade, high critic scores, and expanding distribution.</li>
</ul>
Today, the USA is one of the key fine wine investment regions. Its share of secondary market trade has risen from 0.1% in 2010 to about 8% this year, and an increasing number of previously overlooked wineries are now showing investment-worthy returns.
<h2>Inside the USA’s investment market</h2>
California has long been the driver behind the USA’s ever-growing presence in the fine wine investment landscape, accounting for roughly 99% of the country’s secondary market trade. Buying demand has been largely UK and US-driven and centred around the top names: <a href="https://winecap.com/wine-track/united-states/california/oakville/screaming-eagle/cabernet-sauvignon">Screaming Eagle</a>, <a href="https://winecap.com/wine-track/united-states/california/napa-valley/opus-one/opus-one">Opus One</a>, <a href="https://winecap.com/wine-track/united-states/california/napa-valley/dominus/dominus">Dominus</a>, <a href="https://winecap.com/wine-track/united-states/california/napa-valley/harlan-estate/harlan-estate">Harlan Estate</a>, <a href="https://winecap.com/wine-track/united-states/california/napa-valley/promontory/promontory">Promontory</a>, and <a href="https://winecap.com/wine-track/united-states/california/rutherford/scarecrow/cabernet-sauvignon">Scarecrow</a>.
<h2>Price differentials</h2>
California is the second-most-expensive fine wine region after Burgundy, based on the average price of its leading estates. However, there are big differences in pricing between the region’s top names.
At the time of writing, the average case price of <a href="https://winecap.com/wine-track/united-states/california/oakville/screaming-eagle/cabernet-sauvignon">Screaming Eagle Cabernet Sauvignon</a> is £39,117, compared to £7,399 for <a href="https://winecap.com/wine-track/united-states/california/napa-valley/promontory/promontory">Promontory</a>, £3,764 for <a href="https://winecap.com/wine-track/united-states/california/napa-valley/opus-one/opus-one">Opus One</a>, £2,773 for <a href="https://winecap.com/wine-track/united-states/california/napa-valley/dominus/dominus">Dominus</a>, and £2,719 for <a href="https://winecap.com/wine-track/united-states/california/santa-cruz-mountains/ridge/monte-bello">Ridge Monte Bello</a>. To explore average trade prices, visit our indexing tool <a href="https://winecap.com/wine-track/">Wine Track</a>.
<h2>Price performance</h2>
Prices for Californian fine wines have risen slowly and steadily. Over the last 15 years, the Liv-ex California 50 index which tracks the price movements of the last 10 physical vintages across five of the most traded brands (Dominus, Opus One, Harlan, Ridge, and Screaming Eagle) has outperformed both the Liv-ex 100 and Liv-ex 1000 indices. The California 50 is up 166.2%, compared to 71.6% for the Liv-ex 100 and 116.6% for the Liv-ex 1000. Moreover, over the long and short term, California has fared better than Bordeaux as an investment, yielding higher returns.
<h2>The best brands for investment</h2>
Among the most popular labels, <a href="https://winecap.com/wine-track/united-states/california/santa-cruz-mountains/ridge/monte-bello">Ridge Monte Bello</a> has been the best-performing Californian wine, up 121.9% in the last decade. It has been followed by Screaming Eagle Cabernet Sauvignon with a 103.3% rise and Harlan, up 91.1%. All the wines in the chart below have risen over 80% in the last decade.
<img loading="lazy" decoding="async" class="alignnone wp-image-1939" src="https://wp.winecap.com/wp-content/uploads/2024/03/US-wines-375x239.png" alt="US wines performance
" width="800" height="510" srcset="https://wp.winecap.com/wp-content/uploads/2024/03/US-wines-375x239.png 375w, https://wp.winecap.com/wp-content/uploads/2024/03/US-wines-768x490.png 768w, https://wp.winecap.com/wp-content/uploads/2024/03/US-wines-1536x980.png 1536w, https://wp.winecap.com/wp-content/uploads/2024/03/US-wines-2048x1307.png 2048w, https://wp.winecap.com/wp-content/uploads/2024/03/US-wines-1200x766.png 1200w, https://wp.winecap.com/wp-content/uploads/2024/03/US-wines-1980x1263.png 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
However, other producers beyond the most traded names have also been making waves. <a href="https://winecap.com/wine-track/united-states/california/napa-valley/caymus/cabernet-sauvignon">Caymus Cabernet Sauvignon</a> has risen an impressive 154.8%, while <a href="https://winecap.com/wine-track/united-states/california/howell-mountain/dunn/howell-mountain-cabernet-sauvignon">Dunn Howell Mountain Cabernet Sauvignon</a> is up 137.5% in the last decade. This data suggests that there is a significant number of American wines beyond the most popular names that can deliver healthy investment returns.
<h2>California: A 100-point region</h2>
Price performance has been influenced by ‘cult’ status and vintage quality. California regularly tops critic rankings as the region with the most 100-point wines. Relatively consistent climate has led to less vintage variation than in other dominant fine-wine producing regions. Major critic publications like <a href="https://www.robertparker.com/">Wine Advocate</a> and <a href="https://www.wineenthusiast.com/">Wine Enthusiast</a> highlight 2001, 2007, 2012, 2013, 2015, 2016, 2018, 2019, and 2021 as particularly good.
To find out more about the investment market for US wines, <a href="https://winecap.com/learn/united-states-regional-report">read the full report here</a>.

Inside the USA’s wine investment market

<ul>
<li>Green shoots are starting to appear in the fine wine market after a year of consistent declines.</li>
<li>On a regional level, prices for Champagne and Italian wine rose last month.</li>
<li>We highlight individual brands that have shown positive performances over the last three months.</li>
</ul>
<a href="https://www.investopedia.com/terms/g/green-shoots.asp">Green shoots</a> are starting to appear in the fine wine market after a year of consistent declines. The industry benchmark, the <a href="https://www.liv-ex.com/">Liv-ex 100 index</a>, has been on a freefall since March 2023, dipping 14.6% during this time. Meanwhile, the broader Liv-ex 1000 index has fallen 15.3%.
But the market is now showing modest signs of recovery. In February, the Champagne 50 index rose for the first time in 18 months (1% MoM). The Italy 100 index also went up in December last year, and again in February amid a <a href="https://winecap.com/news/italian-wine-enjoys-demand-amid-new-releases">flurry of new releases</a>.
Green shoots generally refer to signs of growth during a downturn. These are especially visible in regional performances.
<img loading="lazy" decoding="async" class="alignnone wp-image-1934" src="https://wp.winecap.com/wp-content/uploads/2024/03/LX-indices-chart-375x254.png" width="800" height="542" srcset="https://wp.winecap.com/wp-content/uploads/2024/03/LX-indices-chart-375x254.png 375w, https://wp.winecap.com/wp-content/uploads/2024/03/LX-indices-chart-768x520.png 768w, https://wp.winecap.com/wp-content/uploads/2024/03/LX-indices-chart-1536x1040.png 1536w, https://wp.winecap.com/wp-content/uploads/2024/03/LX-indices-chart-2048x1387.png 2048w, https://wp.winecap.com/wp-content/uploads/2024/03/LX-indices-chart-1200x813.png 1200w, https://wp.winecap.com/wp-content/uploads/2024/03/LX-indices-chart-1980x1341.png 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
Looking at individual wines, there are more reasons for cautious optimism. Leading brands from Bordeaux, Champagne, Burgundy, Tuscany and Piedmont have been trending upward over the last three months.
<h2>Champagne bounces back</h2>
For instance, a number of Champagnes have risen between 2% and 7% since the end of last year, including <a href="https://winecap.com/wine-track/france/champagne/na/dom-perignon/dom-perignon-rose">Dom Pérignon</a> (2%), <a href="https://winecap.com/wine-track/france/champagne/le-mesnil-sur-oger/salon/le-mesnil">Salon Le Mesnil-sur-Oger Grand Cru</a> (4%), <a href="https://winecap.com/wine-track/france/champagne/na/pol-roger/brut-vintage">Pol Roger</a> (6%) and <a href="https://winecap.com/wine-track/france/champagne/na/veuve-clicquot/la-grande-dame-rose">Veuve Clicquot La Grande Dame Rosé</a> (7%). By contrast, many of these wines were on a downward trend <a href="https://winecap.com/news/investment-opportunities-in-lvmh-champagnes">six months ago</a>. Although they have made only small gains, it looks as if tables have started to turn.
<h2>Italy’s resilient performance</h2>
This theme can also be observed in Italy. From Tuscany, <a href="https://winecap.com/wine-track/italy/tuscany/bolgheri/ornellaia/ornellaia">Ornellaia</a> has risen 3% in the last three months, while <a href="https://winecap.com/wine-track/italy/tuscany/bolgheri/antinori/guado-al-tasso">Antinori’s Guado Al Tasso</a> is up 2%. Even bigger moves have been made by some Piedmont brands, like <a href="https://winecap.com/wine-track/italy/piedmont/barbaresco/produttori-del-barbaresco/barbaresco-montestefano-riserva">Produttori del Barbaresco Montestefano Riserva</a> up 7%. <a href="https://winecap.com/wine-track/italy/piedmont/barolo/comm.-g.b.-burlotto/barolo">Comm. G.B. Burlotto Barolo</a> and <a href="https://winecap.com/wine-track/italy/piedmont/barolo/vietti/barolo-brunate">Vietti Barolo Brunate</a> have increased by 3% and 2% respectively. As examined last week, recent <a href="https://winecap.com/news/italian-wine-enjoys-demand-amid-new-releases">high-quality Italian releases</a> have stimulated demand and secondary market activity for the region.
<h2>Bordeaux and the search for value</h2>
In Bordeaux, value has proven to be key. Popular wines beyond the First Growths and the top names have enjoyed price appreciation. These include <a href="https://winecap.com/wine-track/france/bordeaux/margaux/chateau-malescot-st.-exupery/malescot-st-exupery">Château Malescot St. Exupéry</a> (3%), <a href="https://winecap.com/wine-track/france/bordeaux/saint-julien/chateau-gruaud-larose/gruaud-larose">Château Gruaud Larose</a> (2%) and <a href="https://winecap.com/wine-track/france/bordeaux/saint-emilion-grand-cru/chateau-la-gaffeliere/gaffeliere">Château La Gaffelière </a> (2%). The average case price of these wines comfortably sits below £750.
<h2>Burgundy’s return to stability</h2>
Burgundy, which has fallen the most of all regions, also seems to be making a comeback with some high-flyers. Among them are <a href="https://winecap.com/wine-track/france/burgundy/gevrey-chambertin/domaine-faiveley/gevrey-chambertin-vv">Domaine Faiveley Gevrey-Chambertin Vieilles Vignes</a> (12%) and <a href="https://winecap.com/wine-track/france/burgundy/vosne-romanee/maison-louis-jadot/vosne-romanee-beaumonts">Maison Louis Jadot Vosne Romanée Premier Cru Les Beaux Monts</a> (7%).
While the general theme of the market continues to be one full of buying opportunities at cheaper-than-average prices, recent signs of growth suggest that a slow and steady recovery might soon be underway for some regions.
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

Green shoots in the fine wine market

<ul>
<li>Buying demand for fine wine is impacted by the global economy, where currency volatility plays a significant role.</li>
<li>Fine wine indices are frequently quoted in sterling (GBP), making the currency&#8217;s strength or weakness a pivotal factor affecting both domestic and international transactions.</li>
<li>A stronger pound makes UK-sourced fine wines more expensive for foreign buyers, potentially dampening demand and leading to falls in the indices.</li>
</ul>
Although uncorrelated to mainstream markets, the fine wine market does not exist in a vacuum. Buying demand and investment interest are impacted by the global economy, where currency volatility plays a significant role.
For investors, understanding the impact of currency movements, especially in a market where prices and indices are often denominated in sterling, is crucial. Here&#8217;s how currency volatility influences the fine wine market and strategies investors can employ to navigate these turbulent waters.
<h2>The impact of currency volatility</h2>
Currency volatility refers to the fluctuations in the value of one currency relative to another. For the fine wine market, which is global, these fluctuations can have a pronounced impact. Prices and indices for fine wine are frequently quoted in sterling (GBP), making the British currency&#8217;s strength or weakness a pivotal factor affecting both domestic and international transactions.
When the pound weakens against major currencies like the dollar or euro, fine wine prices in the UK become more attractive to foreign buyers. This increased demand from abroad can drive up prices, as buyers look to capitalise on favourable exchange rates to purchase high-quality wines at lower relative costs. Conversely, when the pound strengthens, as is the case currently, fine wine prices can seem more expensive to foreign buyers, potentially leading to a decrease in international demand and a stabilisation or even fall in the indices that track them.
<h2>Real-world implications</h2>
Consider the aftermath of the Brexit referendum in June 2016, when the pound experienced a significant drop against the dollar and euro. This scenario offered a golden opportunity for foreign investors, particularly from the US and Asia, who found that their purchasing power had increased overnight. As a result, demand for fine wines priced in sterling surged, driving up fine wine prices.
The Liv-ex Fine Wine 1000 Index, which is the broadest measure of the market and tracks the price movement of 1000 of the most sought-after fine wines, showed upward price movement of 14% in the six months following the referendum. Its rise in sterling was uninterrupted until August 2017. In just over a year, the index rose 21.7%.
This trend was largely fuelled by foreign investors taking advantage of the weaker pound to expand their collections.
<h2>Sterling&#8217;s strength and its effects</h2>
On the flip side, periods of sterling strength present a different picture. A stronger pound makes UK-sourced fine wines more expensive for foreign buyers, potentially dampening demand. This has contributed to a fall in the Liv-ex 1000 index, denominated in sterling. However, when seen in other currencies, the fall in fine wine prices is less sharp.
<img loading="lazy" decoding="async" class="alignnone wp-image-1930" src="https://wp.winecap.com/wp-content/uploads/2024/03/LX1000-375x246.png" alt="Liv-ex 1000 index in different currencies" width="800" height="525" srcset="https://wp.winecap.com/wp-content/uploads/2024/03/LX1000-375x246.png 375w, https://wp.winecap.com/wp-content/uploads/2024/03/LX1000-768x504.png 768w, https://wp.winecap.com/wp-content/uploads/2024/03/LX1000-1536x1008.png 1536w, https://wp.winecap.com/wp-content/uploads/2024/03/LX1000-2048x1343.png 2048w, https://wp.winecap.com/wp-content/uploads/2024/03/LX1000-1200x787.png 1200w, https://wp.winecap.com/wp-content/uploads/2024/03/LX1000-1980x1299.png 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
The Liv-ex 1000 index peaked in October 2022 in sterling; since then, the index has dipped 17.5%.
But the losses since its peak have been smaller in alternative currencies. The index hit its highest point in euro in June 2022 and has fallen 16.4% since. In US dollar, the index peaked in March 2023; since then, it has fallen 14%. In Japanese Yen, the Liv-ex 1000 peaked in May 2023 and has fallen 10% since.
<h2>A global market with local prices</h2>
While fine wine prices may be quoted in sterling, the global nature of the market means that prices inherently hold their value in alternative currencies. This resilience is partly because the value of fine wine is not solely dependent on currency movements but also on factors such as vintage quality, brand reputation, and scarcity.
For instance, a classic Bordeaux vintage will maintain its allure and value to collectors worldwide, regardless of short-term currency fluctuations. This universal appeal ensures that while prices in sterling may rise or fall with the pound&#8217;s strength, the intrinsic value of fine wines remains recognised across currencies.
<h2>Strategies for investors</h2>
Investors can leverage currency volatility to their advantage by staying informed about global economic trends and currency forecasts. Purchasing fine wines when the pound is weak can offer significant value, while selling during periods of sterling strength may maximize returns.
Currency volatility is a double-edged sword in the fine wine market, presenting both opportunities and challenges. Whether taking advantage of a weaker pound to acquire coveted wines or diversifying investments to mitigate risks, the key lies in informed decision-making and a keen eye on the ever-changing economic landscape.
Speak to one of our wine investment experts and start building your portfolio. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.
&nbsp;

Navigating currency volatility in the fine wine market

<ul>
<li>New releases from Italy have led to increased secondary market activity for the region. </li>
<li>Italian fine wine prices rose in February with some wines enjoying double-digit returns.</li>
<li>The 100-point Sassicaia 2021 has traded with a premium since its release last month.</li>
</ul>
Italian wine is currently in the spotlight amid a flurry of new releases, including the high-quality Brunello 2019 vintage and the 2021 vintage of the Super Tuscans Sassicaia and Ornellaia.
<h2>Brunello 2019 enters the market</h2>
The 2019 Brunello vintage is shaping up to be exceptional, potentially surpassing the subsequent vintages of 2020, 2021, and 2022, which were characterised by significantly higher temperatures. In terms of quality, critics have placed it on par with 2016, 2010 and 2006.
While Brunello may not dominate the fine wine market as prominently as the Super Tuscans, it has potential for attractive investment returns, especially from producers like Biondi Santi, Poggio di Sotto, and Casanova di Neri. These wines often come at more appealing price points compared to their counterparts.
For instance, <a href="https://winecap.com/wine-track/italy/tuscany/brunello-di-montalcino/biondi-santi/brunello-montalcino">Biondi Santi Brunello di Montalcino</a> has risen 73% in value over the last five years, outperforming the likes of <a href="https://winecap.com/wine-track/italy/tuscany/bolgheri/tenuta-san-guido/sassicaia">Sassicaia</a> and <a href="https://winecap.com/wine-track/italy/tuscany/toscana/masseto/masseto">Masseto</a>. <a href="https://winecap.com/wine-track/italy/tuscany/brunello-di-montalcino/poggio-di-sotto/brunello-montalcino">Poggio di Sotto</a>’s performance has been equally impressive, rising 187% in the last decade, while <a href="https://winecap.com/wine-track/italy/tuscany/brunello-di-montalcino/casanova-di-neri/brunello-montalcino-tenuta-nuova">Casanova di Neri Tenuta Nuova</a> has been up 126%. At the top end, the more expensive and highly sought-after <a href="https://winecap.com/wine-track/italy/tuscany/brunello-di-montalcino/soldera-casse-basse/brunello-montalcino-riserva">Soldera Casse Basse</a> has returned 237% over the same period.
The historic performance of these brands strengthens the case for buying in vintages where the quality is high, and where the releases offer relative value.
<h2>Super Tuscan releases</h2>
In the world of fine wine, the most talked about Italian releases have been Sassicaia and Ornellaia 2021.
Ornellaia 2021 was released at £1,850 per 12&#215;75, the same price as the 2020 release. At this price, the wine is the most expensive recent vintage on the market since 2016. Antonio Galloni (<a href="https://vinous.com/">Vinous</a>) awarded it 99-points and said that it ‘captures all the magic of this sensational vintage on the Tuscan Coast’. Meanwhile, Monica Larner (<a href="https://www.robertparker.com/wines/GAtNZdo8QwMfscgyx/bolgheri-superiore-ornellaia-2021">Wine Advocate</a>) gave it 96-points and described it as ‘a very open-knit and exuberant Tuscan red’.
<img loading="lazy" decoding="async" class="alignnone wp-image-1920" src="https://wp.winecap.com/wp-content/uploads/2024/03/EP-Socials-LinkedInAll-1-375x196.jpg" alt="Ornellaia
" width="800" height="418" srcset="https://wp.winecap.com/wp-content/uploads/2024/03/EP-Socials-LinkedInAll-1-375x196.jpg 375w, https://wp.winecap.com/wp-content/uploads/2024/03/EP-Socials-LinkedInAll-1-768x401.jpg 768w, https://wp.winecap.com/wp-content/uploads/2024/03/EP-Socials-LinkedInAll-1.jpg 1200w" sizes="auto, (max-width: 800px) 100vw, 800px" />
Sassicaia 2021 was released last month at £2,500 per case, up 4.2% on the 2020‘s release price. The wine has since traded at a premium on the secondary market. It received 100-points from Monica Larner who called it ‘a quintessential Sassicaia that represents the excellence of the vintage and also respects the unique taste profile of this distinguished Tuscan blend of Cabernets Sauvignon and Franc’. Galloni gave it 98+ points and noted that it was ‘one of the best young Sassicaias I can remember tasting’. ‘In a word: magnificent’, said the critic.
<img loading="lazy" decoding="async" class="alignnone wp-image-1921" src="https://wp.winecap.com/wp-content/uploads/2024/03/EP-Socials-LinkedInAll-2-375x196.jpg" alt="Sassicaia" width="800" height="418" srcset="https://wp.winecap.com/wp-content/uploads/2024/03/EP-Socials-LinkedInAll-2-375x196.jpg 375w, https://wp.winecap.com/wp-content/uploads/2024/03/EP-Socials-LinkedInAll-2-768x401.jpg 768w, https://wp.winecap.com/wp-content/uploads/2024/03/EP-Socials-LinkedInAll-2.jpg 1200w" sizes="auto, (max-width: 800px) 100vw, 800px" />
<h2>Italy gathers momentum</h2>
Recent releases have stimulated the secondary market for Italian wine. The region has been the best performing fine wine market segment over the last two years, as well as in the last few months. In February, the Liv-ex Italy 100 index posted a modest rise of 0.1%, but some vintages of <a href="https://winecap.com/wine-track/italy/tuscany/colli-della-toscana-centrale/fontodi/flaccianello-della-pieve">Fontodi Flaccianello delle Pieve Colli della Toscana Centrale</a>, <a href="https://winecap.com/wine-track/italy/tuscany/toscana/antinori/tignanello">Tignanello</a> and <a href="https://winecap.com/wine-track/italy/piedmont/barolo/giacomo-conterno/barolo-riserva-monfortino">Giacomo Conterno Barolo Monfortino Riserva</a> enjoyed double-digit returns.
WineCap’s independent market analysis showcases the value of portfolio diversification and the stability offered by investing in wine. Speak to one of our wine investment experts and start building your portfolio. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

