<ul>
<li>Technology has revolutionised various aspects of the wine trade, from ensuring provenance to streamlining valuations.</li>
<li>From blockchain to AI and data analytics, these advancements can improve transparency and efficiency.</li>
<li>Wine investment tools like Wine Track help investors spot opportunities and discover relative value. </li>
</ul>
In the rapidly evolving landscape of fine wine investment, technology has emerged as a transformative force, revolutionising various aspects of the industry. From verifying provenance to streamlining valuation processes, advancements such as blockchain and artificial intelligence (AI) have played a crucial role.
This article explores the impact of technology on fine wine investment, delving into blockchain-based provenance verification, AI-driven wine valuation, and digital marketplaces that are shaping the industry&#8217;s future.
<h2>Blockchain-based provenance verification</h2>
One of the significant challenges in the fine wine market is verifying the authenticity and provenance of bottles. Counterfeit wines can undermine investor confidence and erode market trust.
However, blockchain technology has emerged as a powerful tool to address this issue. By creating a decentralised and immutable ledger, blockchain allows for the transparent recording of a wine&#8217;s journey from vineyard to consumer.
Each transaction and transfer of ownership can be documented, ensuring a reliable and verifiable record of a wine&#8217;s provenance. This technology provides investors with greater confidence in the authenticity and quality of their investments.
However, applying blockchain to tangible assets like wine has some complexities. Unlike virtual transactions, the wine trade involves physical goods with unique characteristics and specific storage requirements. Bottles can be removed from cases, stored improperly, and tax status may vary, posing challenges for a fully distributed ledger system. Despite the existing challenges, blockchain holds significant potential in creating a more secure and trustworthy wine trade ecosystem.
<h2>AI-driven wine valuation</h2>
Accurate and reliable wine valuation is essential for investors seeking to make informed decisions. AI-powered tools and algorithms are transforming the wine valuation process, leveraging vast amounts of data to generate precise and timely assessments.
By analyzing factors such as vintage, producer, critic ratings, market trends, and historical sales data, AI algorithms can provide sophisticated valuation models. These models offer investors insights into the potential appreciation or depreciation of specific wines, enabling more informed investment strategies.
<h2>Digital marketplaces</h2>
Digital marketplaces have disrupted traditional fine wine trading by providing a platform that connects buyers and sellers in a transparent and efficient manner. These platforms leverage technology to facilitate secure transactions, streamline logistics, and expand the reach of the market.
Online marketplaces allow investors to access a global network of fine wines, enabling diversification and providing a more extensive selection to choose from. Additionally, these platforms often offer tools for researching wines, comparing prices, and tracking market trends, empowering investors with valuable information to make informed investment decisions.
<h2>Fine wine investment tools</h2>
One free tool that helps investors is <a href="https://winecap.com/wine-track/">Wine Track</a>. Wine Track is a comprehensive fine wine index that enables investors to identify investment grade wines, spot trends and wine investment opportunities.
The tool uses daily wine price data from multiple sources, tracking over 75,000 investment grade wines. It indexes the prices of multiple vintages of a given wine, and aggregates critics’ scores, to provide a clear overview of a wine’s investment track record.
The tool also highlights the best and worst performing wines over different time periods, and includes a ‘price per point’, which is a clear indicator of relative value to help investing in wine.
<img loading="lazy" class="alignnone wp-image-1496" src="https://wp.winecap.com/wp-content/uploads/2023/06/Academy-news-and-insight-page-image-375x153.jpg" alt="Wine Track" width="800" height="327" srcset="https://wp.winecap.com/wp-content/uploads/2023/06/Academy-news-and-insight-page-image-375x153.jpg 375w, https://wp.winecap.com/wp-content/uploads/2023/06/Academy-news-and-insight-page-image-768x314.jpg 768w, https://wp.winecap.com/wp-content/uploads/2023/06/Academy-news-and-insight-page-image.jpg 856w" sizes="(max-width: 800px) 100vw, 800px" />
<h2>Data analytics for market insights</h2>
Data analytics has become crucial in fine wine investment, offering investors valuable insights into market trends and patterns. By analyzing vast amounts of data from multiple sources, including auction results, critic ratings, and global demand patterns, investors can gain a deeper understanding of market dynamics.
Data-driven insights enable investors to identify emerging investment opportunities, track the performance of specific wines or regions, and make informed decisions based on historical market trends.
Technology has significantly influenced the landscape of fine wine investment, providing investors with enhanced transparency, efficiency, and analytical capabilities. Digital traceability ensures wines reach the right hands, while AI-driven wine valuation leverages data analytics to generate accurate and timely assessments, guiding investment decisions. As the wine trade continues to adapt the latest technology, investors will be able to navigate the market with greater efficiency and confidence.
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 role of technology in fine wine investment: From blockchain to AI

<ul>
<li>Moët Hennessy has achieved new organic certifications for three estates, highlighting their commitment to sustainability and soil health initiatives.</li>
<li>The wine industry has seen a rise in organic wineries as more producers adopt sustainable practices to promote soil health, biodiversity, and natural pest control.</li>
<li>This is not only beneficial for the environment but presents an opportunity for ESG investors.</li>
</ul>
<h2>Moët Hennessy achieves new organic certifications</h2>
Moët Hennessy has achieved new organic certifications for three of its estates as part of its sustainability initiative called &#8216;Living Soils Living Together’, the <a href="https://www.thedrinksbusiness.com/2023/05/moet-hennessy-awarded-new-organic-certification/">drinks business</a> reported.
One of the accreditations was granted to Château Galoupet in Provence, recognising its commitment to soil regeneration and soil health initiatives.
Additionally, two wine estates in Argentina, Chandon Argentina and Terrazas de Los Andes, were awarded the Regenerative Organic Certified (ROC) status by the non-profit organization Regenerative Organic Alliance.
In line with the program, Moët Hennessy had previously committed to <a href="https://winecap.com/news/champagne-producers-against-zero-herbicide-u-turn">ceasing the use of herbicides</a> in its Champagne vineyards.
<h2>The rise of organic wineries</h2>
Moët Hennessy is not alone in its pursuit of a greener future. There has been a noticeable increase in the number of wineries adopting organic practices in recent years. The organic wine movement has gained significant momentum as consumers and wine investors have become more conscious about sustainable and environmentally friendly products.
Wineries are transitioning to organic farming methods to reduce their use of synthetic chemicals, pesticides, and herbicides in grape cultivation. Such practices focus on promoting soil health, biodiversity, and natural pest control, resulting in healthier vineyards and potentially higher quality grapes.
<h2>Renowned organic producers</h2>
Some of the most renowned organic producers include Burgundy’s <a href="https://winecap.com/wine-track/france/burgundy/batard-montrachet/domaine-leflaive/batard-montrachet">Domaine Leflaive</a>, and the Bordeaux Fifth Growth estate, <a href="https://winecap.com/wine-track/france/bordeaux/pauillac/chateau-pontet-canet/pontet-canet">Château Pontet-Canet</a>.
While not officially certified, Burgundy’s <a href="https://winecap.com/wine-track/france/burgundy/echezeaux/domaine-de-la-romanee-conti/echezeaux">Domaine de la Romanée-Conti</a> also adheres to organic and biodynamic principles in its vineyard management and produces some of the most sought-after wines in the world.
<h2>A sustainable investment asset</h2>
The increasing adoption of organic and sustainable practices by wineries is not only beneficial for the environment but also presents an opportunity for wine investors. The influence of Environmental, Social and Governance (ESG) factors over investment portfolios has grown dramatically in recent years.
Indeed, <a href="https://winecap.com/learn/5-ways-fine-wine-investments-good-for-environment">fine wine can be considered an ESG investment</a> for the following reasons:
<ol>
<li>Vineyards are a carbon sink. A rugby-pitched-sized area of vineyard soaks up a respectable 2.84 tonnes of carbon every year.</li>
<li>Soil quality can be enhanced through fine wine. Soil degradation is hot on the radar for concerned environmentalists.</li>
<li>Organic wine production supports pollinators. Organic or pesticide-free vineyards – often one of the hallmarks of fine wine – helps bees and other pollinators get back on track.</li>
<li>Fine wine is fighting back against single-use plastic. Unlike disposable plastic, fine wine glass bottles are something to be treasured.</li>
<li>Vineyards help fill rocky terrain and hills with plants. The higher altitude acts as a natural pesticide, making it much easier to create organic wines.</li>
</ol>
The combination of sustainable practices and investment potential makes the growing trend of organic wineries a positive development in the wine 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">Schedule your free consultation today</a>.

Moët Hennessy’s new organic certifications reflect a growing trend in the wine industry

<ul>
<li>Pension funds have increased investment in alternative assets like fine wine by 25% over the past two decades. </li>
<li>Fine wine provides stability and intrinsic value for pension planners, as it is unaffected by geopolitical events or high inflation levels.</li>
<li>Fine wine has delivered impressive returns of 40.3% over the past five years, making it an ideal asset for retirement planning and diversification.</li>
</ul>
Change is in the air. As both the bond and equity markets get shaken by turbulence, pension fund managers are increasingly turning to alternative assets, to hedge against economic shocks. According to one report, pension funds around the world have <a href="https://www.ubs.com/global/en/wealth-management/our-approach/marketnews/article.1582725.html">increased their exposure by 25%</a> over the past two decades. The <a href="https://www.ubs.com/global/en/wealth-management/our-approach/marketnews/article.1582725.html">New York Teachers Retirement System</a>, for example, is plunging a whooping 35% of money into alternative investments.
Private equity, property, hedge funds and commodities are among the most enduring alternative assets. However, little by little, institutional investors are dipping into collectibles like fine wine too. One of Canada’s mightiest pension funds, <a href="https://citywire.com/au/news/canadian-pension-fund-acquires-35-aussie-wineries/a2403610">The Public Sector Pension Investment Board</a>, recently acquired 35 iconic vineyards. <a href="https://www.marketindex.com.au/news/goldman-sachs-upgrades-treasury-wines-to-buy-on-pivot-to-strong-ex-china">Goldman Sachs</a> has also been investing heavily in wineries, with a focus on <a href="https://www.livemint.com/market/stock-market-news/goldman-sachs-jupiter-india-fund-buy-stake-in-sula-vineyards-details-here-11671767470360.html">medium and longer-term returns</a>.
In this article, we’ll unveil what’s making wine so appealing to managers today, and how investors could use this unique asset to bolster their own retirement funds.
<h2>Fine wine’s intrinsic value is reassuring for pension planners </h2>
Unlike most other investments, wine’s world-famous flavors are not impacted by geo-political events or high inflation levels. Instead, they are affected by storage and temperature.
This gives investors – including fund managers &#8211; a welcome sense of reassurance. While they may have no control over the stock market, they can ensure that the wine is well cared for.
Over the decades, retirement planners can rest assured that their wealth is not subject to the twists and turns of the stock market. Instead, it comes from the intrinsic value and exquisite quality within the bottle. This can help to mitigate risk and offer valuable diversification.
<h2>Investors can find a bottle to match their retirement timeframe </h2>
One of the greatest appeals of fine wine is how it improves over time. Naturally, it’s an asset that complements decades-long investment strategies, like retirement plans.
As our <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=1ac34e3429ee">CEO, Alex Westgarth, recently commented for Forbes</a>, ‘Fine wine pairs well with younger investors with long-term horizons. A good Bordeaux, for example, can age up to 50 years. This can add a certain stability to your portfolios’.
An excellent wine will always be in high demand as it reaches maturity. And there will almost always be a passionate buyer willing to pay premium prices.
A great advantage for pension planners is that they can probably find a bottle on the market to match their retirement timeframe. While some wines might be best opened in fifty years, others may need just five. Finding the right wine for your unique timeframe can help you to hedge against market losses and meet your investment goals.
<h2>With time, premium bottles become rarer </h2>
As poet, playwright and novelist, Johann Wolfgang von Goethe famously quipped, ‘Life is too short to drink bad wine’. Ultimately, the asset is made to be enjoyed. People open investment grade wine to celebrate occasions or present as gifts. And, with time, certain vintages will become harder and harder to find.
When demand outstrips supply, prices increase. That’s another reason why long-term investments in wine can be a sensible alternative asset for pension planning.
As the climate crisis continues to impact vineyards, the scarcity factor is likely to further increase prices. The delicate and unique flavors in already-bottled wine could be the last of their kind within just a few years. This will further reduce supply.
Meanwhile, demand is growing by the day. The past decades have seen an impressive rise in Millennial and Gen-Z buyers. Sotheby’s have even noticed the average purveyor’s age <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=46473d7829ee">shrink from over 60 to under 40</a>.
What’s more, the vast <a href="https://winecap.com/learn/digital-advancements-bring-a-new-generation-of-wine-investors">surge of digital advancements</a> are also bringing in new generations and groups of wine buyers.
If demand continues to grow, the tightening supply should lead to a continued increase in value.
<h2>Fine wine has an impressive record of beating inflation </h2>
There are several reasons why most pension funds begin by investing in equities. It’s partly because managers can afford to take on more risk with longer timeframes. But it’s also to avoid the devastating effects of inflation. Unlike cash, bonds or other debt instruments, equity is generally more inflation-resistant.
Fortunately, fine wine shares this same inflation-resisting quality. This could make it a strong contender for a pension investment plan.
Fine wine has a history of beating inflation. Since 2021, for example, while the UK has endured inflation rates of over 10%, the Liv-ex 1000 index has risen 33%.
<img loading="lazy" class="alignnone wp-image-1465" src="https://wp.winecap.com/wp-content/uploads/2023/05/3-375x219.png" width="700" height="409" srcset="https://wp.winecap.com/wp-content/uploads/2023/05/3-375x219.png 375w, https://wp.winecap.com/wp-content/uploads/2023/05/3-768x448.png 768w, https://wp.winecap.com/wp-content/uploads/2023/05/3-1536x897.png 1536w, https://wp.winecap.com/wp-content/uploads/2023/05/3-2048x1196.png 2048w, https://wp.winecap.com/wp-content/uploads/2023/05/3-1200x701.png 1200w, https://wp.winecap.com/wp-content/uploads/2023/05/3-1980x1156.png 1980w" sizes="(max-width: 700px) 100vw, 700px" />
During the middle and final investment years – when the pension pot is most at risk of inflation erosion – a healthy allocation to wine could help mitigate the risk.
<h2>Fine wine has a history of strong returns</h2>
Over the past five years, the fine wine has delivered returns of 40.3%, according to the Liv-ex 1000 index. What’s more, despite the incredibly erratic market, overall performance has been smooth and steady.
This makes fine wine a strong contender retirement planning. <a href="https://winecap.com/learn/fine-wine-as-a-value-and-growth-asset?utm_source=Klaviyo&amp;utm_medium=campaign&amp;audience=all&amp;_kx=Lr2N_Vmq62b9MC_xz19gFev8BfazMarSR3bmvvYnyd0xCmYqKlNOghBkQ4k7fDfk.KMnNaW">Fine wine has both growth and value characteristics</a>, making it well suited for most pension plans.
<h2>How can fine wine be incorporated into a pension?</h2>
Usually the best way to add wine into private pensions – like workplace and Self-Invested Private Pensions (SIPPs) – is to speak to a financial advisor. This is because they can help you structure the fund in the most tax-efficient way.
When it comes to taxes, fine wine already has a head start. Fine wine is <a href="https://winecap.com/learn/fine-wine-taxation-2023">exempt from Capital Gains Tax</a>. Because of this, your advisor may prefer to leave it out of a SIPP altogether and use the tax perks on other assets instead. But probably they would seek to allocate a proportion of fine wine into your overall retirement plan as a hedging asset or long-term growth generator. As an inflation-resistant and illiquid asset, wine generally lends itself to retirement planning well.
If you’d like to find out more about which wines could best suit your pension goals, <a href="https://winecap.com/contact-us">we’d love to talk to you</a>.
&nbsp;

Diversifying retirement portfolios: Why pension fund managers are turning to fine wine

<ul>
<li>Two weeks into the Bordeaux En Primeur campaign about a third of the most popular estates have released their 2022 vintage. </li>
<li>The releases so far have commanded 5% to 25% price premium on last year.</li>
<li>Some of the most successful releases included Beychevelle and Cheval Blanc.</li>
</ul>
The Bordeaux 2022 En Primeur campaign is now in full swing. The past two weeks have seen about twenty of the most important Bordeaux estates release their latest vintage, including Château Beychevelle, Château Cheval Blanc, Château Suduiraut and Château Lafleur.
The majority of the wines have been released at 5% to 25% premium on last year, with price rises often highlighting the relative value and better investment opportunities that back vintages offer.
The best new releases have represented an attractive point of entry into the brand, a combination of adequate pricing and good quality as measured by critic scores. Below we highlight four of them.
<h2>Château Beychevelle – ‘fabulous’</h2>
&nbsp;
<img loading="lazy" class="alignnone wp-image-1477" src="https://wp.winecap.com/wp-content/uploads/2023/05/3-375x196.jpg" alt="Beychevelle" width="750" height="392" srcset="https://wp.winecap.com/wp-content/uploads/2023/05/3-375x196.jpg 375w, https://wp.winecap.com/wp-content/uploads/2023/05/3-768x401.jpg 768w, https://wp.winecap.com/wp-content/uploads/2023/05/3.jpg 1200w" sizes="(max-width: 750px) 100vw, 750px" />
<a href="https://winecap.com/wine-track/france/bordeaux/saint-julien/chateau-beychevelle/beychevelle">Château Beychevelle 2022</a> was released En Primeur at €67.50 per bottle ex-négociant, representing a 17.2% increase on the 2021. The wine was offered at £836 per 12&#215;75, up 18.4% on the 2021’s opening price (£706 per 12&#215;75).
However, in the context of back vintages, the 2022 became one of the most attractive offerings in the market today. The wine boasts 95-97 points from Neal Martin (<a href="https://vinous.com/">Vinous</a>), who said it was ‘one of the most seductive Beychevelles I have tasted from barrel’ and ‘one not to be overlooked’. <a href="https://vinous.com/">Antonio Galloni</a> scored it 94-96 points and called it ‘fabulous’.
<a href="https://winecap.com/wine-track/france/bordeaux/saint-julien/chateau-beychevelle/beychevelle">Beychevelle</a> has been a brand on the move, seeing consistent price growth both in the shorter and longer-term. In the past year, prices are up 6% on average; they have increased 24% over the last three, and 68% in the past decade.
<h2>Château Cheval Blanc – ‘wine of the vintage?’</h2>
&nbsp;
<img loading="lazy" class="alignnone wp-image-1478" src="https://wp.winecap.com/wp-content/uploads/2023/05/1-375x196.jpg" alt="Cheval Blanc" width="750" height="392" srcset="https://wp.winecap.com/wp-content/uploads/2023/05/1-375x196.jpg 375w, https://wp.winecap.com/wp-content/uploads/2023/05/1-768x401.jpg 768w, https://wp.winecap.com/wp-content/uploads/2023/05/1.jpg 1200w" sizes="(max-width: 750px) 100vw, 750px" />
<a href="https://winecap.com/wine-track/france/bordeaux/saint-emilion-grand-cru/chateau-cheval-blanc/cheval-blanc">Château Cheval Blanc 2022</a> has been another of this year’s campaign successes. The wine is <a href="https://winecap.com/news/neal-martin-awards-three-bordeaux-2022-wines-potential-100-points">Neal Martin’s highest-scoring vintage ever</a> and the latest well-priced release from the château, which seems to have created a sustainable En Primeur strategy.
When we spoke to Cheval Blanc’s technical director, Pierre-Olivier Clouet, he stated:
“The release price depends on many things. The quality of the vintage, the economic context in the world, and the price of new vintages available on the market. At the end, the definition of the price En Primeur is not something so difficult to do. This is something mathematical. 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.”
Cheval Blanc 2022 was released at €470 per bottle ex-négociant, up 20.5% on the 2021, and offered internationally for £5,760 per 12&#215;75, up 21.5% increase on last year.
Numerous critics awarded the wine a potential 100-points, including Neal Martin (98-100), Antonio Galloni (98-100), <a href="https://thewineindependent.com/">Lisa Perrotti-Brown MW</a> (98-100), <a href="https://www.thedrinksbusiness.com/">Colin Hay</a> (98-100), <a href="https://www.jamessuckling.com/">James Suckling</a> (99-100), and <a href="https://quarin.com/fr/accueil.html">Jean-Marc Quarin</a> (100).
Other older vintages that represented good value for money included the 2021, 2020 and 2016. Prices on average have risen <a href="https://winecap.com/wine-track/france/bordeaux/saint-emilion-grand-cru/chateau-cheval-blanc/cheval-blanc">20% in the last half decade</a>.
<h2>Carruades de Lafite – ‘a real showstopper’</h2>
&nbsp;
<img loading="lazy" class="alignnone wp-image-1479" src="https://wp.winecap.com/wp-content/uploads/2023/05/4-375x196.jpg" alt="Carruades de Lafite" width="750" height="392" srcset="https://wp.winecap.com/wp-content/uploads/2023/05/4-375x196.jpg 375w, https://wp.winecap.com/wp-content/uploads/2023/05/4-768x401.jpg 768w, https://wp.winecap.com/wp-content/uploads/2023/05/4.jpg 1200w" sizes="(max-width: 750px) 100vw, 750px" />
<a href="https://winecap.com/wine-track/france/bordeaux/pauillac/chateau-lafite-rothschild/carruades-lafite">Carruades de Lafite</a>, the second wine of <a href="https://winecap.com/wine-track/france/bordeaux/pauillac/chateau-lafite-rothschild/lafite-rothschild">Château Lafite Rothschild</a>, is another anticipated release that enjoys high demand year after year. The 2022 was released at €180 per bottle ex-négociant, up 12.5% on the 2021. The wine was offered for £2,256 per 12&#215;75, up 13.9% on the 2021 release, which has since risen in value.
Despite the price increases, the 2022 is the least expensive Carruades on the market today. This has not gone unnoticed and the wine has already <a href="https://www.liv-ex.com/2023/05/bordeaux-2022-en-primeur-campaign-updates/">traded at a premium of 21.2%</a> on the secondary market.
Martin awarded it 90-92 points, and Kelley gave it 91-93. It also received 92-94 points from Galloni, who called it ‘a real showstopper’.
From an investment perspective, Carruades de Lafite prices have risen 22% over the last five years, and 63% in the last decade.
<h2>Château Lafleur – ‘intellectual and delicious’</h2>
&nbsp;
<img loading="lazy" class="alignnone wp-image-1480" src="https://wp.winecap.com/wp-content/uploads/2023/05/Lafleur-375x196.jpg" alt="Lafleur" width="750" height="392" srcset="https://wp.winecap.com/wp-content/uploads/2023/05/Lafleur-375x196.jpg 375w, https://wp.winecap.com/wp-content/uploads/2023/05/Lafleur-768x401.jpg 768w, https://wp.winecap.com/wp-content/uploads/2023/05/Lafleur.jpg 1200w" sizes="(max-width: 750px) 100vw, 750px" />
In recent years, <a href="https://winecap.com/wine-track/france/bordeaux/pomerol/chateau-lafleur/lafleur">Château Lafleur</a> has been offering considerable value in the high-rolling world of Pomerol. The latest release was no exception.
Lafleur 2022 was released at €610 per bottle ex-négociant, up 8.9% on the 2021. It was offered at £7,440 per 12&#215;75, a 14.3% increase on the 2021 release, which has since experienced a significant price growth.
The 2022 received 97-99 points from Neal Martin, who said it was ‘an intellectual and delicious Lafleur – a lethal combination’. Galloni gave it 95-98 and noted that it was ‘shaping up to be majestic’.
The wine also received 98-100 points from Colin Hay and <a href="https://janeanson.com/">Jane Anson</a>, and 100-points from <a href="https://www.falstaff.com/de">Falstaff</a> and Jean-Marc Quarin.
<a href="https://winecap.com/wine-track/france/bordeaux/pomerol/chateau-lafleur/lafleur">Lafleur prices</a> have risen 38% in the last five years, and 83% in the last ten, making it an attractive investment wine.
You can now explore the historic performance of these wines on <a href="https://winecap.com/wine-track">Wine Track</a>. Our tool provides a clear overview of a fine wine’s track record, including critic scores, average price and investment 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>.

