Q1 2022 | Report
Our first quarterly report, analysing the trends that shaped the fine wine market in the beginning of the year, is now available to download. The report examines how the global situation has impacted fine wine’s performance and the regions, producers and wines to follow.
The fine wine market was keenly poised at the beginning of the year after a record-breaking 2021. This helped it brave the volatility that traditional assets failed to withhold. Fine wine indices continued to rise despite slowing GDP growth, high inflation and the turmoil brought by Russia’s war with Ukraine. Burgundy, in particular, delivered a standout performance following a successful 2020 En Primeur campaign. Bordeaux continued to lose trade share to other regions, while California and – in particular – Champagne attracted a new wave of investment interest.
The start of the year was all about bubbles. Champagne did not only dominate the list of wines on the rise, but the region took four out of the five spots of the most traded wines this quarter. Louis Roederer’s Cristal itself filled three of these.
Judging by the first quarter, 2022 is set to be an exciting year, abound with opportunities for fine wine. The ever-decreasing supply of the most sought-after wines is pushing up prices but also leading to a market expansion, as buyers seek value and (re)discover regions, new and old. The perceived stability of fine wine is providing protection in an environment of rising costs and inflation and is bringing more investors to the most delectable of markets.
WineCap’s independent market analysis showcases the value of portfolio diversification and the stability offered by fine wine. Download our brand new quarterly report for your summary of the past quarter in fine wine.
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Three reasons why the Brexit deal will prevent customers from paying more for their wine.
Ever since the UK voted to leave the European Union in 2016, trade talks and negotiations between the two sides had been full of uncertainty, posturing and brinkmanship which at times made it feel like a deal was unobtainable. So, the news that a trade deal – now ratified by the UK Parliament - had been struck on Christmas Eve last year was met with welcome relief across all industry sectors on both sides of the Channel and especially by those looking to invest in wine.
1. The costly VI-1 import documentation for UK and EU wines is no longer going to be introduced in July as previously planned. Taking its place will be a straightforward Wine Import Certificate which asks for basic producer and product information. This means far less admin and fees for wine importers, which in turn means no extra costs will be passed on to customers.
2. Crucially, wines will not have to undergo lab assessment for the new Wine Import Certificate. Submitting wines for lab analysis would have caused backlogs of wines which would have created frustrating shipment delays.
3. While UK wine importers are going to have to get to grips with new processes and forms over the coming months, this is just part of the anticipated bedding-in period which will become second nature as time goes on and as new processes are established.
With the previous uncertainty around Brexit having disappeared with the end of the transition period and with 2021 looking to mirror previous years of healthy returns for fine wine, contact us to speak to one of our advisors about creating your portfolio to invest in wine.