Italian wine enjoys demand amid new releases

<ul>
<li>Storage is arguably the most important factor in preserving the quality of a fine wine and is thus fundamentally linked to its value as an investment. </li>
<li>A well-documented history of storage and ownership can significantly increase a wine&#8217;s value, serving as proof of its authenticity and condition.</li>
<li>Storing wine in-bond has multiple benefits, including deferred taxes, easier international trading and guaranteed provenance.</li>
</ul>
Wine storage has undergone significant transformation over the years, evolving from traditional cellars in private homes to sophisticated, climate-controlled facilities that cater to the needs of serious collectors and investors. The way wine is stored can greatly impact its quality, and by extension, its value as an investment.
<h2>Why is wine storage important</h2>
A large part of fine wine’s performance as an asset is down to its ability to improve as it ages. If the quality increases in time, so does its value.
Storage is arguably the most important factor in preserving the quality of a wine. If a bottle is stored improperly, the opposite can happen. Fluctuating temperatures, exposure to sunlight, vibrations and humidity can all degrade the quality of the wine and lead it to lose its value.
By storing your assets in professional dedicated wine storage facilities, you can guarantee that when the time comes to sell, it will be in the best possible condition. This will give the final consumer confidence that the wine is of the expected quality, defending its future value.
<h2>The evolution of wine storage solutions</h2>
Historically, wine storage was the domain of underground cellars, designed to provide the cool, stable temperatures and humidity levels that wine needs to age gracefully. These cellars, often part of private homes in wine-producing regions, set the standard for ideal wine storage conditions: darkness, consistent temperature around 12-14°C (55-57°F), and relative humidity around 60-70%.
In recent decades, technology has revolutionised wine storage. Climate-controlled wine cabinets and refrigeration units can replicate the conditions of a traditional cellar, making it possible to store wine in any environment. Innovations such as dual-zone temperature controls, UV-protected glass doors, and vibration reduction technology have further enhanced the ability to preserve wine at optimal conditions.
Moreover, professional wine storage facilities offer a level of sophistication and security beyond what most private cellars can provide. These facilities are equipped with state-of-the-art climate control systems, backup power sources to protect against outages, and high-security measures to guard against theft. They also offer inventory management services, ensuring that wines are stored properly and can be easily accessed or audited by their owners.
For investors, the use of such facilities can enhance the value of their collection, as provenance – the history of wine’s ownership and storage – becomes increasingly important in the secondary fine wine market.
<h2>The role of provenance in wine investment</h2>
Provenance is a critical factor in the wine investment market. A well-documented history of storage and ownership can significantly increase a wine&#8217;s value, serving as proof of its authenticity and condition. Professional storage facilities often provide detailed records that can be invaluable in establishing provenance, making wines stored in these conditions more desirable to collectors and investors alike.
In contrast, wines stored in private cellars may lack comprehensive records, potentially diminishing their market value, regardless of their quality or rarity.
<h2>In-bond storage</h2>
Bonded status is what unlocks the secondary market for fine wine.
Storing wine in-bond means that the wine is kept in a secure warehouse under government supervision without the payment of duty or tax. For wine investors, this presents a significant advantage, as it allows for the storage of wine without the financial burden of taxes until the wine is either sold or removed for personal consumption. Typically, wines can be stored in-bond at their point of entry into a country or transferred to a bonded warehouse specifically designated for wine storage. The wines stored in-bond are trade-ready; they sit within the secondary market ecosystem and can be made immediately available for sale and collection.
<h2>Implications for wine investment</h2>
The ability to store wine in-bond has several implications for investors.
Deferred taxes: Investors can defer tax payments, improving cash flow and reducing initial investment costs. This is particularly beneficial for wines intended for resale, as the duty and VAT (value-added tax) are only paid if and when the wine enters the domestic market.
International trading: In-bond storage facilitates easier trading of wine on an international scale. Wines can be bought and sold multiple times while still in-bond, without incurring tax liabilities until they are finally withdrawn for consumption. This can significantly enhance the liquidity of wine investments.
Provenance and condition: Bonded warehouses are not only secure but are also designed to provide optimal storage conditions, similar to professional wine storage facilities. The rigorous documentation and oversight in these warehouses ensure the provenance and condition of the wine, crucial factors in maintaining and enhancing its value.
Market value: Wines stored in-bond are often more attractive to buyers, especially in international markets. The assurance of proper storage conditions and the ease of transfer without immediate tax implications make these wines more desirable, potentially increasing their market value.
<h2>Storing wine with WineCap</h2>
WineCap use London City Bond’s newest storage facility, Drakelow. Three and a half miles of tunnels were blasted out of solid rock, as part of the lavish refurbishment of this former nuclear bunker, which started operating as a dedicated wine storage facility in 2023. Highly secure with entirely natural permanent temperature control supported by the latest dehumidification equipment, Drakelow is the natural choice for maturing reserves.
Every wine in our storage facility gets its own unique identification number (UIDS), thus ensuring that each case has clear ownership.
The practice of storing wine in-bond in bonded warehouses represents a critical aspect of the wine investment landscape. As the wine market continues to mature, the importance of professional storage and provenance documentation is likely to grow, influencing both the strategies of investors and the broader dynamics of wine collecting and investing. Whether opting for a meticulously maintained home cellar or entrusting a collection to a professional storage facility, understanding the impact of storage on wine&#8217;s quality and value is essential for any serious wine investor.
Speak to one of our wine investment experts and start building your portfolio. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

The importance of wine storage

<ul>
<li>Neal Martin said Bordeaux 2021 shouldn’t be dismissed and identified an ‘overachiever’ among the wines in this challenging vintage. </li>
<li>According to Antonio Galloni, the quality is higher on the Left Bank than on the Right Bank. </li>
<li>A dry white wine and a Sauternes were the critics’ top-scoring wines from the vintage.</li>
</ul>
Vinous recently published two separate Bordeaux 2021 in-bottle reports by <a href="https://vinous.com/articles/2-2-5-bordeaux-2021-in-bottle-feb-2024">Neal Martin</a> and <a href="https://vinous.com/articles/2021-bordeaux-l-enfant-terrible-feb-2024">Antonio Galloni</a>. In this article, we summarise their views on this polarising vintage.
<h2>Why Bordeaux 2021 should not be ignored</h2>
In his report, titled ‘2+2=5: Bordeaux 2021 In Bottle’, Neal Martin explained why ‘irrationality tastes good’ and why Bordeaux 2021 shouldn’t be ignored. He said that ‘on paper, a cursory glance at the troubled growing season would make any rational person dismiss its wines’. But the critic argued that they would be wrong.
While Martin awarded few wines more than 95 points, he advised readers against ‘thinking that the 2021 vintage is incapable of giving sensory and intellectual pleasure’.
According to him, advanced technology and refined winemaking made a fundamental difference at the top end, and thus 2021 cannot be compared ‘with off-vintages like 1977, 1992 or arguably even 2013’.
Martin singled out <a href="https://winecap.com/wine-track/france/bordeaux/pessac-leognan/chateau-les-carmes-haut-brion/carmes-haut-brion">Les Carmes Haut-Brion</a> as an ‘overachiever’ that ‘halts you in your tracks’ and noted that ‘there is a cluster of very strong-performing wines on the Left Bank that merit attention and possess the substance to repay cellaring’. He added that ‘the Right Bank matches the Left Bank, particularly the usual names on the Pomerol plateau […] and likewise those in Saint-Émilion on free-draining limestone soils’.
Similarly, Galloni found ‘a wide range of compelling wines that merit attention’ within the context of a challenging growing season.
‘In many ways, 2021 can be summarized as a year in which classic Bordeaux weather of the past meets the technical know-how of today in both the vineyard and winery,’ the critic argued.
Overall, he said, ‘the quality is higher and more consistent on the Left Bank over the Right Bank, even though at the very top, the best Right Bank wines can only be described as stellar’.
Galloni called <a href="https://winecap.com/wine-track/france/bordeaux/saint-estephe/chateau-calon-segur/calon-segur">Calon Ségur</a>, <a href="https://winecap.com/wine-track/france/bordeaux/saint-julien/ducru-beaucaillou/ducru-beaucaillou">Ducru-Beaucaillou</a>, <a href="https://winecap.com/wine-track/france/bordeaux/pauillac/chateau-lafite-rothschild/lafite-rothschild">Lafite Rothschild</a>, <a href="https://winecap.com/wine-track/france/bordeaux/pauillac/chateau-pichon-longueville-comtesse-de-lalande/pichon-lalande">Pichon-Comtesse</a> and <a href="https://winecap.com/wine-track/france/bordeaux/margaux/chateau-rauzan-segla/rauzan-segla">Rauzan-Ségla</a> ‘magnificent’, <a href="https://www.google.com/url?q=https://winecap.com/wine-track/france/bordeaux/pessac-leognan/chateau-les-carmes-haut-brion/carmes-haut-brion&amp;sa=D&amp;source=docs&amp;ust=1709654745259129&amp;usg=AOvVaw2Oj-dwthdItuCKwjg-Ar4O">Les Carmes Haut-Brion</a> – ‘majestic’, <a href="https://winecap.com/wine-track/france/bordeaux/pomerol/vieux-chateau-certan/vieux-chateau-certan">Vieux Château Certan</a>, <a href="https://winecap.com/wine-track/france/bordeaux/saint-emilion-grand-cru/chateau-cheval-blanc/cheval-blanc">Cheval Blanc</a>, <a href="https://winecap.com/wine-track/france/bordeaux/saint-emilion-grand-cru/chateau-canon/canon-(saint-emilion)">Canon</a>, and <a href="https://winecap.com/wine-track/france/bordeaux/pomerol/chateau-lafleur/lafleur">Lafleur</a> – ‘compelling’. He also made a special mention of the dry white wines, namely <a href="https://winecap.com/wine-track/france/bordeaux/pessac-leognan/chateau-smith-haut-lafitte/smith-haut-lafitte-blanc">Smith Haut Lafitte Blanc</a>, <a href="https://winecap.com/wine-track/france/bordeaux/pessac-leognan/chateau-haut-brion/haut-brion-blanc">Haut-Brion Blanc</a> and <a href="https://www.google.com/url?q=https://winecap.com/wine-track/france/bordeaux/pessac-leognan/domaine-de-chevalier/domaine-chevalier-blanc&amp;sa=D&amp;source=docs&amp;ust=1709654745259637&amp;usg=AOvVaw3O7wWDQkY5OgCgHBDeTrLI">Domaine de Chevalier Blanc</a>.
<h2>Top-scoring Bordeaux 2021 wines</h2>
<img loading="lazy" decoding="async" class="alignnone wp-image-1900" src="https://wp.winecap.com/wp-content/uploads/2024/03/NM-375x153.png" alt="Neal Martin Bordeaux 2021 scores" width="800" height="327" srcset="https://wp.winecap.com/wp-content/uploads/2024/03/NM-375x153.png 375w, https://wp.winecap.com/wp-content/uploads/2024/03/NM-768x314.png 768w, https://wp.winecap.com/wp-content/uploads/2024/03/NM.png 987w" sizes="auto, (max-width: 800px) 100vw, 800px" />
Neal Martin’s top-scoring Bordeaux 2021 was a dry white wine, La Mission Haut-Brion Blanc, while Galloni gave a near-perfect score to a wine from Sauternes – Suduiraut.
Wines that appeared in both critics’ top ten included Les Carmes Haut-Brion, Vieux Château Certan, Lafleur, and Cheval Blanc.
For Galloni, Vieux Château Certan ‘may very well be the wine of the vintage from the Right Bank’, while Martin commented that it ‘transcends the limitations of the growing season’, calling it ‘outstanding’.
Another wine that critics agreed on was Lafleur, which Galloni described as ‘incredibly fascinating’ in 2021, and Neal Martin noted as a ‘strong contender for the wine of the vintage’.
<img loading="lazy" decoding="async" class="alignnone wp-image-1901" src="https://wp.winecap.com/wp-content/uploads/2024/03/AG-375x152.png" alt="Antonio Galloni Bordeaux 2021 scores" width="800" height="324" srcset="https://wp.winecap.com/wp-content/uploads/2024/03/AG-375x152.png 375w, https://wp.winecap.com/wp-content/uploads/2024/03/AG-768x311.png 768w, https://wp.winecap.com/wp-content/uploads/2024/03/AG.png 1005w" sizes="auto, (max-width: 800px) 100vw, 800px" />
Full report and tasting notes are available on <a href="https://vinous.com/">Vinous</a>.
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

Bordeaux 2021 in bottle: Vinous’ top-scoring wines

<ul>
<li>Passion investing refers to collecting items you love and want to keep for the long term.</li>
<li>Some of the most popular passion assets that can yield substantial returns are rare stamps and coins, art, classic cars, luxury watches and fine wine. </li>
<li>Passion investing offers a unique blend of personal fulfilment and financial opportunity, allowing investors to engage deeply with their interests while potentially earning returns.</li>
</ul>
Passion investing represents a unique and emotionally rewarding approach to building wealth, diverging from traditional investment avenues like stocks, bonds, or real estate. This investment strategy is grounded in the acquisition of tangible assets that spark personal joy and enthusiasm, ranging from art and vintage cars to rare stamps, luxury watches, and fine wines.
Such investments not only have the potential to appreciate in value over time but also provide intrinsic satisfaction and a deep sense of personal fulfilment. This article offers an overview of passion investing, highlighting the diverse assets involved and the unique benefits they offer, with a particular emphasis on the allure of fine wine.
<h2>The spectrum of passion assets</h2>
Some of the most common passion investments are art, classic cars, luxury watches and fine wine.
Rare stamps and coins
Collecting stamps and coins is one of the oldest forms of passion investing. Rare specimens, especially those with errors or historical importance, can fetch significant sums. Collectors revel in the history and stories behind their acquisitions, adding a layer of intellectual engagement to the financial investment.
Art
Investing in art involves purchasing pieces from emerging or established artists with the expectation that their value will increase over time. Art investors often enjoy the aesthetic and cultural significance of their collections, providing an emotional return that transcends monetary gains.
Classic cars
Classic car enthusiasts invest in rare and historic automobiles, driven by a passion for automotive design and engineering. These vehicles often appreciate in value, especially well-maintained models or those with historical significance, offering financial rewards alongside the thrill of ownership and driving.
Luxury watches
The market for luxury watches has seen substantial growth, with vintage and limited-edition timepieces appreciating significantly. Enthusiasts appreciate the craftsmanship, history, and prestige associated with high-end watches, making this a passion investment that combines personal enjoyment with potential financial returns.
Fine wine
Fine wine stands out as a particularly intriguing passion investment. Beyond the potential for appreciation in value, wine collectors derive pleasure from the nuances of wine tasting, the history of vineyards, and the art of winemaking. This section will delve deeper into fine wine as a case study in passion investing.
<h2>The unique appeal of fine wine investment</h2>
Fine wine embodies the essence of passion investing by offering both tangible and intangible returns. As a consumable asset, its value can appreciate due to factors like rarity, vintage quality, and global demand. Fine wine investment attracts those who are not only looking for financial gains but also for the enjoyment of collecting, tasting, and learning about wine.
Diversification and stability
Fine wine has demonstrated a relatively stable investment performance, often showing resilience in the face of economic downturns. Adding fine wine to an investment portfolio can provide diversification, reducing overall risk and smoothing out volatility.
Enjoyment and experience
Investing in fine wine is as much about the experience as it is about the potential financial returns. Collectors often take pride in hosting tastings, visiting vineyards, and immersing themselves in the rich culture and history of wine-making, which adds a deeply personal dimension to the investment.
Inflation hedge
Tangible assets like fine wine can serve as a hedge against inflation. As the value of money decreases, the value of physical goods can increase, protecting the purchasing power of the investor&#8217;s capital.
Passion investing offers a unique blend of personal fulfilment and financial opportunity, allowing investors to engage deeply with their interests while potentially earning returns. Successful fine wine investing requires knowledge and expertise. Investors should familiarize themselves with the wine market, including factors that affect wine prices and the best practices for buying, storing, and eventually selling wine for profit. Proper storage is crucial to maintain the quality and value of the wine, and provenance plays a significant role in its appreciation.
To find out how investment in fine wine works in practice, read our in-depth <a href="https://winecap.com/learn/fine-wine-investment">Fine Wine Investment Guide</a>.

Passion investing: personal interest or financial opportunity?