En Primeur round-up: The best Bordeaux 2022 releases so far

<ul>
<li>Fine wine&#8217;s value tends to increase when stock markets fall, making it a great hedge option for investors.</li>
<li>Fine wine is proving to be a better portfolio hedge than gold which is showing greater correlation with the stock market in recent years. </li>
<li>As a precious and depleting asset, wine tends to rise above local shocks and is generally less impacted by cost-of-living pressures.</li>
<li>Fine wine has outpaced inflation since 2021, making it a resilient asset to hold in turbulent times.</li>
</ul>
There is a lot going on in the economy, and most of it is not good. Major financial institutions buckle under high interest rates. Central banks are forced to rethink policies. Inflation continues to flirt with double digit levels. And the stock market lurches from one position to another as world events unfold. According to <a href="https://am.jpmorgan.com/us/en/asset-management/adv/insights/portfolio-insights/asset-class-views/asset-allocation/">JPMorgan’s Q2 outlook</a>, ‘2023 looks overwhelmingly likely to be a year of disappointing growth and ongoing adjustment’. Yet, fine wine is generally standing tall, experiencing little to zero negative performance.
In many situations, the value of fine wine has even climbed. As <a href="https://www.cityam.com/investors-reach-for-the-bottle-as-inflation-soars/">CityAM</a> recently reported, ‘while it might not usurp stocks as the backbone of investors’ portfolios anytime soon, wine is providing some stability and solace amid the turmoil’.
In this article, we’ll uncover how fine wine is reacting to today’s tense economy and why.
<h2>The value of fine wine tends to increase as markets go down</h2>
Fascinatingly, the value of wine tends to increase as the stock markets fall. One of the most notable examples was during the financial crisis of 2008. Over autumn, the world economies went into shock. Within six months, the great S&amp;P 500 had plunged by 52%.
<img loading="lazy" class="alignnone wp-image-1462" src="https://wp.winecap.com/wp-content/uploads/2023/05/SP-375x187.png" alt="S&amp;P finance" width="700" height="349" srcset="https://wp.winecap.com/wp-content/uploads/2023/05/SP-375x187.png 375w, https://wp.winecap.com/wp-content/uploads/2023/05/SP-768x383.png 768w, https://wp.winecap.com/wp-content/uploads/2023/05/SP.png 842w" sizes="(max-width: 700px) 100vw, 700px" />
Source: <a href="https://finance.yahoo.com/quote/%5EGSPC/chart?p=%5EGSPC#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">Yahoo Finance</a>
Yet, while the world’s stock prices zig-zagged downwards, one asset class held up remarkably well. Fine wine (shown in the graph below in red) did not suffer any major downturns. On the contrary, it seemed to have a negative correlation to the stock market. Fine wine prices soared.
<img loading="lazy" class="alignnone wp-image-1463" src="https://wp.winecap.com/wp-content/uploads/2023/05/1-1-375x208.png" alt="Liv-ex 1000 vs S&amp;P 500" width="700" height="388" srcset="https://wp.winecap.com/wp-content/uploads/2023/05/1-1-375x208.png 375w, https://wp.winecap.com/wp-content/uploads/2023/05/1-1-768x425.png 768w, https://wp.winecap.com/wp-content/uploads/2023/05/1-1-1536x851.png 1536w, https://wp.winecap.com/wp-content/uploads/2023/05/1-1-2048x1135.png 2048w, https://wp.winecap.com/wp-content/uploads/2023/05/1-1-1200x665.png 1200w, https://wp.winecap.com/wp-content/uploads/2023/05/1-1-1980x1097.png 1980w" sizes="(max-width: 700px) 100vw, 700px" />
Time and time again, fine wine has outperformed when the stock market is sinking. <a href="https://winecap.com/learn/how-does-fine-wine-react-in-a-recession">This is because of four essential characteristics</a>.
Most recently, fine wine delivered investors double digit returns over the COVID-19 pandemic and global lockdowns. Between April 2020 and September 2022, the asset shot up a staggering <a href="https://www.liv-ex.com/news-insights/indices/">43.5%</a>.
This makes fine wine an extraordinary hedging option for investors. When stocks are tumbling, a reasonable allocation to wine can help to smooth out the overall performance and absorb losses.
<h2>Today, fine wine is a better portfolio hedge than gold   </h2>
The current economic environment is unsteady. Understandably, global asset managers are now looking to buffer against some of the market shocks by increasing their allocations to alternatives and hedging instruments.
One of the most popular choices is gold. According to <a href="https://www.ubs.com/global/en/wealth-management/insights/chief-investment-office/house-view/2023/weekly-key-messages.html?caasID=CAAS-ActivityStream">UBS’ latest report</a>, ‘we are also most preferred on gold and recommend holding it as a portfolio hedge in the current uncertain times’.
However, over the past couple of years, fine wine has started to beat gold at its own game. Since Covid-19, the prices of gold have become more correlated to the prices of the stock market. Looking at the graph below, the performance of gold (in orange) is becoming increasingly aligned to the stock market (for example, the S&amp;P 500 shown in yellow). By contrast, the value of fine wine (red) is the least aligned.
<img loading="lazy" class="alignnone wp-image-1464" src="https://wp.winecap.com/wp-content/uploads/2023/05/2-1-375x222.png" alt="Liv-ex 1000 vs S&amp;P 500 vs Gold" width="700" height="414" srcset="https://wp.winecap.com/wp-content/uploads/2023/05/2-1-375x222.png 375w, https://wp.winecap.com/wp-content/uploads/2023/05/2-1-768x454.png 768w, https://wp.winecap.com/wp-content/uploads/2023/05/2-1-1536x909.png 1536w, https://wp.winecap.com/wp-content/uploads/2023/05/2-1-2048x1212.png 2048w, https://wp.winecap.com/wp-content/uploads/2023/05/2-1-1200x710.png 1200w, https://wp.winecap.com/wp-content/uploads/2023/05/2-1-1980x1171.png 1980w" sizes="(max-width: 700px) 100vw, 700px" />
When it comes to hedging against a turbulent economy, wine is coming out on top. Some economists are now beginning to question <a href="https://winecap.com/learn/is-fine-wine-the-new-gold">if fine wine is the new gold</a>.
<h2>Since 2021, the performance of fine wine has outpaced inflation</h2>
The US inflation rate is gradually coming back to an almost-reassuring level. At the time of writing (<a href="https://ycharts.com/indicators/us_inflation_rate#:~:text=Basic%20Info,in%20price%20over%20a%20year">May 2023</a>), it sits at 4.98%, down from 8.54% in 2022. But it’s more than double the target rate.
In the UK, it’s not looking so good. Inflation now sits at a nerve-wracking <a href="https://tradingeconomics.com/united-kingdom/inflation-cpi">10.06%</a>, meaning that purchasing power is rapidly draining from the pound. At times like this, it’s generally better to hold long-term wealth in assets rather than cash. Physical assets like property, precious metals and fine wine are especially resilient to inflation risk.
Below is a graph showing the UK’s inflation rate over the past five years. Since 2021, it has soared to double digits.
<img loading="lazy" class="alignnone wp-image-1465" src="https://wp.winecap.com/wp-content/uploads/2023/05/3-375x219.png" width="700" height="409" srcset="https://wp.winecap.com/wp-content/uploads/2023/05/3-375x219.png 375w, https://wp.winecap.com/wp-content/uploads/2023/05/3-768x448.png 768w, https://wp.winecap.com/wp-content/uploads/2023/05/3-1536x897.png 1536w, https://wp.winecap.com/wp-content/uploads/2023/05/3-2048x1196.png 2048w, https://wp.winecap.com/wp-content/uploads/2023/05/3-1200x701.png 1200w, https://wp.winecap.com/wp-content/uploads/2023/05/3-1980x1156.png 1980w" sizes="(max-width: 700px) 100vw, 700px" />
If we compare this to the average performance of fine wine in the same time frame (using the Liv-ex 1000 index), wine hasn’t just kept up with inflation. It has beaten it more than three-fold. Between 2021 and 2023 UK inflation rose by just under 10%. By contrast, the average performance of fine wine has increased by <a href="https://www.liv-ex.com/news-insights/indices/">33%</a>.
There are several reasons why wine is so good at outpacing inflation. Firstly, it’s a global asset so it tends to rise above local shocks. When the pound loses value, <a href="https://winecap.com/learn/opportunity-for-asian-and-american-investors">Asian or American investors tend to step in</a>. The wine markets are generally private too. This means that the groups of buyers tend to be very wealthy and sophisticated investors, who are less impacted by the cost of living pressures. They’re generally less swayed by rumors or economic turbulence too.
Perhaps most significantly, wine is a precious and depleting asset. It grows in value and scarcity over time, which will almost always outpace inflation levels.
<h2>Overall, wine is a useful asset in a turbulent economy </h2>
There are so many reasons for turbulence in the economy. Wars, pandemics, political tensions, inflation or the climate crisis to name a few. Yet, the last few years have shown us that fine wine tends to increase in value during these historical moments.
Global demand for investment grade wine outstrips supply more and more every day. As our CEO Alex Westgarth recently explained for Forbes Business Council, <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=1ac34e3429ee">wine investors are younger, edgier, and more international than ever</a>. Whichever way you look at it, wine and economic turbulence tend to pair well.
As the markets continue to stride forward into uncertainty, it’s a good moment to reconsider alternative assets and hedging strategies.
<a href="https://winecap.com/learn/seven-delicious-reasons-to-invest-in-fine-wine">Discover seven more delicious benefits to investing in fine wine</a>
WineCap’s 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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How fine wine hedges against economic shocks: In four graphs

<ul>
<li>Bordeaux 2022 is predestined for long-term ageing rather than drinking young. </li>
<li>Martin found little difference between the First Growths and ‘the others’ in terms of quality. </li>
<li>He singled out Saint-Julien as an appellation to seek out. </li>
<li>Leoville Las Cases, Cheval Blanc and L’Eglise Clinet received 98-100 points. </li>
</ul>
Yesterday, <a href="https://vinous.com/articles/you-re-unbelievable-bordeaux-2022-may-2023">Vinous</a> published Neal Martin’s much anticipated Bordeaux 2022 report, titled “You’re unbelievable”.
<h2>Vintage observations</h2>
Martin found some ‘snow-capped peaks’, ‘show-offs whose talent cannot be denied’ as well as some ‘caveats’ in Bordeaux 2022. Like other critics, he commented on the ‘unbelievable’ freshness given the heat of the growing season.
He remarked that in 2022 ‘there is partial flattening of the hierarchical pyramid’. While ‘release prices will inevitably amplify differences in ranking, in terms of quality, there’s little difference between First Growths and “the others”,’ he observed.
On the question of Right vs Left Bank, the critic said the ‘vintage is more evenly balanced’ but singled out Saint-Julien as an appellation to watch out for, noting that ‘this is as good as it gets’.
He mentioned the wines’ higher alcohol levels compared to the 2021s, that are ‘often above 14%’ but feel ‘less blowsy than in 2018’. He also said that ‘unlike 2019 and 2020, most wines, particularly within its higher ranks, are predestined for long-term aging’.
However, he advised ‘those with a penchant for drinking Bordeaux young [to] seek out another vintage’.
In terms of buying opportunities, he argued that ‘the question is whether initial prices make any purchase worthwhile vis-à-vis other vintages currently on the market’.
<h2>Top-scoring wines</h2>
<img loading="lazy" class="alignnone wp-image-1452" src="https://wp.winecap.com/wp-content/uploads/2023/05/NM-Bdx-22.png" alt="Neal Martin's top-scoring Bordeaux 2022 wines" width="600" height="277" srcset="https://wp.winecap.com/wp-content/uploads/2023/05/NM-Bdx-22.png 914w, https://wp.winecap.com/wp-content/uploads/2023/05/NM-Bdx-22-375x173.png 375w, https://wp.winecap.com/wp-content/uploads/2023/05/NM-Bdx-22-768x355.png 768w" sizes="(max-width: 600px) 100vw, 600px" />
While Martin stated that En Primeur is more than just scores, it is important to note that three wines achieved his highest in-barrel range of 98-100 points.
Cheval Blanc 2022, which was among the first releases this campaign, is ‘a wine for those serious about their Bordeaux,’ according to the critic. Vinous’ Antonio Galloni also rated it 98-100 points, noting that ‘it is shaping up to be one of the wines of vintage’. It also makes an attractive investment, with <a href="https://winecap.com/wine-track/france/bordeaux/saint-emilion-grand-cru/chateau-cheval-blanc/cheval-blanc">Cheval Blanc prices</a> rising an average of 22% over the last three years.
<img loading="lazy" class="alignnone wp-image-1454" src="https://wp.winecap.com/wp-content/uploads/2023/05/CB-375x248.png" alt="Cheval Blanc prices and scores" width="600" height="397" srcset="https://wp.winecap.com/wp-content/uploads/2023/05/CB-375x248.png 375w, https://wp.winecap.com/wp-content/uploads/2023/05/CB.png 740w" sizes="(max-width: 600px) 100vw, 600px" />
For Martin, <a href="https://winecap.com/wine-track/france/bordeaux/saint-julien/chateau-leoville-las-cases/leoville-las-cases">Leoville Las Cases</a> 2022 ‘surpasses the 2018-2020 trio and […] is a ‘tour de force’’.
He described <a href="https://winecap.com/wine-track/france/bordeaux/pomerol/chateau-l'eglise-clinet/eglise-clinet">L’Eglise Clinet</a> as ‘a wine that may leave you spellbound’.
Martin also suggested some wines from the cellar which included <a href="https://winecap.com/wine-track/france/bordeaux/margaux/chateau-brane-cantenac/brane-cantenac">Brane-Cantenac</a>, <a href="https://winecap.com/wine-track/france/bordeaux/pomerol/chateau-la-conseillante/conseillante">La Conseillante</a>, <a href="https://winecap.com/wine-track/france/bordeaux/saint-julien/chateau-leoville-barton/leoville-barton">Léoville Barton</a>, <a href="https://winecap.com/wine-track/france/bordeaux/saint-estephe/chateau-phelan-segur/phelan-segur">Phélan-Ségur</a>, <a href="https://winecap.com/wine-track/france/bordeaux/pauillac/chateau-pichon-baron/pichon-baron">Pichon-Baron</a> and <a href="https://winecap.com/wine-track/france/bordeaux/pomerol/vieux-chateau-certan/vieux-chateau-certan">Vieux-Château-Certan</a>.
You can now explore the historic performance of these wines on <a href="https://winecap.com/wine-track">Wine Track</a>. Our tool provides a clear overview of a fine wine’s track record, including critic scores, average price and investment 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>.

Neal Martin awards three Bordeaux 2022 wines potential 100 points

<ul>
<li>The US banking crisis has been the biggest since the 2008 financial crisis and has created uncertainty in mainstream markets. </li>
<li>Revisiting key moments in the history of fine wine investment offers valuable insight into the future of the market. </li>
<li>A key difference between fine wine and equities during the last financial crisis was the speed of recovery.</li>
<li>The fine wine market is braced for challenges due to its diversity as the performance of different wines and vintages can balance a portfolio.</li>
</ul>
The recent banking failures have been the biggest since the 2008 financial crisis. Since the beginning of March, regulators have shut down three mid-size US banks – Silicon Valley Bank, Signature Bank and First Republic. In Europe, Swiss giant Credit Suisse was rescued in an emergency deal with rival UBS, which purchased it at a fraction of its closing market value. UBS itself suffered losses during the acquisition – it slid 13% before making a recovery.
While the news echoes the last financial crisis, governments have been providing reassurance that this is not history repeating itself. The current turmoil is partly down to the sharp increase in interest rates, which was aimed to curb inflation.
Still, the banking collapse has had an immediate effect on investor confidence and mainstream markets. European bank shares remain volatile, while US stock markets opened flat this week. Alternative assets and safe havens such as gold and treasuries have enjoyed a boost, as investors have been considering <a href="https://winecap.com/learn/five-low-risk-assets-to-hedge-against-inflation">low-risk assets</a> to put their money.
Reflecting on how the fine wine market has performed during previous challenging macroeconomic events could offer valuable insights into what to expect in the current uncertain environment.
<h2>The fine wine market during the 2008 financial crisis</h2>
Like other markets, fine wine experiences cycles.
<img loading="lazy" class="alignnone wp-image-1447" src="https://wp.winecap.com/wp-content/uploads/2023/05/Indices-all-time-375x243.png" alt="fine wine performance" width="700" height="454" srcset="https://wp.winecap.com/wp-content/uploads/2023/05/Indices-all-time-375x243.png 375w, https://wp.winecap.com/wp-content/uploads/2023/05/Indices-all-time-768x499.png 768w, https://wp.winecap.com/wp-content/uploads/2023/05/Indices-all-time-1536x997.png 1536w, https://wp.winecap.com/wp-content/uploads/2023/05/Indices-all-time-2048x1330.png 2048w, https://wp.winecap.com/wp-content/uploads/2023/05/Indices-all-time-1200x779.png 1200w, https://wp.winecap.com/wp-content/uploads/2023/05/Indices-all-time-1980x1285.png 1980w" sizes="(max-width: 700px) 100vw, 700px" />
During the previous financial crisis, the fine wine market suffered a downturn, but it fared better than some other traditional investments such as equities and real estate. Between June 2008 and June 2009, the Liv-ex 100 index, which was heavily weighted towards wines from Bordeaux, fell 18.8%.  Meanwhile, the broader Liv-ex 1000 index, which includes greater number of wines from other regions, dipped 7.4%.
The Knight Frank Luxury Investment Index, which tracks the performance of luxury assets including fine wine, recorded similar figures, with the value of investment-grade wine declining 15% in 2008. By comparison, the S&amp;P 500, a benchmark index of US equities, fell over 37% the same year.
A key difference between fine wine and equities during the financial crisis was the speed of recovery. While the stock market took several years to recover to its pre-crisis levels, the fine wine market turned bullish relatively quickly. By the end of 2009, investment-grade wine had returned to its pre-crisis levels, and by 2010, it had surpassed its previous peak.
Moreover, the performance of fine wine during the financial crisis varied between different regions and vintages. While the Bordeaux market was hit particularly hard, Burgundy and the Rhône performed relatively well.
<h2>The fine wine market – braced for challenges</h2>
The fine wine market of today looks very different from the shape it had fifteen years ago. There are more investable wines than at any other point in history. If Bordeaux accounted for 90% of the market in 2008, today its share sits at 35%, due to the emergence and the proven investment potential of wines outside this dominant French region.
The diversity of this portfolio diversifier has helped it get through swiftly through other more recent challenges, such as Donald Trump’s 25% tariffs on most European wines, and the Covid-19 pandemic.
For instance, Italy and Champagne, which were exempt from the US tariffs, enjoyed steady price appreciation in 2019, while Burgundy suffered. Throughout and after the pandemic, Burgundy and Champagne turned into the top-performing regions.
California also enjoyed rising prices in 2021, and its index hit an all-time high in September last year.
Bordeaux has been moving quietly and steadily, and its relatively mild performance over the last five years has turned it into a region that can offer value for money, especially in ‘off’ vintages.
<img loading="lazy" class="alignnone wp-image-1448" src="https://wp.winecap.com/wp-content/uploads/2023/05/regional-indices-5-years-1-375x233.png" alt="regional fine wine investment" width="700" height="435" srcset="https://wp.winecap.com/wp-content/uploads/2023/05/regional-indices-5-years-1-375x233.png 375w, https://wp.winecap.com/wp-content/uploads/2023/05/regional-indices-5-years-1-768x477.png 768w, https://wp.winecap.com/wp-content/uploads/2023/05/regional-indices-5-years-1-1536x954.png 1536w, https://wp.winecap.com/wp-content/uploads/2023/05/regional-indices-5-years-1-2048x1272.png 2048w, https://wp.winecap.com/wp-content/uploads/2023/05/regional-indices-5-years-1-1200x745.png 1200w, https://wp.winecap.com/wp-content/uploads/2023/05/regional-indices-5-years-1-1980x1229.png 1980w" sizes="(max-width: 700px) 100vw, 700px" />
<h2>Factors influencing the performance of fine wine</h2>
The fine wine market is different from other markets and operates with its own dynamics, such as rarity and exclusivity. Its unique characteristics make it less vulnerable to market shocks and economic downturns than financial markets.
Indeed, its historic performance has shown very low correlation to mainstream markets. As a tangible good that cannot be traded as quickly as stocks, fine wine is generally insulated from rapid price changes.
In general, prices move based on supply and demand, critics’ scores, vintage quality, age and brand appeal. Find out more about <a href="https://winecap.com/learn/fine-wine-investment-for-beginners">fine wine investment here</a>, or explore the performance of individual brands on <a href="https://winecap.com/wine-track">Wine Track</a>.
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WineCap’s 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>.

Banking failures and the fine wine market: Performance during economic uncertainty

<ul>
<li>Marchesi Antinori has taken full ownership of Napa Valley’s iconic winery Stag&#8217;s Leap. </li>
<li>Stag&#8217;s Leap laid the foundation for the emergence of cult wines after winning the Judgement of Paris in 1976.</li>
<li>Antinori&#8217;s innovations in the &#8216;Super Tuscan&#8217; revolution of the 1970s and recent acquisition of Stag&#8217;s Leap position both for continued success in the fine wine investment market.</li>
</ul>
Marchesi Antinori, one of the oldest and largest wine companies in the world, has gained full ownership of the iconic Napa Valley estate Stag’s Leap. <a href="https://www.winespectator.com/articles/antinori-buys-sole-ownership-of-napas-stags-leap-wine-cellars">Wine Spectator</a> has reported that the current sale includes ‘the winery, the brand and inventory, and close to 300 acres of Napa vines, including the Fay and S.L.V. vineyards’.
Antinori has held a minority stake in Stag’s Leap since 2007, when Ste. Michelle Wine Estates purchased it from founder Warren Winiarksi.
Some of the most prominent wineries owned by Antinori include the Super Tuscan Tignanello and Guado al Tasso, as well as Antica Napa Valley.
<h2>Stag’s Leap performance </h2>
Stag’s Leap was among the pioneering Californian wineries that laid the foundation for the emergence of cult brands.
It was its S.L.V. Cabernet Sauvignon 1973 – the winery’s second vintage, and first produced at the estate and in commercial quantities – that won the Judgement of Paris in 1976. Stag’s Leap put Californian wine on the map by winning over its French competitors, which included the First Growths Château Mouton Rothschild 1970 and Château Haut-Brion 1970.
In the fine wine market, demand for Stag’s Leap has grown considerably over the last decade, with prices for its Cask 23 increasing 59% and for S.L.V. – up 61% on average.
<img loading="lazy" class="alignnone wp-image-1431" src="https://wp.winecap.com/wp-content/uploads/2023/05/Image-for-blog.png" width="750" height="487" srcset="https://wp.winecap.com/wp-content/uploads/2023/05/Image-for-blog.png 1014w, https://wp.winecap.com/wp-content/uploads/2023/05/Image-for-blog-375x244.png 375w, https://wp.winecap.com/wp-content/uploads/2023/05/Image-for-blog-768x499.png 768w" sizes="(max-width: 750px) 100vw, 750px" />
The brand has been helped by the relative value for money it offers compared to other Californian ‘cult wines’. The <a href="https://winecap.com/wine-track/united-states/california/napa-valley/stag's-leap-wine-cellars/s.l.v.">average price per point for S.L.V.</a>, for instance, is just £19, compared to £472 for <a href="https://winecap.com/wine-track/united-states/california/oakville/screaming-eagle/cabernet-sauvignon">Screaming Eagle Cabernet Sauvignon</a>.
The 2014 vintage has enjoyed particularly strong price performance. Stag’s Leap S.L.V. is up 80.5% since release. Cask 23 has risen 77.4% over the past two years, placing it among some of California’s biggest risers.
<h2>Antinori’s overarching impact</h2>
If Stag’s Leap has greatly contributed to the emergence of California’s cult wines, Antinori’s innovations played a large part in the ‘Super Tuscan’ revolution of the 1970s. Both have managed to re-define ‘fine wine’ outside the confines of Bordeaux, in USA and Italy respectively.
With history that can be traced back to 1385, Antinori has been one of the most successful wine companies. Its <a href="https://winecap.com/wine-track/italy/tuscany/toscana/antinori/tignanello">Tignanello</a> ranked as the 49th most powerful wine brand in the world, due to high trade volume and value. <a href="https://www.liv-ex.com/2022/11/liv-ex-power-100-2022-burgundy/">Liv-ex noted</a> that it was helped by the remarkable value for money it offers being ‘the cheapest Italian wine in the top 100, with an average case price of £1,076’.
While it is yet to be seen how the full acquisition of Stag’s Leap will play out, it seems like both Antinori and Stag’s Leap are poised for continued success and reaching new heights in the fine wine market.
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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>.