<ul>
<li>Wine Advocate has released William Kelley’s report on Bordeaux 2021 in-bottle. </li>
<li>According to the report, the best producers ‘especially those working with the best terroirs […] have produced some excellent wines’. </li>
<li>Haut-Brion, Cheval Blanc and Montrose were the highest-scoring wines of the vintage, receiving 97 points. </li>
</ul>
<a href="https://www.robertparker.com/articles/HhsFr6BvQiYFJ4QSA">Wine Advocate</a> has released William Kelley’s report on Bordeaux 2021 in-bottle based on his tastings, alongside his colleague Yohan Castaing. Kelley’s in-bottle verdict confirms his En Primeur assessment of this variable vintage.
<h2>A farmers’ vintage</h2>
Kelley wrote that the results were mixed, but ‘the best farmers, especially those working with the best terroirs and armed with the resources to take risks and make a strict selection, have produced some excellent wines’.
2021 is largely seen as a ‘farmers’ vintage’. According to Kelley, ‘the best 2021s are beautiful wines that exemplify how much technical progress Bordeaux has made over the last decade in the vineyards and in the winery’.
He attributes the best results to nurture over nature; however, this ‘doesn’t change the results in the glass’.
<h2>Vintage comparisons</h2>
Due to the heterogeneous nature of the 2021s, stylistic comparisons with back vintages are harder to make. For Kelley, ‘many wines are supple and charming, reminiscent of a modern-day version of the 1999 vintage: the perfect “restaurant vintage,” if one forgets their price’.
He added that ‘some of the best northern Médoc reds, with their serious, intensely Cabernet Sauvignon-driven personalities, evoke the 1996 vintage; whereas the Right Bank’s best 2021s are more sensual and seductive’.
When it comes to pricing, many 2021s are now available below their release price, making them an attractive investment proposition where quality is high.
<h2>The best Bordeaux 2021s</h2>
Kelley highlighted Cheval Blanc (97), Figeac (96+), Haut-Brion (97), Léoville-Las Cases (96+) and Montrose (97) as his wines of the vintage.
For Castaing, the 2021 First Growth reflects ‘the timeless elegance of Haut-Brions from cooler years [and] will delight Bordeaux purists’.
When it comes to Cheval Blanc, Kelley revealed that ‘director Pierre-Olivier Clouet even considers it to be superior to the 2020, a preference that I share’. The 2021 is one of the most affordable recent vintages from the estate.
The other highest-scoring wine, Montrose, got Kelley’s ‘nomination for the title of &#8220;wine of the vintage&#8221; in the Médoc’. The critic said it ‘entirely transcends the limitations of the year’.
<img loading="lazy" decoding="async" class="alignnone wp-image-1878" src="https://wp.winecap.com/wp-content/uploads/2024/02/Scores-375x166.png" alt="Bordeaux 2021 in-bottle scores" width="800" height="353" srcset="https://wp.winecap.com/wp-content/uploads/2024/02/Scores-375x166.png 375w, https://wp.winecap.com/wp-content/uploads/2024/02/Scores-768x339.png 768w, https://wp.winecap.com/wp-content/uploads/2024/02/Scores.png 929w" sizes="auto, (max-width: 800px) 100vw, 800px" />
Full report and tasting notes are available on the <a href="https://www.robertparker.com/">Wine Advocate</a>’s website.
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

Wine Advocate releases Bordeaux 2021 in-bottle scores

<ul>
<li>If interest rates increase or stay the same, there may be golden opportunities for savvy investors to fill their wine cellars for lower-than-average prices.</li>
<li>If the Bank of England starts to drop interest rates consecutively around May, we would expect the fine wine market to show signs of growth around autumn.</li>
<li>Rather than focus on short-term economic events, we encourage investors to buy high quality fine wines, and ideally hold them for at least a decade.</li>
</ul>
Today&#8217;s interest rates are <a href="https://www.bankofengland.co.uk/monetary-policy/the-interest-rate-bank-rate">5.25%</a> in the UK. That is a lot higher than most of us are used to. For example, in 2019 <a href="https://www.bankofengland.co.uk/monetary-policy-summary-and-minutes/2019/may-2019#:~:text=Our%20Monetary%20Policy%20Committee%20has,and%20UK%20government%20bond%20purchases.">they were just 0.75%</a>. But it is reassuring that they have not been cranked up even more over the past months. Consensus among most economists is that the rates will surely come down again in 2024. The question is, by how much?
Unlike the US Federal Reserve, the Bank of England is warning markets not to expect big cuts. As Reuter&#8217;s reports, its ‘<a href="https://www.reuters.com/world/uk/bank-england-pushes-back-against-rate-cut-speculation-2023-12-14/">policy stance assumes a slow fall in interest rates to 4.25% in three years&#8217; time</a>’. However, many economists think that the rates will fall sooner.
Contrary to the central bank, Goldman Sachs predict <a href="https://www.cityam.com/why-goldman-sachs-predict-earlier-and-more-aggressive-interest-rate-cuts-from-central-banks/">rates will dip below 4%</a> by the end of the year, marking a drop of more than 1.25%. Experts at Deutsche Bank are almost aligned, <a href="https://www.forexlive.com/centralbank/analysts-forecast-rate-cuts-by-bank-of-england-citing-softer-wage-growth-inflation-20240104/">anticipating a 1.0% dip</a> in the same timeframe. Andrew Goodwin, chief UK economist at Oxford Economics consultancy, expects the bank to <a href="https://www.ft.com/content/862f14fd-da31-4e38-8404-e70904a8fd4b">start lowering rates in May</a>. However, other economists suggest that June is more realistic.
In this article, we consider what these different scenarios mean for fine wine investors. When to buy, when to sell and when to hold are all critical questions as we dive into 2024.
<h2>If interest rates increase or stay the same</h2>
Continued high rates would probably be unwelcome news for most fine wine investors. Dovish policies like this usually led to a stronger pound, making wine more expensive for international buyers if sourcing from the UK market.
Asian and American buyers are a significant part of the fine wine market and cutting them out would probably lead to a dip in prices, as supply outstrips demand.
High interest rates could also temper domestic demand. After all, when the economy shrinks, there is less money for luxury goods. Buyers may opt for better &#8216;value&#8217; purchases.
The compelling interest rates of savings accounts could also tempt investors away from illiquid assets. Over the short-term, putting cash into a bank account could seem like a safer bet. Even though, of course, over the long-term, the inflation risk is severe.
Ongoing high interest rates would likely create a buyer&#8217;s market. For the first few months of the year, until May, we could expect this to continue happening. Around this time, there may be golden opportunities for savvy investors to fill their cellars for lower-than-average prices. 
<h2>If interest rates decrease by 0.25% &#8211; 2%</h2>
The most likely scenario is that the Bank of England will gradually reduce rates, starting from late spring or early summer. Most analysts (including Deutsche Bank, Goldman Sachs and Fidelity) seem to be anticipating a drop of at least 1.0%, and the markets have already priced this into products and forecasts. As seen in the news recently, <a href="https://www.theguardian.com/business/2024/jan/11/bank-of-england-may-cut-interest-rate-sooner-after-surprise-inflation-forecast">inflation seems to be cooling</a>, creating the right environment for interest rate cuts. For fine wine investors, this makes for reassuring reading.
Shrinking interest rates will make other low-risk investments like gold or savings accounts less compelling. Investors will probably start to feel the pull of more assets with more generous risk premiums. During the second half of the year, if interest goes down, fine wine prices might slowly increase.
A growing economy usually comes with more money to pop Champagne and see the year through in style. We&#8217;d expect the fine wine market to perk up in this environment.
Lower interest rates would probably be welcome news for international investors, as this usually signals better exchange rates. In 2021 and 2022, the weak pound and strong dollar stimulated Asian and American markets, boosting fine wine prices.
If the Bank of England starts to drop interest rates consecutively around May, we would expect the fine wine market to show signs of growth by around autumn. Prices would probably begin to creep up and continue rising with each rate cut. This would balance out the market, likely creating more demand and opportunities for sellers. 
<h2>If interest rates plunge by 2% or more</h2>
It seems unlikely that interest rates will ever return to their pre-pandemic lows. Some experts, <a href="https://www.fidelity.co.uk/markets-insights/markets/uk/what-is-the-outlook-for-interest-rates-in-2024/">like those at Fidelity</a>, argue that the previous rates were even kept ‘artificially low’, and overdue a correction. However, as recent years have taught us, unexpected things can happen.
If interest rates nosedive by more than 2% over 2024, it would probably be exceptionally good for fine wine investors. Both global and local demand would likely increase, as we saw in 2021. With the cost of borrowing plunging, we could expect to see more budgets allocated to luxury products like fine wine, creating more of a sellers&#8217; market.
Fine wine investors in 2021 already enjoyed the rewards that come with a weak pound and low interest rates. International buyers leap into the market, creating a surge in demand.
If the interest rates cascade down to 3% or less by the end of the year, we would expect to see demand outstrip supply, leading to a hike in fine wine prices. This would be welcome news for sellers looking to cash-in their returns. 
<h2>In the long-term, does it matter?</h2>
These predictions cover interest rate hikes over the next twelve months. But the real returns of fine wine tend to come in the longer run. As the Liv-ex 1000 index shows, fine wine prices on average have nearly doubled since 2014.
Rather than focus on short-term economic events, we encourage investors to buy high quality fine wines, care for them properly, and ideally hold them for at least a decade. For us, this is the true beauty of wine; its value is mostly intrinsic.
If you&#8217;d like to talk to an expert about buying or selling fine wine, we are just <a href="https://winecap.com/start-investing">a call or an email away</a>.

How could 2024’s interest rates impact fine wine?

<ul>
<li>Burgundy prices continued to spiral downwards in January, falling 3.7%. </li>
<li>This created a challenging backdrop for the unfolding Burgundy 2022 campaign, which saw about 10% of producers reduce pricing year-on-year.</li>
<li>The current market dynamics offer investors a unique window to enrich their collections with both new gems and proven performers.</li>
</ul>
Burgundy took the spotlight at the beginning of the year with the unfolding 2022 En Primeur campaign. Already in our <a href="https://winecap.com/learn/q4-2023-fine-wine-report-2024-outlook">Q4 2023 report</a>, we questioned the potential of the new releases to stimulate an otherwise dormant market. On the one hand, there was the excitement of the new mixed with high <a href="https://winecap.com/news/burgundy-2022-a-promising-vintage-in-a-challenging-market">quality and quantity</a> playing to the campaign’s advantage; on the other, much depended on pricing.
<h2>Market conditions and pricing challenges</h2>
Burgundy prices continued to spiral downwards in January, with the <a href="https://www.liv-ex.com/">Liv-ex</a> Burgundy 150 index starting the year with a 3.7% decrease. To say that this created a <a href="https://winecap.com/news/burgundy-2022-a-promising-vintage-in-a-challenging-market">challenging backdrop</a> for the new releases would be an understatement. Prices at release had to come down.
And partially they did. According to Liv-ex, about 10% of the top producers ‘lowered their prices year-on-year’. However, ‘about 40% raised their prices, even if only modestly’. Thanks to greater quantities, allocations were mostly restored.
<h2>Burgundy 2022 – ‘a treasure trove’</h2>
As the first releases landed, Burgundy 2022 enjoyed a positive reception from critics and trade. Neal Martin (<a href="https://vinous.com/articles/now-for-my-latest-trick-burgundy-2022-jan-2024">Vinous</a>) advised that ‘if your favourite growers’ price tags seem fair, then I would not hesitate diving in’. He described the 2022 vintage as ‘Burgundy’s latest trick: a treasure trove of bright ‘n bushy-tailed whites and reds in a season that implied such wines would be impossible, wines predestined to give immense drinking pleasure’.
<h2>Investment perspective and older vintages</h2>
However, prices for older vintages remain under pressure, creating buying opportunities for already physical and readily available wines. For instance, three of Burgundy’s outstanding long-term wine performers have all seen dips between 15% and 10% in the last year. Over the last decade, however, DRC Vosne-Romanée Cuvée Duvault Blochet is up 388%; Georges Roumier Bonnes Mares – 339%, and Armand Rousseau Chambertin – 279% on average.
<img loading="lazy" decoding="async" class="alignnone wp-image-1869" src="https://wp.winecap.com/wp-content/uploads/2024/02/Burgundy-wines-375x255.png" alt="Burgundy wines performance" width="800" height="545" srcset="https://wp.winecap.com/wp-content/uploads/2024/02/Burgundy-wines-375x255.png 375w, https://wp.winecap.com/wp-content/uploads/2024/02/Burgundy-wines-768x523.png 768w, https://wp.winecap.com/wp-content/uploads/2024/02/Burgundy-wines.png 1053w" sizes="auto, (max-width: 800px) 100vw, 800px" />
Meanwhile, the Burgundy 150 index has decreased 16% in the last year. Still, the overall long-term index trajectory remains upwards, as the chart below shows.
<img loading="lazy" decoding="async" class="alignnone wp-image-1868" src="https://wp.winecap.com/wp-content/uploads/2024/02/Burgundy-index-375x243.png" alt="Burgundy index" width="800" height="519" srcset="https://wp.winecap.com/wp-content/uploads/2024/02/Burgundy-index-375x243.png 375w, https://wp.winecap.com/wp-content/uploads/2024/02/Burgundy-index-768x498.png 768w, https://wp.winecap.com/wp-content/uploads/2024/02/Burgundy-index-1536x996.png 1536w, https://wp.winecap.com/wp-content/uploads/2024/02/Burgundy-index-2048x1328.png 2048w, https://wp.winecap.com/wp-content/uploads/2024/02/Burgundy-index-1200x778.png 1200w, https://wp.winecap.com/wp-content/uploads/2024/02/Burgundy-index-1980x1284.png 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
<h2>Searching for value</h2>
The current market dynamics offer investors a unique window to enrich their collections with both new gems and proven performers across older physically available vintages.
When it comes to the latest, the Burgundy 2022 En Primeur campaign presents a complex tapestry of quality, quantity, and pricing amidst challenging market conditions. Despite initial price pressures, the adjustments made by producers and the positive critical reception underscore the potential of the new releases. Neal Martin&#8217;s endorsement further elevates the vintage, suggesting that for the discerning buyer, Burgundy 2022 provides not just immediate drinking pleasure but also long-term investment opportunities.
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

Assessing the Burgundy 2022 En Primeur campaign

<ul>
<li>British businesses have suffered declines in EU trade.</li>
<li>Billions-worth of investment assets have left the UK, opting for EU states.</li>
<li>Bucking the trend, fine wine prices soared to heights of 43%.</li>
</ul>
By the end of 2019, <a href="https://yougov.co.uk/topics/politics/survey-results/daily/2019/10/29/60c8e/2">70% of Brits</a> were already nauseous of the word ‘Brexit’. But behind the fatigue, there was real fear in the air too. As the customs rules came into effect in 2021, gridlocked lorries clogged the roads to Dover, paperwork mounted, and supermarkets shelves began to look increasingly bare. The end of the single market had begun. The past years have been sobering time. According to the latest poll in January 2024, <a href="https://www.whatukthinks.org/eu/opinion-polls/poll-of-polls-uk-eu/">61% of Brits would vote to rejoin</a> the EU, <a href="https://yougov.co.uk/politics/articles/45910-britons-would-vote-rejoin-eu">up from 55% in summer 2023.</a>
But what about the investment markets, and the performance of fine wine? In this article, we are diving into some of the main impacts of Brexit so far.
<h2>Added complexity dampened profitability</h2>
<a href="https://www.ft.com/content/ffac65e1-1ee3-4a1c-b3b1-ec970bc7b53c">81% of UK businesses are still struggling</a> with Brexit admin. For wine traders, the paperwork for a single bottle can stretch to over 90 pages, adding significant workloads. UK manufacturers are particularly suffering, with <a href="https://www.pesmedia.com/90-of-uk-manufacturers-still-dealing-with-issues-trading-with-eu">96% reporting</a> that the new rules have ‘badly disrupted trade with the EU’.
More compliance means more costs. It is estimated that businesses have spent an <a href="https://www.ft.com/content/ffac65e1-1ee3-4a1c-b3b1-ec970bc7b53c">average of £100,000 each</a> just trying to export goods over the border in the past years.
The complications have also led to once-loyal European customers jumping ship, with the average enterprise missing out on <a href="https://www.ft.com/content/ffac65e1-1ee3-4a1c-b3b1-ec970bc7b53c">£96,281</a> since 2020. <a href="https://www.pesmedia.com/90-of-uk-manufacturers-still-dealing-with-issues-trading-with-eu">Two in five UK manufacturers</a> have experienced declines in export volumes.
<h2>&#8216;Brexodus&#8217; carried talent (and investment) out of the UK</h2>
It is little surprise therefore that busloads of businesses, staff and operations decided to relocate. Welsh wine exporter <a href="https://www.theguardian.com/politics/2022/jul/26/british-wine-wholesaler-leave-uk-over-post-brexit-paperwork">Daniel Lambert, for example, moved his company to France in 2022</a>. Lambert supplies some of the biggest British supermarkets, including Waitrose and Marks &amp; Spencer.
Dublin has been one of the <a href="https://www.ey.com/en_uk/news/2022/03/ey-financial-services-brexit-tracker-movement-within-uk-financial-services-sector-stabilises-five-years-on-from-article-50-trigger#:~:text=The%20total%20number%20of%20announced,after%20Article%2050%20was%20triggered.">major hotspots for financial services</a>, snatching-up the UK’s crown as the English-speaking bridge to the EU. This ‘Brexodus’ as it came to be known was great news for European cities. Germany, for example, <a href="https://www.independent.co.uk/news/uk/politics/brexit-uk-companies-germany-eu-b2344039.html">enjoyed a 21% increase in direct foreign investment in May 2023</a>.
However, it did not bode well for the UK. By March 2022, <a href="https://www.ey.com/en_uk/news/2022/03/ey-financial-services-brexit-tracker-movement-within-uk-financial-services-sector-stabilises-five-years-on-from-article-50-trigger#:~:text=The%20total%20number%20of%20announced,after%20Article%2050%20was%20triggered.">7,000 jobs</a> within financial services moved to the EU. Investment funds left too, with <a href="https://www.ey.com/en_uk/news/2022/03/ey-financial-services-brexit-tracker-movement-within-uk-financial-services-sector-stabilises-five-years-on-from-article-50-trigger#:~:text=The%20total%20number%20of%20announced,after%20Article%2050%20was%20triggered.">24 firms planning to transfer £1.3 trillion of assets</a>. Funding for British markets faltered.
As a biproduct of Brexit, the supply of skilled EU workers dwindled too. Today, recruiting European talent is <a href="https://www.pesmedia.com/90-of-uk-manufacturers-still-dealing-with-issues-trading-with-eu">44% more difficult</a> for UK companies. December 2023 saw the launch of <a href="https://www.reuters.com/world/uk/uk-pm-sunak-committed-bringing-net-migration-down-significantly-spokesman-2023-12-04/">even stricter measures</a> designed to curb the flow of foreigners, although it also introduced higher minimum wages for skilled workers.
<h2>Slow growth turns off investors</h2>
Brexit was accompanied by the Covid-19 pandemic, political instability, and war overseas. While it is difficult to untangle the impact of Brexit, the UK has been notably slow to recover compared to peers. The Eurozone, for example, has <a href="https://commonslibrary.parliament.uk/research-briefings/sn02784/">grown at more than double the UK pace.</a>
Increasingly, data suggests Brexit threw a wet towel on the UK’s growth prospects. As Jonathan Portes, Professor of Economics and Public Policy at <a href="https://cepr.org/voxeu/columns/impact-brexit-uk-economy-reviewing-evidence">King’s College London</a>, highlights, ‘both aggregate data and survey evidence strongly suggest that Brexit is at least in part responsible for the particularly poor performance since 2016, with investment perhaps 10% lower than it would otherwise have been’.
2024 analysis by the National Institute of Economic and Social Research corroborates, stating, ‘<a href="https://www.niesr.ac.uk/wp-content/uploads/2023/11/JC760-NIESR-Outlook-Autumn-2023-Global-Topical-Feature-v2.pdf?ver=AIQekVbRbrQucSuemgY2">UK real GDP is some 2-3 per cent lower due to Brexit</a>’. Each household is now £850 worse-off following Brexit, rising to £2,300 by 2035.
<h2>The retail wine market has suffered but not fine wine</h2>
Since Brexit, supermarket wine has had an <a href="https://www.thegrocer.co.uk/alcohol/wine-importers-bemoan-cost-of-brexit-red-tape-as-shelf-edge-prices-climb/686232.article">estimated price increase of £3.50 per bottle.</a> Perhaps in response, the government recently announced measures to ‘cut red tape’. The definition of wine will change to allow for <a href="https://www.thedrinksbusiness.com/2023/10/post-brexit-defra-reforms-will-end-ban-on-blending-imported-wine/">wine mixing</a>, <a href="https://www.euronews.com/business/2023/10/19/uk-alcohol-free-https:/www.euronews.com/business/2023/10/19/uk-alcohol-free-beverages-to-be-labelled-as-wine-amid-industry-rule-easing-to-be-labelled-as-wine-amid-industry-rule-easing">lower alcohol volumes</a>, and <a href="https://www.bbc.com/news/uk-politics-67795075">even pint-sized measurements</a>.
The prices of fine wine went up too. Investment grade bottles, <a href="https://winecap.com/">such as those traded on WineCap</a>, performed exceptionally well during the turbulent Brexit periods. Many investors found fine wine <a href="https://winecap.com/learn/how-to-use-fine-wine-as-a-hedge-against-inflation">hedged their portfolios</a> against losses elsewhere.
The graph below shows the performance of the broadest fine wine market measure (Liv-ex 1000) over the past five years.
<img loading="lazy" decoding="async" class="alignnone wp-image-1863" src="https://wp.winecap.com/wp-content/uploads/2024/02/LX1000-vs-FTSE100-375x246.png" alt="Fine wine vs FTSE 100" width="800" height="524" srcset="https://wp.winecap.com/wp-content/uploads/2024/02/LX1000-vs-FTSE100-375x246.png 375w, https://wp.winecap.com/wp-content/uploads/2024/02/LX1000-vs-FTSE100-768x503.png 768w, https://wp.winecap.com/wp-content/uploads/2024/02/LX1000-vs-FTSE100-1536x1006.png 1536w, https://wp.winecap.com/wp-content/uploads/2024/02/LX1000-vs-FTSE100-2048x1342.png 2048w, https://wp.winecap.com/wp-content/uploads/2024/02/LX1000-vs-FTSE100-1200x786.png 1200w, https://wp.winecap.com/wp-content/uploads/2024/02/LX1000-vs-FTSE100-1980x1297.png 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
In the run-up to the customs changes, fine wine prices rose during mid-2020. Over the following two years, they saw an increase of 43%. This is in stark contrast to the performance of the FTSE100.
The returns didn’t end there. Because of fine wine’s unique tax status as a ‘wasting chattel’ in the UK, <a href="https://winecap.com/learn/changes-to-capital-gains-tax-what-does-this-mean-for-fine-wine-investors">nearly all bottles are exempt from costly capital gains taxes</a>. For those earning over £50,271 a year, this means savings of up to 28%.
<h2>To invest or not to invest?</h2>
Despite taking hits from Brexit, the UK is still an investment hub. Tourists are returning to London, businesses are battling through the headwinds, and gradually it is becoming clear that there needs to be more cooperation with the EU.
Throughout this turbulent time, fine wine has reached new heights. The (potentially Brexit-induced) combination of the weak pound and high dollar <a href="https://www.forbes.com/sites/forbesbusinesscouncil/2023/04/05/the-pairing-of-old-wine-and-new-markets-trends-in-the-wine-industry/?sh=7b2e420629ee">opened the floodgates for foreign fine wine investments</a>. And the <a href="https://www.forbes.com/sites/forbesbusinesscouncil/2023/10/05/when-silicon-valley-met-sauvignon-blanc-the-technology-behind-todays-wine/?sh=762d81e17a32">UK’s thriving tech scene</a> also created inroads for savvy digital investors to trade fine wine. Investors have made the most of these glimmering opportunities to batten-down the hatches and shield their portfolios against some of the other Brexit difficulties.
If you are looking for a smooth way to invest in fine wine, our experts at WineCap are happy to guide you through the journey. Unlike Brexit admin, <a href="https://winecap.com/schedule-a-call">we are just a call away.</a>
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Four years since Brexit: is the UK still an investment hub?

<ul>
<li>Capital Gains Tax is a tax on the profit when you sell an asset that has increased in value.</li>
<li>From 6 April 2024, investors will pay up to 28% tax on profit over £3,000.</li>
<li>As a ‘wasting asset’, fine wine is exempt from Capital Gains Tax.</li>
</ul>
When should you start paying tax should you pay on profit? Apparently, it depends on the year you&#8217;re in. Pre-2022, investors paid tax on anything above £12,300. However, the past few years have seen the threshold slashed in half twice. In a bid to plug the &#8220;<a href="https://lordslibrary.parliament.uk/autumn-statement-2022-key-announcements-and-analysis/">fiscal black hole</a>&#8220;, Chancellor Jeremy Hunt announced limit cuts in the 2022 Autumn Budget. From 6 April 2024, investors will pay up to 28% on profit over £3,000.
However, there are some exceptions. Those who take advantage of Individual Savings Account (ISA) tax wrappers, for example, can invest up to £20,000 without paying Capital Gains Tax (CGT). Another exception is fine wine with a shelf life of less than 50 years.
<h2>Why is fine wine exempt from CGT?</h2>
Fine wine is usually classed as a ‘wasting asset’ or ‘wasting chattel’. This unflattering name is a blessing in disguise. It means that the HMRC do not consider it to be an investment where the profit should be taxed.
Other assets in this same category include personal machines. If you collect classic cars, vintage watches or antique clocks, you could also benefit from CGT-free returns. An added benefit is that these passion investments are inflation busters that tend to ride high despite economic worries.
<h2>How much profit can fine wine investors keep?</h2>
Provided the fine wine has a shelf life of less than fifty years – which is almost every fine wine – investors can keep all the profit. As we touched on in the section above, this can amount to significant sums. Some of <a href="https://winecap.com/learn/q4-2023-fine-wine-report-2024-outlook">last year’s top-performers</a>, for instance, rose as much as 88% in a year. On average, fine wine prices have risen 14.1% in the last five years, and 62.7% in the last decade.
For other investments, which do attract CGT, such as buy-to-let property, gold, shares, bonds, art or commodities, investors must pay tax after £3,000. If they are basic taxpayers, the CGT comes to 18%. And for higher tax bands, it&#8217;s 28%.
<h2>How to tax-exempt assets like fine wine impact investment portfolios?</h2>
As the expression goes, investors should never put all their eggs in one basket. Spreading wealth across a variety of different assets, known as diversification, is at the heart of modern portfolio theory.
Investing in wasting assets like fine wine, alongside stocks, bonds, property, commodities and cash adds some advantages. One of these is that the tax savings can help balance out the increased taxes and fees from elsewhere. Buy-to-let properties for example are facing a double-whammy of increased taxation and hiked mortgage rates. Off-setting some of these expenses against the profits of wine can help to keep the whole portfolio in check.
Another benefit is that wasting assets generally tend to be inflation resistant, as their value comes from within. This can help to smooth out the inflation erosion of bonds and cash over the long-term.
Finally, wasting assets like fine wine tend to move slowly. While the market ebbs and flows, changes take months. This couldn&#8217;t be more different from high-risk stocks or crypto assets, which can soar and plummet in moments. Investing in fine wine can have a calming effect on the overall performance of a portfolio. This could be welcome news for investors who may not relish turbulent performances.
<h2>Where can you find out more?</h2>
Get a full picture of how <a href="https://winecap.com/learn/fine-wine-taxation-2023">fine wine taxation works with our complimentary guide</a>. You can also speak to one our experts completely for free. Simply <a href="https://winecap.com/start-investing">book a thirty-minute consultation</a> with no strings attached, for a personalised conversation.
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Changes to Capital Gains Tax: what does this mean for fine wine investors?

<ul>
<li>The Chinese zodiac has historically impacted fine wine demand in Asia.</li>
<li>2024 is the year of the Wood Dragon, with previous vintages under the same sign being 2012, 2000, 1988 and 1976. </li>
<li>We examine the best wines from these ‘Dragon’ years and other associated labels. </li>
</ul>
As the Lunar New Year draws near, that of the Wood Dragon, the fine wine market is feeling the influence of the Chinese zodiac. Historically, the zodiac has had an impact on buying, particularly in Asia, with increased demand for wines from previous vintages carrying the same zodiac sign or those symbolically linked to it. Which will be the trending ‘Dragon’ wines this year?
<h2>Past ‘Dragon’ vintages</h2>
The last four ‘Dragon’ vintages were 2012, 2000, 1988 and 1976.
2012
In terms of growing season, the most recent 2012 ‘Dragon’ year was challenging in many fine wine producing regions, including Bordeaux and Burgundy, which led to mixed quality. However, it is widely considered as one of the greatest Champagne vintages this century, with Tuscany and the Rhône also excelling in some areas. Famous 100-point (Wine Advocate) wines include <a href="https://winecap.com/wine-track/france/rhone/hermitage/m.-chapoutier/ermitage-ermite">M. Chapoutier Ermitage l&#8217;Ermite</a> from the Rhône (rated by Jeb Dunnuck), <a href="https://winecap.com/wine-track/france/bordeaux/pomerol/chateau-l'eglise-clinet/eglise-clinet">L&#8217;Eglise-Clinet</a> from Bordeaux (William Kelley), <a href="https://winecap.com/wine-track/spain/castilla-y-leon/ribera-del-duero/dominio-de-pingus/pingus">Pingus</a> (Luis Gutiérrez) from Spain and <a href="https://winecap.com/wine-track/united-states/california/oakville/screaming-eagle/cabernet-sauvignon">Screaming Eagle</a> (Robert Parker) from California.
2000
The 2000 vintage was brilliant in Bordeaux with many of the wines now reaching maturity. This classic vintage saw Parker award <a href="https://winecap.com/wine-track/france/bordeaux/saint-emilion-grand-cru/chateau-pavie/pavie">Pavie</a>, <a href="https://winecap.com/wine-track/france/bordeaux/pessac-leognan/chateau-la-mission-haut-brion/mission-haut-brion">La Mission Haut-Brion</a> and <a href="https://winecap.com/wine-track/france/bordeaux/pomerol/petrus/petrus">Pétrus</a> 100-point scores, with <a href="https://winecap.com/wine-track/france/bordeaux/pomerol/chateau-lafleur/lafleur">Lafleur</a> receiving the same perfect score from Neal Martin, and <a href="https://winecap.com/wine-track/france/bordeaux/saint-emilion-grand-cru/chateau-cheval-blanc/cheval-blanc">Cheval Blanc</a> from Antonio Galloni. The 2000 was also another legendary year for Champagne, with highly rated wines including <a href="https://winecap.com/wine-track/france/champagne/na/krug/clos-du-mesnil">Krug Clos du Mesnil</a>, <a href="https://winecap.com/wine-track/france/champagne/na/louis-roederer/cristal">Louis Roederer Cristal</a> and Dom Pérignon P2. In Burgundy, the vintage was largely seen as one for early consumption due to low acidity, but many of the wines are now drinking perfectly. The appellations that shone were Nuits-Saint-Georges, Chambolle-Musigny and Morey-Saint-Denis.
1988
A great year for the sweet wines of Bordeaux, 1988 Sauternes and Barsac have stood the test of time. Initially considered a Right Bank vintage, Lisa Perrotti-Brown MW (<a href="https://thewineindependent.com/">The Wine Independent</a>) recently wrote that wines ‘from Saint-Émilion, Pomerol, and Pessac-Léognan […] should be drunk soon’. 1988 is another vintage to drink soon in Burgundy that produced classic, long-lived wines with good depth of fruit. The year was much more abundant in Chardonnay than in Pinot Noir, and hence better for reds than for whites.
1976
Going back close to 50 years, the 1976 vintage was a mixed bag for much of the wine world. In France, Champagne and Alsace fared better than Bordeaux and Burgundy, and Germany enjoyed a fantastic year. The most significant event was the Judgement of Paris tasting, which put California on the fine wine map. In terms of 100-point wines, Robert Parker’s 1976 favourites were Penfolds Grange and <a href="https://winecap.com/wine-track/france/rhone/cote-rotie/e.-guigal/cote-rotie-mouline">Guigal C</a><a href="https://winecap.com/wine-track/france/rhone/cote-rotie/e.-guigal/cote-rotie-mouline">ô</a><a href="https://winecap.com/wine-track/france/rhone/cote-rotie/e.-guigal/cote-rotie-mouline">te-R</a><a href="https://winecap.com/wine-track/france/rhone/cote-rotie/e.-guigal/cote-rotie-mouline">ô</a><a href="https://winecap.com/wine-track/france/rhone/cote-rotie/e.-guigal/cote-rotie-mouline">tie La Mouline</a>.
<h2>Beychevelle – the most famous ‘Dragon’ wine</h2>
When it comes to associations, <a href="https://winecap.com/wine-track/france/bordeaux/saint-julien/chateau-beychevelle/beychevelle">Château Beychevelle </a>is an apt choice for the ‘Dragon’ year as its Chinese name means ‘dragon boat’. The wine’s label also depicts a ship with the head of a griffin. Its 2012 vintage is ‘one of the stars of St. Julien’, according to Parker, who described it as ‘elegant and powerful, rich and intense, but light on its feet’. He recommended drinking it between 2019 and 2051.
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

‘Dragon’ wines for Chinese New Year

<ul>
<li>Fine wine can effectively hedge against inflation, often outperforming traditional assets like gold and stocks.</li>
<li>Investment in fine wine requires consideration of personal ethics, liquidity needs, and a long-term strategy.</li>
<li>Strategic timing in fine wine investment, such as early purchases, can lead to significant profit taking.</li>
</ul>
Since 1914, the price of bread has seen inflation of around 11,000%. In the roaring 20s, a loaf cost under a penny. Fast forward to today, the average bread costs <a href="https://www.thisismoney.co.uk/money/news/article-2950798/Price-loaf-bread-rises-11-000-past-100-years-thanks-inflation-says-Lloyds.html">around £1.35</a>. This price rise is not due to an increase in the quality of bread but rather a reflection of the decreasing purchasing power of money over time. In the words of the French writer and Burgundy lover, Hugo Voltaire, ‘Paper money eventually returns to its intrinsic value – zero’.
As well as playing havoc with our savings, <a href="https://www.forbes.com/advisor/in/investing/how-does-inflation-affect-fixed-income-investments/">inflation can be the undoing of fixed-income investment portfolios too</a>. Unless the interest rates outpace the loss of purchasing power, repayments will be worth less and less each year. In these tense economic times, investors may be tempted by hedge funds and hedging assets like derivatives. While these can offer reassurance, they&#8217;re also complicated and expensive. So-called &#8216;safe haven&#8217; assets like gold and property are also effective inflation-hedges. But right now, they are trading at a premium. This article explores an alternative option: fine wine as a hedge against inflation risk.
<h2>Assess your inflation exposure in your investment strategy</h2>
If you invest in liquid and fixed-income investments like cash or bonds, your wealth is probably exposed to inflation. This tends to be more typical for those closer to retirement, as they may need access to regular funds. Start by identifying these assets in your portfolio. Pay close attention to bonds which last more than five years, as the interest payments (or coupons) could be more at risk of losing value over time.
Once you&#8217;ve identified the riskiest assets, refer to your strategy. There may already be a plan for how to deal with periods of high inflation. Most managers will build-in hedging assets from the beginning. But many will also deviate from the strategy tactically from time to time. For example, in high inflation environments, they might sell some bonds and buy stocks – known as going ‘overweight’ or ‘underweight’ from the original allocations. This is what you may need to do if you have too much inflation risk in your portfolio. Depending on your financial needs, fine wine could be a sensible alternative investment for you.
<h2>Consider if fine wine is right for you</h2>
Fine wine is a truly excellent hedge against inflation. However, it may not be suitable for everyone. If you do not want to invest in fine wine because of religion or personal reasons, you should follow your ethics. Wine is not the only inflation-resistant asset, and you may be better suited to art, luxury watches and collectible cars.
You should also consider your liquidity needs. Fine wine is a long-term asset with intrinsic value. Investors can only collect returns after the bottles have been sold. And for the best results, that could take upwards of five years.
Investors should also be aware that fine wine is traded on the private market. Nowadays, this is much easier than it used to be. Instead of attending physical auctions and joining exclusive clubs, you can find fine wine investment platforms online.
<h2>Find a wine to suit your time horizon</h2>
The value of fine wine typically increases with age. Investors often buy fine wine at least five years in advance, with some opting for En Primeur purchases.
In this world, timing is everything. And if you can get it right, you stand to make a handsome profit. Over ten years, Domaine Arnoux-Lachaux Nuits-Saint-Georges Rouge, for example, has delivered returns of <a href="https://winecap.com/wine-track/france/burgundy/nuits-saint-georges/domaine-arnoux-lachaux/nuits-saint-georges-rouge">525% and counting</a>.
Before you begin, consider carefully what type of time horizon you are comfortable with. Ideally, you&#8217;re looking to plug the inflation gaps in your portfolio, without landing yourself into an illiquidity issue. For example, if you&#8217;re concerned about the inflation risk of some five-year bonds, you could look into ‘brands on the move’ that have historically delivered faster returns.
<h2>Understand the fine wine market</h2>
Fine wine attracts a diverse range of buyers, from enthusiasts to those purchasing for business or personal milestones. Understanding buyer motivations and regional preferences is key to strategic investing. Seasonal trends, like the heightened demand for Champagne towards the end of the year, also play a role in maximising returns.
<h2>A precious and depleting asset with intrinsic value</h2>
If you&#8217;re looking to shield your wealth from the erosive effects of inflation, <a href="https://www.forbes.com/sites/forbesbusinesscouncil/2023/08/30/how-to-include-fine-wine-in-your-investment-portfolio/?sh=11ac67381789">fine wine could be the answer</a>. It is a precious and depleting asset, with intrinsic value. As one academic paper recently found, ‘<a href="https://www.sciencedirect.com/science/article/abs/pii/S1059056022000090#preview-section-cited-by">fine wine has outperformed almost every other major financial index over the past two decades</a>’. However, to get the best results, you&#8217;d probably need to buy, hold and think long-term.
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

How to use fine wine as a hedge against inflation

Our Q4 2023 report has now been released. The report offers a comprehensive overview of the fine wine market in the last quarter and a forward-looking perspective for 2024. In a landscape marked by correction and repositioning, it delves into the dynamic interplay of market forces, unveiling both challenges and opportunities for investors.
Report highlights:
<ul>
<li>The fine wine market is navigating 2024 amidst a correction phase, presenting a chance for strategic repositioning.</li>
<li>Fine wine prices (Liv-ex 100 index) experienced a 4.2% decline in Q4, reflective of market adjustments amid global economic uncertainties.</li>
<li>Increased risk aversion has redirected focus to classic wines and regions, with Bordeaux emerging as a standout beneficiary.</li>
<li>Bordeaux&#8217;s resurgence, driven by liquidity and a solid reputation, underscores the market&#8217;s adaptability to changing dynamics.</li>
<li>The upcoming high-volume Burgundy and Bordeaux En Primeur campaigns present opportunities for strategic investment, with pricing strategies holding the key to success.</li>
<li>Investors, seeking value and consistency, anticipate potential opportunities in the evolving landscape.</li>
<li>As an improving asset in diminishing supply, their emphasis should remain on long-term gains.</li>
</ul>
Click below to download your free copy of our quarterly investment report.
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Q4 2023 Fine Wine Report & 2024 Outlook

<ul>
<li>The 2022 vintage boasts high quality and quantity – ‘the largest crop in 23 years’. </li>
<li>It is being launched in a downward market, following ten months of consistent price declines.</li>
<li>As demand has tempered and stock has (re-)entered the market, the success of the upcoming releases will largely depend on pricing. </li>
</ul>
Burgundy’s 2022 vintage is being launched in a downward market, following ten months of consistent price declines. The success of the upcoming releases will largely depend on pricing, but will its quality and quantity have the potential to turn the tables?
<h2>Critical opinions on Burgundy 2022</h2>
Critic reports thus far have been overwhelmingly positive, applauding both the quality and the quantity of the vintage. 2022 marks the largest crop in 23 years, with some producers seeing double the yields of the previous year. According to Matthew Hayes (<a href="https://www.jancisrobinson.com/articles/cote-dor-2022-overview">JancisRobinson.com</a>), ‘across the whole of Burgundy, 2022 offered a whopping 75.4% more wine (red, white and crémant) compared with 2021’.
Contrary to expectations, the vintage produced wines with typicity, purity, and freshness despite the extreme weather. Hayes commented that ‘2022 was the second-hottest year that the Côte d’Or has endured this century and should logically have followed in the footsteps of the equally stifling solaire years of 2019 and 2020, producing wines with rich, deep fruit profiles and vibrant acidities to ensure long life but […] the wines show a generally impeccable balance of tidy, ripe fruit, discreet acidity and equally (and mostly) refined tannins’.
Hayes revealed that ‘the best-sited and best-rooted vines appeared to have coped well with the heat and in the Côte d’Or the excellence of the top premiers and grands crus shines clearly’.
The prevailing opinion is that 2022 is an excellent year for white wines, reminiscent of 2017 and 2020. Meanwhile, tasting notes from the Côte de Beaune and Côte de Nuits highlighted dense red wines with well-integrated tannins, simultaneously offering elegance and concentration. The wines are expected to be approachable in youth but with significant ageing potential.
However, the market onto which they are released is just as important as the releases themselves.
<h2>The current market for Burgundy</h2>
In October 2022, the Liv-ex Burgundy 150 index reached an unprecedented peak, marking a staggering 809.4% increase since its inception in December 2003. Twenty years later, Burgundy remains the best-performing fine wine region.
However, since its peak, prices have tumbled 17.4%. This decline has been attributed to various macroeconomic factors that led to a shift in investor sentiment. As the economic landscape became more uncertain, fine wine buyers have grown increasingly risk-averse, causing a contraction in demand for more volatile investments.
This trend was particularly pronounced in Burgundy, which had soared too high across the whole spectrum. At these stratospheric prices, the market saw more sellers than buyers, with investors keen to liquidate their stock. Top-tier Burgundy (re-)entered the market as sellers were looking to make gains.
This perception of increased risk and a preference for stability among investors led to a decrease in Burgundy&#8217;s trade share by value. The falling prices further exacerbated this trend.
<img loading="lazy" decoding="async" class="alignnone wp-image-1836" src="https://wp.winecap.com/wp-content/uploads/2024/01/Burgundy-150-375x260.png" alt="Burgundy fine wine prices" width="800" height="556" srcset="https://wp.winecap.com/wp-content/uploads/2024/01/Burgundy-150-375x260.png 375w, https://wp.winecap.com/wp-content/uploads/2024/01/Burgundy-150-768x533.png 768w, https://wp.winecap.com/wp-content/uploads/2024/01/Burgundy-150-1536x1067.png 1536w, https://wp.winecap.com/wp-content/uploads/2024/01/Burgundy-150-2048x1422.png 2048w, https://wp.winecap.com/wp-content/uploads/2024/01/Burgundy-150-1200x833.png 1200w, https://wp.winecap.com/wp-content/uploads/2024/01/Burgundy-150-1980x1375.png 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
The market conditions present a challenging backdrop for the high-quality high-quantity Burgundy 2022 En Primeur campaign. Will the excitement of the new be enough to stimulate demand?
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