Marchesi Antinori acquires iconic Napa Valley’s Stag’s Leap

<ul>
<li>Jancis Robinson MW and James Lawther MW reviewed the 2022 Bordeaux vintage. </li>
<li>Both critics found the reds to be extremely impressive, with surprising freshness. </li>
<li>Mouton Rothschild, Lafite Rothschild, Cheval Blanc and Pétrus received the highest scores.</li>
</ul>
<a href="https://www.jancisrobinson.com/articles/bordeauxs-surprising-2022-vintage">Jancis Robinson MW</a> and James Lawther MW reviewed the 2022 Bordeaux vintage and released a series of articles, covering the whites, red-bank and left-bank reds.
Both critics found the wines to be ‘extremely impressive’, with ‘amazing freshness’ given the hot and dry growing season.
In terms of the En Primeur tastings, Jancis remarked on the ‘record number of visitors’, with ‘Americans and Asians back in force’. According to her, the numbers at the UGC tastings were ‘even higher than in spring 2019, when the 2018 vintage was presented almost a year before pandemic lockdowns’.
This gives greater confidence in the success of the En Primeur campaign, which commenced last week.
<h2>Left-bank reds</h2>
According to the report, the 2022 harvest was the earliest on record, with most of the Cabernet Sauvignon and Merlot on the left bank picked before the end of September. Despite the early harvest, the grapes’ maturity reached optimal levels. The sugar levels were similar to those found in recent years, while the phenolic ripeness was comparable to or even higher than previous vintages.
Alcohol levels on the left bank were on the high side, with 14% to 14.5% being a regular occurrence. However, the wines were often balanced with freshness.
Lawther wrote that he ‘found the characteristics of most of the appellations respected’, with Margaux being more varied.
<h2>Right-bank reds</h2>
According to Robinson, Merlot did exceptionally well in 2022, with high sugar levels, deep color and ‘no shortage of tannins for a long life lurking below the alluring surface’.
Lawther also proclaimed the grape variety to be ‘the star of the vintage’. He added that ‘Cabernet Franc was also successful on the right bank in 2022 adding colour, floral fragrance, freshness and length’. The critic claimed that ‘combined with Merlot it has produced some stunning wines, even away from the limestone plateau – witness Cheval Blanc, one of the wines of the vintage’.
<h2>White wines</h2>
The hot and dry growing season led to lower acidity levels in the whites, which translated to lack of freshness in some. Robinson further revealed that Sauvignon Blanc and Sémillon were picked earlier than ever before since Bordeaux University records began. Domaine de Chevalier Blanc stood out among the dry whites, while Château Suduiraut received the highest score of 18+ points among the Sauternes.
<h2>Top-scoring wines</h2>
The First Growth Château Mouton Rothschild topped the list of the highest-scoring wines from the 2022 vintage. Lawther described the palate as ‘truly amazing’ and questioned if this isn’t ‘a modern 1986’.
Château Lafite Rothschild, Château Cheval Blanc and Pétrus followed with 18.5-points.
So far, Lafite and Cheval Blanc have been two of the favourite wines of major critics, also boasting potential 100-points from Jeff Leve, Jean-Marc Quarin, and <a href="https://winecap.com/news/james-suckling-releases-bordeaux-2022-report">James Suckling</a>.
<img loading="lazy" class="alignnone wp-image-1425 " src="https://wp.winecap.com/wp-content/uploads/2023/05/JR-top-scores.jpg" width="540" height="441" srcset="https://wp.winecap.com/wp-content/uploads/2023/05/JR-top-scores.jpg 1012w, https://wp.winecap.com/wp-content/uploads/2023/05/JR-top-scores-375x306.jpg 375w, https://wp.winecap.com/wp-content/uploads/2023/05/JR-top-scores-768x628.jpg 768w" sizes="(max-width: 540px) 100vw, 540px" />
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>.

Jancis Robinson MW releases Bordeaux 2022 scores

As purchasing power slowly drains, investors with low-risk tolerances are feeling the sting. At the time of writing (May 2023), <a href="https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/february2023">UK inflation</a> sits at an uneasy 10.1%. With the average <a href="https://www.bankrate.com/banking/savings/average-savings-interest-rates/#:~:text=National%20average%20savings%20account%20interest,ll%20earn%20on%20your%20savings">savings account interest</a> at a flimsy 0.23%, cash is going backwards. Meanwhile, high inflation munches away the future value of bonds and debt like a deranged Pac-Man. This represents a real problem for wealth managers. In a constantly shifting sea of interest hikes, inflation, and market shocks, how can they maintain and strengthen lower-risk portfolios without going too overweight on equity? How can they keep the cautious risk profile intact without endangering returns?
This article examines five overlooked assets for cautious investors, which have a history of punching back against inflation.
<h2>Gold</h2>
In the fight against inflation, physical gold is surely Mohammad Ali. Gold tends to increase in value as inflation rises. According to <a href="https://www.gold.org/goldhub/research/gold-outlook-2022-mid-year">World Gold Council</a> data from the past 50 years, when inflation is above 3%, the gold prices jump by 14%.
This asset class has the added benefit of being universally accepted. Unlike interest-generating assets or fine wine, precious metals can be included in Shariah portfolios.
Not only is gold inflation-resistant, but it is also classed as a low-risk asset, which must be a welcome relief for low-risk investors. Arguably, gold is even less risky than cash, as its value is intrinsic.
However, that doesn’t mean that there aren’t bubbles and market corrections. Over the past years <a href="https://winecap.com/learn/is-fine-wine-the-new-gold">gold’s performance has shown more volatility</a> alongside the public markets.
<img loading="lazy" class="alignnone wp-image-1419 " src="https://wp.winecap.com/wp-content/uploads/2023/05/LX-vs-Gold.png" width="590" height="372" srcset="https://wp.winecap.com/wp-content/uploads/2023/05/LX-vs-Gold.png 2469w, https://wp.winecap.com/wp-content/uploads/2023/05/LX-vs-Gold-375x237.png 375w, https://wp.winecap.com/wp-content/uploads/2023/05/LX-vs-Gold-768x485.png 768w, https://wp.winecap.com/wp-content/uploads/2023/05/LX-vs-Gold-1536x970.png 1536w, https://wp.winecap.com/wp-content/uploads/2023/05/LX-vs-Gold-2048x1293.png 2048w, https://wp.winecap.com/wp-content/uploads/2023/05/LX-vs-Gold-1200x758.png 1200w, https://wp.winecap.com/wp-content/uploads/2023/05/LX-vs-Gold-1980x1250.png 1980w" sizes="(max-width: 590px) 100vw, 590px" />
<h2>Fine wine </h2>
There are several reasons why fine wine kicks back against inflation. It’s a physical asset. The market is global and wealthy, often relatively unaffected by market shocks. Plus, buyers are usually passionate, so they are unlikely to panic-sell. Perhaps most importantly, bottles are unique, and they deplete over time.
The steady returns can help to smooth overall portfolio volatility and reassure clients. According to an index that tracks the performance of 1,000 fine wines from different regions (<a href="https://www.liv-ex.com/news-insights/indices/">Liv-ex 1000</a>), investors have benefited from average returns of 40.3% over the past five years. By contrast, the FTSE 100 delivered just 4.8%. <a href="https://winecap.com/wine-track">You can see the performance of your preferred wines here</a>.
<img loading="lazy" class="alignnone wp-image-1420" src="https://wp.winecap.com/wp-content/uploads/2023/05/LX-vs-FTSE.png" width="590" height="373" srcset="https://wp.winecap.com/wp-content/uploads/2023/05/LX-vs-FTSE.png 2469w, https://wp.winecap.com/wp-content/uploads/2023/05/LX-vs-FTSE-375x237.png 375w, https://wp.winecap.com/wp-content/uploads/2023/05/LX-vs-FTSE-768x485.png 768w, https://wp.winecap.com/wp-content/uploads/2023/05/LX-vs-FTSE-1536x970.png 1536w, https://wp.winecap.com/wp-content/uploads/2023/05/LX-vs-FTSE-2048x1293.png 2048w, https://wp.winecap.com/wp-content/uploads/2023/05/LX-vs-FTSE-1200x758.png 1200w, https://wp.winecap.com/wp-content/uploads/2023/05/LX-vs-FTSE-1980x1250.png 1980w" sizes="(max-width: 590px) 100vw, 590px" />
However, there are downsides. Although wine shields against inflation, it can be difficult to sell quickly. For clients who need to urgently access funds, this asset might not be ideal. What’s more, clients only realise returns after they sell. Unlike with bonds and shares, investors cannot enjoy gains and stay invested.
One solution for wealth managers could be to offer a mix of assets with different liquidity. For example, by combining fine wine, gold and inflation-linked bonds in one portfolio.
<h2>Sustainable energy </h2>
As the prices of raw materials tend to be the first to rise, <a href="https://www.investopedia.com/articles/investing/020816/importance-commodity-pricing-understanding-inflation.asp">commodities</a> are often used to predict and hedge against inflation.
Traditionally this asset class includes oil and non-renewable energy sources. But with the rising regulations and scientific warnings, this may not be a wise or future-proof investment anymore. The EU, for example, is in the process of amending the <a href="https://www.europarl.europa.eu/news/en/press-room/20220909IPR40134/parliament-backs-boost-for-renewables-use-and-energy-savings">Energy Efficiency Directive</a> so that 45% of all European energy will be renewable by 2030. The Green Deal also imposes carbon taxes on dirty providers. Already, around 29% of the world’s energy comes from <a href="https://www.iea.org/reports/global-energy-review-2021/renewables">clean sources</a>, and that figure is likely to increase over the long term.
While green energy can be higher risk, it’s not as precarious as non-renewables. In the same way that whale oil plummeted in 1860, investors left holding fossil fuel stocks in twenty years’ time could find themselves with stranded assets.
<h2>Inflation-linked bonds</h2>
Unlike other debt instruments, inflation-linked bonds are pegged to the recorded inflation levels. So, even in high-inflationary environments, they should retain their value.
A huge advantage of inflation-linked bonds is that they can usually be traded quickly. This could be helpful for wealth managers looking to balance out the illiquidity of fine wine or property.
However, the success of these assets hinges on the accuracy of the indices. Sometimes the consumer goods selected and measured can lead to artificial results. For example, the <a href="https://www.ons.gov.uk/economy/inflationandpriceindices/datasets/consumerpriceinflationbasketofgoodsandservices">UK index</a> contains DVD players and MP3 players. These are probably cheaper than they would have been a decade ago, but it is not because inflation is lower.
<h2>Affordable property</h2>
Property is a classic inflation-resistant investment. But what kind should today’s cautious investors go for? Property addressing the UK’s housing crisis could be fruitful. Despite strong demand, there is currently a shortage of over 4 million homes.
Another interesting area for low-risk investors to consider could be affordable student accommodation. Applications to universities tend to rise during recessions. After 2008, they <a href="https://kpmg.com/uk/en/home/media/press-releases/2022/12/living-standards-take-a-hit-as-the-uk-enters-protracted-recession.html#:~:text=The%20UK%20economy%20will%20shrink%20by%201.3%25%20in%202023%2C%20amidst,see%20GDP%20rise%20by%200.2%25.">increased 31%</a> in the UK. And since 2020, they have reached record-levels. <a href="https://kpmg.com/uk/en/home/media/press-releases/2022/12/living-standards-take-a-hit-as-the-uk-enters-protracted-recession.html#:~:text=The%20UK%20economy%20will%20shrink%20by%201.3%25%20in%202023%2C%20amidst,see%20GDP%20rise%20by%200.2%25.">KPMG</a> anticipate a 16% increase in the number of undergraduates searching for rooms by 2030.
The risk is relatively low, as in many cases, the accommodation will be handled and managed by the university itself. <a href="https://content.knightfrank.com/research/169/documents/en/uk-student-housing-2023-9846.pdf">Yields</a> for investors average at around 5% for London-based lets and 4% for accommodation outside the capital.
But a word of caution, the buy-to-let market is becoming less lucrative every day, with high interest rates and increasing regulations. In the current climate, some are wondering <a href="https://winecap.com/learn/could-fine-wine-be-better-investment-than-property">if the money would be better placed elsewhere</a>.
<h2>Chartering a new course</h2>
Record-levels of inflation are transforming the investment landscape. What made sense yesterday no longer adds up today.
This article aims to help spark ideas for wealth managers. It presents five potential lower-risk investments, that also have famous inflation-shielding qualities.
As wealth managers re-balance portfolios and seek new assets, they can also make the world a better place. Now is the ideal time to incorporate social and environmental factors into the investment strategy. After all, to truly future-proof portfolios, we need a healthy planet.
<a href="https://winecap.com/learn/5-ways-fine-wine-investments-good-for-environment">Discover five ways fine wine investments are good for the environment.</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>.
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Five low-risk assets to hedge against inflation

<ul>
<li>Bordeaux 2022 is a vintage of ‘potential greatness’ but also ‘heterogeneity’, according to the Wine Advocate’s En Primeur report.</li>
<li>The reviewers, William Kelley and Yohan Castaing, found potential for perfection in eight wines, and included a list of En Primeur recommendations.</li>
<li>Kelley noted that the second wines ‘merit more serious consideration than usual this year’.</li>
</ul>
<h2>Potential greatness and heterogeneity</h2>
During the En Primeur trade tastings last week, and following <a href="https://winecap.com/news/james-suckling-releases-bordeaux-2022-report">James Suckling’s report</a>, another major publication released its assessment of the 2022 Bordeaux vintage – <a href="https://www.robertparker.com/articles/qmTRywWJDRjqcyW6p/france-bordeaux-2022-en-primeur-futures">Robert Parker’s Wine Advocate</a>. William Kelley and Yohan Castaing reviewed 459 wines ‘after several weeks of intensive tasting and hundreds of visits to wineries’.
The critics found ‘potential greatness’ in this vintage that has surprised many, but also ‘heterogeneity’.
Kelley explained that ‘Bordeaux has produced some monumental wines in 2022, but unlike many of the great vintages of the 20th century, the year was not a rising tide that raised all boats’.
He added that ‘at its best, this is a vintage of remarkable concentration, energy and harmony’. According to him, ‘the accumulated experience of 2015, 2018, 2019 and 2020 meant that intelligent winemakers were ready to harvest at the right time, a choice of decisive importance’. However, he noted that ‘the less-successful wines are jammy, astringent and rustic’.
The vintage heterogeneity means that buyers will have to be selective; 2022 ‘is not a year to buy blind,’ the critic argued.
<h2>Top-scoring wines</h2>
<img loading="lazy" class="aligncenter wp-image-1407" src="https://wp.winecap.com/wp-content/uploads/2023/05/WA-Bdx-22.png" width="640" height="354" srcset="https://wp.winecap.com/wp-content/uploads/2023/05/WA-Bdx-22.png 912w, https://wp.winecap.com/wp-content/uploads/2023/05/WA-Bdx-22-375x207.png 375w, https://wp.winecap.com/wp-content/uploads/2023/05/WA-Bdx-22-768x424.png 768w" sizes="(max-width: 640px) 100vw, 640px" />
The critics found potential for perfection in eight wines, with <a href="https://winecap.com/wine-track/france/bordeaux/saint-emilion-grand-cru/chateau-canon/canon-(saint-emilion)">Canon</a>, <a href="https://winecap.com/wine-track/france/bordeaux/pessac-leognan/chateau-les-carmes-haut-brion/carmes-haut-brion">Les Carmes Haut-Brion</a> and <a href="https://winecap.com/wine-track/france/bordeaux/saint-estephe/chateau-montrose/montrose">Montrose</a> coming on top (99-100 points).
Among the three, Les Carmes Haut-Brion has been the best performing investment wine over the last five years, up 56%, while also having the lowest average case price. Castaing singled it out as ‘a strong candidate for the title of wine of the vintage’.
<img loading="lazy" class="alignnone wp-image-1408" src="https://wp.winecap.com/wp-content/uploads/2023/05/LCHB.png" width="660" height="69" srcset="https://wp.winecap.com/wp-content/uploads/2023/05/LCHB.png 1128w, https://wp.winecap.com/wp-content/uploads/2023/05/LCHB-375x39.png 375w, https://wp.winecap.com/wp-content/uploads/2023/05/LCHB-768x80.png 768w" sizes="(max-width: 660px) 100vw, 660px" />
One First Growth, <a href="https://winecap.com/wine-track/france/bordeaux/pauillac/chateau-latour/latour">Château Latour</a>, was also among contenders for perfection, although the wine is not released En Primeur. Meanwhile, <a href="https://winecap.com/wine-track/france/bordeaux/pauillac/chateau-mouton-rothschild/mouton-rothschild">Château Mouton Rothschild</a>, received 96-99 points. Kelley called it ‘a brilliant wine that likely sits somewhere between the 2019 and 2020 in quality’.
Kelley also noted that second wines ‘merit more serious consideration than usual this year’. In 2022, they ‘often exhibit similar structure and texture to their grand vin counterparts’.
Apart from their top-scoring wines, the critics made a list of En Primeur recommendations to buy, which included <a href="https://winecap.com/wine-track/france/bordeaux/saint-julien/chateau-branaire-ducru/branaire-ducru">Branaire-Ducru</a> and <a href="https://winecap.com/wine-track/france/bordeaux/saint-julien/chateau-langoa-barton/langoa-barton">Langoa Barton</a>.
<h2>En Primeur pricing</h2>
A great vintage usually translates to expensive releases.
However, Kelley suggested that there were grounds ‘for optimism with regard to pricing this year,’ if the chateaux take into account the global economic uncertainty and the state of the secondary market.
He remarked that ‘it is not always necessary to purchase great Bordeaux as futures,’ as sometimes older vintages might represent better value today.
To spot the best value opportunities and explore the historic performance of any fine wine brand, visit <a href="https://winecap.com/wine-track">Wine Track</a>. Our tool provides a clear overview of a fine wine’s track record, including critic scores, average price and investment returns.
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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 Bordeaux 2022 - Château Canon

Wine Advocate’s top-scoring Bordeaux 2022 wines

The first Bordeaux 2022 En Primeur releases are expected early next month. Ahead of the campaign, we examine the key factors that shaped the 2022 vintage and the current market for Bordeaux.
<h2>Vintage overview</h2>
Bordeaux 2022 is full of promise. Early critical reports suggest that the winemakers have overcome the challenges of the growing season, characterised by extreme heat and drought, and have achieved quality on par with the recent trilogy of great vintages, namely the 2018, 2019 and 2020.
Rainfall levels in 2022 were similar to one of Bordeaux’s greatest vintages, the 2010, although temperatures were higher last year. According to Bordeaux expert, <a href="https://janeanson.com/">Jane Anson</a>, this led to ‘small grapes, thick skins, and clear concentration’.
While one might expect to find ripeness and boldness in the wines, the first En Primeur tasting report, published by <a href="https://winecap.com/news/james-suckling-releases-bordeaux-2022-report">James Suckling</a> last week, suggested that the winemakers have prioritised freshness and lower alcohol, and that the resultant wines have fine structured tannins. Moreover, the critic noted consistent excellence from bottom to top.
However, the apocalyptic hailstorms in June devastated the crop at some estates but provided needed respite from the heat for others. As such, there will be variation in yields between the chateaux.
In terms of overall volumes, the 2022 vintage sits about 15% below the ten-year average but is up 9% on last year. It is also higher than the low-yielding 2013 and 2017 vintages.
<h2>Bordeaux – back in vogue </h2>
The 2022 vintage arrives in a market that is experiencing somewhat of a Bordeaux renaissance.
While on the surface Bordeaux might be losing market share to other regions, secondary market reports suggest that trade for the region has continued to increase in absolute terms: close to 50% since 2010.
Bordeaux has come to represent good value for money, in the context of Burgundy’s, and most recently, Champagne’s relentless price rise.
Moreover, as the bedrock of an investment portfolio, Bordeaux continues to offer the best liquidity in the fine wine market. There is consistent demand for the classed growths, across the full spectrum of vintages, both young and mature. As <a href="https://winecap.com/learn/q1-2023-fine-wine-report">our Q1 report highlighted</a>, some Bordeaux 2011s have broken pricing records since the beginning of the year, spurred by purchasing of ‘rabbit’ vintages for Chinese New Year. Bordeaux proves its relevance again and again.
En Primeur is only one of the ways in which the region cements its place in the world of fine wine. The annual campaign generates considerable attention from trade and critics, the volume and value of wine released is unmatched anywhere in the world, and the best releases offer excellent returns on investment – often at the lowest possible point of entry into a top brand.
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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Bordeaux 2022 – what to expect?

Our Q1 2023 report has now been released. The report examines how the global financial turmoil of the first quarter impacted the fine wine market, the factors affecting demand, and the best performing wines and regions. Download your free copy today.
<h2>Key findings include: </h2>
<ul>
<li>Mainstream markets had a rollercoaster quarter, but fine wine remained relatively unaffected.</li>
<li>Fine wine prices have risen for two consecutive months after a slow start to the year.</li>
<li>Several Bordeaux 2011s enjoyed heightened demand and rising prices in light of Chinese New Year.</li>
<li>The Burgundy 2021 campaign was met with mixed sentiment from the trade due to low allocations and high prices.</li>
<li>Axel Heinz has left Ornellaia to join Château Lascombes and bring fresh life into the estate, which has been underperforming the Super Tuscan in recent years.</li>
<li>The spotlight is now on Bordeaux, with the En Primeur release of the 2022 vintage, which has been described as ‘very promising’.</li>
</ul>
Click below to download your free copy of our quarterly investment report.

Q1 2023 Fine Wine Report

<h2>‘A new benchmark’</h2>
<a href="https://www.jamessuckling.com/wine-tasting-reports/bordeaux-en-primeur-report-astonishing-2022-sets-a-new-benchmark/">James Suckling</a> has released his report on the Bordeaux 2022 vintage ahead of the upcoming En Primeur campaign. The critic claimed that in the 40 years he has tasted Bordeaux in-barrel, he had ‘never come across anything like the 2022 vintage’.
2022 will stay in memory as one of the hottest years on record, featuring severe droughts and heatwaves. Despite the challenges, Suckling suggested that 2022 ‘gives us hope that both man and nature can adapt to these circumstance and produce outstanding wines, both red and white’.
He further observed that dryness and heat no longer mean bold ripeness in the resultant wines. Most winemakers have prioritised freshness and lower alcohol, ‘picking their grapes at optimal ripeness, with this “al dente” fruit giving a crunchy and clean character to the wines, with fine yet structured tannins’.
Suckling found the young wines to be ‘dynamic and fascinating’ and noted that ‘there was high quality from top to bottom’ – a sign of a great vintage.
<h2>Top-scoring wines</h2>
<img loading="lazy" class="alignnone wp-image-1391 size-full" src="https://wp.winecap.com/wp-content/uploads/2023/04/Table-1.png" width="858" height="350" srcset="https://wp.winecap.com/wp-content/uploads/2023/04/Table-1.png 858w, https://wp.winecap.com/wp-content/uploads/2023/04/Table-1-375x153.png 375w, https://wp.winecap.com/wp-content/uploads/2023/04/Table-1-768x313.png 768w" sizes="(max-width: 858px) 100vw, 858px" />
Suckling found nine candidates for perfection in Bordeaux 2022, awarding them a barrel range of 99-100 points.
<a href="https://winecap.com/wine-track/france/bordeaux/saint-emilion-grand-cru/chateau-cheval-blanc/cheval-blanc">Cheval Blanc</a> stood out as his potential ‘wine of the vintage’, which ‘soars to new heights with its brightness and weightlessness’.
The critic was also full of praise for two Sauternes from <a href="https://winecap.com/wine-track/france/bordeaux/sauternes/chateau-lafaurie-peyraguey/lafaurie-peyraguey">Château Lafaurie-Peyraguey</a>, calling the Crème du Tête ‘magical. The new 1929?’
Only one First Growth made the list, <a href="https://winecap.com/wine-track/france/bordeaux/pauillac/chateau-lafite-rothschild/lafite-rothschild">Château Lafite Rothschild</a>, which Suckling described as ‘a classical Lafite that reminds me of something like the 1986 […] but it&#8217;s so today with its purity and precision’.
A white wine also featured among the top-scoring – Pavillon Blanc du Château Margaux. According to him, this ‘feels like a great Montrachet’ and is ‘one for the cellar’.
<h2>The question of pricing</h2>
Suckling’s verdict on the 2022 vintage is that the quality of the wines is ‘exceptional’ but ultimately ‘the market will decide’ the success of the new releases. ‘High interest rates, volatile stock prices and recent bank failures’ are some of the factors that will influence purchasing of young Bordeaux.
While the excitement of the new is guaranteed, high release prices might make older vintages look more attractive – especially if they offer value, and faster 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>.