Burgundy 2022: a promising vintage in a challenging market

<ul>
<li>31% of Brits are setting resolutions to organise their finances in the new year.</li>
<li>One of the most talked-about investments – cryptocurrency – attracts with the potential for high returns but also carries high risk. </li>
<li>Offering smoothness and stability, fine wine can balance crypto volatility. </li>
</ul>
As we welcome in the new year, <a href="https://www.forbes.com/uk/advisor/life-insurance/new-years-resolution-statistics/">31% of Brits</a> are setting resolutions to organise their finances. For many this will mean investing. But where should they invest? And how risky is too risky?
In this article, we dive into one of the most talked-about high-risk investments – cryptocurrency. We explore the pitfalls and what investors can do to mitigate them. We also look at how fine wine – our favourite asset – can complement volatile investments like crypto to help smooth overall performances.
<h2>11,000 cryptocurrencies&#8230; and counting</h2>
Most people are familiar with Bitcoin and Ethereum, the two most popular digital coins. However, there are nearly 11,000 cryptocurrencies, with more issued every day. Some are eye-wateringly volatile. At the time of writing, for example, <a href="https://finance.yahoo.com/quote/KILT-USD">KILT-USD has jumped nearly 25%</a> in just three months. Meanwhile, others are much steadier.
StableCoins are considered the sturdiest as their market value is pegged to mainstream fiat currencies like the US dollar. This means that their worth should – in theory – be the same as the everyday money in our wallets. But the reality can be different.
<h2>StableCoins and de-pegging events</h2>
Even the most trusted StableCoins – Tether, USD Coin, Multi-Collateral Dai, Binance and USDP dollar – stray away from the dollar value from time to time, known as ‘de-pegging’.
<a href="https://www.spglobal.com/en/research-insights/featured/special-editorial/stablecoins-a-deep-dive-into-valuation-and-depegging">SPGlobal </a>identified 13 core triggers: market volatility, liquidity stress, reserve impairments, mismanagement, demand and supply imbalances, loss of investor confidence, competitor performance, design flaws, hacking, operational risk, limited adoption, regulatory uncertainty and market events can all de-peg StableCoins, leading to erratic and volatile performances.
<h2>Risk and return profile of StableCoins</h2>
StableCoins are full of promise, but they are also incredibly young. The oldest StableCoin, Tether, is just nine years old. Although regulators are scrambling to offer investors more security, they are still some way off.
Buying asset classes before they have matured presents both risks and opportunities. Higher risk opens the door for higher rewards, but when things go wrong, the fall-out can be fatal. Famously, in May 2022, Terra&#8217;s StableCoin crashed dramatically, <a href="https://www.coindesk.com/markets/2023/02/20/retail-crypto-investors-in-emerging-economies-hit-hardest-by-ftx-terra-collapses-bis/#:~:text=The%20crypto%20market%20lost%20more,in%20November%2C%20the%20report%20said.">costing investors $450+ billion</a>. Shortly after came FTX fall, plummeting a further $200+ billion. The aftermath left thousands of investors badly out of pocket with little to no regulatory protection.
For years, regulators like the FCA have been warning investors not to invest too much in crypto, as <a href="https://nypost.com/2022/05/23/investors-lose-big-in-crypto-crash-i-didnt-sleep-for-days/">worrying surges of people</a> lose their entire life savings to this digital asset.
<h2>A dire need for diversification</h2>
To avoid losing everything in one sweep, investors should spread their money across assets with distinctive characteristics and revenue streams. This process, known as <a href="https://winecap.com/learn/fine-wine-investment-diversification">diversification</a>, means the gains from some investments cancel out the loses from others.
Without personal financial advice, it is impossible to say how much of a portfolio should be invested in crypto. However, as a rule, experts have <a href="https://www.marketwatch.com/picks/look-at-it-like-youre-a-gambler-walking-into-a-casino-heres-exactly-how-much-of-your-nest-egg-financial-pros-say-should-be-invested-in-crypto-01638883573">warned against investing more than 5% of wealth</a>. Some even cap the limit at 2%.
Similarly, investors should probably limit other risky assets too. Meme stocks, commodities, derivatives or trending collectibles can all derail a portfolio if they make up more than 10%.
<h2>Pairing fine wine and crypto</h2>
Unlike digital assets, <a href="https://winecap.com/learn/the-rise-of-fine-wine-as-a-stable-and-sustainable-investment">fine wine moves slowly but surely</a>. Since the end of 2003, <a href="https://www.liv-ex.com/news-insights/indices/">the performance of the top 1000 fine wines</a> (according to the Liv-ex 1000 index) has crept little-by-little up by a whopping 315%. But since the rise is smooth and gradual, it does not feel volatile or erratic.
Month-on-month the average fine wine index value rarely changes by more than 5%. By contrast, between the 25th of September and the 25th of October alone, Bitcoin fluctuated by over 30%.
These properties could make fine wine an excellent partner for crypto assets, like StableCoin. The steadfastness of fine wine can help to slow and flatten the rollercoaster effect of crypto has on a portfolio.
<h2>Contrasting sources of value</h2>
Aside from smoothing volatility, there are other reasons why fine wine could pair well with crypto. One of the strongest is the value source.
Crypto is not backed by a real asset. Some experts argue that the energy used to create a coin is its value. But it is generally agreed that the value of crypto comes from the wider market and the potential that others see in it. So, when the market is in turmoil, prices plummet.
By contrast, fine wine gains its value intrinsically. Put simply, the premise of wine investment is that as fine wine ages, its quality improves, and prices rise. The market operates with its own dynamics based on vintage quality, scarcity and global demand. Whether it&#8217;s bullish, bearish or something else, fine wine is still treasured and sought-after.
In this respect, crypto and fine wine investments could pair beautifully. Fine wine offers smoothness and stability. Meanwhile, crypto offers investors higher risk-reward potential and quick liquidity.
<h2>Investing responsibly</h2>
StableCoins are surging in popularity. Governments, institutional investors and regulators all dipped their toes into crypto over the past months, indicating that further expansion could be around the corner.
This might lead to more growing pains and continued volatility. For those who chose to invest in this young asset, diversification is crucial. Examples of assets which are less affected by the stock market include property, gold or fine wine. We feel that the characteristics of fine wine pair especially well with crypto, helping investors to hedge against volatility risk and smoothen their overall performances.
If you would like to talk to us about investing in fine wine, <a href="https://winecap.com/start-investing">we&#8217;re just a few clicks away.</a>

Can fine wine investment balance crypto volatility?

<ul>
<li>There is an overlap between sustainable and fine wine investors as both share a long-term vision and increasingly similar demographics.</li>
<li>56% of investors are attracted to fine wine because it is a sustainable asset class with a low carbon footprint.</li>
<li>Environmental, social and financial sustainability is one of the five characteristics that distinguishes fine wine from other beverages.</li>
</ul>
This is the third part of our &#8216;Fine wine sustainability report&#8217;. See also <a href="https://winecap.com/learn/fine-wine-sustainability-report-part-i-how-is-fine-wine-sustainable">part I &#8211; how is fine wine sustainable</a> and <a href="https://winecap.com/learn/fine-wine-sustainability-report-part-ii-how-can-fine-wine-mitigate-risk-in-a-sustainable-portfolio">part II &#8211; how can fine wine mitigate risk in a sustainable portfolio</a>. 
There is already some cross-over between sustainable and fine wine investors. The demographics are getting closer all the time.
The most active sustainable investors today are <a href="https://scholarship.law.bu.edu/cgi/viewcontent.cgi?article=1973&amp;context=faculty_scholarship">millennials</a> (the group currently aged between 27 and 42). More specifically, the majority of them are <a href="https://www.sc.com/en/grow-your-wealth/what-five-personas-reveal-about-barriers-in-esg-investing/">entrepreneurs and legacy builders</a>. Likewise, within the world of fine wine, research from Sotheby&#8217;s in 2022 found that <a href="https://www.sothebys.com/en/docs/pdf/wine-spirits-market-report-2022.pdf">35% of new buyers</a> are under the age of forty. This is the second consecutive year of millennials betting on fine wine as the figure hit<a href="https://www.sothebys.com/en/docs/pdf/jk-22907254-feb-2022-wine-market-report-2021-final.pdf"> 37% in 2021</a>.
Fine wine investments can take around ten years to mature, but often take longer to reach scarcity returns. This means that most investors are collecting long-term legacy assets, just like many sustainable investors. The overlap that already exists between ambitious sustainable and fine wine investors is promising. We believe it will continue to grow for the future.
There is already a burgeoning movement of sustainable investors buying fine wine. Our <a href="https://winecap.com/learn/uk-wine-investment-report">2023 survey</a> found that 56% of investors are attracted to fine wine because it is a sustainable asset class with a low carbon footprint. Although fine wine has many investment qualities, we believe that the best-suited sustainable investors are those who are looking to hedge against volatility or inflation risks over the long-term. Some investors have religious or personal barriers to investing in fine wine, and in this situation, the asset may not be suitable.
<h2>An insatiable passion for change</h2>
Is there any industry more determined to adapt and mitigate against the climate crisis than fine wine? The dogged and ruthless determination of winemakers is as inspirational as it is impressive. With floods, forest fires and droughts ripping through the planet, we need every innovation from every industry. Nothing should be discounted. And sustainable investors should be given every possible opportunity to mitigate against risks.
The fine wine industry is rapidly evolving its stance on the planet, with biodiversity, climate adaption and mitigation taking centre stage. <a href="https://www.meiningers-international.com/wine/general/it-time-re-think-fine-wine">Environmental, social and financial sustainability</a> is one of the five characteristics that distinguishes fine wine from other beverages. It is now a defining feature at the heart of every vineyard, nestled in every bottle. What’s more, the <a href="https://sustainablewine.co.uk/launch-of-the-swr-global-reference-framework/">Sustainable Wine Roundtable</a> launched a framework for identifying and categorising sustainability in wine in 2023. Now investors have more layers of security than ever before that their investment matches their ethics.
Depriving investors of fine wine would not just leave inflation and stability gaps in portfolios, it would undermine the vital work of an evolving industry. As powerful as it is passionate, this is an asset that packs a seriously low-carbon punch in sustainable portfolios.
“A fine wine is complex, balance, with a potential to age – though highly drinkable at every state of its development. It has the capacity to provoke emotions and wonder in the one drinking it, while reflecting the expression of truth intended by its maker. It is widely recognized, while being environmentally, socially and financially sustainable.”
<a href="https://areni.global/publications/rethinking-fine-wine-defining-fine-wine-and-its-responsibilities-to-protect-its-future/">Areni</a>

Fine wine sustainability report (Part III): profiling the sustainable investor

<ul>
<li>The second part of our report focuses on how fine wine can mitigate risk for sustainable investors.</li>
<li>By blending sustainability-linked bonds with fine wine, investors can shield some of their wealth from inflation while having access to a regular income stream.</li>
<li>The steadiness of fine wine can help to smooth out the overall performance of sustainable portfolios, hedging against the volatility risks of impact investments. </li>
</ul>
Fine wine has many qualities that make it an environmentally and socially sustainable asset, as discussed in the f<a href="https://winecap.com/learn/fine-wine-sustainability-report-part-i-how-is-fine-wine-sustainable">irst part of this report</a>. And we believe that it can offer even more value as a hedge for sustainable portfolios. Just as with traditional investing, each investor is different. However, there will be some common themes and risks. In this section, we analyse how fine wine interacts with some of the most popular sustainable investments, and where the assets can become greater than the sum of their parts.
<h2>Sustainability-linked bonds</h2>
For businesses to become sustainable, they will usually need to pay for new infrastructure. This is where bonds come in. Investors finance the projects and receive a regular income from the repayments and interest (known as coupons) over a set period of time. There are many examples of corporate and sovereign green bonds, but probably the most impactful is Orsted.
In 2017, Orsted raised 1.25 billion euros from investors to successfully transition from brown to green energy. The bonds last until 2029. Since then, Orsted has been named the world’s most sustainable company. Today <a href="https://orstedcdn.azureedge.net/-/media/2022-annual-report/orsted-sustainability-report-2022.pdf?rev=eda5465ba5784866b6cea99e58088f94&amp;hash=3BFD5F72E676043FA33114647E7C8C4D">91% of the energy</a> it creates comes from renewable sources. The aim is to be at 99% by 2025. For context, worldwide this accounts for <a href="https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/energy-economics/statistical-review/bp-stats-review-2022-full-report.pdf">just 13% of energy</a>. Orsted has also just released a blue bond, which focuses on marine life and oceans.
Sustainability-linked bonds can be built around society as well as the environment. <a href="https://www.gsam.com/content/gsam/uk/en/institutions/about-gsam/news-and-media/2023/social-bonds-survey.html">Research by Goldman Sachs</a> found 65% of investors are interested in social bonds, with 29% already invested.
Bonds are a good and relatively low-risk way for investors to generate an income while doing good. But there are some downsides. The main issue is that as bonds set a fixed repayment schedule years – sometimes decades – in advance, inflation can reduce the purchasing power of the income over time. In a usual market environment, central banks aim to keep inflation levels to around 2% or under, which is priced into the bond. However, in recent years, it has shot up to double digits. This can slash real returns for investors, and potentially put them off green bonds.
We believe that fine wine can help to hedge against the inflation risk of sustainability-linked bonds. The two assets complement each other well, as fine wine is less liquid but inflation resistant. By blending bonds with fine wine, investors can shield some of their wealth from inflation while having access to a regular income stream.
<h2>Impact investments</h2>
There are some businesses and organisations that make a clear and measurable change, while delivering returns for investors. Some environmental examples include investments in sustainable waste management, building renewable energy plants or businesses producing meat alternatives. There are also social movements; for example, venture capitalist firms investing in women and people of colour, affordable housing developers or accessible childcare services. When investments make tangible improvements, they are usually known as impact investments (because they make an impact).
While impact investments can be almost any asset class or risk level, in general they tend to be on the riskier side. By their nature, they are usually fairly new ventures, and can also be subject to incoming regulations. This could mean that the stocks spring and plunge, making sustainable investors nervous.
Fine wine, by contrast, is a low-risk asset with little volatility. We feel that the steadiness of fine wine can help to smooth out the overall performance of sustainable portfolios, hedging against the volatility risks of impact investments.
<h2>Overall positioning in a portfolio</h2>
Fine wine should not be the star of the show, but more of a supporting act. It is often best placed as a hedge against other sustainable or impactful assets, especially those with inflation or volatility risks. Generally, wealth managers and investors keep fine wine allocations under 10% of the total portfolio.
<h3>Stay tuned for Part III &#8211; profiling the sustainable investor.</h3>

Fine wine sustainability report (Part II): how can fine wine mitigate risk in a sustainable portfolio?

<ul>
<li>Fine wine offers a sustainable investment option, which is increasingly recognised by wealth managers.</li>
<li>The industry is proactively adapting to climate change, with practices like regenerative farming and reducing bottle weight. </li>
<li>Fine wine&#8217;s focus on social sustainability, including worker welfare and community support, boosts its appeal as a sustainable investment choice, aligning with modern ESG criteria.</li>
</ul>
Floods, fires and famine are no longer on our doorstep, they have already crossed the threshold into normality. In the first eight months of 2023 alone, the USA suffered <a href="https://www.ncei.noaa.gov/access/billions/#:~:text=In%202023%20(as%20of%20November,and%201%20winter%20storm%20event.">23 separate billion-dollar climate disasters</a>. Research shows that by 2050, floods in Europe <a href="https://www.eea.europa.eu/highlights/floodplain-management-reducing-flood-risks">will increase five-fold</a>.
Alongside climate disaster comes human suffering, ever-growing wealth gaps and loss of livelihoods. The homes of indigenous tribes are <a href="https://www.hrw.org/report/2023/07/10/our-trust-broken/loss-land-and-livelihoods-oil-development-uganda">deforested to clear space for oil drilling</a>. The most vulnerable find their <a href="https://news.un.org/en/story/2023/09/1141587">communities and businesses flooded</a>. Meanwhile, <a href="https://www.imf.org/en/Publications/fandd/issues/2021/09/climate-change-and-inequality-guivarch-mejean-taconet">social inequality rachets up</a> with poor climate policies.
Investors are all too aware of the damage. A <a href="https://corpgov.law.harvard.edu/2023/07/26/2023-sustainable-investment-survey/">2023 study by Harvard</a> found 85% ask their advisors about sustainable investments. While some groups – particularly <a href="https://scholarship.law.bu.edu/cgi/viewcontent.cgi?article=1973&amp;context=faculty_scholarship">millennials</a> – have become activists themselves, using their shareholder votes to force change. So where does fine wine come into this?
Although ethical investing has been around for centuries, climate-focused sustainable investing is strikingly new. The insatiable demand we see today is less than a decade old. Between 2016 and 2020 alone, sustainable investing in Europe, USA, Canada, Australasia, and Japan <a href="https://onlinelibrary.wiley.com/doi/full/10.1002/sd.2422">swelled by 55%</a>. Even though it is a multi-trillion industry, ‘Sustainable Investment’ still doesn’t even have a definition in most parts of the world. Because of this, the movement has borrowed a lot from pre-existing rules, which were mostly religious.
For centuries, our sustainable investment has been built on the foundations of Quaker and Methodist beliefs. This explains why alcohol, or to quote <a href="https://christianhistoryinstitute.org/magazine/article/wesleys-sermon-use-of-money">John Wesley ‘that liquid fire’</a> has been prohibited from almost all ESG (environmental, social, governance) funds – even when <a href="https://www.hdinvestmentcontent.com/post/5-vice-fund-companies-in-esg-investments">fossil fuel producers, fast fashion and plastic polluters</a> made it on the list.
However, we believe this is a mistake. Fine wine offers extraordinary sustainable benefits to investors, especially when it comes to balancing out the risks of green bonds and risky impact investments. Not only does fine wine contribute to a greener future (it is a natural product after all), but this asset class can also plug vital strategic gaps, giving sustainable investors even more confidence. The time has come to give fine wine the credit it deserves.
<h2>How is fine wine sustainable?</h2>
While there is no universal definition of a ‘Sustainable Investment’, the European Union has made significant headway. According to the <a href="https://finance.ec.europa.eu/sustainable-finance/tools-and-standards/eu-taxonomy-sustainable-activities_en">EU taxonomy</a>, an environmentally sustainable investment must contribute significantly to one of the following, without jeopardising the others;
<ul>
<li>Climate change mitigation</li>
<li>Climate change adaption</li>
<li>Sustainable use and protection of water and marine resources</li>
<li>Transition to a circular economy</li>
<li>Pollution prevention and control</li>
<li>Protection and restoration of biodiversity</li>
</ul>
We believe that fine wine not only meets this criterion but exceeds it. Vineyards rely on a stable climate, fertile soil and regenerative farming. From using <a href="https://www.youtube.com/watch?v=nRx1yeIQgAM&amp;ab_channel=ShawnP.Mitchell">free range ducks</a> and <a href="https://tablascreek.typepad.com/tablas/2017/02/tablas-creek-lambs-and-tablas-creek-lamb.html">sheep</a> instead of pesticides to replacing heavy glass with lighter alternatives, the environmental innovations in the wine industry are never-ending.
<h2>Climate change mitigation and circular economies</h2>
To secure a safer future, every efficiency counts. The most carbon-intensive part of fine wine production is making and transporting the heavy glass bottles that contain the wine. According to <a href="https://sustainablewine.co.uk/wp-content/uploads/2023/09/SWR-Report-Reducing-Wine-Bottle-Weight-2023.pdf">one Sustainable Wine Roundtable report</a>, this accounts for over half of the total environmental impact of wine. Simply by reducing the bottles from 550g to 420g would cut 25% of carbon emissions.
Although dense packaging has long-been associated with quality, European fine wine producers are throwing themselves into this trend. Burgundy producer, Albert Bichot, for example has <a href="https://www.jancisrobinson.com/articles/retailers-agree-reduce-bottle-weights">reduced the bottle weight from 700-750g to 450g.</a> According to one interview, the producer also uses only <a href="https://www.forbes.com/sites/lizthach/2023/05/31/burgundy-wine-powerhouse-albert-bichot-goes-100-organic-and-reduces-bottle-weight/?sh=5a8d7e6a5983">recycled glass and biodegradable labels</a>. Even Champagne – which typically uses thicker glass – is experimenting. Bollinger, for example, is committed to a <a href="https://www.champagne-bollinger.com/en/sustainability/">7% reduction in bottle weight</a> by 2029, as well as to use only recycled and recyclable materials.
Another area for improvement is energy efficiency throughout the manufacturing process. Here, fine wine has achieved far more than other industries. Almost every fine wine producer we could find has taken significant steps to reduce emissions dramatically. One of our favourite examples is <a href="https://saornellaiastatic.blob.core.windows.net/media/Ornellaia_e_Masseto_Sustainability_Report_EN.pdf">Ornellaia.</a> 2022 saw this winery slash liquefied petroleum gases usage by 98% with biomass heat. Today the entire firm uses the equivalent of 5% of the average family of four household over a year. Ornellaia has also blended nature with technology by installing a Building Management System to ensure that the temperature is efficiently set.
<h2>Climate change adaption, sustainable use of water and protection of biodiversity</h2>
World-famous flavours are at risk from climate change. As <a href="https://www.champagne.fr/en/the-commitments-in-champagne/our-commitments/carbon-footprint">Comité Champagne report</a>, temperatures are now 1.8 degrees higher than in the 1980s, meaning grapes are at risk of bursting prematurely or drying out. They now need to be picked thirty days earlier, potentially cutting the characteristic tastes short. Fine wine producers have been rigorousness and brave, proactively innovating in the face of the climate crisis. Not only do these innovations help cool down and protect the precious vines, but they also offer investors significant environmental benefits too.
One of the most widespread practices in fine wine vineyards now is the use of regenerative farming. Rather than using typical organic practices, which can still harm pollinators, producers are leaning into nature. <a href="https://www.forbes.com/sites/lizthach/2023/11/30/why-la-crema-winery-employs-sheep-in-the-vineyard-that-dislike-grapes/?sh=7333f7582b54">Sheep roam around some vineyards</a> picking off bugs organically, and often, <a href="https://www.theguardian.com/environment/2021/jun/28/draught-wines-french-vineyards-rediscover-the-power-of-horses">horses are put to work instead of tractors</a>.
<img loading="lazy" decoding="async" class="alignnone wp-image-1814" src="https://wp.winecap.com/wp-content/uploads/2023/12/Horses-at-pontet-canet-375x192.jpg" alt="Sustainability at Pontet Canet" width="800" height="410" srcset="https://wp.winecap.com/wp-content/uploads/2023/12/Horses-at-pontet-canet-375x192.jpg 375w, https://wp.winecap.com/wp-content/uploads/2023/12/Horses-at-pontet-canet-768x394.jpg 768w, https://wp.winecap.com/wp-content/uploads/2023/12/Horses-at-pontet-canet.jpg 975w" sizes="auto, (max-width: 800px) 100vw, 800px" />
Significantly, many fine wine producers such as <a href="https://www.tellerreport.com/news/2021-06-16-ch%C3%A2teau-cheval-blanc-plants-hundreds-of-trees-in-its-legendary-vines---france-24.B1lWj93Pi_.html">Château Cheval Blanc</a> plant diverse fruit and forestry trees between the vines. This helps to shade the grapes, sequester carbon and provide homes for vital pollinators. The fungus which grows around the roots of the trees also soaks up water, acting as a pump, pushing nutrients into the vines.
Water irrigation is one of the hottest topics for today’s fine wine producers, with many now working with their natural landscapes to find the best solutions. Vineyards are increasingly planting or <a href="https://www.thedrinksbusiness.com/2023/08/why-regenerative-viticulture-is-gaining-ground-among-major-wine-producers/">shifting vines along the contours of the land</a>, to prevent run-off during heavy rainfalls. They are also <a href="https://www.thedrinksbusiness.com/2023/08/why-regenerative-viticulture-is-gaining-ground-among-major-wine-producers/">adding ground covers</a> to prevent evaporation, keeping the soil damper and more nutritious.
The adaptions are coming thick and fast, as <a href="https://www.decanter.com/wine-news/bordeaux-new-wine-grapes-419730/">vineyards experiment with new grapes,</a> and alternative locations. Northern France, the UK and Germany are fast becoming viable options for fine wine in this new climate, with producers are always one step ahead of the curve.
<h2>Social sustainability</h2>
Sustainability is about more than preserving the environment. It is also about protecting workers and supporting local communities. Although the fine wine industry is not as advanced in this area as it is with environmental sustainability, frameworks and strong voices are beginning to emerge. As <a href="https://www.wineenthusiast.com/culture/wine/wine-sustainable-diversity-future/">one wine producer puts it</a>:
‘Do we farm organically because it’s better for the environment? Certainly. Do we farm organically because it makes better-tasting wine? Without question. But the most important reason to farm organically is because the lives of the people who work in the vineyards, and the people who live downstream, matter.’
Caring for the environment and biodiversity also has far-reaching effects on local life. Vineyards continue to play a vital role in the culture and traditions of their local communities. Recently the <a href="https://www.champagne.fr/en/additional-information/media/champagne-press/champagne-winegrowers-and-houses-propose-tangible">Comité Champagne proposed a series of tangible solutions</a> to improve the lives of the region’s 120,000 harvest workers. We are also seeing a general trend of permanent contracts for employees, as well as a sharp focus on improving diversity at board levels. While there is certainly work to be done in this space, the general trajectory looks promising.
<h3>Stay tuned for Part II of our Fine Wine Sustainability Report, in which we discuss how fine wine can mitigate risk in sustainable portfolios &#8211; coming next week. </h3>