James Suckling releases Bordeaux 2022 report

<h2>Axel Heinz joins Château Lascombes</h2>
Longtime director and winemaker at Ornellaia, Axel Heinz, is leaving Tuscany to join the Second Growth Château Lascombes as CEO and bring the estate ‘to its full potential,’ reported <a href="https://www.thedrinksbusiness.com/2023/03/ornellaia-winemaker-axel-heinz-to-join-chateau-lascombes/">The drinks business</a>. After 18 years in Italy, Heinz will join Lascombes in time for the 2023 harvest.
Carlton McCoy, managing partner at Lawrence Family Wine, who own the Margaux property, said that the work Heinz ‘has done while overseeing Ornellaia and Masseto have taken this already heralded estate to new heights’.
Indeed, Ornellaia and Masseto have become established as two of the most prominent Super Tuscans, enjoying continuous demand and steady price appreciation. In <a href="https://files.liv-ex.com/Liv-ex_Power_100_Drinks_Business_2020.pdf">2020</a>, they placed among the top ten most powerful wine brands in the world.
<h2>Investment performance of Ornellaia and Lascombes</h2>
The appointment of Heinz is intended to breathe new life into Lascombes, which has seen much slower growth than the Super Tuscan. Over the past five years, Lascombes prices have risen just 2.5%, compared to a move of 45% for Ornellaia.
<img loading="lazy" class="alignnone wp-image-1379 " src="https://wp.winecap.com/wp-content/uploads/2023/04/Ornellaia-Lascombes.png" alt="Ornellaia and Lascombes" width="628" height="416" srcset="https://wp.winecap.com/wp-content/uploads/2023/04/Ornellaia-Lascombes.png 4300w, https://wp.winecap.com/wp-content/uploads/2023/04/Ornellaia-Lascombes-375x248.png 375w, https://wp.winecap.com/wp-content/uploads/2023/04/Ornellaia-Lascombes-768x508.png 768w, https://wp.winecap.com/wp-content/uploads/2023/04/Ornellaia-Lascombes-1536x1017.png 1536w, https://wp.winecap.com/wp-content/uploads/2023/04/Ornellaia-Lascombes-2048x1355.png 2048w, https://wp.winecap.com/wp-content/uploads/2023/04/Ornellaia-Lascombes-1200x794.png 1200w, https://wp.winecap.com/wp-content/uploads/2023/04/Ornellaia-Lascombes-1980x1310.png 1980w" sizes="(max-width: 628px) 100vw, 628px" />
At present, the 2012 is Lascombes’ highest-scoring vintage, with 94-points from Robert Parker (<a href="https://www.robertparker.com/wines/yAQKMctavGdmygRzy#professional-notes">Wine Advocate</a>). It is also one of the best offerings on the market, together with the less expensive 2011 (RP 93).
With Heinz soon to be at its helm, Lascombes will be an estate to watch; one likely to generate more critical attention, and rising prices.
You can explore the price performance of both estates on <a href="https://winecap.com/wine-track">Wine Track</a> – our tool, which enables you to identify investment grade wines, spot trends and wine investment opportunities.
Stay tuned – this analysis and more is part of our Q1 2023 report, published next week.

Ornellaia’s Axel Heinz to breathe new life into Château Lascombes

Fine wine offers the benefits of different asset classes. As a long-term investment, due to the inherent premise that it gets better with age, fine wine would traditionally fall under the ‘value asset’ category. This is especially true as investors tend to buy and hold wine for decades before selling at a premium. 
However, since fine wine is a highly sought-after and depleting investment, it shows tremendous growth characteristics too. Over the past year, fine wine has delivered strong returns, with some bottles increasing in value by as much as 550%. This makes it more akin to growth assets. 
Could fine wine be considered both a value and growth asset?
<h2>Value assets have intrinsic value and are usually undervalued</h2>
When investors talk about value and growth assets, they are generally referring to publicly-traded stocks. This could mean huge blue-chip corporations like Coco-Cola, Microsoft, or Tesla, or it could be little-known and up-and-coming stocks. Generally, the market is extremely efficient and so finding an underpriced stock is hard work. Those who dedicate time and research to discovering these undervalued assets are known as value investors. 
Warren Buffet is perhaps the most famous value investor of all time. “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price,” he declares. For Buffet, seeking intrinsic value is the only real way to invest. Perhaps that is why he is such a fan of fine wine investments. Buffet has reportedly said that every portfolio should have at least a 1% allocation to fine wine. 
<h2>The value of fine wine can’t be measured the same way as a stock</h2>
To understand whether an investment offers good value or not, investors usually need to crunch a lot of numbers. But the process is a little harder outside of the stock market. Unlike traditional stocks and shares, analysts would be hard-pushed to calculate the price-to-earnings, debt-to-equity, or price-to-book ratios of fine wine. 
Firstly, this is because bottles, casks or barrels of fine wine do not offer “earnings” in the stock market sense. Bottles cannot pay dividends, and so buyers instead collect all their returns when they sell the asset.
Secondly, prices are variable. As fine wine is usually traded privately or through prestigious auction houses, the final sum is not always predictable – especially if you have two or more extremely passionate bidders in the room. As a result, bid-ask spreads are significantly greater than you’d find on the stock market. 
Finally, forecasting these values can be unreliable because in some cases wine prices are not always publicly available. However, as industry leaders, we do have a lot of this information. If you would like to get <a href="https://winecap.com/wine-track">an insider idea of the latest auction results and performances, check Wine Track</a>. 
While we may not be able to scrutinize the value of fine wine in the traditional sense, we can analyse the general trends and characteristics. From here, we can see how they hold up against traditional value stocks. 
<h2>Fine wine shares many of the long-term characteristics of value investments</h2>
As an asset class, fine wine behaves like a value investment. Some of the main characteristics are the “buy low, sell high” strategies, the long-term investment horizon, and stable financial returns. 
<ul>
<li style="font-weight: 400;" aria-level="1">
<h3>“Buy low, sell high” strategies </h3>
</li>
</ul>
Value stocks are generally underpriced on the market, meaning investors expect to make profits over time as the asset realises its true worth. This is remarkably similar to fine wine investments. Many purveyors will purchase the wine en primeur before it is even bottled to secure the best price. 
 
At the time of writing, wines such as <a href="https://winecap.com/wine-track/france/burgundy/bourgogne-aligote/domaine-d'auvenay/bourgogne-aligote-sous-chatelet">Domaine d’Auvenay</a> have already delivered returns of nearly 8,500% over a ten-year period. This shows the incredible power of buying wine early, and holding. 
<ul>
<li style="font-weight: 400;" aria-level="1">
<h3>Buy and hold over the long-term</h3>
</li>
</ul>
As the adage goes, fine wine gets better with age. High-quality Bordeaux, for example, takes 20-30 years to mature. Successful investors will generally buy and hold fine wine over the long-term. 
This approach mirrors the “value” philosophy perfectly. As Buffet himself warns, “If you aren&#8217;t willing to own a stock for 10 years, don&#8217;t even think about owning it for 10 minutes”.
<ul>
<li style="font-weight: 400;" aria-level="1">
<h3>Steady returns</h3>
</li>
</ul>
Stability is another key characteristic of value investments. These assets should be able to <a href="https://winecap.com/learn/3-rules-for-fine-wine-investors">sail through all kinds of market storms with minimal or zero disruption</a>. Fine wine has delivered exceptionally stable returns over the last year, <a href="https://winecap.com/learn/how-does-fine-wine-react-in-a-recession">holding up against recessions</a> and incrementally gaining value despite stock market chaos. 
<h2>Fine wine has compelling growth attributes too</h2>
On the face of it, fine wine seems to be a value investment. It is a steady long-term asset which gains value over time. Yet, despite its famous stability, this investment has also delivered some impressive short-term returns and it is an alternative asset, which push it more into the growth category. 
<ul>
<li style="font-weight: 400;" aria-level="1">
<h3>Fine wine is an alternative asset </h3>
</li>
</ul>
Investors looking for growth assets tend to accept volatility risk, as part of the trade-off for superior returns. Because of this, they are more inclined to look away from the reassurance of the stock market to find new revenue streams. Increasingly, unlisted property, private equity, hedge funds, high yield credit, long-duration bonds and alternative debt are finding their way into growth funds and portfolios.
 As an alternative asset, fine wine seems to fit snugly into the “growth” category. Yet, unlike these investments, fine wine is generally not volatile. 
<ul>
<li style="font-weight: 400;" aria-level="1">
<h3>Exceptional short-term returns </h3>
</li>
</ul>
Wine can, however, deliver exceptional short-term returns. Over just five years, <a href="https://winecap.com/wine-track/france/burgundy/saint-aubin/hubert-lamy/saint-aubin-derriere-chez-edouard-cuvee-haute-densite">fine wines such as Hubert Lamy have seen values increase by 1,223%.</a> This is an extraordinary performance. To put this it into context, it took value stock Coco-Cola 24 years to deliver returns like this. 
Some fine wines are even demonstrating market-beating returns in extremely short timeframes too. Some brands like <a href="https://winecap.com/wine-track/france/burgundy/saint-aubin/hubert-lamy/saint-aubin-derriere-chez-edouard-cuvee-haute-densite">Hubert Lamy</a> have enjoyed increases of over 450% in just three months. If you’d like to explore the greatest gains and losses in the industry, <a href="https://winecap.com/wine-track">Wine Track is a useful resource</a>. As you read, please remember that experts do not recommend investing for less than five years. 
<h2>Fine wine offers the best of both worlds </h2>
Fine wine is a fascinating alternative investment because it seems to offer the best of both value and growth without the downfalls.  
Fine wine is a buy-and-hold asset which increases in intrinsic value over several decades, while offering historically-superior returns. It also holds up well in recessions and <a href="https://winecap.com/learn/is-fine-wine-inflation-proof">fights back against inflation</a>. These are all classic characteristics of value investments. 
Meanwhile, some bottles have proven to be extremely lucrative over the short-term. These boosts in value are likely to continue <a href="https://winecap.com/learn/how-climate-change-affects-value-of-fine-wine">as climate change ramps-up demand for scarce flavours</a>. High gains in short periods of time – especially from alternative assets – are usually more commonly associated with growth investments. 
Therefore, fine wine is an incredibly versatile asset, suitable for different kinds of investment strategies. Whether you’re looking for value, growth or both, fine wine could help you reach your goals faster. 
<a href="https://winecap.com/start-investing">Explore your investment options</a>
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Fine wine as a value and growth asset

The “60% stocks and 40% bonds” rule is outdated. While this approach may have offered stable and diversified returns several decades ago, in today’s difficult economic climate it’s not enough. This is where collectable assets come in.
To preserve and grow wealth, <a href="https://winecap.com/learn/7-under-used-alternative-investments">strategic investors must hedge their portfolios with alternative sources of value</a>. One way to do this is with collectable assets. As a unique form of asset class, collectables offer investors extraordinary diversification and inflation-shielding properties – perfect for today’s economic storm. What’s more, many of these assets – like jewellery, classic cars, and art – can be enjoyed while they hold their value.
In this article, we’re looking at the six most popular collectable assets globally<a href="#_ftn1" name="_ftnref1">[1]</a>, and what to consider as you explore your options.
<h2>Art</h2>
As with most collectables, original art is about more than simply the financial return. Art is a passion asset – it represents a unique timestamp in our history, emotions, and popular culture. But there are great investment benefits too.
Original art is unique, and – just like with fine wine &#8211; rarity is highly prized. Famously, Leonardo di Vinci’s “Salvatore Mundi” was auctioned for a record-breaking $475 million<a href="#_ftn2" name="_ftnref2">[2]</a>.
Importantly, original art is also inflation-resistant. This is an excellent quality for the current economic climate. Unlike cash or bonds, the investment return will not erode over high-inflation periods because it has intrinsic value. Instead, market demand is driven by the artist, story, quality of the work, whether it represented a new technique, mindset or time, the materials and of course, the way it looks.
However, this doesn’t mean art is immune to volatility. The art market has trends and bubbles too. In 2018, for example, the resale market for art by Damien Hirst was declared a “bloodbath” as the hype ended and investors lost millions<a href="#_ftn3" name="_ftnref3">[3]</a>. Before diving in, pay close attention to any potential risks in the market.
Research from Unbiased found that overall contemporary art has delivered annualized returns of 7.5% to investors since 1985<a href="#_ftn4" name="_ftnref4">[4]</a>. Another index, created by Masterworks suggests blue-chip paintings (the crème de la crème of art) increased in value by 13.8% each year since 1995<a href="#_ftn5" name="_ftnref5">[5]</a>. However, each artwork is unique and so individual returns vary significantly.
In today’s market, <a href="https://winecap.com/learn/digital-advancements-bring-a-new-generation-of-wine-investors">NFTs</a> (non-fungible tokens) and sustainable processes are trending strongly in the art world. The average collector invested $46,000 in digital art last year and would be <a href="https://winecap.com/learn/5-ways-fine-wine-investments-good-for-environment">willing to pay more for environmentally-friendly works</a><a href="#_ftn6" name="_ftnref6">[6]</a>.
<h2>Whisky</h2>
As well as an appreciation for the craft and heritage, there are compelling investment benefits to whisky. Firstly, like all the collectable assets on this list, it is a great hedge against inflation. This helps to offset some of the losses from cash, debt, and bond instruments.
Secondly, it’s a booming market, as whisky has become popular. Just like fine wine, <a href="https://winecap.com/learn/digital-advancements-bring-a-new-generation-of-wine-investors">this has largely been fuelled by younger investors</a>.  In 2021, the Knight Frank Luxury Index even named this liquid gold as its best-performing asset class<a href="#_ftn7" name="_ftnref7">[7]</a>. Over the previous decade, Scotch whisky racked up impressive returns of 428% on average. In July 2022, one rare bottle pulverised all records, going for a whopping £16 million at auction.
Thirdly, whisky is increasingly perceived as reliable. Since Brexit and the war in Ukraine, many investors have turned to whisky as a more dependable and palatable choice of beverage. Naturally, the ingredients come from Scotland, so global grain and raw goods shortages should not hinder production. What’s more, the whisky trade looks set to increase, as the UK government draws up new deals with India.
Just like fine wine, one of the greatest benefits of whisky is that it is classed as a “wasting asset” and is not subject to capital gains tax. If you’d like to find out more about this tax break<a href="https://winecap.com/learn/fine-wine-taxation-2022">, you can download our free guide.</a>
To get an idea of the financial returns of whisky, we can look at two indices. The BC20 index reported 14.36% returns for the asset in 2021<a href="#_ftn8" name="_ftnref8">[8]</a>. And the SWI’s year-on-year historical performance sits at 12.5%<a href="#_ftn9" name="_ftnref9">[9]</a>. Of course, whisky is a buy-and-hold asset, meaning that investors should not try to “flip” it, but rather hold the asset for years.
<h2>Classic cars</h2>
Of all the passion investments, classic cars are probably among the most loved. Collectors are often people who would tack magazine cut-outs of Ferraris, Maseratis and Bugattis to their walls as teenagers, and dream of buying the car one day. They tend to be looking to fulfil a lifelong dream as well as investing. Perhaps for this reason, the price tags are usually emotional, and they can make for uncertain investments.
The factors which make a car a worthwhile collectable asset closely mirror the art market. The historic significance of the model, rarity, beauty, racing history or associations with celebrities all add to the value.
HAGI (Historic Automobile Group International) tracks the market with several indices. Their findings show that between 2008 – 2021 the average price increased by 264.49%<a href="#_ftn10" name="_ftnref10">[10]</a>. However, this doesn’t appear to factor in the cost of repairs, renovations, or storage. Even if you plan to restore a classic car yourself, the associated costs can exceed the end-value.
As you plan your investment strategy, scrutinise the financials of classic cars, including tax implications. For example, selling a classic car for a profit will incur capital gains tax, as well as road tax and MOT. Certain countries also have combustion engine regulations and low-emission zones that could make it difficult to drive your car. What’s more, incoming legislation around petrol cars may affect the desirability of the vehicle.
<h2>Diamonds</h2>
They’re forever, they’re a girl’s best friend … but are diamonds really a good investment asset? Looking at the Idex Diamond Index, on average, the precious stones have delivered returns of 8% over the past five years<a href="#_ftn11" name="_ftnref11">[11]</a>. Natural blue diamonds have particularly fared well, with one rare 15-carat blue diamond selling for $57.5 million in April 2022<a href="#_ftn12" name="_ftnref12">[12]</a>.
As with most collectable investments, quality, rarity, historical significance and whether it was owned by a notable person, all make a difference to the value. For jewellery, connections with royalty can especially add lasting value<a href="#_ftn13" name="_ftnref13">[13]</a>. When considering diamonds, scrutinize the following “Cs”: Carat, clarity, cut, colour and certificate<a href="#_ftn14" name="_ftnref14">[14]</a>.
However, there are some risks for diamond investors too. The market is notorious for its bubbles. Between November 1st 2021 and March 7th 2022, for example, prices suddenly jumped by 17% and then fell back down.
Investors should also be aware that this asset – while not directly impacted by inflation – does tend to stumble following a crisis, although it usually bounces back quickly. This indicates that during a recession is a good time to buy. As the prices tend to drop in the rough diamond market first, investors may be able to use this information to predict trends and inform their selling strategy on the secondary market.
<h2>Watches</h2>
Watches are a relatively new investment vehicle, and the market is white-hot. They really began to take off during the first months of the pandemic. Between January 2020 and April 2022, the value of used luxury watches jumped by around 115%<a href="#_ftn15" name="_ftnref15">[15]</a>. According to the Watch Charts Market Index, prices surged from $25,420 on average to $54,461 in less than two years<a href="#_ftn16" name="_ftnref16">[16]</a>.
Today, however, the market is cooling. Prices have dipped back down to $39,397 on average<a href="#_ftn17" name="_ftnref17">[17]</a>. After this burst, it is also extremely difficult now to access an investment-grade watch unless you have exceptional contacts or a broker. However, with patience and research, it is still possible.
For investors looking for a wearable investment, a classic brand like Rolex, Patek Philippe, Audemars Piguet or Breitling could be a good inflation-resistant option.
<h2>Fine wine</h2>
Of course, our favourite collectable asset to preserve and grow wealth is fine wine. Unlike diamonds, the value of fine wine does not tend to dip with recessions. On the contrary, after the 2008 financial crisis and the 2020 pandemic, it soared. From April 2020 until September 2022, prices steadily increased by over 40%<a href="#_ftn18" name="_ftnref18">[18]</a>.
Like whisky investments, fine wine also benefits from a generous tax break. Investors are exempt from capital gains tax, meaning they can keep significantly more of their profits. This tax perk applies to very few investments, and certainly none on the publicly traded stock market. It helps investors to preserve, reinvest and grow their wealth faster.
Like all the collectable assets on this list, fine wine is also extremely inflation-resistant. As the market is quite closed and determined by passionate investors, it is not directly impacted by the ebbs and flows of the wider economy.
Better still, unlike newer whisky and watch trends, fine wine is one of the oldest investment assets. Over centuries wine has proved its place as a valuable source of wealth growth and preservation. <a href="https://winecap.com/learn/is-fine-wine-the-new-gold">Today, it is even more stable than gold</a>.
<h2>Invest with passion</h2>
Perhaps most importantly of all, fine wine is a revered and much-loved product. Who could imagine a world without a sparkling <a href="https://winecap.com/news/moet-hennessys-champagne-stocks-running-low">Moët Hennessy Champagne</a>, or a <a href="https://winecap.com/learn/insights-from-leading-bordeaux-fine-wine-producers">beautifully bold Bordeaux</a>?
When you invest in collectable assets, you are not simply making a financial decision. You’re helping to preserve and cherish that which you love about life. Whether it’s a vintage Porsche or a stand-out piece from your favourite artist, your wealth can revive your most meaningful moments in history. With investments like fine wine, you can also help to preserve and <a href="https://winecap.com/learn/5-ways-fine-wine-investments-good-for-environment">nurture the planet for future generations too.</a>
If you’d like to discover more, <a href="https://winecap.com/">getting started with WineCap is simple and straightforward</a>.
<a href="#_ftnref1" name="_ftn1">[1]</a> Source: <a href="https://www.knightfrank.com/wealthreport/luxury-investment-trends-predictions/">Knight Frank</a>
<a href="#_ftnref2" name="_ftn2">[2]</a> Source: <a href="https://artincontext.org/most-expensive-paintings/">Art in Context</a>
<a href="#_ftnref3" name="_ftn3">[3]</a> Source: <a href="https://www.arthistorynews.com/articles/5279_The_Hirst_sale_bloodbath">Art History News</a>
<a href="#_ftnref4" name="_ftn4">[4]</a> Source:<a href="https://www.unbiased.co.uk/discover/personal-finance/savings-investing/how-to-invest-in-art-is-it-a-good-investment"> Unbiased</a>
<a href="#_ftnref5" name="_ftn5">[5]</a> Source: <a href="https://www.masterworks.com/">Masterworks</a>
<a href="#_ftnref6" name="_ftn6">[6]</a> Source: <a href="https://www.artbasel.com/stories/seven-key-takeaways-from-the-2022-art-market-survey-collectors">Art Basel</a>
<a href="#_ftnref7" name="_ftn7">[7]</a> Source: <a href="https://www.knightfrank.com/wealthreport/luxury-investment-trends-predictions/">Knight Frank</a>
<a href="#_ftnref8" name="_ftn8">[8]</a> Source: <a href="https://braeburnwhisky.com/whisky-casks-offer-investors-protection-against-volatility/">Braeburn</a>
<a href="#_ftnref9" name="_ftn9">[9]</a> Source: <a href="https://www.insider.co.uk/news/whisky-investment-scams-27635375">Insider</a>
<a href="#_ftnref10" name="_ftn10">[10]</a> Source: <a href="https://www.investopedia.com/articles/investing/101915/investing-collectible-cars-top-tips-and-risks.asp">Investopedia</a>
<a href="#_ftnref11" name="_ftn11">[11]</a> Source: <a href="http://www.idexonline.com/diamond_prices_index">Idex Online</a>
<a href="#_ftnref12" name="_ftn12">[12]</a> Source: <a href="https://www.forbes.com/sites/carlieporterfield/2022/04/27/rare-15-carat-blue-diamond-sells-for-575-million-barely-under-world-record/?sh=7ff3dc9c66f3">Forbes</a>
<a href="#_ftnref13" name="_ftn13">[13]</a> Source: <a href="https://www.bloomberg.com/news/features/2022-03-10/jewelry-as-investment-how-to-build-portfolio-with-best-gems-designers?leadSource=uverify%20wall">Bloomberg</a>
<a href="#_ftnref14" name="_ftn14">[14]</a> Source: <a href="https://www.newbondstreetpawnbrokers.com/blog/how-to-invest-in-diamonds-what-you-should-know/#:~:text=While%20prices%20can%20and%20do,to%20market%20price%20as%20possible.&amp;text=It's%20not%20always%20possible%20to,makes%20for%20a%20viable%20asset.">New Bond Street Pawn Brokers</a>
<a href="#_ftnref15" name="_ftn15">[15]</a> Source: <a href="https://watchcharts.com/watches/price_index">Watch Charts</a>
<a href="#_ftnref16" name="_ftn16">[16]</a> Source: <a href="https://watchcharts.com/watches/price_index">Watch Charts</a>
<a href="#_ftnref17" name="_ftn17">[17]</a> Source: <a href="https://watchcharts.com/watches/price_index">Watch Charts</a>
<a href="#_ftnref18" name="_ftn18">[18]</a> Source: <a href="https://app.liv-ex.com/#/analysis-tool/charting-tool">Liv-ex</a>
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Collectable Assets to Help Shield Inflation and Boost Diversification

For more than 6,000 years gold has been revered and collected by people hoping to store, preserve and even grow their wealth. But in recent times, the stability of gold has been called into question. Prices have been on almost as much of a journey as the stock markets. Whether it’s because Central Banks are buying record amounts of the precious metal, or because investors are trading emotionally, the asset is no longer such a dependable source of alternative value.
In this article, we’re taking a closer look at gold’s investment performance over the past year, and how it compares to fine wine.
<h2>Gold is becoming more volatile</h2>
Investors have been on a tumultuous journey. Over the past year, the price of gold plummeted by -21% between March and October<a href="#_ftn1" name="_ftnref1">[1]</a>. Then it rose again by +15% from November through to January. At the time of writing (January 2023), one ounce of gold costs $1,868<a href="#_ftn2" name="_ftnref2">[2]</a>, but economists are already predicting further movements ahead.
<h2>Performance of gold over the past twelve months</h2>
Over 2023, a range of factors is likely to influence the price of gold. The mild global recessions, geopolitical uncertainties and continued high inflation levels will probably increase its value. But on the other hand, pressure on commodities and the gradual easing of inflation could bring the prices down. Over the next year, it’s unlikely that prices will remain stable.
<h2>Gold is becoming increasingly correlated to the stock market</h2>
As gold usually <a href="https://winecap.com/learn/how-does-fine-wine-react-in-a-recession">rallies in a recession</a> and falls during periods of prosperity, investors have traditionally added this to portfolios as a hedge. When the stock markets are down, they look to their gold investments to buffer some of the losses. However, over the past few years, something strange has happened. Instead of gold going up when the markets go down, the two are starting to correlate.
<h2>Fine wine delivered returns that were uncorrelated to the market</h2>
By contrast, over the past year fine wine have exhibited the very characteristics that investors usually look for in gold. Performance has been stable, steady and – best of all – uncorrelated to the stock market. The graph below shows the comparison of fine wine (green), gold (red) and the S&amp;P 500 performance over the past year.
Unlike gold, the fine wine index (Liv-ex 1000) didn’t demonstrate any periods of correlation with the wider stock market during 2022. Overall, wine steadily trended upwards, slightly increasing when the wider markets plummeted and slightly dipping when the wider markets soared. This makes fine wine an exceptionally stable diversifier for investors. Not only did it hedge portfolios over 2023, but it also helped to smooth out overall volatility.
If you’d like to analyse the performance of fine wine, you can <a href="https://winecap.com/wine-track">find the prices for regions, bottles, wines and more on Wine Track</a>.
<h2>Is fine wine the new gold?</h2>
While it may not be exactly true that fine wine is the “new gold”, over the past year this asset class has been significantly more stable and less correlated to the wider market. It’s provided investors with a more calm and smooth positive performance than gold, throughout the economic storm.
Like gold or property, <a href="https://winecap.com/learn/is-fine-wine-inflation-proof">fine wine has intrinsic value and compelling inflation-resistance</a>. As a tangible asset, it will almost always be worth something – unlike stocks, bonds or cash which could crash. But different from gold, the kind of buyers who invest in fine wine are not cut from the same cloth as stock market investors.
Fine wine is generally bought and sold in exclusive private markets, far away from public trading forums. The asset is also usually purchased and treasured by passion investors, who tend to hold it for decades. By contrast, <a href="https://winecap.com/learn/could-fine-wine-be-better-investment-than-property">more people seem to be “flipping” gold and property</a>, which ramps-up volatility.
So, is fine wine the new gold? Not really… If you’re looking for stability, alternative returns, and uncorrelated market value, we think it’s superior.
<a href="#_ftnref1" name="_ftn1">[1]</a> Source: <a href="https://www.monex.com/gold-prices/">Monex</a>
<a href="#_ftnref2" name="_ftn2">[2]</a> Source: <a href="https://www.monex.com/gold-prices/">Monex</a>

Is Fine Wine the New Gold?