Fine wine sustainability report (Part I): how is fine wine sustainable?

<ul>
<li>2023 marks a notable slowdown in the fine wine market, with price corrections shadowing the bullish trends of previous years. </li>
<li>Burgundy and Champagne which led the market to its peak in 2022 are suffering the most.</li>
<li>Bordeaux has become a beacon for investors, gaining renewed interest due to its stability and reliability. </li>
</ul>
As the <a href="https://www.liv-ex.com/2023/11/2023-liv-ex-power-100-gimme-shelter-2/">2023 Liv-ex Power 100</a> unveils, a significant shift is evident in the fine wine market. This year marks a notable slowdown, with price corrections shadowing the bullish trends of previous years. Amidst this changing landscape, Bordeaux emerges as a beacon for investors, gaining renewed interest due to its stability and reliability. This article delves into the dynamics of the 2023 fine wine market, highlighting the rise of Bordeaux against a backdrop of global risk aversion.
<h2>Understanding the 2023 market slowdown</h2>
The fine wine market in 2023 has departed from the spirited activity of past years. After prices across many regions reached stellar levels in 2022, 2023 was a year of corrections. Trade by value and volume also fell, according to the 2023 Liv-ex Power 100 report. Despite more wine labels being traded, the overall number of individual wines traded (on a vintage level) has seen a decrease. This trend points towards a strategic shift towards higher quality wine investments, reflecting a more discerning market behaviour.
The softening of the fine wine market in 2023 can be attributed to a range of factors. Economic uncertainties and global financial market fluctuations have instilled a sense of risk aversion among investors. Inflationary pressures and rising interest rates have also played a role, impacting disposable incomes and investment capabilities. This economic climate has prompted a more cautious approach in luxury investments like fine wine. Additionally, changing consumer behaviours and preferences, along with geopolitical tensions and trade disputes, have further contributed to the market&#8217;s softening.
<h2>Regional patterns in 2023</h2>
In 2023, regional patterns in the wine market have become more pronounced. Burgundy and Champagne, which previously led the market to its peak, are now facing significant corrections. Burgundy has seen a reduction in its presence in the Power 100, while the Burgundy 150 index has fallen 15.4% year-on-year. Similarly, Champagne&#8217;s market has also softened, with the Champagne 50 index dipping 19.4%.
The rankings reveal a trend towards stability, liquidity, and relative value, which are prominently found in Bordeaux. This region has emerged as a beacon of resilience in the fine wine market, adding five wines to the Power 100 and benefiting from its reputation for consistent quality and reliable investment.
Conversely, California, while losing five wines in the ranking, managed to maintain its trade share, indicating a selective but sustained interest in its wines. This shift reflects a broader market inclination towards established regions and brands, suggesting a cautious approach by collectors and investors in a turbulent market.
As market dynamics evolve, regions like Italy and Spain are gaining traction, with brands like Vietti and Dominio de Pingus showing positive growth, further diversifying the landscape of investment-worthy wines. These regions are increasingly seen as offering valuable investment-worthy wines, attracting attention for their unique qualities and potential for growth.
<h2>The most powerful brands of 2023</h2>
In the realm of individual brands, certain names have demonstrated remarkable resilience and adaptability amidst the market downturn. Bordeaux&#8217;s Château Climens, for instance, has made an impressive leap in the rankings, rising from 353rd place in 2022 to 98th this year. This is a testament to its successful brand repositioning under new ownership.
Similarly, in California, brands like Opus One and Screaming Eagle continue to hold strong positions. Opus One, in particular, has risen dramatically, from 82nd in 2022 to 4th this year, signifying continued interest in top-tier wines from this region despite broader market challenges.
Despite facing a pullback Burgundy still has powerful players like Kei Shiogai, which took the top spot in terms of price performance, with its Market Price rising 185.7% year-on-year.
The strength of these brands lies not just in their historical significance or quality but also in their ability to retain high liquidity and trading volumes, essential in a market that is increasingly focusing on safer investments. This trend suggests that while the market is retracting in some areas, there remains a robust demand for wines that represent the pinnacle of their respective regions.
<h2>Adapting to the evolving wine market dynamics</h2>
As we navigate through the evolving dynamics of the fine wine market, it is clear that understanding and adapting to these changes is crucial for future investing. The trends of 2023, from the renewed interest in Bordeaux and the resilience of powerful brands, provide valuable insights into the market&#8217;s direction.
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.
&nbsp;

Navigating the 2023 fine wine market: the rise of Bordeaux amid global risk aversion

<ul>
<li>This Friday will see the artist label announcement of Château Mouton Rothschild’s 2021 vintage. </li>
<li>Over the last ten vintages, the average price increase in the month following the announcement has been 5%, signalling a potential investment opportunity.</li>
<li>The 2000 vintage illustrates the power of the special label, perfectly weathering market downturns.</li>
</ul>
Every year, <a href="https://winecap.com/wine-track/france/bordeaux/pauillac/chateau-mouton-rothschild/mouton-rothschild">Château Mouton Rothschild</a> commissions a different artist to produce the label for their Grand Vin. The tradition began in 1945 when Baron Philippe de Rothschild decided to celebrate the end of World War II by creating a special label featuring a &#8216;V&#8217; for victory, designed by Philippe Jullian. Since then, the list of alumni has included the likes of Salvador Dalí, Pablo Picasso, Joan Miró, Andy Warhol, David Hockney, Jeff Koons, Anish Kapoor, Lucien Freud, and Wassily Kandinsky. This Friday will see the label reveal of the 2021 vintage.
<h2>How has the label announcement impacted prices?</h2>
Over the years, this innovative approach has turned the Mouton Rothschild labels into a fusion of fine art and fine wine, making each bottle a highly desirable collector’s item. What’s more, prices for Mouton Rothschild have consistently increased in the month following the announcement.
The increase averages just under 5% over the last ten vintages. The 2012 vintage, with a label by Miquel Barcelo, rose the most, up 14.9%, followed by the Xu Bing’s 2018, up 12.6%. Last year’s label reveal of the 2020 vintage drove prices 8.6% higher in a month. There has been only one exception to this pattern with the 2015 vintage, down 4.3%. However, the wine is still up 11% since release.
In the last decade, prices for the brand, represented by <a href="https://winecap.com/wine-track/france/bordeaux/pauillac/chateau-mouton-rothschild/mouton-rothschild">our Mouton Rothschild index</a>, have risen 44% on average.
<h2>Which are the best value labels today?</h2>
While there is a strong investment case for the Grand Vin, which vintages offer the best value today? The 2020 boasts 100-points from <a href="https://www.robertparker.com/">The Wine Advocate</a> and is 13% cheaper than the other 100-point 2016 vintage. Its price rose 8.6% after the label announcement, which was designed by <a href="https://www.chateau-mouton-rothschild.com/label-art/discover-the-artwork/peter-doig">Peter Doig</a>.
The 2021 is the most affordable recent release with a current Market Price of £4,400 per 12&#215;75. However, given the trend of price rises post-announcement, one can expect potential changes.
Otherwise, buyers might wish to look back at the 2019 vintage, which received 100-points from Lisa Perrotti-Brown MW (<a href="https://thewineindependent.com/">The Wine Independent</a>) and 97 points from Neal Martin (<a href="https://vinous.com/">Vinous</a>). The wine’s label, ‘The solar iris of Mouton’, was created by <a href="https://www.chateau-mouton-rothschild.com/label-art/discover-the-artwork/olafur-eliasson">Olafur Eliasson</a>.
<img loading="lazy" decoding="async" class="alignnone wp-image-1806" src="https://wp.winecap.com/wp-content/uploads/2023/11/EP-Socials-LinkedInAll-1-375x196.jpg" width="800" height="418" srcset="https://wp.winecap.com/wp-content/uploads/2023/11/EP-Socials-LinkedInAll-1-375x196.jpg 375w, https://wp.winecap.com/wp-content/uploads/2023/11/EP-Socials-LinkedInAll-1-768x401.jpg 768w, https://wp.winecap.com/wp-content/uploads/2023/11/EP-Socials-LinkedInAll-1.jpg 1200w" sizes="auto, (max-width: 800px) 100vw, 800px" />
<h2>The case of the 2000 vintage</h2>
If there is one special bottle that illustrates the power of art driving prices, it is that of the 2000 vintage. The bottle itself features an intricate gold engraving of the famous ram (Mouton) of the Rothschild coat of arms and stands out for its elegance and symbolic significance.
Mouton Rothschild 2000 weathered the Bordeaux market downturn of 2011-2014, when prices for the other First Growths fell sharply. The label continued to enjoy heightened demand in the Asian market, which only increased in 2015 – the year of the sheep, according to the Chinese zodiac. The wine has risen close to 750% in value since its release – an investment case that speaks for itself.
The innovative tradition of artist-designed labels by Château Mouton Rothschild not only merges the worlds of fine art and winemaking but also significantly elevates the market value, making them coveted treasures for collectors 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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

The impact of Mouton Rothschild’s artist labels on market value

Our latest report, 2023’s big investment themes: fine wine and beyond, has now been released. The report looks at the key themes that defined markets this year, from interest rates to sustainability. It positions fine wine within a broader investment context and analyses the key events that influenced its performance.
<h2>Report highlights:</h2>
<ul>
<li>Tech, interest, and sustainability came to define markets in 2023.</li>
<li>The stock market bounced back, and technology stocks rallied as the world became fascinated with generative AI.</li>
<li>In a bid to cool down the red-hot inflation levels, the Bank of England cranked up interest rates 14 times.</li>
<li>As central banks increased interest rates, they also began to stockpile gold.</li>
<li>In the UK, interest rates reached the highest point since 1998. This signalled an end to the era of cheap borrowing, which could limit growth for some economies.</li>
<li>2023 saw the rush of demand for green bonds – borrowing money to finance sustainable projects.</li>
<li>Sustainability drove fine wine demand among investors and led to other positive developments in the wine industry.</li>
</ul>
&nbsp;