Last week we saw the release of the much-anticipated newest vintage of Pauillac’s revered first growth, Château Latour 2015. Having renounced their involvement in the yearly en primeur campaign back in 2012, the acclaimed producer focuses on releasing wines on their own terms after several years of aging, a strategy that reinforces the exclusivity of celebrated vintages such as this. This is the first “prime” vintage of Latour to come onto the market since 2011.
In the years immediately following their withdrawal, trading volumes of Latour on Liv-ex reduced, as was to be expected. However, since new vintages began to release in 2020 trading volumes have increased, with price performance also improving as the greater volumes available leads to more eyes on the brand.
2015 saw excellent conditions thanks to a hot and dry early summer followed by a cooler, damper August shortly after. With healthy, uniform fruit at harvest, critics were quick to declare it as one of the best vintages of the century so far. Adhering neatly to Jancis Robinson’s rule of fives, whereby vintages divisible by five are often of excellent quality, the vintage has shown remarkable tannic structure and power in similar, left-bank wines. Latour 2015, however, offers even greater longevity and will likely develop into a serious wine of quality and value over several decades.
Decanter Bordeaux expert Georgie Hindle rated the vintage at 98 points, describing it as “still youthful and quite serious but there’s something so appealing about it.” As the youngest vintage available on the market, coming in at a price below the much-hyped 2009 and 2010 vintages, Latour 2015 represents a very exciting prospect for investors given its iconic reputation and impressive performance in the past.
As a whole, Bordeaux offers fantastic value this year, considering the rising prices of Burgundy and Champagne, and with new measures coming into effect regarding <a href="https://winecap.com/news/fine-wine-as-a-wasting-chattel">capital gains tax thresholds</a>, a well-priced vintage such as Latour 2015 that will likely perform well could be an excellent addition to any portfolio.
If you’d be interested in adding Latour 2015 to yours, do not hesitate to get in touch. Keep an eye out for email offers soon.

Latour 2015 Released

From April 6, the British government will move to reduce the deficit through a number of <a href="https://www.cnbc.com/2022/11/17/uk-finance-minister-announces-tax-hikes-and-spending-cuts-says-country-is-in-recession.html#:~:text=Finance%20Minister%20Jeremy%20Hunt,%20in%20his%20hotly%20anticipated%20inaugural%20Autumn%20Statement,%20outlined%20spending%20cuts%20and%20tax%20hikes%20worth%20%C2%A355%20billion.">measures</a>, including very significant changes to capital gains tax thresholds. However, investors may find that “wasting chattel” investments could be a worthwhile solution to this.
From the new financial year 2023-2024, the threshold for paying capital gains tax (CGT) will be <a href="https://www.gov.uk/government/publications/autumn-statement-2022-documents/autumn-statement-2022-html#:~:text=reduce%20the%20Capital%20Gains%20Tax%20Annual%20Exempt%20Amount%20from%20%C2%A312%2C300%20to%20%C2%A36%2C000%20from%20April%202023%20and%20to%20%C2%A33%2C000%20from%20April%202024.%20These%20measures%20will%20raise%20over%20%C2%A31.2%20billion%20a%20year%2C%20from%20April%202025.">slashed</a>, from £12,300 to £6,000 this year, and then again to £3,000 the following year – a full 75% fall. This added tax burden will inevitably eat into investor returns. However, the category of investments known as &#8220;wasting chattel&#8221; is exempt from CGT altogether, meaning that any gains made on these investments will allow investors to keep more of their profits.
Wasting chattel investments are assets with a predictable useful life not exceeding 50 years and can include things such as art, furniture, vehicles, and most importantly, fine wine. These may provide investors with a tax-efficient way to profit.
If you&#8217;re looking to balance out tax losses and protect your portfolio against inflation, then allocating more of your portfolio to wasting chattels may be a smart move. Collectible assets such as fine wine are often <a href="https://winecap.com/learn/is-fine-wine-inflation-proof">inflation-resistant</a> and have a long history of good returns. They can therefore provide a much-needed buffer against the current economic environment; helping ensure the long-term success of your portfolio and the security of your financial well-being.
In these difficult economic times, adaptability is paramount, and it is essential for investors and portfolio managers to remain flexible by considering all investment tools and vehicles. Wasting chattels kick back against the upcoming tax hits, and can be an excellent option.
If this sounds like something of interest to you, why not schedule a <a href="https://winecap.com/start-investing">consultation</a> with WineCap? Our wine investment experts would be only too happy to guide you through the process.

Fine Wine as a Wasting Chattel

Fine wine offers you a sound and lucrative investment. While traditional investors have only fairly recently discovered the tremendous opportunities available with fine wine, collectors have known about its profit-making value for hundreds of years. Through the centuries, shrewd wine lovers have been selling part of their collections as a way of subsidising their consumption, leveraging the gains of a uniquely rarifying asset against their own cellars.
Granting easy access to this highly lucrative asset, WineCap offers extensive advice from a team of seasoned experts who can help with sourcing, storage and other crucial aspects to wine investment. With the benefit of our industry-leading technology, we can help you make the most of a bespoke portfolio and reach your investment goals. 
Acting as agents, we take care of sourcing your wine and organising its storage and insurance while you remain in complete control over your investment. Thanks to our links to the UK, you’ll benefit from the most developed secondary fine wine market there is. You’ll also enjoy access to the worldwide wholesale market via the London International Vintners Exchange known as Liv-ex, allowing you to secure a fast and fruitful sale once you’ve reached your investment goals. Lastly, we feature an unparalleled global reach while being tactically positioned in London, the fine wine market’s premier hub.
Click the button below to download our Fine Wine Taxation Guide and learn more about our proven strategy for investment success. Do not hesitate to get in touch and speak to one of our wine investment advisors for further information and to reserve your allocations.

Two fine wine bottles next to an oak barrel

Fine Wine Taxation | Guide

Chinese wine imports have begun their revival as borders reopened to international travel following three long years of Covid restrictions that isolated the world’s most densely populated country.
As families reunite and look forward to a much needed period of recovery, the wine trade breathes a collective sigh of relief after surviving <a href="https://asiawinenews.com/2022/04/chinas-q1-2022-wine-imports-fall-20/">2022</a>, the year that saw the wine industry “hit rock bottom in both <a href="https://winecap.com/news/china-suspends-aus-nz-imports">import</a> and domestic market[s]”
An <a href="https://vino-joy.com/2023/02/04/chinese-wine-trade-bullish-on-rebound-but-cautions-remain/">article</a>, published by China’s leading wine news site Vino Joy News, examines the potential for a rebound in Chinese wine imports which dropped significantly in 2020 due to the successive lockdowns of the pandemic. The decline in corporate activities and cultural gatherings which usually drive crucial sales peaks saw revenues affected drastically. Experts are positive that the recent lifting of Covid restrictions will rejuvenate the market akin to the swift recovery of the restaurant industry since December’s relaxation of pandemic constraints.
The key factor driving this optimism is the increased demand for better quality wine from China&#8217;s increasingly affluent middle class. This is set to be further boosted by the recent relaxation of import tariffs, making wine more affordable for Chinese consumers. This year’s Spring Festival has seen revenues spike which suggests that other events like the Mid-Autumn Festival and National Day will have a similar effect.
Though there is a potential for the relaxation of Chinese food and beverage standards this is unlikely to affect the fine wine market, and overall the long-term outlook for Chinese wine imports remains very promising.
A key indicator of the market’s recovery will be the upcoming Chengdu wine fair in April, an event considered “a bellwether of China’s drinks industry” and likely a strong reflection of the country’s enthusiasm for fine wine.
With any luck, this will be the year that sees this major player in the fine wine market return to form.

Chinese Wine Imports on the Road to Recovery

A number of key critics have delivered their thoughts on the third and final of the vintage triumvirate – Bordeaux 2020. The wines are characterized by lower alcohol levels, tension, and precision as a result of the warm and dry conditions with well-timed rainfall.
As the wines continue to become available in bottle, attentions have refocused on this vintage thanks to the unusual circumstances that surrounded it. With summer ripening and harvest taking place in the thick of the Covid-19 lockdown, restricted access to the estates meant that the growing season and processes took place relatively quietly and without the usual commentary. En primeur tastings were undertaken either remotely, or under tightly controlled conditions.
More recent tastings have revealed, however, that Bordeaux 2020 might be the champion of the three. Antonio Galloni concluded in his <a href="https://vinous.com/articles/bordeaux-2020-saving-the-best-for-last-feb-2023">report</a>, titled “Saving the Best for Last”, that “2020 is a great modern-day Bordeaux vintage. From the standpoint of both peaks and overall consistency, it surpasses 2018 and 2019.” Neal Martin notes in his <a href="https://v1.vinous.com/articles/thrice-is-nice-bordeaux-2020-in-bottle-feb-2023">report</a> that “Overall, the 2020 vintage delivers the goods. It seals the trio of great Bordeaux vintages, albeit sculpted in a modern style” referencing that of the three vintages that encountered warmer conditions “by 2020, they knew a hell of a lot more than in 2018”.
Both praised Pauillac’s Lafite Rothschild and <a href="https://winecap.com/news/2020-chateau-mouton-rothschild-label-unveiled">Mouton Rothschild</a>, as well as the “epic” Château Margaux, powerful Montrose, and Pétrus, which Neal Martin proclaimed “an absolute killer”.
Jane Anson was fortunate enough to be one of a handful of people able to experience en primeur in Bordeaux itself. In her Bordeaux 2020 vintage <a href="https://janeanson.com/2020-in-bottle-vintage-overview">overview</a> she mentions the significance of a more focused year. Where producers could be fully dedicated to winemaking alone, this “allowed estates to put the spotlight on their own processes, and perhaps question certain accepted practices, or double-down on others.”
Anson also notes that Bordeaux 2020 has seen only limited trading so far, but that it is likely to pick up the pace soon as more wines become available.
Bordeaux 2020 looks to be a vintage with a lot to offer, and potentially one of those rare occasions where the third in the series is considered the best. At WineCap, we see excellent performance potential here and will be in touch with new offers on this promising offering soon.

Bordeaux 2020 in Bottle

NFTs (Non-Fungible Tokens) and fine wine may seem like an unlikely pairing. After all, wine is one of the very oldest investments, while NFTs are among the newest digital advancements. The markets couldn’t be more different either. While 20-somethings snap up digital tokens in the metaverse, 60-somethings traditionally dominate the fine wine universe at auction houses. But it’s precisely this titanic clash of old and new which is firing up the market so vigorously.
Like a jolt of electricity, a surge of digital advancements is jump-starting the established wine industry … and it’s bringing floods of eager new buyers along with it.
<h2>Vineyards get a taste for blockchain</h2>
Over the past year, esteemed vineyards have started to sell NFTs with bottles attached to them. Just like a certificate or receipt of purchase, but far more secure. When the investor is ready, they will redeem the NFT for the physical bottle. In the meantime, it’s usually stored securely for them.
Since blockchain cannot be altered or tampered with, some wineries are using the technology to guarantee quality and combat fraud. In recent years, counterfeit bottles and scammers have plagued the industry, costing wine investors upwards of 2.7 billion euros a year<a href="#_ftn1" name="_ftnref1">[1]</a>. Using certified NFTs reassures buyers that the bottles they’re paying for are indeed the ones they’re getting.
Some vineyards, such as Màquina y Tabla, use this technology to sell wine en primeur<a href="#_ftn2" name="_ftnref2">[2]</a> &#8211; or as wine futures. The international nature of NFTs lends itself well to this. Within the blockchain, investors can check exactly what chemicals, conditions and processes were used to make the wine. They can closely scrutinize the sustainability levels too.
Some experts are even suggesting that the default currency of fine wine could soon become crypto as the pound continues to encounter volatility.
<h2>New investors enter the wine market</h2>
The emerging NFT space couldn’t be more different from the traditional wine market. At the time of writing, most NFT investors come from India, Vietnam, Hong Kong, Singapore, and Brazil<a href="#_ftn3" name="_ftnref3">[3]</a>. The age demographic is different too. Most NFT investors are between 18 and 34 years old.
While most NFT investors are true digital natives, they’ve also grown up in a snowball of recessions. This makes asset-backed digital investments like fine wine a welcome and intriguing option. Unlike most other NFTs, it’s something you can touch, with intrinsic value.
At the time of writing, this new breed of wine NFT investors seem keen, and they have money. Penfold’s 2021 NFT famously sold within just 12 seconds<a href="#_ftn4" name="_ftnref4">[4]</a>. And in summer 2022, an NFT linked to an exclusive champagne bottle went for an eyewatering $2.5 million<a href="#_ftn5" name="_ftnref5">[5]</a>.
<h2>Additional income streams will benefit vineyards</h2>
As well as the new clientele, there’s another compelling reason why vineyards may be keen to sell NFTs with bottles attached. Perhaps it’s the strongest incentive of them all. Each time the NFT is traded, the vineyard can opt to get a small cut of the price.
Over time, as the wine NFT changes wallets, these incremental profits can stack up.
Extra streams of passive income will surely be very welcome to vineyards, as <a href="https://winecap.com/news/heatwave-provokes-bordeaux-fires">the industry grapples with climate change and forest fires</a>. Producers can use the revenue to continue adapting, experimenting, or simply making up a cash shortfall – all of which is good news for wine investors.
Vineyards are keen to develop and invest in the NFT space. Some of the most famous wine families, including the houses of Rouzaud (Champagne Roederer and Château Pichon-Comtesse), Reybier (Saint-Estèphe’s Château Cos d’Estournel), Moueix (Videlot) and Perrin (Château de Beaucastel) poured a whopping 6 million euros into Winechain, a new wine NFT platform. It surely goes without saying that they’re likely looking for a return on their investments.
<h2>Vineyards can be more creative with NFTs</h2>
Trading NFTs online also gives vineyards a chance to include the kind of extras and luxuries that investors enjoy. There is almost unlimited room for creativity.
Château Angélus, for example, also include digital artwork and virtual wine-tasting sessions in the fine wine NFT package. The art appeals to NFT investors keen to build on their collection of unique digital assets. They can showcase these in their metaverse home or sell on to others. The wine tasting, of course, appeals to almost everyone.
New Zealand-based vineyard, Hello Fam, took things even further. This vineyard partnered with Graham Norton – voice of Eurovision and host of the One Show – to offer NFTs for their limited edition “HeDevil” wine. The NFT includes two bottles, physical artwork, and one lucky buyer got to attend a virtual tasting with Norton himself.
Unlike traditional bottles and barrels, vineyards can truly tailor wine investments and experiences around buyers. This opens the door to new potential, new markets, and new possibilities.
<h2>Investors should be wary of risks</h2>
While there is a world of possibility around these new digital advancements, there are drawbacks too.
The world of NFTs moves fast… a little too fast. With all the hype and possibilities around these digital advancements, it can be easy to get carried away. But – as always with investing – it’s important not to get swayed by the market noise.
As the oracle of Oklahoma, Warren Buffet, famously said, “The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd nor against the crowd”.
Before diving into the fast-paced world of NFT wines and metaverse investments, <a href="https://winecap.com/learn/6-questions-to-ask-yourself-before-investing-in-fine-wine">investors should consider their long-term strategy and conduct careful analysis</a>. Although vineyards create authentic NFTs, there are likely to be fakes around.
What’s more, NFTs are traded using cryptocurrency, so investors cannot buy and sell them with fiat money like pounds, euros, or dollars. This comes with its own set of headaches. Firstly, these digital coins are famously volatile. In March 2022 – an especially bad time – the value of Bitcoin fell by a colossal 60%<a href="#_ftn6" name="_ftnref6">[6]</a>. Over 2023, some experts are predicting a further 40% drop<a href="#_ftn7" name="_ftnref7">[7]</a>. The second largest cryptocurrency, Ethereum, has also been on a rollercoaster. In December 2021, a single coin was worth $4,624, fast-forward one year and it’s $1,296 – less than a third of the value<a href="#_ftn8" name="_ftnref8">[8]</a>.
The process of mining and trading cryptocurrencies – and by extension – NFTs is also reportedly detrimental to the environment. By contrast, <a href="https://winecap.com/learn/5-ways-fine-wine-investments-good-for-environment">fine wine investments are usually quite sustainable</a>, and so NFTs could undo many of those important benefits.
Another consideration consideration of digital advancements in the industry is that cryptocurrency has been banned in nine countries, including China. This means that the <a href="https://winecap.com/learn/opportunity-for-asian-and-american-investors">waves of Asian investors entering the wine market</a>, are probably coming through the traditional route.
<h2>The value of fine wine is likely to increase … But at what cost?</h2>
The new generation of buyers is likely to increase the market value of fine wine. As any economist will tell you, when demand outstrips supply, prices go up. It’s excellent news for today’s investors who may find that they can sell bottles for higher prices with greater liquidity.
However, investors who are looking to buy into NFT wines themselves should exercise caution. The space is still new and emerging, and regulations are being discussed as we write.
The environmental impact of NFTs and cryptocurrency on vineyards is already raising some eyebrows. Climate change <a href="https://winecap.com/learn/how-climate-change-affects-value-of-fine-wine">alters the value of fine wine more than almost any other factor</a>. While the marketplace welcomes new buyers and innovations, the integrity of fine wine must always come first.
<a href="https://winecap.com/wine-track">Find out more about the latest fine wine trends and prices.</a>
&nbsp;
<a href="#_ftnref1" name="_ftn1">[1]</a> Source: <a href="https://euipo.europa.eu/tunnel-web/secure/webdav/guest/document_library/observatory/docs/Full%20Report/Full%20Synthesis%20Report%20EN.pdf">EU IPO</a>
<a href="#_ftnref2" name="_ftn2">[2]</a> Source: <a href="https://cluboenologique.com/story/nfts-and-wine-whats-the-deal/">Club Enologique</a>
<a href="#_ftnref3" name="_ftn3">[3]</a> Source: <a href="https://www.finder.com/uk/nft-statistics">Finder</a>
<a href="#_ftnref4" name="_ftn4">[4]</a> Source: <a href="https://www.decanter.com/wine-news/penfolds-to-release-second-rare-wine-nft-472517/">Decanter</a>
<a href="#_ftnref5" name="_ftn5">[5]</a> Source: <a href="https://nftevening.com/bored-apes-nft-champagne-bottle-sells-for-record-2-5m/">NFT Evening</a>
<a href="#_ftnref6" name="_ftn6">[6]</a> Source: <a href="https://www.cnbc.com/2022/12/05/btc-bitcoin-could-fall-to-5000-standard-chartered-predicts.html#:~:text=Bitcoin%20has%20already%20fallen%20more,to%20spread%20through%20the%20market.">CNBC</a>
<a href="#_ftnref7" name="_ftn7">[7]</a> Source: <a href="https://www.cnbc.com/2022/12/01/bitcoin-price-could-fall-40percent-to-10000-in-2023-mark-mobius-says.html">CNBC</a>
<a href="#_ftnref8" name="_ftn8">[8]</a> Source: <a href="https://nz.finance.yahoo.com/quote/ETH-USD/history?period1=1438905600&amp;period2=1670976000&amp;interval=1mo&amp;filter=history&amp;frequency=1mo&amp;includeAdjustedClose=true">Yahoo Finance</a>
&nbsp;

Digital Advancements Bring a New Generation of Wine Investors

In his new <a href="https://vinous.com/articles/2019-barolo-back-on-track-jan-2023">report</a> reviewing 2019 Barolo releases, Antonio Galloni has showered this “stellar vintage” with praise, noting that even though the summer brought intense heat, opportune rain and instinctive decision-making on the winemakers’ part led to wines that “don’t taste like wines from a warm vintage at all.” Following an inconsistent 2018, this return to form might very well signal a new cycle of strong to exceptional vintages for this storied appellation.
Those who value Nebbiolo&#8217;s complexity and finesse will be enthralled by the 2019 Barolo wines and their powerful, tightly-wound structures, which currently have the sort of youthful austerity akin to vintages like 2016, 2005, and 1999.
A relatively dry winter and typically warmer-than-average temperatures marked the start of the year before colder conditions and rainfall saw bud break delayed by two weeks. Though persistent rain threatened a repeat of the previous year, thankfully it turned out to be quite benign. The summer months were met with warmer weather balanced with rainfall and cool nights which led up to an ideal, slightly later harvest.
Among the stars are Vietti, with Barolo Ravera earning 100 points from Galloni, citing its energy and tension as exciting characteristics. Giacomo Conterno’s Barolo Riserva Monfortino comes in just behind at 97-99 points showing incredible refinement for its relative youth, and showing plenty of tannin and structure. Also, following the sad passing of Luciano Sandrone, both Barolo Le Vigne and Aleste scored 97 points and were praised for their energy and potential development.
WineCap sees a real opportunity in Italy at the moment and the wines of Piedmont in general. Keep an eye out for offers coming over the next few weeks. Many of these wines are not available yet, but rest assured that when they are, we will be certain to let you know.
Read more about <a href="https://winecap.com/news/why-fine-wine-might-be-a-better-investment-than-you-thought">Why Fine Wine Might be a Better Investment Than You Thought</a>.

Antonio Galloni’s 2019 Barolo Report

Our Q4 report, analysing the trends that shaped the fine wine market over the past three months, <a href="https://wp.winecap.com/wp-content/uploads/2023/01/Q4-Report-2022.pdf" target="_blank" rel="noopener">is now available to download</a>. The report also provides a summary of the year in fine wine and a look ahead to 2023, accounting for the macroeconomic environment and core factors such as inflation, currency moves, new releases, supply, and levels of demand.
<h2>Fine wine shows remarkable resilience in 2022</h2>
The fine wine market remained bullish in the face of severe headwinds, which only started to impact its performance in the final quarter. 2022 brought a perfect storm of pandemic, war, inflation, climate change and unsteady politics, which led currencies, bonds and equities spiralling downwards. But fine wine did not experience any of the volatility that affected mainstream markets. Instead, all major fine wine indices finished the year with increases. Rare Burgundy and vintage Champagne enjoyed soaring demand and peaking prices.
<img loading="lazy" class="aligncenter wp-image-1265" src="https://wp.winecap.com/wp-content/uploads/2023/01/Liv-ex100vsmainstreamequities-375x224.png" alt="graph of liv-ex 100 performing well against mainstream equities" width="800" height="478" srcset="https://wp.winecap.com/wp-content/uploads/2023/01/Liv-ex100vsmainstreamequities-375x224.png 375w, https://wp.winecap.com/wp-content/uploads/2023/01/Liv-ex100vsmainstreamequities-768x459.png 768w, https://wp.winecap.com/wp-content/uploads/2023/01/Liv-ex100vsmainstreamequities.png 1030w" sizes="(max-width: 800px) 100vw, 800px" />
<h2>What to expect in 2023</h2>
If 2022 was all about Burgundy and Champagne, 2023 is likely to see the return of more subdued market players, which offer value and quality. Stability will be a key theme in the new year as the economic outlook remains uncertain.
Although fine wine might experience a temporary drift following its bull run, many wines continue to set trading records. Among them in Q4 were some of the critics’ ‘wines of the year’ such as Talbot 2019 and Lynch Bages 2014. Bordeaux remains the market’s driving force, with heightened demand across both ‘on’ and ‘off’ vintages. But demand is also getting broader, with more wines considered investment-worthy than at any other point in history, be it grower Champagne, the Rhône, Italy, California or further afield.
WineCap’s independent market analysis showcases the value of portfolio diversification and the stability offered by fine wine. Download our brand new report below for your summary of the past quarter in fine wine.

Q4 2022 | Report

Investments in fine wine have <a href="https://winecap.com/news/increased-global-demand-for-fine-wines" target="_blank" rel="noopener">proved exceptionally popular over the recent years</a>, bringing in new buyers and record trades[1]. And it’s easy to see why! <a href="https://winecap.com/learn/seven-delicious-reasons-to-invest-in-fine-wine" target="_blank" rel="noopener">There are many advantages to investing in fine wine</a>, especially in the current high-inflation environment. However, before diving in, it’s important to take a step back and consider how fine wine could fit into your overall investment strategy.
Here are six questions to ask yourself before investing:
<h2>1. What is your investment goal?</h2>
Investment goals are unique to the investor. Some people dream of going on a lavish round-the-world trip, while others are simply looking to afford a comfortable retirement. Whatever your personal goal (or goals), take a moment to write it down.
Calculate how much your goal will cost and how much time you’ve got to get there. This forms the backbone of your investment strategy.
For example, if you’re hoping to put down a £150,000 deposit on a property in a decade, and you can afford to put aside £1,000 a month towards it, you will need to find the additional £30,000. This means your investment goal is to generate £30,000 over the next ten years. The way that you approach it depends on your unique time horizon and risk tolerance.
<h2>2. What is your time horizon?</h2>
The general rule is the more time you have, the more risk you can afford to take. Of course, there is always a chance with investing that you may get back less than you put in, but over longer periods this risk is mitigated.
Experts mostly agree that if you will need your money in less than five years &#8211; say one or two &#8211; it’s normally better to put it in a high-interest savings account. If you need it within the next five to ten years, a lower-risk and highly diversified portfolio could be the best option. Blue chip stocks, AAA graded bonds and market index funds could make up the bulk of your portfolio. If you have more than ten years to invest, you can probably afford to take more risk.
Pension fund managers normally follow this rule. Generally, young employees – who have multiple decades of work ahead – will be invested in high-risk illiquid assets. By contrast, those closer to retirement will be transitioned to low-risk, liquid investments.
Time is an important factor to consider as you begin to explore fine wines and consider how they could complement your strategy. As you research bottles, check that the maturity date matches your strategic timeline. Luckily, there are many different fine wines out there to suit different investors. You can <a href="https://winecap.com/wine-track" target="_blank" rel="noopener">effortlessly stay updated on the latest trends fine wine with Wine Track</a>.
<h2>3. How much tolerance do you have for risk?</h2>
Your investment risk tolerance is nothing to do with your normal risk appetite. It’s about how you feel when the markets are volatile. It’s about whether the idea of your investments soaring and plunging in value makes you excited or nauseous. You could be a sky-diving, base-jumping crocodile physiologist and still feel queasy at thought of market downturns.
Figuring out the level of risk you’re prepared to take with your wealth is a crucial part of designing your investment strategy. After all, you don’t want to lose sleep over your investments, they are there to help you dream – not give you nightmares!
Different asset classes can be broadly grouped into different risk levels. On the lower-risk side, there’s investments like gold, property, or fine wine. These tend to provide stable and steady returns over time. On the higher risk-side are assets like crypto assets, high yield bonds, derivatives, or equity in start-ups. These are more volatile in nature, often soaring and plummeting quickly.
In the current environment, <a href="https://winecap.com/learn/is-fine-wine-inflation-proof" target="_blank" rel="noopener">investors looking to mitigate their risk might be interested in inflation-shielding assets</a>. These are usually physical and tangible investments like property, art, gold, collectibles, and of course, fine wine.
<h2>4. How much liquidity do you need?</h2>
If things take a turn for the worse, how much money will you quickly need to access from your investment portfolio? Or in other words – how much liquidity do you need?
Ideally, investors should not liquidate their portfolio before the right time. Doing so could unbundle the entire investment strategy and mean missed opportunities later down the line. For this reason, experts recommend keeping three to six months’ worth of living costs aside in a high-interest savings account. And many will also advocate to have a healthy surplus in a current account too.
However, sometimes life happens, and investors have no choice but to liquidate. Think carefully about how much of your portfolio you would need to sell in an emergency and how quickly you’d need the cash. This is an important part of planning your strategy.
Some assets can be quickly converted into cash. For example, many of the blue-chip shares and funds – such as those on the FTSE100 or S&amp;P500 could usually sell within 24 hours. However other assets – especially those on the private market – can take several weeks, months or even years.
Generally, for fine wine it can take between weeks and months to sell bottles. But it depends on the time of year, type of bottle and asset maturity. With <a href="https://winecap.com/wine-track" target="_blank" rel="noopener">Wine Track, you can keep a close on the demand and prices of fine wine</a>, so that you’re always up-to-date.
<h2>5. How diversified are you? </h2>
Nobel-prize laureate Harry Markovitz famously revealed, “Diversification is the only free lunch in investing”. As you build your investment portfolio, it’s important to diversify your revenue streams. This can help to shield your overall wealth from market shocks and prevent one downturn from slashing the value across your entire investments.
<a href="https://winecap.com/learn/7-under-used-alternative-investments" target="_blank" rel="noopener">Alternative investments &#8211; such as art, antiques, commodities, and fine wine</a> – are often used to boost diversification and provide different sources of returns (hence the name).
Because assets like fine wine derive their value intrinsically, <a href="https://winecap.com/learn/3-rules-for-fine-wine-investors" target="_blank" rel="noopener">they are less affected by the market turbulence outside</a>. They are also traded away from the stock market. This provides a different source of revenue and helps to diversify portfolios.
As you build your overall portfolio, experts recommend aiming for a blend of different asset classes, sectors, and geographical locations. Reaching as far and wide as possible is one of the most effective ways to mitigate exposure to market shocks.
<h2>6. What’s your impact on the world?</h2>
One of the most profound questions for investors to ask themselves is what effect they’re having on the world around them. How their money is invested can make a dramatic difference on the planet.
Fortunately, many vineyards and fine wine investors care deeply about the environment. The <a href="https://winecap.com/learn/how-climate-change-affects-value-of-fine-wine" target="_blank" rel="noopener">quality of grapes is closely linked to the climate</a>, and many wineries are working hard to adapt and mitigate the effects of the crisis. As an investment that thrives on the prosperity of vines, <a href="https://winecap.com/learn/5-ways-fine-wine-investments-good-for-environment" target="_blank" rel="noopener">there’s a strong case to be made that fine wine is an ESG investment</a>.
As you build your portfolio, consider carefully what your wealth is being used for and whether you agree with it. Your choice of investment gives you power and influence, use it wisely.
<a href="https://winecap.com/learn/how-does-fine-wine-react-in-a-recession" target="_blank" rel="noopener">Discover more about how fine wine reacts in a recession</a>.
&nbsp;
[1] Source: <a href="https://www.liv-ex.com/2022/11/number-wines-traded-surpasses-2021-record/" target="_blank" rel="noopener">Liv-ex</a>

6 Questions to Ask Yourself Before Investing in Fine Wine

Fine wine and spirits sales at Sotheby’s hit a record-beating $150 million last year, an increase of 14% compared to the year before. 
69 wine and spirits auctions were held by the top auction house during 2022, which represents 30% more than in 2021. This new record for fine wine and spirits sold at auction doesn’t include private sales and retail sales.
The main revenue source was fine wine: delivering a total of $121 million last year. Spirits also contributed double-digit growth of 15% year-on-year with a total of $29 million, underlining the rising interest in investment-grade whiskies and fine spirits. 
One particular highlight included a unique assortment case of 12 bottles from the 1990 vintage of Domaine de la Romanée-Conti which sold for an estimate-breaking $118,750.
The Macallan The Reach 81 Years Old single malt, an incredibly rare special edition, went on auction in September at Sotheby’s in London. It was the oldest whisky ever to be entered into an auction and sold for £300,000 (or $325,740).
In the US, spirits sales doubled: up from $5 million to $12 million. The key driver can be attributed to a stronger demand for luxury bottles.
Asia remains a key focus for Sotheby’s, with the auction house’s 2023 continued expansion plans in the region. Sales in Asia contribute the most to the house’s total revenue from auctions: $54 million. What’s more, the auction house reported that Asian buyers represented 41% of sales by value in 2022.
Commenting on total sales, Yves de Launay, Head of Auction Sales, said: ‘Overall 2022 saw a very strong performance in a very challenging market.’ ‘Bordeaux and Burgundy clearly led the way with an increasing demand for vintage Champagne and rare wines for other regions such as Tuscany or Rhône. Demand should remain strong for the finest and rarest wines in 2023.’
Read about <a href="https://winecap.com/news/christies-london-auction-reaches-over-2-million" target="_blank" rel="noopener">Christie’s December 2022 London auction</a> that reached over £2.12 million in sales.

Sotheby’s Wine & Spirits Auction Sales Top Record $150 Million in ’22

François Pinault, owner of Artémis Domaines, has finalised the acquisition of Champagne Jacquesson.
In February last year, Artémis Domaines took control of a minority stake of 33% in Champagne Jacquesson. At the time there was speculation that a full takeover would ensue later in the year. Managing the Dizy-based operation with his brother Laurent since 1990, Jean-Hervé Chiquet has confirmed that the complete takeover happened in December 2022. Chiquet commented: ‘When we bought back Michael Mackenzie’s shares (in the company) at the end of 2020, we started to think about a new partner and found that Artémis Domaines was interested. We started to discuss options with them and agreed on their arrival as a minority shareholder last February.’
‘Since then, we have had time to get to know each other and, as Laurent and I have no successor in our family, we have decided to put Jacquesson in the best hands possible to guarantee its future and to be sure that our dedication to quality will remain or even be improved,’ Chiquet added. Although he and his brother won’t be actively involved in managing the company, ‘we will continue to supply the company with grapes from our own vineyards and I will stay on as a member of the board but without an operational role,’ Jean-Hervé added.
Located in Dizy outside of Epernay, the Jacquesson estate was purchased by Jean-Hervé and Laurent’s father in the 1970s. The estate dates back to the 18th century and Joseph Krug worked there before he founded his own house in 1843. The brothers have shaken up the ‘Brut sans année’ market with the introduction of their Cuvée 700 concept. Their first release – Cuvée 728 – centred on the 2000 harvest and was released in 2004.
Chiquet, who has previously spoken about his and his brother’s approach, said: ‘The Cuvée 700 concept is unique in Champagne and is the opposite of a non-vintage wine. We seek excellence rather than homogeneity, respect for the character of the vintage rather than its denial, and the preference to create a “house style”, the doctrine most other producers in Champagne follow for their non-vintage blends. Our Cuvée 700 is the only blended wine we produce; it is meant to be the expression of a year and thus each year offers a different identity which we recognise by numbering the cuvée.’
Read more about the <a href="https://winecap.com/news/pinault-familys-new-merger" target="_blank" rel="noopener">Pinault family’s 2022 acquisition of Champagne Henriot</a>.

Champagne Jacquesson Purchased by Pinault Family

For centuries, property has been hailed as the sturdiest of investments. After all, what could be more solid than bricks and mortar? But with the five or six figure price tags, near-constant renovation or service work and gut-wrenching taxes, is it really such a wise investment? In this article, we compare the performances, costs and returns of fine wine against property to see which one works out better for investors.
<h2>What returns could investors expect?</h2>
Investors in fine wine have reaped significant returns, especially over the past years. The Liv-ex Wine 1000, which tracks the overall performance of fine wines, shows how the asset has grown in value by 45% over the past five years alone[1] (at the time of writing). And since the index was created in 2004, fine wines have steadily risen to almost five times their original price. Over the past year, fine wine investors have enjoyed returns of 13.6% on average[2]. While past performance is no guarantee of future returns, fine wine has a strong track record of delivering smooth and stable value for investors.
Property market values are a little more complicated to measure, as they are influenced by politico-economic factors. For example, the 2020-2021 UK Stamp Duty cuts impacted price movements significantly. However, we can still compare returns.
Most real estate investors will opt for a Buy-to-Let property. Depending on the area they select, rental profits generally range from between 3% to 8% each year. 2022 research from Zoopla reveals that UK rental yields are the highest in East Ayshire, Scotland. Here, investors pick up average yields of 8.5%[3]. By contrast – and perhaps surprisingly – the location with the lowest rental yields is the London Borough of Kensington and Chelsea. Despite the average property values of £1.7 million, investors reap just 3.3% profits[4]. Even the highest yielding rental properties are not delivering the superior returns of fine wine.
Comparing like-for-like, the average rental yield for a UK property today is 4.7% annually[5]. By contrast, wine investors have enjoyed returns of 13.6% on average over the past year[6].
<h2>Costs associated with buying and selling</h2>
Unless you chose to buy into a fund, purchasing the investment-grade wine of your choice can take a little longer than trading stocks and shares on the public markets. However, <a href="https://winecap.com/start-investing" target="_blank" rel="noopener">reputable online services like WineCap</a> make the process simple and straightforward.
Signing up to the WineCap platform and linking your desired investment amount takes just a few moments. From there, investors can effortlessly view, track, and purchase the finest wines available. They can even benefit from state-of-the-art analysis tools, and experts are on hand to recommend the best brands. Selling wine with us is just as painless. We are extremely well positioned to trade wine, reaching keen audiences and investors across the globe. When investors sell fine wine, WineCap charges a brokerage fee of 10%.
Buying a property, on the other hand, is almost always a drawn-out and complicated procedure. Investors looking for a buy-to-let will need to visit multiple different properties and locations, requiring time and planning. They’ll also need to deal with estate agents, surveyors, conveyancers, lawyers, banks and possibly mortgage brokers, adding around £5,000 to the cost[7]. Plus, if tenants are already living in the property, it problematic for investors who want to renovate or increase rents.
Selling a property means going back through the same laborious process, especially if the new buyer is part of a chain. It also occurs additional costs such as estate agents fees, EPC energy certificates, conveyancing fees and removal services, adding around £6000 in total[8].
Buying and selling a property comes with a lot more hassle and fees than fine wine. When fine wine is sold using online services like WineCap, a one-off 10% brokerage charge applies. By contrast, when buying and selling a property, investors are inundated with charges and requirements, adding thousands to the bill. 
<h2>Inflation-hedging and interest factors</h2>
Fine wine is <a href="https://winecap.com/learn/is-fine-wine-inflation-proof" target="_blank" rel="noopener">famously inflation-resistant</a>. Over centuries it’s demonstrated that returns are not corelated to the wider financial markets, and over the last years it’s become even more stable than gold. As a scarce and depleting asset, fine wine investments are a promising hedge against inflation.
However, the same cannot be said for buy-to-let mortgages. Unless investors can purchase property outright, they are likely to get hit with annual interest rates of around 5%[9]. Considering that the average property in the UK comes to £296,000[10], mortgage holders will pay out £14,800 each year. What’s more, since 2017, buy-to-let tax relief has been gradually decreasing in the UK. As of 2022, it became zero. Property investors will be feeling the rising interest more than ever.
Inflation and interest rates are closely linked. When inflation rises too much, central banks will attempt to “cool” the economy by raising interest. At the moment, we are in a high inflation environment, and so interest rates are unlikely to drop back to pre-pandemic levels for the foreseeable future. This is bad news for landlords and property investors, but it doesn’t negatively impact fine wine holders.
When it comes to inflation-hedging and interest, fine wine investments have the edge over property. Unless the investor can pay for the entire estate without any mortgage, they will be hit with higher rates and less tax perks. 
<h2>Ongoing maintenance costs</h2>
Some investors already have a temperature-controlled cellar at home. But for those that don’t, there are storage facilities available. Ensuring that the bottles are stored in the right conditions is crucial for maintaining and increasing value.
While storage costs vary from place to place, it’s usually between £10 and £40 for a case of twelve for a year. Some facilities may include insurance, or investors may prefer to purchase it themselves. Investors may also wish to have the wine delivered to a new location, which adds to the overall cost.
If you would like to <a href="https://winecap.com/schedule-a-call" target="_blank" rel="noopener">talk to an expert about fine wine and the maintenance costs, we’d be happy to help</a>.
Investing in property also comes with maintenance charges, which are often far more troublesome and costly. The estate may need renovation, cleaning, plumbing work, building work, decorating and more. Those planning to rent out also need to stay on top of regulations, such as fire safety measures. Many investors will employ a property manager to ensure that day-to-day issues are dealt with quickly, which is a drain on profits.
In addition, properties such as flats often require quarterly service charges, to pay for the communal maintenance, cyclical charges (like repairs) and reserve funds. Most service charges are between £1,000 to £2,000 a year.
Both fine wine and property investments come with maintenance charges. However, the cost of storing, insuring, or transporting fine wine is usually much less than the costs associated with properties.
<h2>Tax considerations</h2>
One of the major advantages of fine wine investments is the generous tax status. Under the UK HMRC, fine wine usually falls under the category of “wasting chattel”. This means that since it needs to be consumed within the next 50 years, it is exempt from Capital Gains Tax (CPT). Investment-grade wine which valued at less than £6,000 is also usually free from CPT. You can read more about the <a href="https://winecap.com/learn/fine-wine-taxation-2022" target="_blank" rel="noopener">taxation rules of fine wine with our comprehensive guide</a>.
However, the same cannot be said for almost all property investments. Property investors in the UK must normally pay stamp duty, capital gains tax and income tax. Buy-to-let investors will need to pay more in stamp duty than other homebuyers, as they have an additional 3% surcharge. And foreign property investors may face yet more taxes from both their own state and the one they are buying in.
Depending on the type of service property investors want to offer renters, they may also take on the Council Tax as well.
Property investors will probably need to pay stamp duty, CPT and income tax. Meanwhile, nearly all fine wine investments are exempt.
<h2>Is fine wine the new property?</h2>
In the current environment, fine wine has many desirable qualities and benefits over traditional property investments. While wine does have some associated costs, they are usually much lower and more straightforward than buying property. And, unlike property investments, the returns on fine wine are not directly impacted by tax, interest rates or inflation.
Perhaps most importantly of all, <a href="https://winecap.com/learn/how-does-fine-wine-react-in-a-recession" target="_blank" rel="noopener">fine wine tends to preserve or increase in value during a recession</a>. It is not linked to the wider economy and government intervention in the same way that the housing market is. On the contrary, in the aftermath of the 2008 housing collapse, fine wine rallied[11].
So, is fine wine the new property? We think it’s better.
&nbsp;
[1] Source: <a href="https://login.liv-ex.com/login?state=hKFo2SBaZlV1Umtsa1hwekZ3dVJqQUEya3JIVUs0UGtWS2ZHWqFupWxvZ2luo3RpZNkgN2RobEEyOHJ3RjVxQlVGVEE2c3Z3d01oZGl1aXNjMTKjY2lk2SAzc2NZcHA4N3VNYlZLSHFrN0FvaHk1NG92ODA0WnBWNg&amp;client=3scYpp87uMbVKHqk7Aohy54ov804ZpV6&amp;protocol=oauth2&amp;response_type=token%20id_token&amp;scope=openid%20email%20profile&amp;audience=https%3A%2F%2Fliv-ex.eu.auth0.com%2Fapi%2Fv2%2F&amp;redirect_uri=https%3A%2F%2Fapp.liv-ex.com%2F%3Ftarget_url%3Dhttps%253A%252F%252Fapp.liv-ex.com%252F%2523%252Fanalysis-tool%252Findices-explorer%252FLX1000&amp;nonce=srgEhLSOlugcei7fQh~k9_SUfwulXq3D&amp;auth0Client=eyJuYW1lIjoiYXV0aDAuanMiLCJ2ZXJzaW9uIjoiOS4zLjAifQ%3D%3D" target="_blank" rel="noopener">Liv-ex</a>
[2] Source: <a href="https://login.liv-ex.com/login?state=hKFo2SBoajdUY1ZDRlhkUjJ6TlQxUk16TEZFZVB2VUM0ZHphY6FupWxvZ2luo3RpZNkgY2Y5ZEF2UzdPMEVGQ3dOSFpLNzZQbFRqSGQ4QXNETXCjY2lk2SAzc2NZcHA4N3VNYlZLSHFrN0FvaHk1NG92ODA0WnBWNg&amp;client=3scYpp87uMbVKHqk7Aohy54ov804ZpV6&amp;protocol=oauth2&amp;response_type=token%20id_token&amp;scope=openid%20email%20profile&amp;audience=https%3A%2F%2Fliv-ex.eu.auth0.com%2Fapi%2Fv2%2F&amp;redirect_uri=https%3A%2F%2Fapp.liv-ex.com%2F%3Ftarget_url%3Dhttps%253A%252F%252Fapp.liv-ex.com%252F%2523%252Fanalysis-tool%252Findices-explorer%252FLX1000&amp;nonce=D_QOwsrHXAaiXMlupcE08A5M~Z64ToeL&amp;auth0Client=eyJuYW1lIjoiYXV0aDAuanMiLCJ2ZXJzaW9uIjoiOS4zLjAifQ%3D%3D">Liv-ex</a>
[3] Source: <a href="https://www.zoopla.co.uk/discover/property-news/best-buy-to-let-locations/" target="_blank" rel="noopener">Zoopla</a>
[4] Source: <a href="https://www.zoopla.co.uk/discover/property-news/best-buy-to-let-locations/" target="_blank" rel="noopener">Zoopla</a>
[5] Source: <a href="https://joseph-mews.com/uk-property-investment/best-rental-yields-uk/#:~:text=What%20is%20the%20UK%20Average,of%20%C2%A31%2C064%20per%20month." target="_blank" rel="noopener">Joseph Mews</a>
[6] Source: <a href="https://login.liv-ex.com/login?state=hKFo2SBFSmhxaFZyb1RmY0tlZzhucjdYSVNQQVo4SWdlWGJtSqFupWxvZ2luo3RpZNkgMmxXSkFXODB5UXpWNXJBdllhTmtlMXVBMVptelUtdDSjY2lk2SAzc2NZcHA4N3VNYlZLSHFrN0FvaHk1NG92ODA0WnBWNg&amp;client=3scYpp87uMbVKHqk7Aohy54ov804ZpV6&amp;protocol=oauth2&amp;response_type=token%20id_token&amp;scope=openid%20email%20profile&amp;audience=https%3A%2F%2Fliv-ex.eu.auth0.com%2Fapi%2Fv2%2F&amp;redirect_uri=https%3A%2F%2Fapp.liv-ex.com%2F%3Ftarget_url%3Dhttps%253A%252F%252Fapp.liv-ex.com%252F%2523%252Fanalysis-tool%252Findices-explorer%252FLX1000&amp;nonce=n9D53JCf1tRrUfVJO0l3Lkbw6Pu13NNp&amp;auth0Client=eyJuYW1lIjoiYXV0aDAuanMiLCJ2ZXJzaW9uIjoiOS4zLjAifQ%3D%3D" target="_blank" rel="noopener">Liv-ex</a>
[7] Source: <a href="https://www.kfh.co.uk/buyers/the-costs-involved-in-buying-a-property/#:~:text=Legal%20fees&amp;text=A%20fully%20qualified%20reputable%20solicitor,additional%20fees%20would%20be%20payable." target="_blank" rel="noopener">KFH</a>
[8] Source: <a href="https://hoa.org.uk/advice/guides-for-homeowners/i-am-selling/cost-selling-home/" target="_blank" rel="noopener">HOA</a>
[9] Source: <a href="https://www.moneysupermarket.com/mortgages/rates-table/buy-to-let/purchase/?propertyValue=160000&amp;mortgageAmount=111000&amp;remainingTerm=22&amp;repaymentMethod=InterestOnly&amp;sortState=MonthlyRepaymentAmount" target="_blank" rel="noopener">Money Supermarket</a>
[10] Source: <a href="https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/housepriceindex/august2022#:~:text=Image%20.csv%20.xls-,The%20average%20UK%20house%20price%20was%20%C2%A3296%2C000%20in%20August,higher%20than%20in%20August%202021." target="_blank" rel="noopener">ONS</a>
[11] Source: <a href="https://login.liv-ex.com/login?state=hKFo2SB6ZG5ZQXBlQndwbXRmY240WVdvZ053ZUw1NlFIbWRDeqFupWxvZ2luo3RpZNkgdlRlaTFubXo5ZzJDU0hMSjFzSkZWaFkwdGNIQ3lWUHCjY2lk2SAzc2NZcHA4N3VNYlZLSHFrN0FvaHk1NG92ODA0WnBWNg&amp;client=3scYpp87uMbVKHqk7Aohy54ov804ZpV6&amp;protocol=oauth2&amp;response_type=token%20id_token&amp;scope=openid%20email%20profile&amp;audience=https%3A%2F%2Fliv-ex.eu.auth0.com%2Fapi%2Fv2%2F&amp;redirect_uri=https%3A%2F%2Fapp.liv-ex.com%2F%3Ftarget_url%3Dhttps%253A%252F%252Fapp.liv-ex.com%252F%2523%252Fanalysis-tool%252Findices-explorer%252FLX1000&amp;nonce=GnDumfi0.o50fYrjk-dyuZqepd0Hu6bf&amp;auth0Client=eyJuYW1lIjoiYXV0aDAuanMiLCJ2ZXJzaW9uIjoiOS4zLjAifQ%3D%3D" target="_blank" rel="noopener">Liv-ex</a>

Could Fine Wine be a Better Investment than Property?