Special report – 2023’s big investment themes: fine wine and beyond

<ul>
<li>We compare the price performance of Château Lafite Rothschild to other regions’ respective ‘First Growths’.</li>
<li>The rising ratio highlights the increased value to be had in the Bordeaux First Growths.</li>
<li>Today, one can get 29 bottles of Lafite for the price of Romanée-Conti and almost five for Pétrus and Screaming Eagle.</li>
</ul>
How many bottles of Château Lafite Rothschild can one get for the price of other regions’ respective ‘First’ wines?
With <a href="https://winecap.com/learn/the-place-of-the-bordeaux-first-growths-in-a-changing-fine-wine-market">changing market dynamics</a> at play that have seen the balance between Bordeaux and other regions change, we examine the price ratio between some of the most popular investment-grade wines.
Below we compare the performance of the Bordeaux First Growth <a href="https://winecap.com/wine-track/france/bordeaux/pauillac/chateau-lafite-rothschild/lafite-rothschild">Château Lafite Rothschild</a> to Burgundy’s highest echelon Domaine de la Romanée-Conti, the Super Tuscan Sassicaia, the Right Bank Château Pétrus, the Californian cult wine Screaming Eagle, and the most in-demand Champagne, Dom Pérignon. These are all wines that symbolise and even transcend their geography.  In the same way that Lafite has long been the mainstay of Bordeaux, the other wines are bellwethers for their regions.
The ratio between these wines is somewhat reflective of broader trends within their respective regions. Over the last decade, the ratio has risen consistently, highlighting the increased value to be had in the First Growths, as other regions gather momentum.
<h2>How many bottles of Lafite for the price of DRC? 
</h2>
<img loading="lazy" decoding="async" class="alignnone wp-image-1787" src="https://wp.winecap.com/wp-content/uploads/2023/11/DRC-Lafite-price-ratio-375x260.png" width="800" height="556" srcset="https://wp.winecap.com/wp-content/uploads/2023/11/DRC-Lafite-price-ratio-375x260.png 375w, https://wp.winecap.com/wp-content/uploads/2023/11/DRC-Lafite-price-ratio-768x533.png 768w, https://wp.winecap.com/wp-content/uploads/2023/11/DRC-Lafite-price-ratio-1536x1067.png 1536w, https://wp.winecap.com/wp-content/uploads/2023/11/DRC-Lafite-price-ratio-2048x1422.png 2048w, https://wp.winecap.com/wp-content/uploads/2023/11/DRC-Lafite-price-ratio-1200x833.png 1200w, https://wp.winecap.com/wp-content/uploads/2023/11/DRC-Lafite-price-ratio-1980x1375.png 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
Today, one can get on average 29 bottles of Lafite Rothschild for the price of Romanée-Conti. The ratio has risen considerably since 2013 when one could buy just 14 bottles of Lafite for one DRC. It peaked in December 2022, when it stood at 30:1.
As the chart below shows, the Domaine de la Romanée-Conti index hit a record high in December last year. Meanwhile, the Lafite index has not seen any of the price volatility witnessed by DRC. Year-to-date, prices for both labels have dipped but the fall has been sharper for DRC.
<img loading="lazy" decoding="async" class="alignnone wp-image-1788" src="https://wp.winecap.com/wp-content/uploads/2023/11/DRC-vs-Lafite-price-performance-375x269.png" width="800" height="573" srcset="https://wp.winecap.com/wp-content/uploads/2023/11/DRC-vs-Lafite-price-performance-375x269.png 375w, https://wp.winecap.com/wp-content/uploads/2023/11/DRC-vs-Lafite-price-performance-768x550.png 768w, https://wp.winecap.com/wp-content/uploads/2023/11/DRC-vs-Lafite-price-performance-1536x1100.png 1536w, https://wp.winecap.com/wp-content/uploads/2023/11/DRC-vs-Lafite-price-performance-2048x1467.png 2048w, https://wp.winecap.com/wp-content/uploads/2023/11/DRC-vs-Lafite-price-performance-1200x860.png 1200w, https://wp.winecap.com/wp-content/uploads/2023/11/DRC-vs-Lafite-price-performance-1980x1418.png 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
The DRC:Lafite price ratio is somewhat reflective of broader trends within their regions. In the last decade, Burgundy emerged as Bordeaux’s main contender. After Bordeaux peaked at the end of the China-led bull market in 2011, buyers started to seek out other corners of the fine wine world and it was Burgundy that attracted the greatest attention. The allure of rarity and quality meant that demand quickly outstripped already tight supply. Prices for Burgundy peaked, while Bordeaux ran quietly in the background.
For Bordeaux, the period between 2013 and 2015 saw contraction at the tail end of the Chinese correction. The market turned again in October 2015, and since then, Lafite Rothschild has been the second-best-performing First Growth, with some vintages doubling in value. However, it has not managed to catch up with Burgundy’s stellar rise.
<h2>Left vs Right Bank</h2>
It is also interesting to compare performance within Bordeaux’s Left and Right Bank. Today 4.6 bottles of Lafite gets you a bottle of <a href="https://winecap.com/wine-track/france/bordeaux/pomerol/petrus/petrus">Château Pétrus</a>, up from 3, ten years ago.
<img loading="lazy" decoding="async" class="alignnone wp-image-1790" src="https://wp.winecap.com/wp-content/uploads/2023/11/Petrus-price-ratio-375x260.png" width="800" height="556" srcset="https://wp.winecap.com/wp-content/uploads/2023/11/Petrus-price-ratio-375x260.png 375w, https://wp.winecap.com/wp-content/uploads/2023/11/Petrus-price-ratio-768x533.png 768w, https://wp.winecap.com/wp-content/uploads/2023/11/Petrus-price-ratio-1536x1067.png 1536w, https://wp.winecap.com/wp-content/uploads/2023/11/Petrus-price-ratio-2048x1422.png 2048w, https://wp.winecap.com/wp-content/uploads/2023/11/Petrus-price-ratio-1200x833.png 1200w, https://wp.winecap.com/wp-content/uploads/2023/11/Petrus-price-ratio-1980x1375.png 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
As the chart below shows, Lafite and Pétrus have followed a similar trajectory up to September 2021, when prices for the First Growth flattened while Pétrus continued its rise.
Similar to Burgundy, rarity plays a key role in Pétrus’ appeal and investment performance. Pétrus is produced in much smaller quantities (around 3,000 cases per year) compared to Lafite (around 25,000 cases). Despite commanding a higher price tag, the wine has considerably outperformed Lafite in the last decade.
<img loading="lazy" decoding="async" class="alignnone wp-image-1791" src="https://wp.winecap.com/wp-content/uploads/2023/11/Petrus-vs-Lafite-price-performance-375x269.png" width="800" height="573" srcset="https://wp.winecap.com/wp-content/uploads/2023/11/Petrus-vs-Lafite-price-performance-375x269.png 375w, https://wp.winecap.com/wp-content/uploads/2023/11/Petrus-vs-Lafite-price-performance-768x550.png 768w, https://wp.winecap.com/wp-content/uploads/2023/11/Petrus-vs-Lafite-price-performance-1536x1100.png 1536w, https://wp.winecap.com/wp-content/uploads/2023/11/Petrus-vs-Lafite-price-performance-2048x1467.png 2048w, https://wp.winecap.com/wp-content/uploads/2023/11/Petrus-vs-Lafite-price-performance-1200x860.png 1200w, https://wp.winecap.com/wp-content/uploads/2023/11/Petrus-vs-Lafite-price-performance-1980x1418.png 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
<h2>Dom Pérignon vs Lafite Rothschild</h2>
Recent years have seen a surge in Champagne’s market share and price performance. This has been reflected in the performance of its most traded label – <a href="https://winecap.com/wine-track/france/champagne/na/dom-perignon/dom-perignon">Dom Pérignon</a>.
Produced in much larger quantities than Lafite and more widely available, Dom Pérignon has started to catch up with the First Growth. In the last decade, the ratio between them has doubled – from 0.2 to 0.4.
<img loading="lazy" decoding="async" class="alignnone wp-image-1792" src="https://wp.winecap.com/wp-content/uploads/2023/11/Dom-P-price-ratio-375x260.png" width="800" height="556" srcset="https://wp.winecap.com/wp-content/uploads/2023/11/Dom-P-price-ratio-375x260.png 375w, https://wp.winecap.com/wp-content/uploads/2023/11/Dom-P-price-ratio-768x533.png 768w, https://wp.winecap.com/wp-content/uploads/2023/11/Dom-P-price-ratio-1536x1067.png 1536w, https://wp.winecap.com/wp-content/uploads/2023/11/Dom-P-price-ratio-2048x1422.png 2048w, https://wp.winecap.com/wp-content/uploads/2023/11/Dom-P-price-ratio-1200x833.png 1200w, https://wp.winecap.com/wp-content/uploads/2023/11/Dom-P-price-ratio-1980x1375.png 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
Champagne prices, with Dom Pérignon at the helm, have made considerable gains since the early 2020s. In the last decade, our Dom Pérignon index is up 120%, compared to 20% for Lafite.
<img loading="lazy" decoding="async" class="alignnone wp-image-1793" src="https://wp.winecap.com/wp-content/uploads/2023/11/Dom-P-Price-performance-375x269.png" width="800" height="573" srcset="https://wp.winecap.com/wp-content/uploads/2023/11/Dom-P-Price-performance-375x269.png 375w, https://wp.winecap.com/wp-content/uploads/2023/11/Dom-P-Price-performance-768x550.png 768w, https://wp.winecap.com/wp-content/uploads/2023/11/Dom-P-Price-performance-1536x1100.png 1536w, https://wp.winecap.com/wp-content/uploads/2023/11/Dom-P-Price-performance-2048x1467.png 2048w, https://wp.winecap.com/wp-content/uploads/2023/11/Dom-P-Price-performance-1200x860.png 1200w, https://wp.winecap.com/wp-content/uploads/2023/11/Dom-P-Price-performance-1980x1418.png 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
<h2>Sassicaia vs Lafite Rothschild</h2>
Similarly, the Super Tuscans have been getting more expensive. The most liquid and heavily traded group of Italian wines, their performance has been further boosted by critical acclaim and brand strength, with <a href="https://winecap.com/wine-track/italy/tuscany/bolgheri/tenuta-san-guido/sassicaia">Sassicaia</a> at the helm.
The ratio between Sassicaia and Lafite has risen from 0.2 ten years ago to 0.42 today.
<img loading="lazy" decoding="async" class="alignnone wp-image-1794" src="https://wp.winecap.com/wp-content/uploads/2023/11/Sassicaia-Lafite-price-ratio-375x260.png" width="800" height="556" srcset="https://wp.winecap.com/wp-content/uploads/2023/11/Sassicaia-Lafite-price-ratio-375x260.png 375w, https://wp.winecap.com/wp-content/uploads/2023/11/Sassicaia-Lafite-price-ratio-768x533.png 768w, https://wp.winecap.com/wp-content/uploads/2023/11/Sassicaia-Lafite-price-ratio-1536x1067.png 1536w, https://wp.winecap.com/wp-content/uploads/2023/11/Sassicaia-Lafite-price-ratio-2048x1422.png 2048w, https://wp.winecap.com/wp-content/uploads/2023/11/Sassicaia-Lafite-price-ratio-1200x833.png 1200w, https://wp.winecap.com/wp-content/uploads/2023/11/Sassicaia-Lafite-price-ratio-1980x1375.png 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
As the chart below shows, Sassicaia has seen stable and consistent growth. 2019-2022 was a period of upheaval for the brand, which benefited from excellent vintages that captured investors’ interest.
<img loading="lazy" decoding="async" class="alignnone wp-image-1795" src="https://wp.winecap.com/wp-content/uploads/2023/11/Sassicaia-price-performance-375x269.png" width="800" height="573" srcset="https://wp.winecap.com/wp-content/uploads/2023/11/Sassicaia-price-performance-375x269.png 375w, https://wp.winecap.com/wp-content/uploads/2023/11/Sassicaia-price-performance-768x550.png 768w, https://wp.winecap.com/wp-content/uploads/2023/11/Sassicaia-price-performance-1536x1100.png 1536w, https://wp.winecap.com/wp-content/uploads/2023/11/Sassicaia-price-performance-2048x1467.png 2048w, https://wp.winecap.com/wp-content/uploads/2023/11/Sassicaia-price-performance-1200x860.png 1200w, https://wp.winecap.com/wp-content/uploads/2023/11/Sassicaia-price-performance-1980x1418.png 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
<h2>Screaming Eagle vs Lafite Rothschild</h2>
The price ratio between <a href="https://winecap.com/wine-track/united-states/california/oakville/screaming-eagle/cabernet-sauvignon">Screaming Eagle</a> and Lafite Rothschild tells a story of increased volatility, which can largely be ascribed to the Californian cult wine. Screaming Eagle has seen bigger price rises, followed by sharper falls.
Today one can now get 4.8 bottles of Lafite for the price of Screaming Eagle, up from 2.7 a decade ago. The ratio peaked in February 2022, when it stood at 5:1.
<img loading="lazy" decoding="async" class="alignnone wp-image-1796" src="https://wp.winecap.com/wp-content/uploads/2023/11/Screaming-Eagle-price-ratio-375x260.png" width="800" height="556" srcset="https://wp.winecap.com/wp-content/uploads/2023/11/Screaming-Eagle-price-ratio-375x260.png 375w, https://wp.winecap.com/wp-content/uploads/2023/11/Screaming-Eagle-price-ratio-768x533.png 768w, https://wp.winecap.com/wp-content/uploads/2023/11/Screaming-Eagle-price-ratio-1536x1067.png 1536w, https://wp.winecap.com/wp-content/uploads/2023/11/Screaming-Eagle-price-ratio-2048x1422.png 2048w, https://wp.winecap.com/wp-content/uploads/2023/11/Screaming-Eagle-price-ratio-1200x833.png 1200w, https://wp.winecap.com/wp-content/uploads/2023/11/Screaming-Eagle-price-ratio-1980x1375.png 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
California has enjoyed serious investment interest which has been reflected in its market share. Today the region holds around 7% of the fine wine trade by value and is the most important New World player.
<img loading="lazy" decoding="async" class="alignnone wp-image-1797" src="https://wp.winecap.com/wp-content/uploads/2023/11/Screaming-Eagle-price-performance-375x260.png" width="800" height="556" srcset="https://wp.winecap.com/wp-content/uploads/2023/11/Screaming-Eagle-price-performance-375x260.png 375w, https://wp.winecap.com/wp-content/uploads/2023/11/Screaming-Eagle-price-performance-768x533.png 768w, https://wp.winecap.com/wp-content/uploads/2023/11/Screaming-Eagle-price-performance-1536x1067.png 1536w, https://wp.winecap.com/wp-content/uploads/2023/11/Screaming-Eagle-price-performance-2048x1422.png 2048w, https://wp.winecap.com/wp-content/uploads/2023/11/Screaming-Eagle-price-performance-1200x833.png 1200w, https://wp.winecap.com/wp-content/uploads/2023/11/Screaming-Eagle-price-performance-1980x1375.png 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
While Lafite has come to represent better value when compared to other top wines, this is largely due to shifting regional market dynamics. The First Growth continues to entice buyers with brand strength, high-quality releases and returns on investment.
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

Price ratio: comparing regional First Growths

<ul>
<li>Argiano Brunello di Montalcino 2018 ranked at Wine Spectator’s Wine of the Year. </li>
<li>Laurent-Perrier Champagne Grand Siècle Iteration N.26 took the first spot in James Suckling’s annual rankings. </li>
<li>Poggio di Sotto Brunello di Montalcino 2018 was Wine Enthusiast’s top cellar recommendation. </li>
</ul>
On Friday, <a href="https://top100.winespectator.com/2023/wine/wine-no-1-argiano/">Wine Spectator</a> announced its ‘Wine of the Year’ – Argiano Brunello di Montalcino 2018.
The publication wrote: ‘In the world of wine, a change of ownership or a stylistic paradigm shift can reap huge benefits, but there are always risks. In the case of Argiano, change has paid off in spades, as new owners arrived with a commitment to a return to a more traditional expression of Brunello. Reflecting more than $10 million in investment in the estate over a decade, the stellar quality of Argiano Brunello di Montalcino 2018 earns it Wine of the Year honors from Wine Spectator in 2023.’
The wine has enjoyed increased demand after the announcement and has traded at a 45% premium on its Market Price. This is not a new phenomenon. According to <a href="https://www.liv-ex.com/">Liv-ex</a>, ‘over the last few years, most of the Wine Spectator’s top wines have enjoyed significant trading activity and an uptick in price’.
For instance, the 2018 Wine Spectator’s wine of the year, Sassicaia 2015, has seen its Market Price double from £1,350 per 12&#215;75 to £2,700 after the announcement. Similarly, the 2019 wine of the year – Château Léoville Barton 2016 – enjoyed an immediate price surge.
This year, other investment-grade wines that ranked in the publication’s top ten list include <a href="https://winecap.com/wine-track/france/bordeaux/pauillac/chateau-lynch-bages/lynch-bages">Château Lynch Bages 2020</a> (3) and <a href="https://winecap.com/wine-track/france/bordeaux/pauillac/chateau-pichon-baron/pichon-baron">Château Pichon Baron 2020</a> (8).
<h2>James Suckling’s top picks for 2023</h2>
James Suckling also released his <a href="https://www.jamessuckling.com/wine-tasting-reports/top-100-world-wines-2023-and-our-wine-of-the-year/">Top 100 World Wines 2023 and Wine of the Year</a> report, giving Laurent-Perrier Champagne Grand Siècle Iteration N.26 the first spot.
The critic said that ‘it’s not just an incredible bottle of Champagne, it’s the best wine we rated this year out of the almost 39,000 reviewed by myself and my team of seven tasters/editors’. This is the ‘the largest number of wines [they] have ever reviewed in a year, beating last year’s record of about 32,000’.
Suckling’s top ten also included the 100-point <a href="https://winecap.com/wine-track/chile/aconcagua/na/mondavi-&amp;-chadwick/sena">Seña 2021</a> (3) and <a href="https://winecap.com/wine-track/france/bordeaux/saint-emilion-grand-cru/chateau-figeac/figeac">Château Figeac 2020</a> (4).
<h2>Wine Enthusiast’s top cellar selections</h2>
Another Brunello di Montalcino stole the spotlight in <a href="https://www.wineenthusiast.com/toplists/cellar-selections-2023/">Wine Enthusiast</a>’s annual rankings. Poggio di Sotto Brunello di Montalcino 2018 was their top cellar recommendation for 2023.
Their report stated: ‘This list represents what’s next in Wine Enthusiast’s Cellar Selections—wines with consistency and structure that aren’t necessarily the biggest and boldest. The number one wine, for example, is Poggio di Sotto’s 2018 Brunello di Montalcino, not the most legendary in its region of Italy but what a wine!’
Their number two wine was Ribera del Duero Vega Sicilia Unico 2012, which they described as ‘a proven collectible’ and a ‘gem’ which ‘represents Spain as an underappreciated wine country full of discoveries’.
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

Wine Spectator ‘Wine of the Year’ and critics’ top picks

A version of this article written by WineCap’s CEO Alexander Westgarth was first published by <a href="https://www.forbes.com/sites/forbesbusinesscouncil/2023/11/07/investing-in-fine-wine-stability-sustainability-and-profitability/?sh=2a7371e72b12">Forbes</a>.
<ul>
<li>A popular alternative investment, fine wine can plug the gaps left by struggling assets, helping to steady and raise performance across a whole portfolio.</li>
<li>As a tangible asset, fine wine delivers stability in uncertain times. </li>
<li>Part of the rising demand for fine wine can be attributed to environmental factors. </li>
</ul>
Between April 2020 and September 2022, the average bottle of fine wine rose <a href="https://winecap.com/learn/how-fine-wine-hedges-against-economic-shocks-in-four-graphs">43.5% in value</a>. While the fine wine market has dipped and corrected since, the general trajectory has historically pointed upwards.
Since 2004, Liv-ex data shows that the average bottle price tag <a href="https://www.liv-ex.com/news-insights/indices/">has risen by 329.9%</a>. While it can be a good investment, better still, fine wine is a great means to plug the gaps left by struggling assets, helping to steady and raise performance <a href="https://www.forbes.com/sites/forbesbusinesscouncil/2023/08/30/how-to-include-fine-wine-in-your-investment-portfolio/?sh=6976d2501789">across a whole investment portfolio</a>. Earlier this year, WineCap conducted a survey where we found that <a href="https://winecap.com/learn/us-wine-investment-report">92% of U.S. wealth managers</a> believe demand for fine wine will increase over the next year. This is for three main reasons, and below we outline how to best take advantage of this asset&#8217;s potential for stability, sustainability and profitability.
<h2>Stability in uncertain times </h2>
We live in uncertain times. In the last year, businesses have had to cope with rocketing energy bills, inflation and interest rates. In times of hardship, people want something solid. This is why tangible assets like property, gold or fine wine tend to feel more precious during market downfalls. WineCap found that 56% of wealth managers invest in wine to add stability to portfolios across different market conditions.
It is not only wine. Across the entire investment landscape, there is an increased demand for reliability. In the past few months, <a href="https://www.gold.co.uk/gold-price/">gold prices have been rallying too.</a> When the gold prices go up, this often indicates that investors are looking to preserve their wealth and shield it from market shocks.
At the same time, investors have been shying away from bullish investments like technology stocks. Apple, for example, has <a href="https://www.investopedia.com/apple-and-samsung-lost-market-share-as-global-smartphone-sales-fell-in-q3-8362147">suffered significant dips</a>. Microsoft shareholders have endured <a href="https://www.wsj.com/articles/microsoft-cant-afford-turbulence-from-new-copilot-54a81149">wobbly turbulence</a> (though, at the time of this writing, the company is <a href="https://www.nytimes.com/2023/04/25/business/microsoft-quarterly-earnings.html">beating financial expectations</a>). Likewise, the tech-heavy Nasdaq Composite has been <a href="https://www.investing.com/analysis/4-factors-to-watch-out-for-in-october-as-wall-st-wraps-up-rocky-september-200642260">on a rocky ride</a> over the past months.
As the choppy waters continue, many investors want steady ships to ride out the storm – not fancy speedboats. With its historically low volatility, fine wine delivers just that. Unlike stocks or bonds, fine wine prices do not tend to fluctuate massively as the market operates with its own dynamics. Regions like <a href="https://winecap.com/news/investment-opportunities-in-lvmh-champagnes">Champagne</a> are currently seeing high levels of demand, not only because of the quality of the wines but the stability the region has historically offered.
Similarly, wines from Bordeaux, Tuscany and the Rhône may be more solid. However, not all fine wines are made the same. Extremely rare and highly coveted wines from Burgundy, for instance, can make a great investment but remain a riskier asset if stability is what you are after.
<h2>Demand for environmentally friendly assets</h2>
Our survey also found that investors are prioritising environmentally friendly assets, and 56% say they invest in fine wine because it is a sustainable asset class with a low carbon footprint. This trend is hardly surprising; 2023 has been the hottest summer on record.
Dozens of <a href="https://www.nifc.gov/fire-information/nfn">wildfires are actively blazing through the USA</a>. Meanwhile, elsewhere, the excess water caused by melted ice caps means that flooding and torrential rains are washing away entire communities. In August, flash floods tore through Pennsylvania, <a href="https://edition.cnn.com/2023/07/16/weather/northeast-storms-sunday/index.html">killing five people</a>. Naturally, investors are keen to put their money into assets that will mitigate some of the climate risks.
Part of the interest in fine wine can be attributed to environmental factors. Vines promote healthy soil quality and nourish pollinators, which are essential for biodiversity. A hector of vineyard soaks up a respectable <a href="https://winecap.com/learn/5-ways-fine-wine-investments-good-for-environment">2.84 tonnes of carbon</a> every year. The best winemakers use age-old sustainable practices. Many will even opt for a pony and cart rather than disturb the terrain with a tractor.
Some well-known organic producers include Burgundy’s Domaine Leflaive and the Bordeaux Fifth Growth, Château Pontet-Canet. While not officially certified, Burgundy’s Domaine de la Romanée-Conti also follows organic and biodynamic guidelines. Meanwhile, some producers are reducing bottle weight in pursuit of sustainability such as Burgundy négociant Albert Bichot, which has reduced the weight of their bottles from around 700 grams to 450 grams.
Climate-conscious investors can keep an eye out for wineries investing in a greener future.
<h2>Strong returns</h2>
According to our survey, almost half of the investors choose fine wine because they want strong returns. Historically, fine wine has offered generous returns over long periods without sacrificing quality or environmental qualities. Access to historical data, critic scores and current prices can help an investor identify whether a wine represents a good opportunity. Things to look out for include brand prestige, price per point, investment appreciation over different time frames and drinking windows. One can also get help from experts who understand the intricacies of the market, utilize the latest technology and closely follow the trends.
<h2>Stability, sustainability and profitability </h2>
Today’s investors are looking for stability, sustainability and profitability. Different from last year, they are often less prepared to invest in edgy technologies for the future. Instead, many are looking for solid investment results – ideally, ones they can hold. Fine wines fit this demand well. Although it already features in <a href="https://winecap.com/learn/us-wine-investment-report">45% of HNW portfolios</a>, with average allocations of 13%, fine wine looks set to become even more popular. Like a classic vintage Champagne, the market is ready to pop.
Thanks to its diversity and growing attention from experts, producers and enthusiasts, fine wine could be well-placed to meet investors&#8217; changing priorities in the years to come.
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