While Chablis declared 2021 to be a ‘complicated’ year, 2022 has proven to be a real contrast, with the Chablis Commission having declared this year’s harvest to be a healthier and overall higher-yielding one.
Paul Espitalié – president of the Chablis Commission – commented that 2022 was a much more dynamic vintage when compared to 2021, as the years before it had ushered in ‘challenges for winemakers in Chablis with the changing and unpredictable climate’.
Many winegrowers in Chablis rejoiced after the harvest this year as yields were plentiful and almost up to the maximum amount permitted. Because of this, the commission is hopeful that the region will be able to make up some lost ground with regards to volumes for export markets, where the UK still holds the top spot.
Espitalié commented that: ‘The UK continues to be our most important export market and we believe a key element to the continuing success of Chablis wines’. He also added that one of the commission&#8217;s main focuses is to increase consumer awareness of both Petit Chablis and Chablis wines.
‘These appellations have just as much to offer the market, particularly in the current financial climate in terms of offering great value wines,’ he said.
The 2022 harvest’s wines will be available in the UK shortly. Over the course of a year, a total of 3.8 million bottles were sold in the UK in 2021 &#8211; 2022.
Looking ahead, 17% of all Chablis vineyards are currently 100% organic and the subregion is also on track to hit the Burgundy-wide target of becoming carbon neutral by 2035. The aim of these initiatives is to improve the vineyards’ health and protect the local industry for the years to come.
Read more about the potential of <a href="https://winecap.com/news/the-2022-burgundy-wines-real-potential" target="_blank" rel="noopener">Burgundy’s 2022 harvest here</a>.

Chablis Commission Pleased with 2022 Harvest

Our Insights from leading Bordeaux fine wine producers report is now available to download. This report is the result of 32 face-to-face interviews WineCap conducted in 2022 with some of Bordeaux’s leading châteaux owners, winemakers and senior representatives. 
While global stock and bond markets have had a turbulent year, the fine wine sector has continued to perform strongly. Thanks to its low correlation with mainstream asset classes and defensive characteristics, fine wine is attracting a wider investor audience.
WineCap recently undertook research among leading fine wine producers responsible for many of the highest quality vineyards in Bordeaux. We are delighted to share some key findings, which include, wine producers’ oldest vintage and favourite year, their views on new permitted grape varieties and how they are coping with challenges such as climate change.
Despite the perception that older vintages are more desirable, it’s fascinating to find that most leading Bordeaux producers prefer wines from the last decade. Find out which vintages they mention in particular in this report. 
While six new grape varieties are now permitted to be planted in Bordeaux, to help producers adapt to climate change, Cabernet Sauvignon remains the dominant grape variety, representing 32% of the total 1,668 hectares in the region. 
A key priority for the wine producers we interviewed is to maintain the same volume to all their existing customers, while attempting to supply as much as possible to new ones. While some producers have acquired adjacent land to expand production volumes to meet growing demand, volumes can vary dramatically depending on the quality of the harvest. Managing demand expectations is therefore a key challenge and calls for a flexible approach on the part of the customer.
Download our new report to discover key insights from one of the world’s top fine wine regions.

Insights from leading Bordeaux fine wine producers

Winemakers in Champagne have written an open letter – published in Le Monde on the 6th of December – that voiced their opposition to the professional bodies’ reneging on a commitment to phaze out the use of all chemical herbicides in the region by 2025.
The date was significant: it was the day of the Annual General Meeting of the Association Viticole Champenoise (AVC). At the AGM, both the Syndicat General des Vignerons (SGV) and the Union des Maisons de Champagne (UMC) had officially announced – five years previously – that herbicides would be banned.
Jean-Marie Barillère, former president of the UMC, commented in 2018: ‘There are only two possible outcomes: either we move forwards or we are forced to move, with all the risks the latter entails in ecological terms, in terms of image and therefore in economic terms for our industry and our businesses. I prefer to forge a path towards a virtuous Champagne, rather than keep dwelling on the past.’
Maxime Toubart, president of the Syndicat General des Vignerons, also said at the 2018 AGM: ‘Our objective is, in a few years&#8217; time, to be able to talk about a 100% sustainable Champagne, that takes its commitments seriously and can be held up as an example, and which can proudly proclaim: zero herbicides.’
Despite previous assurances, in 2022, Toubart refused to add the zero-herbicide policy to the cahier des charges: the Champagne appellation’s rulebook. Because of this, the dispute between the SGV, the Association Biologique Champenoise (ACB) and a union of organic growers, has only gained momentum.
President of the ACB, Jérôme Bourgeois, commented: ‘It is unacceptable that a prestigious appellation like Champagne can even imagine walking back a core environmental promise made five years ago, especially in today’s ecological climate.’
While the main Champagne body (the CIVC) didn’t comment on the open letter at the 2022 Annual General Meeting, David Châtillon – UMC president – did speak about the importance of preserving ‘Champagne&#8217;s perceived image’. Promisingly, he also made it clear that the Champagne region is committed to its zero-herbicide pledge, although no deadline was given.
In their address, Toubert added that ‘Champagne was greener than it ever had been before.’ This was supported by Arnaud Descotes, the CIVC&#8217;s technical director, who highlighted that the new herbicide law brought in last year has restricted the number of treatments permitted, as well as which herbicides are allowed.
Whether the initial deadline to rule out herbicides by 2025 will be met remains to be seen. However, one thing is for sure, those who signed the open letter are still keeping up the pressure: ‘We, Champagne winegrowers, Champagne houses and members of cooperatives, call upon the SGV and the UMC to continue implementing their progress strategy by respecting the deadline of &#8216;Zero Herbicides by 2025&#8217;, embracing an effective and sustainable commitment of our sector, in the interests of all stakeholders in the Champagne region and our fellow citizens.’
Read more recent Champagne news: <a href="https://winecap.com/news/moet-hennessys-champagne-stocks-running-low" target="_blank" rel="noopener">Moët Hennessy’s Champagne Stocks Running Low</a>.

Champagne Producers Fight Against Zero Herbicide U-Turn

Christie’s recent Finest and Rarest Wines &amp; Spirits sale that took place in London on the 1st and 2nd of December reached over £2.12 million at auction. Lots included anniversary collections from Champagne Philipponnat and California’s Ridge Vineyards, as well as six bottles of Pétrus 2000.
The top lot was made up of six bottles of Pétrus 2000 and fetched an impressive £30,000, which was the same value as 12 bottles of Le Pin 2018. Representing Burgundy, six magnums of Georges Roumier, Bonnes Mares 2005 went for £25,000.
Other notable wine highlights in the sale included some very special lots unearthed from King’s College Cambridge’s cellars: six bottles of Château Lafite-Rothschild 1959 that raised £20,000, 12 bottles of Taylor 1948 Port that went for £11,875 and six bottles of Croft 1945 that sold for £6,875.
The London sale celebrated Ridge Vineyards’ 60th anniversary. The collection comprised wines from each of its six decades and raised a total of £117,075. Mixed lots consisted of bottles, magnums and large formats of the leading Napa producer’s most exclusive wines, offered straight from its cellars. The star expression was undoubtedly nine magnums of Ridge Monte Bello that sold for £7,500.
Another key milestone the sale paid honour to was the 500th year anniversary since April de Philipponnat arrived in Champagne in 1522. The Champagne house presented 11 lots direct from its cellars and all of them sold, raising a total of £13,763. Particular highlights included three magnums of Clos des Goisses L.V. 1996.
A spokesperson from Christie’s commented that buyers from 22 countries, across five continents took part in the auction. Interestingly, millennial collectors were well represented, with 46% of new registrants being part of this demographic.
Read more about the recent <a href="https://winecap.com/news/hospices-de-beaune-2022" target="_blank" rel="noopener">Hospices de Beaune Burgundy auction here</a>.

Christie’s London Auction Reaches Over £2.12 million

Château Mouton Rothschild has unveiled its 2020 label by Scottish artist Peter Doig. The renowned figurative painter settled in Trinidad in 2002 and divides his time between there and Scotland. Doig is the first British artist to have been commissioned to paint this leading Bordeaux château’s label since Lucien Freud in 2006. Other famous British contributors include (formerly) Prince Charles in 2004 and Francis Bacon in 1990. 
The initiative to invite an artist to adorn the Château Mouton Rothschild bottle label with a painting first began in 1924 with the poster artist Jean Carlu. 
The 2020 label is of a dreamlike scene showing red grapes growing under the light of a full moon with workers in the vineyard. Doig has drawn parallels with other renowned artists such as van Gogh, Bacon and Cézanne who have all painted farm or vineyard workers. The main figure in the centre of the piece – Emheyo Bhabba – is one of Doig’s close connections and muses. A Trinidadian cuatro player, Emheyo has previously performed in one of the artist’s previous exhibitions in Paris using this four string guitar.
‘The painting shows something of what goes on behind the scenes in the production of wine, what happens offstage, as it were’, commented Doig. ‘It’s a sort of ode to workers, to all those involved at the various stages of making a wine before it’s finally bottled. It’s a dream with a romantic streak, as if someone spontaneously decided to sing in the vines. It’s a moment of poetry, where you can take your time. It’s neither really day nor really night, but rather something in between, between waking and sleeping. It is possible to see it as a progression, a dream journey in the world of the harvest.’
Commenting on this new label, Julien Beaumarchais de Rothschild said: ‘We wanted an artist who uses canvas and pictorial material to express figurative subjects.’ ‘Unrivalled as a colourist, Peter Doig focuses entirely on painting and has become one of his generation’s foremost exponents of the discipline, holding exhibitions all over the world. There is something very special about his technique and his universe that sets them apart in contemporary figurative art. His subjects are very varied, his painting resists any classification: he has succeeded in creating his own, inimitable world.’
Take a closer look at the <a href="https://www.chateau-mouton-rothschild.com/label-art/discover-the-artwork" target="_blank" rel="noopener">2020 label and at previous years’ here</a>.

2020 Château Mouton Rothschild Label Unveiled

Moët Hennessy’s CEO has commented that due to high demand from affluent buyers in the run up to Christmas, its Champagnes are ‘running out of stock’.
Philippe Schaus, Moët Hennessy’s CEO, spoke to Bloomberg Television and said that the French luxury company – that owns top Champagne brands including, Dom Pérignon, Krug, Moët &amp; Chandon and Veuve Clicquot – was ‘running out of stock’ of some of its bubbly. This is mainly due to Covid rules having been relaxed and more people socialising.
‘As people are coming out of Covid there’s been pent up demand for luxury, enjoyment and travelling,’ Schaus commented.
Schaus didn’t elaborate on which Champagnes were running low, or hint at what the state-of-play is with specific brands&#8217; stock levels.
Louis Vuitton Moët Hennessy (LVMH) shared last month that its wine and spirit divisions had delivered double-digit revenue growth in Q3 of this year. Still wines and Champagne were the best performing categories. 
The luxury conglomerate announced that sales had risen ‘sharply’ this year in Europe, the United States and Japan. The two main drivers of this growth can be attributed to international travel resuming after the pandemic, as well as ‘solid demand’ from consumers.
On the subject of the strength of the US dollar in the market, Bloomberg made the point that strong growth might simply have been because US shoppers were able to take advantage of this by buying luxury items in Europe. However, Schaus indicated that there is still uncertainty out there due to rising inflation. It’s possible that some products will go up in price due to the rising cost of raw materials. 
Find out more about Dom Pérignon’s new P2 2004 release in <a href="https://winecap.com/news/dom-perignon-2004-plenitude-2" target="_blank" rel="noopener">our recent news article</a>.

Moët Hennessy’s Champagne Stocks Running Low

Each year since 1859, the Hospices de Beaune has taken place on the third weekend in November. It’s the world’s most famous charity wine auction that happens in the heart of Burgundy’s Côte d’Or: the town of Beaune. Christie’s auction house had organised the annual event since 2005 and it is undeniably the key occasion in any Burgundy lover’s calendar. However, it bounced back last year with a physical auction (2020 was virtual due to Coronavirus) and with a new auction house at the helm too: Sotheby&#8217;s.
<h2>The History of the Hospices de Beaune </h2>
The Hôtel Dieu (God’s House) was built in 1443 by the Chancellor of the Duchy of Burgundy Nicolas Rolin and was originally a charitable hospital. It was founded to house sick Burgundians and help them recover there. The auction was first created in order to raise funds to support the Hospices’ benevolent works. Today, it is no longer a hospital, nor are any wines made there as a new winery was constructed in 1994. However, the funds raised from the auction continue to support those who work in the vineyards. Even those who may not be familiar with the auction might just recognise the eye-catching roof tiles of the Hôtel Dieu that shimmer in the Côte d’Or sunlight.
<h2>The 2022 Wine Auction</h2>
This year’s 162nd edition of this prestigious wine auction will take place on Sunday the 20th of November. Sotheby’s has announced that it is set to be one of the largest auctions in its history, with a total of 802 barrels from the 2022 vintage that hail from all of the 51 cuvées.
The auction will be made up of 620 barrels of red wines and 182 barrels of white wines from 60-hectares of holdings belonging to the Hospices which are in their second year of organic conversion. Two new cuvées that are included are the Corton Grand Cru, Cuvée Les Renardes and Beaune Premier Cru, Clos des Mouches, Cuvée Hugues et Louis Bétault.
Each year the auction features a special charity barrel – the Pièce des Présidents – (the Presidents’ barrel). This year, the selected charity barrel is a Corton Grand Cru, in honour of Louis Fabrice Latour, former head of Burgundy négociant Maison Louis Latour, who passed away in September. 
The proceeds from this charity lot will help support the Princesse Margot Association that helps children with cancer and the World Vision Organisation that comes to the aid of vulnerable children.
The 2021 auction, which was run by Sotheby’s for the first time, raised  €12.6 million in total, with a record €800,000 solely for the Presidents’ barrel.
Read more about <a href="https://winecap.com/news/the-2022-burgundy-wines-real-potential" target="_blank" rel="noopener">this year’s Burgundy vintage here</a>.

Exterior of the Hotel Dieu in Beaune with the sun falling on the roof's tiles

Hospices de Beaune 2022 Wine Auction

Dom Pérignon is launching its new 2004 Vintage Plénitude 2 (P2) Champagne this month in Hong Kong where the prestigious Champagne house has also announced its brand new member of the Hong Kong Dom Pérignon Society.
The Plénitude 2 wines represent the Champagne being ‘elevated to its second life’. With ‘close to 15 years of slow transformation in the cellars’, the wines take on a new ‘vitality’ with this extra maturation.
This launch focuses on the 2004 vintage, a year which the maison commented on as being ‘a year of renaissance and calm’. While August was cooler than normal, the weeks that superseded it brought a dry heat that allowed the vines to grow the ripest and fullest fruit.
The house has now released its tasting notes for the new 2004 expression which has some 18 years of age. On the nose, expect ‘citrusy notes of pink grapefruit and blood orange, which gently cede to figs’. There’s also plenty of brioche and roasted nuts on the palate with this new release ending with an elegant finish.
William Kelley at <a href="https://www.robertparker.com/wines/KQCkAmJg8nEjMiufD/moet-chandon-dom-perignon-p2-2004#professional-notes" target="_blank" rel="noopener">Wine Advocate</a> awarded this new 2004 vintage 95 points and proclaimed that it is ‘drinking beautifully on release’.
The Dom Pérignon Society is a global network of top chefs and proponents whose main focus is on Plénitude 2. The newest member of this elite group, which comprises 64 global chefs and restaurants, is Chef Julien Tongourian who works at Hong Kong’s L’Atelier de Joël Robuchon.
Tongourian will now join his two fellow Hong Kong counterparts: Chef Maxime Gilbert of two Michelin-starred Écriture and Chef Richard Ekkebus at Amber at Landmark Mandarin Oriental which also has two Michelin stars.
To launch the 2004 Dom Pérignon P2, each of the three Dom Pérignon Society Members in Hong Kong have created a special menu to accompany this new Champagne release. Each menu will represent an interpretation of a key moment in each of the Chefs’ careers. The menus are available now at the above three Hong Kong restaurants for a limited time.
Read more news from the Champagne world in this recent article about <a href="https://winecap.com/news/pinault-familys-new-merger" target="_blank" rel="noopener">Champagne Henriot&#8217;s merger</a>.

Dom Pérignon Reveals the 2004 Plénitude 2

The greatest risk for many investors today is – undoubtedly – the climate crisis. Each year the planet warms by 0.018 degrees Celsius[1]. And the past six have been among the hottest since records began. The resulting floods, fires and changing biodiversity are impacting nearly all asset classes and investment types. By 2050, climate change is anticipated to restrict global GDP by 14%[2].
For investors in fine wine, the rising heat could signify the end of an era for some of the greatest flavours, adding further scarcity to valuable bottles. On the other hand, the changing temperatures could offer interesting opportunities elsewhere.
In this article, we’ll uncover the major threats and opportunities for fine wine investors.
<h2>Scarcity will make much-loved bottles more valuable</h2>
Vineyards across Southern Europe and wine regions of North America are facing an uphill battle trying to mitigate the effects of climate change. In August 2022, an unprecedented hailstorm tore through Châteauneuf-du-Pape vineyards in France. The 120 mile-per-hour wind destroyed up to 90% of the vines in some of the most celebrated plots. So extreme was the storm that one vineyard owner described the scene as &#8216;completely shredded&#8217; and &#8216;not a leaf is left'[3].
On the other end of the spectrum, extreme heat waves combined with drought in the summer provoke catastrophic forest fires. While only a small number of vineyards are caught up in the blaze, the resulting smoke can disrupt the delicate flavours and quality of the wine. Smoke taint – the ashy taste that lingers – can render entire harvests useless, leaving assets stranded. Even prized and <a href="https://winecap.com/news/heatwave-provokes-bordeaux-fires" target="_blank" rel="noopener">world-famous regions like Bordeaux</a> are feeling the painful financial impact.
It seems inevitable that many of the most-loved wines will become less and less available in the future. What this means for investors is that already-rare bottles are likely to become even more scarce and sought-after. Fine wine is already a limited and depleting asset, which climate change exacerbates. What’s more, as hungry new collectors enter the market, demand could even further outstrip supply, further raising the value of fine wine.
What’s more, according to 2021 data from Knight Frank, the average fine wine investment has returned a staggering 127% over ten years. Sticking to the strategy almost always pays off.
<h2>New flavours may be hard for investors to stomach</h2>
Even for regions without droughts or forest fires, climate change can seriously impact the flavour of wine. This is because the lack of water irrigation, combined with heat waves creates more sweetness and less acidity in the grapes. To avoid the wine becoming too sweet, producers may need to <a href="https://winecap.com/news/bordeauxs-earliest-ever-harvest" target="_blank" rel="noopener">harvest early</a>, which risks missing out on characteristic and valuable secondary flavours.
Not only could iconic wines now start to lack their defining volume, but the added sweetness could mean different varieties taste more alike. For wine lovers, who may enjoy certain brands or pride themselves on detecting notes, this development could be hard to stomach. There is a serious investment risk that future bottles could lose value, compared to their ancestors.
To avoid this cultural and financial damage, some regions are now lifting regulations to allow irrigation. In August 2022, for example, the Institut National de l’Origine et de la Qualité gave <a href="https://winecap.com/news/3-bordeaux-appellations-can-irrigate" target="_blank" rel="noopener">special dispensation for three sites in Bordeaux</a> to water their vines. What this means for investors is still unclear. Depending on the success of regulations and irrigation systems, future harvests may yet retain their distinctive taste and value.
Another intriguing development triggered by climate change is the renewed focus on hybrid grapes. As famed vineyards look to adapt and mitigate against extreme weather, producers are working side-by-side with scientists to create more resilient grapes. While many critics remain sceptical, hybrid grapes could help vineyards restore some of their former glory..
<h2>Exciting investment opportunities are entering the scene</h2>
There are not many silver linings to the catastrophic climate situation. However, for investors in fine wine, there is a unique and exciting opportunity to buy new varieties early. As the planet warms, new terrains are opening, in previously unthinkable places.
Incredibly, vineyards are popping up in the UK, Belgium, Norway, and Sweden. In the UK, the wine real estate market is enjoying unprecedented growth, with land selling for £25,000 per acre[4]. English land dedicated to winemaking has more than doubled in the past eight years and looks set to continue[5]. As increasing numbers of producers and investors snatch up these pockets of land, it seems likely that the British wine scene is about to mature. Sparkling wines in particular, such as those produced in Sussex are exploding in popularity, with some critics describing the taste as comparable to Champagne. As of July 2022, sales of English and Welsh wine have surged by 69% from 2019[6]. Whether this boost will translate over to the fine wine market has yet to be seen, but with the warmer climate, British bottles could prove to be an interesting investment opportunity.
<h2>Vineyards with a sustainable focus look promising</h2>
Of course, the impacts of the climate crisis go far beyond the physical weather changes. Consumers are increasingly looking at the sustainability of their products too and thinking about how their money affects the planet. According to 2022 research, 48% of US alcohol drinkers say that they’re more likely to buy bottles if they see the company has sustainable or environmental initiatives[7].
In many ways, <a href="https://winecap.com/learn/5-ways-fine-wine-investments-good-for-environment" target="_blank" rel="noopener">fine wine investments are already good for the environment</a>, which is good news for the market. And it seems that those vineyards with extra sustainable initiatives in place could be even better positioned to capitalise on this trend.
&nbsp;
[1] Source: <a href="https://www.visualcapitalist.com/global-temperature-graph-1851-2020/" target="_blank" rel="noopener">Visual Capitalist</a>
[2] Source: <a href="https://www.swissre.com/risk-knowledge/mitigating-climate-risk/net-zero.html" target="_blank" rel="noopener">SwissRe</a>
[3] Source: <a href="https://www.winespectator.com/articles/tornado-and-hail-devastate-famed-chateauneuf-du-pape-vineyard" target="_blank" rel="noopener">Wine Spectator</a>
[4] Source: <a href="https://spearswms.com/private-equity-investment-growing/" target="_blank" rel="noopener">Spears Wealth Management</a>
[5] Source: <a href="https://winegb.co.uk/2022/06/17/uk-wine-industry-sees-a-boom-in-sales-as-wine-drinkers-get-a-thirst-for-english-wines/" target="_blank" rel="noopener">Wine GB</a>
[6] Source: <a href="https://winegb.co.uk/2022/06/17/uk-wine-industry-sees-a-boom-in-sales-as-wine-drinkers-get-a-thirst-for-english-wines/" target="_blank" rel="noopener">Wine GB</a>
[7] Source: <a href="https://www.theiwsr.com/key-trends-driving-the-global-beverage-alcohol-industry-in-2022/" target="_blank" rel="noopener">IWSR</a>

Fire in forest outside Bordeaux as viewed from the water

How Climate Change Affects the Value of Fine Wine

The US buyer whose recent purchase of Château Lascombes – that topped the list as the most expensive acquisition in the Médoc ever – has been revealed as Lawrence Family Wine Estates.
This is the US investor’s first acquisition in Bordeaux and, indeed, its first ever purchase in Europe. The family’s existing portfolio of brands include sought-after Napa names such as Heitz Cellars, Burgess and Stony Hill Vineyard.
While the full details of the sale haven’t been disclosed, it is a strategic and important one. Château Lascombes is a leading Second Growth located in the Margaux appellation. This top estate rubs shoulders with the four other leading Margaux châteaux including, Châteaux Rauzan-Ségla, Rauzan-Gassies, Brane Cantenac and Durfort-Vivens. What sets Lascombes apart is its size: the estate is the largest in the appellation and spans just over 110 hectares with an additional 10 hectares in neighbouring Haut-Médoc.
The French press reported the acquisition as the largest sole financial transaction in the Médoc’s history. However, what is interesting from the Lawrence Family Wine Estates’ press release is that, and there is little detail, a minority stake in Château Lascombes is to continue to be held by its previous owners, Mutuelle d’Assurance du Corps de Santé Français (MACSF)
Since its foundation in the 17th Century, the estate has changed hands a number of times. Most recently, in 2001, the USA&#8217;s Colony Capital bought it for $67 million and then sold it in 2011 to MACSF for an estimated €200 million.
Commenting on its recent acquisition, Gaylon Lawrence, owner of Lawrence Family Wine Estates’, said: ‘We are honoured to become the new stewards of such a historical estate. This Château has some of the greatest vineyards in Margaux and our family looks forward to caring for Château Lascombes for many generations to come’.
Currently, Lascombes represents great value when compared to other Second Growths. Its average price on <a href="https://winecap.com/wine-track" target="_blank" rel="noopener">Wine Track</a> is £689, compared to Château Cos d&#8217;Estournel at £1,580, Château Montrose at £1,300 and Château Léoville las Cases at £1,980. Could this new purchase and the recent investment in new winemaking facilities be the beginning of a change in its price point, just like the ones we&#8217;ve seen in recent years at Châteaux Figeac and Canon?
Discover the other high profile acquisitions in the world of fine wine <a href="https://winecap.com/news/increased-global-demand-for-fine-wines" target="_blank" rel="noopener">in our recent article</a>.