The rise of fine wine as a stable and sustainable investment

<ul>
<li>Jeb Dunnuck recently reviewed two vintages from Southern Rhône – the 2021 in bottle and 2022 in barrel. </li>
<li>He described 2022 as a ‘clear step up over 2021’.</li>
<li>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.</li>
</ul>
Last week, <a href="https://jebdunnuck.com/2023/11/southern-rhone-the-2021s-from-bottle-and-the-2022s-from-barrel/">Jeb Dunnuck</a> 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’.
<h2>2021 – drinking rather than collecting</h2>
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’.
<h2>2022 – checks in ‘behind the greats’</h2>
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.
<img loading="lazy" decoding="async" class="alignnone wp-image-1742" src="https://wp.winecap.com/wp-content/uploads/2023/11/JD-SR-1-375x145.png" width="800" height="310" srcset="https://wp.winecap.com/wp-content/uploads/2023/11/JD-SR-1-375x145.png 375w, https://wp.winecap.com/wp-content/uploads/2023/11/JD-SR-1-768x297.png 768w, https://wp.winecap.com/wp-content/uploads/2023/11/JD-SR-1.png 982w" sizes="auto, (max-width: 800px) 100vw, 800px" />
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 <a href="https://winecap.com/wine-track/france/rhone/chateauneuf-du-pape/famille-perrin/chateauneuf-du-pape-roussanne-vv">101% over the last decade</a>, and 60% in the last five years.
<img loading="lazy" decoding="async" class="alignnone wp-image-1741" src="https://wp.winecap.com/wp-content/uploads/2023/11/Roussane-edited-375x238.png" width="800" height="507" srcset="https://wp.winecap.com/wp-content/uploads/2023/11/Roussane-edited-375x238.png 375w, https://wp.winecap.com/wp-content/uploads/2023/11/Roussane-edited-768x487.png 768w, https://wp.winecap.com/wp-content/uploads/2023/11/Roussane-edited.png 1114w" sizes="auto, (max-width: 800px) 100vw, 800px" />
<h2>The Rhône’s investment performance in 2023</h2>
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 <a href="https://winecap.com/wine-track/france/rhone/chateauneuf-du-pape/famille-perrin/chateauneuf-du-pape-blanc">Château de Beaucastel Châteauneuf-du-Pape Blanc</a> 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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.
&nbsp;

Jeb Dunnuck’s top-scoring Southern Rhône releases

<ul>
<li>Once the dominant force in the fine wine market, the Bordeaux First Growths have lost market share due to its broadening. </li>
<li>In the last decade, Château Mouton Rothschild has been the best price performer, up 43.2%.</li>
<li>Château Haut-Brion offers the best value, with the highest average critic score and the lowest average price per case. </li>
</ul>
<h2>The Bordeaux First Growths in a broadening market</h2>
The Bordeaux First Growths have long been the cornerstone of the fine wine investment market. Back in 2010, they made up close to 90% of all Bordeaux trade by value – at a time, when Bordeaux’s share of the total market stood at 96%.
With the broadening of the market, their share has decreased and they now regularly account for around 30% of all Bordeaux secondary market trade (which itself has fallen below 35% annual average).
This trend was also reflected in the <a href="https://www.liv-ex.com/2022/11/liv-ex-power-100-2022-burgundy/">2022 Power 100 list</a>, which offered a snapshot of the ever-changing landscape of the secondary market. For the first time ever, no Bordeaux wines featured among the top ten most powerful fine wine labels.
Even if trade for these brands remains consistent or increases, the First Growths are facing greater competition. Still, they are among the wines with the greatest liquidity, attracting regular demand and high praise from critics year after year.
<h2>First Growths’ price performance</h2>
In terms of price performance, the five First Growths have followed a similar trajectory (i.e. rising post-Covid and dipping in the last year in line with the <a href="https://winecap.com/learn/q3-2023-fine-wine-report">current market reality</a>). The relative outcast has been <a href="https://winecap.com/wine-track/france/bordeaux/pauillac/chateau-latour/latour">Château Latour</a>, whose performance was impacted by the decision to <a href="https://www.decanter.com/wine-news/chateau-latour-leaves-en-primeur-31707/">leave the En Primeur system</a> in 2012. The wine has been the worst-performing First Growth, up just 17.9% in the last decade.
The best performer has been <a href="https://winecap.com/wine-track/france/bordeaux/pauillac/chateau-mouton-rothschild/mouton-rothschild">Château Mouton Rothschild</a>, with an increase of 43.2%. Recent releases have elevated the performance of the brand, like the 2020 vintage, which boasts 100-points from The Wine Advocate’s William Kelley, 99-100 from James Suckling, 98-100 from Jeff Leve and 99 from Antonio Galloni (Vinous). ‘Off’ vintages like 2011, 2013 and 2014, which have greater room to rise, have also fared well over the last five years.
The second-best performer has been <a href="https://winecap.com/wine-track/france/bordeaux/margaux/chateau-margaux/margaux">Château Margaux</a>, which is also the second most affordable First Growth. Similarly, its biggest price risers have been 2014, 2011 and 2013. Less classical years reveal the strength of these brands, as demand for the First Growths remains consistently high regardless of the vintage.
<img loading="lazy" decoding="async" class="alignnone wp-image-1733" src="https://wp.winecap.com/wp-content/uploads/2023/10/FG-375x237.png" width="800" height="505" srcset="https://wp.winecap.com/wp-content/uploads/2023/10/FG-375x237.png 375w, https://wp.winecap.com/wp-content/uploads/2023/10/FG-768x485.png 768w, https://wp.winecap.com/wp-content/uploads/2023/10/FG-1536x970.png 1536w, https://wp.winecap.com/wp-content/uploads/2023/10/FG-2048x1294.png 2048w, https://wp.winecap.com/wp-content/uploads/2023/10/FG-1200x758.png 1200w, https://wp.winecap.com/wp-content/uploads/2023/10/FG-1980x1251.png 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
<h2>First Growths’ price and score comparison</h2>
The table below shows the average price per case and critic score of the First Growths for vintages since 2000.
<a href="https://winecap.com/wine-track/france/bordeaux/pessac-leognan/chateau-haut-brion/haut-brion">Château Haut-Brion</a> tops the list with the highest average score (95.9) and the lowest average price per case (£4,595). With a price per point of £48, the wine seems to offer the best value among the First Growths. Vintages that have received 100-points from <a href="https://www.robertparker.com/">The Wine Advocate</a> include 2018 (LPB), 2016 (LPB), 2015 (LPB), 2009 (LPB) and 2005 (RP).
Looking at the average prices, <a href="https://winecap.com/wine-track/france/bordeaux/pessac-leognan/chateau-haut-brion/haut-brion">Château Lafite Rothschild</a> stands out as the most expensive of the First Growths. The wine has achieved 100-points from The Wine Advocate for its 2019 (WK), 2018 (LPB), 2010 (LPB) and 2003 (RP) vintages.
<img loading="lazy" decoding="async" class="alignnone wp-image-1734" src="https://wp.winecap.com/wp-content/uploads/2023/10/FG-comparison-375x182.png" width="800" height="388" srcset="https://wp.winecap.com/wp-content/uploads/2023/10/FG-comparison-375x182.png 375w, https://wp.winecap.com/wp-content/uploads/2023/10/FG-comparison-768x372.png 768w, https://wp.winecap.com/wp-content/uploads/2023/10/FG-comparison.png 998w" sizes="auto, (max-width: 800px) 100vw, 800px" />
In conclusion, the First Growths remain an important part of the changing secondary market, offering brand strength, consistently high quality and stable growth.
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

The place of the Bordeaux First Growths in a changing fine wine market

<ul>
<li>Australia and China have agreed to a suspension of their ongoing dispute over the steep tariffs imposed on Australian wine since November 2020.</li>
<li>The tariffs had a profound impact on demand and price performance of Australian wine. </li>
<li>Australia’s best price performers have risen over 40% in value in the last year.</li>
</ul>
<h2>Australian wine tariffs under review</h2>
In a significant shift that could redefine trade relations between Australia and China, the two nations have agreed to a <a href="https://amp.theguardian.com/australia-news/2023/oct/22/australia-and-china-suspend-wto-wine-tariff-dispute-ahead-of-albanese-trip-to-beijing">suspension</a> 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&#8217;s forthcoming trip to Beijing, marking a potential thaw in the trade tensions that have severely impacted Australia&#8217;s wine industry.
While the Chinese government has consented to an expedited five-month review of the punitive duties, which have plummeted Australia&#8217;s wine exports from over $1 billion to a mere $12 million, there remains a cautious optimism. Despite this progress, <a href="https://www.thedrinksbusiness.com/2023/10/australian-wine-tariffs-on-hold-but-dont-jump-for-joy-just-yet/">industry experts</a> 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.
<h2>Impact on Australia’s wine investment market</h2>
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 <a href="https://www.liv-ex.com/2021/11/2021-liv-ex-power-100-rebalancing-act/">Power 100 rankings</a>, 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 <a href="https://www.reuters.com/article/china-penfolds-idUSL8N325155">China-sourced</a> premium wine.
<h2>Australian wine price performance</h2>
Since the tariff introduction, prices for some of the top wines have dipped, creating pockets of opportunity. For instance, the average price of <a href="https://winecap.com/wine-track/australia/south-australia/eden-valley/henschke/hill-of-grace-shiraz">Henschke Hill of Grace</a> is down 4% in the last year; similarly, <a href="https://winecap.com/wine-track/australia/south-australia/na/penfolds/bin-707-cabernet-sauvignon">Penfolds Bin 707</a> is down 9%. While their trajectories are different, the long-term growth trend remains, with over 90% rise in the last decade.
<img loading="lazy" decoding="async" class="alignnone wp-image-1730" src="https://wp.winecap.com/wp-content/uploads/2023/10/HoG-707-FINAL-375x248.png" width="800" height="529" srcset="https://wp.winecap.com/wp-content/uploads/2023/10/HoG-707-FINAL-375x248.png 375w, https://wp.winecap.com/wp-content/uploads/2023/10/HoG-707-FINAL-768x508.png 768w, https://wp.winecap.com/wp-content/uploads/2023/10/HoG-707-FINAL-1536x1017.png 1536w, https://wp.winecap.com/wp-content/uploads/2023/10/HoG-707-FINAL-2048x1355.png 2048w, https://wp.winecap.com/wp-content/uploads/2023/10/HoG-707-FINAL-1200x794.png 1200w, https://wp.winecap.com/wp-content/uploads/2023/10/HoG-707-FINAL-1980x1310.png 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
Some Australian brands have seen impressive price performance despite the ongoing trade tension. The table below shows the five best performers on <a href="https://winecap.com/wine-track">Wine Track</a> 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%.
<img loading="lazy" decoding="async" class="alignnone wp-image-1729" src="https://wp.winecap.com/wp-content/uploads/2023/10/best-performing-aus-wines-375x172.png" width="800" height="367" srcset="https://wp.winecap.com/wp-content/uploads/2023/10/best-performing-aus-wines-375x172.png 375w, https://wp.winecap.com/wp-content/uploads/2023/10/best-performing-aus-wines-768x352.png 768w, https://wp.winecap.com/wp-content/uploads/2023/10/best-performing-aus-wines.png 1109w" sizes="auto, (max-width: 800px) 100vw, 800px" />
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

Cautious optimism for Australian wine amid tariff review

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:
<ul>
<li>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.</li>
<li>Q3 witnessed a marked slowdown and potential bottoming out of fine wine prices, with the Liv-ex 100 index showing modest signs of recovery.</li>
<li>The fine wine market morphed into a buyer’s market due to stock availability and dipping prices, especially visible in regions like Champagne.</li>
<li>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.</li>
<li>Wines like Almaviva 2021 and Masseto 2020 stood out, providing relative value for money and showcasing a strong price performance history.</li>
<li>Investors should be looking at ‘pockets of opportunity’ where there is brand strength, value and liquidity.</li>
<li>Demand is likely to pick up in Q4 with Christmas around the corner and exciting vintage releases on the horizon.</li>
</ul>
Click below to download your free copy of our quarterly investment report.

Q3 2023 Fine Wine Report

The following article is an extract from our Q3 Fine Wine Investment report, which will be published next week. 
<ul>
<li>Ongoing inflation and interest rate hikes led to increased volatility in mainstream markets.</li>
<li>The fine wine market in Q3 was a buyer’s market for two main reasons: availability of stock and falling prices creating value.</li>
<li>Two of the best value La Place releases were Almaviva 2021 and Masseto 2020. </li>
</ul>
<h2>High interest rates rattle global markets</h2>
Mainstream markets experienced a turbulent third quarter, mainly due to a marked rise in borrowing costs coupled with a <a href="https://www.reuters.com/markets/global-markets-q3-graphic-2023-09-29/">substantial increase</a> of nearly 30% in oil prices. As a major <a href="https://groww.in/blog/how-oil-prices-affect-your-portfolio">input in several industries</a>, 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 <a href="https://www.axios.com/2023/09/29/crude-oil-price-investments-q3-2023">unresolved struggle</a> between the Federal Reserve and inflation, leaving investors navigating a path marked by heightened risk and uncertainty.
<h2>Fine wine’s downturn slows</h2>
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.
<h2>A buyer’s market</h2>
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 <a href="https://winecap.com/news/investment-opportunities-in-lvmh-champagnes">Champagne</a>. 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 <a href="https://winecap.com/wine-track/france/champagne/na/dom-perignon/dom-perignon">Dom Pérignon prices</a> rising 64% on average in the last five years, and 133% over the last decade.
<h2>Assessing the La Place de Bordeaux campaign</h2>
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. <a href="https://winecap.com/news/la-place-2023-critics-verdict-and-top-scoring-wines">Some critics</a> 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%.
<img loading="lazy" decoding="async" class="alignnone wp-image-1717" src="https://wp.winecap.com/wp-content/uploads/2023/10/Almaviva-Masseto-375x257.png" width="800" height="549" srcset="https://wp.winecap.com/wp-content/uploads/2023/10/Almaviva-Masseto-375x257.png 375w, https://wp.winecap.com/wp-content/uploads/2023/10/Almaviva-Masseto-768x527.png 768w, https://wp.winecap.com/wp-content/uploads/2023/10/Almaviva-Masseto.png 1200w" sizes="auto, (max-width: 800px) 100vw, 800px" />
Stay tuned &#8211; 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.

Key trends that shaped the fine wine market in Q3

<ul>
<li>Salon Le Mesnil Blanc de Blancs 2013 has enjoyed heightened demand shortly after release.</li>
<li>The 2013 offers good value compared to similarly scored back vintages, which come at a significant price premium.</li>
<li>Salon has delivered higher returns (71%) than the Champagne 50 index (62.8%) over the last five years. </li>
</ul>
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 <a href="https://www.liv-ex.com/2023/09/newly-released-salon-2013-among-traded-wines-value/">most traded wines on Liv-ex</a> shortly after. Below we examine the reasons behind this increased interest and the wine’s investment potential.
<h2>The ‘magnificent’ 2013 Salon release </h2>
The 2013 was the first vintage release following <a href="https://www.decanter.com/premium/first-taste-champagne-salon-2013-511332/">two unusual releases</a>: 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 (<a href="https://vinous.com/wines/salon-salon/2013">Vinous</a>), 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 <a href="https://www.robertparker.com/wines/9ZcqMWh446RyAWWTE/brut-blanc-de-blancs-le-mesnil-2013">Wine Advocate</a>’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.
<img loading="lazy" decoding="async" class="alignnone wp-image-1712" src="https://wp.winecap.com/wp-content/uploads/2023/10/EP-Socials-LinkedInAll-1-375x196.jpg" width="800" height="418" srcset="https://wp.winecap.com/wp-content/uploads/2023/10/EP-Socials-LinkedInAll-1-375x196.jpg 375w, https://wp.winecap.com/wp-content/uploads/2023/10/EP-Socials-LinkedInAll-1-768x401.jpg 768w, https://wp.winecap.com/wp-content/uploads/2023/10/EP-Socials-LinkedInAll-1.jpg 1200w" sizes="auto, (max-width: 800px) 100vw, 800px" />
<h2>Salon brand performance</h2>
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.
<img loading="lazy" decoding="async" class="alignnone wp-image-1713" src="https://wp.winecap.com/wp-content/uploads/2023/10/USE-THIS-Salon-inc-2008-10yrs-375x248.png" width="800" height="529" srcset="https://wp.winecap.com/wp-content/uploads/2023/10/USE-THIS-Salon-inc-2008-10yrs-375x248.png 375w, https://wp.winecap.com/wp-content/uploads/2023/10/USE-THIS-Salon-inc-2008-10yrs-768x508.png 768w, https://wp.winecap.com/wp-content/uploads/2023/10/USE-THIS-Salon-inc-2008-10yrs-1536x1017.png 1536w, https://wp.winecap.com/wp-content/uploads/2023/10/USE-THIS-Salon-inc-2008-10yrs-2048x1355.png 2048w, https://wp.winecap.com/wp-content/uploads/2023/10/USE-THIS-Salon-inc-2008-10yrs-1200x794.png 1200w, https://wp.winecap.com/wp-content/uploads/2023/10/USE-THIS-Salon-inc-2008-10yrs-1980x1310.png 1980w" sizes="auto, (max-width: 800px) 100vw, 800px" />
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

Examining the investment potential of Salon 2013 amid heightened demand

<ul>
<li>The fine wine market is not correlated with mainstream markets yet there are some notable similarities and differences between them.</li>
<li>Global events and the law of supply and demand affect both the fine wine and financial markets.</li>
<li>Some of the main differences are tangibility, liquidity, the impact of time and factors influencing their performance.</li>
</ul>
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. 
<h2>Similarities between fine wine and financial markets</h2>
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 &#8216;buy and hold&#8217; 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, <a href="https://winecap.com/wine-track/france/burgundy/saint-aubin/hubert-lamy/saint-aubin-derriere-chez-edouard">Hubert Lamy Saint-Aubin Premier Cru Derriere Chez Edouard Saint Aubin</a> 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 <a href="https://winecap.com/learn/how-fine-wine-hedges-against-economic-shocks-in-four-graphs">that induce uncertainty</a> 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&#8217; decisions. Investors can also follow the historical performance of their wines of interest with tools like <a href="https://winecap.com/wine-track/">Wine Track</a>, which shows the performance of different brands over various time periods, as well as average prices and scores.
<h2>Differences between the fine wine and financial markets </h2>
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&#8217;t require such maintenance.
<h2>Factors influencing performance</h2>
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 <a href="https://www.thewinecellarinsider.com/wine-topics/china-bordeaux-wine-complete-story-current-situation-today/">China’s love affair with Bordeaux</a>.
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.
<h2>Investor profiles</h2>
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.

Differences and similarities between the fine wine and financial markets

<ul>
<li>Recent LVMH Champagne releases offer a combination of high quality and relative value for money. </li>
<li>Dom Pérignon 2013 has been the most in-demand wine so far this year.</li>
<li>The current market environment has created plenty of Champagne buying opportunities, among which Krug 2006 stands out.</li>
</ul>
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.
<h2>Dom Pérignon 2013 – the most wanted wine this year</h2>
Dom Pérignon 2013 is the latest release from the most in-demand Champagne brand. The wine boasts 95+ points from the <a href="https://www.robertparker.com/">Wine Advocate</a>’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 <a href="https://winecap.com/wine-track/france/champagne/na/dom-perignon/dom-perignon">Dom Pérignon prices</a> rising 64% on average in the last five years, and 133% over the last decade, making it an opportune time to buy.
<img loading="lazy" decoding="async" class="alignnone wp-image-1702" src="https://wp.winecap.com/wp-content/uploads/2023/09/EP-Socials-LinkedInAll-1-1-375x196.jpg" width="800" height="418" srcset="https://wp.winecap.com/wp-content/uploads/2023/09/EP-Socials-LinkedInAll-1-1-375x196.jpg 375w, https://wp.winecap.com/wp-content/uploads/2023/09/EP-Socials-LinkedInAll-1-1-768x401.jpg 768w, https://wp.winecap.com/wp-content/uploads/2023/09/EP-Socials-LinkedInAll-1-1.jpg 1200w" sizes="auto, (max-width: 800px) 100vw, 800px" />
<h2>Latest Krug Grande Cuvée editions </h2>
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.
<h2>Opportunities in Krug </h2>
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 (<a href="https://vinous.com/">Vinous</a>) 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 (<a href="https://winecap.com/wine-track/france/champagne/na/krug/vintage-brut">see more on Wine Track</a>).
<img loading="lazy" decoding="async" class="alignnone wp-image-1703" src="https://wp.winecap.com/wp-content/uploads/2023/09/EP-Socials-LinkedInAll-2-375x196.jpg" width="800" height="418" srcset="https://wp.winecap.com/wp-content/uploads/2023/09/EP-Socials-LinkedInAll-2-375x196.jpg 375w, https://wp.winecap.com/wp-content/uploads/2023/09/EP-Socials-LinkedInAll-2-768x401.jpg 768w, https://wp.winecap.com/wp-content/uploads/2023/09/EP-Socials-LinkedInAll-2.jpg 1200w" sizes="auto, (max-width: 800px) 100vw, 800px" />
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. <a href="https://winecap.com/schedule-a-call">Schedule your free consultation today</a>.
 
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