Exterior of Chateau Lascombes from the vineyard

US Buyer Acquires Bordeaux’s Château Lascombes

One of Burgundy’s most sought-out producers is Domaine de la Romanée-Conti (DRC). It was the Benedictine monks who were the first to recognise the Côte d’Or’s potential as a winegrowing area. They divided up and organised the parcels of land that produced the finest grapes. 
This piece of land was originally called ‘Le Cloux des Cinq Journaux’, then ‘Le Cros de Cloux’. After changing ownership many times after the monks tended the vines there, the plot was renamed as ‘La Romanée’ by the Croonembourg family. However, it wasn’t until 1760 that this legendary site was given its name that remains to this day. Louis-François of Bourbon – the Prince Le Conti – named it ‘Romanée-Conti’ when he purchased the 4.46 acre plot.
It is rumoured that the prince acquired the land as he discovered that his rival – Madame de Pompadour – who was also vying for the affection of the king, Louis XV, planned on buying the vineyard. The prince hired an agent to carry out his wishes and hoarded all the domaine’s wines for himself, throwing elaborate parties for his distinguished guests.
Domaine de la Romanée-Conti’s wines are some of the most eye-wateringly expensive in the world. Even having the means to purchase them doesn’t necessarily translate into being able to buy them as production levels are so low that only approximately 500 cases of La Romanée-Conti are made each year.
One villain – having discovered just how much the wines were retailing for – hatched a plan in 2010 to hold DRC’s co-owner and head winemaker, Aubert de Villaine, to ransom.
Having made detailed drawings of the vineyard and, shockingly, having poisoned two of DRC’s vines with herbicide already, the crook sent a ransom letter, addressed to Villaine. In it, they demanded €1.3 million from the estate, otherwise they would poison the remainder of the historic vines. 
It transpired that the culprit wasn’t as cunning as you’d have thought. Villaine enlisted the help of private investigators who delivered the ransom money to the specified location and a certain Jacques Soltys retrieved a parcel full of false notes and was met by police who were lying in wait.
After such an ordeal, things returned to normal at the estate. The grapes were picked, fermented and transformed into the 2010 vintage that, unsurprisingly, was proclaimed to be one of the all-time greatest years. 
Search for all of DRC’s wines and find out their performance on <a href="https://winecap.com/wine-track" target="_blank" rel="noopener">Wine Track</a>.

The DRC Ransom Plot

As a perfect storm of pandemics, war, inflation, climate change and unsteady politics collide, many investors are feeling the impact in their portfolios. With currencies, bonds and even equities zig-zagging downwards, it can be a stressful time.
For investors in fine wine, however, the tumultuous environment provides an opportunity not just to preserve wealth but to enhance it. In this article, we’ll uncover three essential rules to help maximise returns and avoid pitfalls.
<h2>1. Avoid emotional investing with a steadfast strategy</h2>
While most wine investors are deeply passionate about the industry, for the best returns it’s important to avoid emotions when trading.
When an asset is plunging, many investors fear that it will lose even more value unless they sell quickly. This reaction can lead to terrible investment decisions, like selling at the lowest possible prices. Likewise, when other assets are growing, many investors want to jump on the bandwagon to boost their returns. This fear and euphoria style is known as “emotional investing” and it costs investors around 3% of their returns each year[1]. During high-stress periods, like recessions or market downturns, emotional investing losses can increase to 6% or 7%[2]. Market noise and herd behaviour can ramp-up the emotional pressure exponentially.
To avoid suffering from needless losses, investors should try to stay cool when a market storm is brewing. In the words of world-leading investor, Warren Buffet, “To be a successful investor you must divorce yourself from the fears and greed of the people around you, although it is almost impossible.” Experts agree that the best way to do this is to create a risk-adjusted strategy, diversify and – no matter how you may be feeling that day &#8211; don’t deviate from the plan.
It can also help to remember that investments in fine wine have proved to be resilient against market shocks over the long-term. The Liv-ex Wine 1000, for example, has grown in value by 50.8% over the past five years. And since its inception in 2004, prices are up nearly five-fold.
<img loading="lazy" class="aligncenter wp-image-1075 " src="https://wp.winecap.com/wp-content/uploads/2022/10/LivEx-1000-since-2004-375x248.png" alt="Graph showing the Liv-Ex 1000 growing since 2004" width="572" height="378" srcset="https://wp.winecap.com/wp-content/uploads/2022/10/LivEx-1000-since-2004-375x248.png 375w, https://wp.winecap.com/wp-content/uploads/2022/10/LivEx-1000-since-2004-768x508.png 768w, https://wp.winecap.com/wp-content/uploads/2022/10/LivEx-1000-since-2004-1536x1017.png 1536w, https://wp.winecap.com/wp-content/uploads/2022/10/LivEx-1000-since-2004-2048x1355.png 2048w, https://wp.winecap.com/wp-content/uploads/2022/10/LivEx-1000-since-2004-1200x794.png 1200w, https://wp.winecap.com/wp-content/uploads/2022/10/LivEx-1000-since-2004-1980x1310.png 1980w" sizes="(max-width: 572px) 100vw, 572px" />
Source: <a href="https://app.liv-ex.com/#/analysis-tool/indices-explorer/LX1000" target="_blank" rel="noopener">Liv-ex</a>
What’s more, according to 2021 data from Knight Frank, the average fine wine investment has returned a staggering 127% over ten years. Sticking to the strategy almost always pays off.
<h2>2. Remember fine wine can be a useful shield in recessions</h2>
It can be easy to get caught up in the mayhem of the outside markets, especially when there is so much noise and uncertainty. But investors should remember that fine wine is an alternative asset – and so it’s unlikely to be impacted.
Alternative assets are investments which derive their returns away from the public stock markets. Many will even increase in value during recessions. For example, while stock markets tumbled during the pandemic, fine wine enjoyed significant growth. Over the past two years, the Liv-ex Fine Wine 1000 has performed exceptionally well, delivering returns of 34.9%[3].
Other alternative assets include crypto assets, private equity, private debt, derivatives, collectables and precious metals like gold. Examples of less mainstream assets include <a href="https://winecap.com/learn/7-under-used-alternative-investments" target="_blank" rel="noopener">litigation finance, art, domain names, whiskey, comic books, music royalties and of course, fine wine</a>. These investments can help shield investors’ wealth from market shocks.
At the high-end, fine wine derives its value from two key streams: intrinsic factors and a self-contained marketplace.
Intrinsic factors include things like the quality of the vineyard, year of production, storage, or label. While the self-contained market is made up of a niche group of collectors and investors. These are often extremely wealthy and passionate people, who are probably less affected by inflation or interest hike scares. It’s also a global market, rising above any one region.
One of the superpowers of fine wine is that it’s a <a href="https://winecap.com/learn/how-does-fine-wine-react-in-a-recession" target="_blank" rel="noopener">famously recession-resistant asset</a>. During market downturns, it can be helpful to have a few premium bottles in a wealth portfolio.
<h2>3. Take advantage of fine wine’s inflation-shielding properties</h2>
Across the world – and especially in the UK – inflation is reaching record highs. In September 2022, the Consumer Price Index (a measurement of the change in prices) hit a whopping 8.8%[4]. What this means for investors is that debt, cash, and cash-like assets will erode in value faster than normal. But that’s not all.
To slow the economy and prevent lenders from abandoning their investments, central banks usually raise interest rates too. This can have a ripple effect across the markets, sometimes causing businesses to buckle and mortgages to falter. Many of the traditional “60% equity, 40% bonds” investment portfolios may suffer from losses during these turbulent times. Fine wine, however, is different.
This is because the value of fine wine &#8211; unlike debt, equity, and even property – is not directly impacted by inflation. As a sought-after and tangible asset, fine wine retains its worth. This makes it an excellent diversifier for investors, who are looking to <a href="https://winecap.com/learn/is-fine-wine-inflation-proof" target="_blank" rel="noopener">shield their wealth from inflation</a>.
<h3>The fine wine market is over-brimming with potential</h3>
The fine wine market is an exciting and vibrant space. Filled with passionate investors and recession-resistant bottles, it’s over-brimming with opportunities.
If you’re interested in finding out more about how you can diversify your wealth and shield against inflation, we’d love to hear from you. We offer <a href="https://winecap.com/start-investing" target="_blank" rel="noopener">complimentary 30-minute consultations</a> where you can ask questions and discover more.
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[1] Source: <a href="https://www.ft.com/content/ad548fde-7ee2-42e4-89d7-97cbef068c56" target="_blank" rel="noopener">Oxford Risk and Financial Times</a>
[2] Source: <a href="https://www.ft.com/content/ad548fde-7ee2-42e4-89d7-97cbef068c56" target="_blank" rel="noopener">Oxford Risk and Financial Times</a>
[3] Source: <a href="https://app.liv-ex.com/#/analysis-tool/indices-explorer/LX1000" target="_blank" rel="noopener">Liv-ex</a>
[4] Source: <a href="https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/september2022" target="_blank" rel="noopener">UK ONS</a>

3 Rules for Fine Wine Investors During Market Turbulence

Global wine sales are on the up as large retail outlets in Asia and the USA have begun purchasing a wider array of sought-after fine wines and distributing and selling them throughout their sites.
In Asia, South Korea’s Lotte Department Store has, according to local news outlets, started hiring world-class sommeliers who are buying fine wines from traditional wine regions. What’s more, its sommeliers are curating these selections to offer a point of difference to the wines usually available to buy on the domestic market. With mid-priced wines having had to make way for more premium ones, the department store chain announced that its wine sales grew over 20% in September. 
Shinsegae Property, the property arm of the Korean-based luxury company, <a href="https://winecap.com/news/shafer-vineyards-buys-stags-leap-district-vineyard" target="_blank" rel="noopener">purchased Napa’s Shafer Vineyards</a> in February earlier this year, as well as  the nine-hectare Wildfoote Vineyard in the Stags Leap District of Napa Valley in August. Shinsegae’s aim is to supply fine wines from boutique producers to its Shinsegae Department Store.
Similarly, the Hyundai Department Store has created Vino H, with the objective of sourcing, importing and distributing premium organic wines from around the globe especially for the South Korean market. 
According to a new report created by Rabobank, it predicts that super premium wines in the USA should weather a recession. Stephen Rannekleiv – Rabobank’s global strategist for beverages – commented that while his ‘expectation is that demand for super premium brands will soften notably in Q4 and turn noticeably negative in 2023 … we believe that the long-term growth trend of super premium brands remains intact.’
Rannekleiv also highlighted that, in the USA, merger and acquisitions have been rapidly taking place and, for the most part, this is in the premium tier. Some of the recent acquisitions include <a href="https://winecap.com/news/lvmh-buys-top-californian-winery-joseph-phelps" target="_blank" rel="noopener">LVMH buying Joseph Phelps Vineyards</a> and Treasury Wine Estates&#8217; purchase of Frank Family Wines. 
With the global appetite for fine wines accelerating, more and more corporations are on the lookout to purchase these highly sought-after wineries and vineyards. In the USA, it’s rumoured that the amount paid to acquire estates’ recently has been incredibly high.
Want to learn more about the growing US market? Read our <a href="https://winecap.com/learn/united-states-report" target="_blank" rel="noopener">United States Report</a> to find out the top regions, producers and wines to look out for.

Increased Global Demand for Fine Wines

It’s impossible to know how exactly any asset – including fine wine – will react in a recession. Commonly defined as two consecutive quarters of shrinking Gross Domestic Product output, recessions can have many different causes and implications for the investment markets.
Fine wine, however, has a fascinating trend when it comes to economic downturns. Its characteristics make it a uniquely recession-resistant investment.
In this article, we’ll uncover some examples, and explore how the characteristics of fine wine make it <a href="https://winecap.com/news/fine-wine-investing-during-market-volatiliy" target="_blank" rel="noopener">such a useful asset during turbulent times</a>.
<h2>A track record of performing well in recessions</h2>
Throughout history, as stock markets plummet, fine wine has tended to preserve or even grow in value.
For example, during the COVID-19 pandemic, the Liv-ex Fine Wine 100 index grew in value every month from June 2020 until June 2022. As stock markets around the world tumbled and economies cascaded into recession, the value of fine wine grew over 36%[1].
We saw a similar turn of events with the 2008-09 Financial Crisis. Between August 2008 and February 2009, prices in the S&amp;P 500 index nose-dived by 52%[2]<a href="#_ftn1" name="_ftnref1"></a> &#8211; the largest drop since World War II[3]. By contrast, after a brief dip, the fine wine market began rallying in November 2008. The positive performance of the Liv-ex market lasted until May 2011 and returns ballooned by 70%[4].
Throughout history, analysts have noticed this fascinating correlation. Fine wine and drinkable assets in general seem to be recession-resistant. Sometimes, they even flourish in these environments. So, what makes this delicious investment so robust? Experts have identified five key properties which could help to explain this fascinating success.
<h3>Characteristic 1: Tangible asset</h3>
Tangible assets – like fine wine – tend to do well in recessions, as investors look for reassurance in “real” valuables they can hold. They can also provide an <a href="https://winecap.com/learn/is-fine-wine-inflation-proof" target="_blank" rel="noopener">excellent hedge against inflation over time</a>.
Precious metals like gold, for example, tend to shine out for investors when the outside markets look gloomy. Recently, we saw this during the turbulent 2020-2022 coronavirus pandemic. On the 1st of January 2020, a kilogram of gold cost investors £36,807. By the 9th of September 2020, it had rocketed to £48,151, a 31% increase[5].
Another tangible asset is property. While there have been government stimuli such as Stamp Duty cuts at play, we can still infer that people tend to veer toward physical property or “real” estate during a recession. For example, the average cost of a UK home was £247,000 in January 2020[6], by July 2022, this rose to £292,000[7].
Because fine wine is a physical asset it can be extremely reassuring for investors. What’s more, as it is a scarce asset, with each vintage diminishing over time, it usually grows in value.
<h3>Characteristic 2: Scarcity</h3>
Owning something rare has always been appealing to investors. And when the object is depleting a little more every day, it can become even more precious. Fine wine certainly falls into this category, as a limited number of bottles are produced each year and then slowly consumed.
What’s more, investors in fine wine tend to be passionate. They care deeply about what they’re buying, so unlike many antiques or other collectables, the value isn’t just theoretical. Fine wine investors are often willing to pay a premium for sought-after vintages. If the bottle is rare enough, it can even venture into hundreds of thousands of pounds at auction.
Scarcity – when demand far outstrips supply – is one of the major characteristics of fine wine. And it could be part of the reason why the asset tends to shrug off recessions. Regardless of the stock market outside, when a bottle is deeply sought-after it remains valuable. <a href="https://winecap.com/learn/how-climate-change-affects-value-of-fine-wine" target="_blank" rel="noopener">As vineyards are increasingly grappling with the logistics of climate change</a> these bottles may become yet more scarce.
<h3>Characteristic 3: Edible asset</h3>
Edible assets such as food staples and alcohol tend to remain strong, especially in recessions. Even when consumers tighten their purse strings and steer away from luxury spending, they will still need to buy food from their local supermarket. And, when it comes to alcohol, this holds true as well. Recessions don’t stop people from drinking alcohol. Some studies even suggest that consumers ditch beer in favour of hard liquor in these tough times[8].
Fine wine is no exception. During the COVID-19 lockdown, many people were forced to create their own vacation and special occasion experiences at home, leading to a boost in fine wine sales. According to one survey cited by The Drinks Business, 73% of participants reported spending more on fine wine than at the start of the lockdown[9].
We can also see this trend in the dramatic rise of champagne sales over the COVID-19 period. Trade volumes for Magnums have particularly popped, increasing by a staggering 130% from March 2020 to June 2022[10]. This suggests that the resilience of fine wine market matches the resilience of its drinkers, people will always find a reason to celebrate … or drown their sorrows.
<a href="#_ftnref1" name="_ftn1"></a>
<h3>Characteristic 4: A self-contained market</h3>
The fine wine market is global, yet niche. In particular, the high-end rises above local and regional indices. And this could be another important factor behind its recession resistance. For example, if the FTSE-100 or S&amp;P 500 takes a tumble, the<a href="https://winecap.com/news/why-fine-wine-might-be-a-better-investment-than-you-thought" target="_blank" rel="noopener"> high-end of the fine wine market shouldn’t be impacted because it is self-contained.</a>
In an environment where so many assets and asset classes are connected to each other, this is a valuable characteristic. As the recession today thunders towards us, investors are expressing concern that traditional alternative investors are starting to behave more like mainstream assets. Cryptocurrency took a devastating blow earlier in the year, showing that in many ways it’s more sensitive and volatile than the public stock markets. And some economists are speculating that gold is also losing its sparkle as it slowly starts to mirror the wider markets.
Finding an asset with an independent self-fulfilling market is a rarity for investors and can offer exceptional diversification. <a href="https://winecap.com/learn/7-under-used-alternative-investments" target="_blank" rel="noopener">Genuinely alternative asset classes</a> are becoming harder to find.
<h3>Characteristic 5: Favourable tax</h3>
Another way that fine wine investors stay afloat during recessions is by keeping more of their returns. In the UK, for example, the drinkable asset should be exempt from Capital Gains Tax (CGT). This means that basic rate taxpayers could keep 10% more of their returns, and for higher rate payers that figure rises to 20% (after the annual exemption limit of £12,300 according to 2021/22 tax rules).
<a href="#_ftnref1" name="_ftn1"></a>
There are two main routes for fine wine investors to save on CGT. The first is if the fine wine has an expected life of fifty years or less. If so, it’s considered to be a “wasted chattel”, and is exempt. The second avenue is if the bottle is sold for less than £6,000. In this circumstance, the transaction is also outside the scope of CGT.
It’s worth noting that investors may still need to pay for storage costs, inheritance, and income tax. To find out more, download <a href="https://winecap.com/learn/fine-wine-taxation-2022" target="_blank" rel="noopener">our complimentary 2022 Guide on Fine Wine Taxation</a>. While this document is intended to be helpful, it is not advice. To find the best solution for you, speak to a tax advisor.
<h3>&#8230; Looking to get started?</h3>
If you’re interested in learning more about the benefits of investing in fine wine, <a href="https://winecap.com/start-investing" target="_blank" rel="noopener">we’re here to support you on your journey</a>.
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[1] Source: <a href="https://www.liv-ex.com/2022/08/liv-ex-august-market-report-released-5/" target="_blank" rel="noopener">Liv-ex</a>
[2] Source: <a href="https://finance.yahoo.com/quote/%5EGSPC/chart?p=%5EGSPC#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" target="_blank" rel="noopener">Data from Yahoo Finance</a>
[3] Source: <a href="https://www.investopedia.com/ask/answers/041015/what-history-sp-500.asp#:~:text=The%202008%2D09%20Financial%20Crisis%20and%20Great%20Recession&amp;text=The%20decline%20was%20the%20largest,index%20since%20World%20War%20II." target="_blank" rel="noopener">Investopedia</a>
[4] Source: <a href="https://www.liv-ex.com/2018/09/fine-wine-market-past-present-future/" target="_blank" rel="noopener">Liv-ex</a>
[5] Source: <a href="https://goldprice.org/gold-price-history.html" target="_blank" rel="noopener">Gold price</a>
[6] Source: <a href="https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/housepriceindex/january2020#:~:text=1.-,Main%20points,to%20%C2%A3140%2C000%20(2.5%25)." target="_blank" rel="noopener">ONS</a>
[7] Source: <a href="https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/housepriceindex/july2022" target="_blank" rel="noopener">ONS</a>
[8] Source: <a href="https://www.craftbrewingbusiness.com/news/drizly-examines-how-recessionary-economics-impact-alcohol-purchasing/" target="_blank" rel="noopener">Craft Brewing Business</a>
[9] Source: <a href="https://www.thedrinksbusiness.com/2021/09/fine-wine-sales-boosted-by-pandemic-research-reveals/" target="_blank" rel="noopener">The Drinks Business</a>
[10] Source: <a href="https://www.liv-ex.com/2022/06/rising-value-champagne-magnums/" target="_blank" rel="noopener">Liv-ex</a>

How Does Fine Wine React in a Recession?

Masi is celebrating a significant milestone this year: the 250th harvest from its vineyards located in the ‘Vaio dei Masi’, a small valley in the heart of Veneto’s Valpolicella Classica region in Italy. The Boscaini family has tended the vines over the centuries to create today’s world-class wines.
‘This is the story of an inseparable bond of a surname, “Boscaini” and a place name “Vaio dei Masi”, driven by the work of those same members of the family who, over the generations, have cultivated the vines, transformed the grapes into wine and marketed it. At the same time, it is fused with the events involving that original, founding vineyard, how it was acquired and later integrated into ever greater properties, how its name has marked the human and entrepreneurial path taken by my family, through to today’s Masi Agricola S.p.A.’ commented President of Masi Agricola, Sandro Boscaini.
In honour of this landmark achievement, Masi threw a spectacular event with a guestlist that included seven generations of the Boscaini family, prominent Italian winemaking figures and international press. 
<h2>Masi&#8217;s &#8216;Monument to Amarone&#8217;</h2>
While recognising its past and Masi’s forefathers, the event was also an opportunity to showcase what the company’s new headquarters will look like, its construction delayed due to the pandemic. Named ‘Monteleone 21’, this new site will also encompass its ‘Masi Wine Experience’, helping visitors connect with this heritage-rich wine brand in a very modern building ‘powered by solar panels and geothermal energy’. The drying facility will undoubtedly be its biggest spectacle, with racks reaching some 12 metres high with bunches of Corvina, Molinara, Rondinella and Oseleta grapes drying out. Masi’s managing director, Federico Girotto, proclaimed it will be ‘a monument to Amarone’.
The event culminated in bottles of the 1997 Amarone being opened, with guests toasting to both this 250-year milestone and to the company’s future 250 years, which look sure to be full of innovation.
Interested in finding out more about investment-grade Italian wines? Read our article on <a href="https://winecap.com/news/our-top-list-of-tuscan-wines-for-investmen" target="_blank" rel="noopener">Tuscan wines to invest in</a>.

Masi Celebrates its 250th Harvest

Our Q3 report, analysing the trends that shaped the fine wine market over the past three months, is available to download. The report examines the impact of currency volatility on fine wine prices, the consistent demand for Champagne, the brands on the move and the expansion of the autumn La Place de Bordeaux campaign.
The global economic slowdown intensified in the third quarter of the year, due to continued high inflation, supply chain problems and tighter financial market conditions. Contrary to the dim outlook for mainstream markets, alternative assets like fine wine performed well. The leading fine wine indices made gains this quarter, largely driven by Sterling weakness. The US Dollar hit historic highs against the pound, increasing the purchasing power of USD buyers who took advantage of the newly created opportunities.
Champagne was once again in prime focus. Its market share increased from 11.2% in Q2 to 15.8% in Q3, while its price index rose 5.4% over the past three months. It is now the best performing region over one year, outperforming even Burgundy. Bordeaux also enjoyed increased demand, particularly for ‘on’ vintages like 2009, 2010 and 2019. This autumn saw the anticipated revision of its Saint-Émilion classification, with the promotion of Château Figeac to Premier Grand Cru Classé A status. Following the announcement, many of Figeac’s older vintages like 2008 and 2013 set new pricing records.
All of the top-performing wines can be seen on <a href="https://winecap.com/wine-track" target="_blank" rel="noopener">Wine Track</a>, which helps investors track wine prices over any given period.
The past three months also welcomed many new wine releases via La Place de Bordeaux, including the 2019 vintage of the Super Tuscans Masseto and Solaia and the Napa Valley icons Cardinale and Joseph Phelps Insignia. The campaign has now expanded to over 100 wines from 32 regions across 11 countries. Our Q3 report points out some of the best value opportunities.
WineCap’s independent market analysis showcases the value of portfolio diversification and the stability offered by fine wine. Download this report for your summary of the past quarter in fine wine.

Q3 2022 | Report

The Bordeaux-based Edmond de Rothschild Heritage Group has received approval from New Zealand’s Overseas Investment Office to purchase the Akarua winery and vineyard. This takeover will enable the group to make its first organic wines.
The 52-hectare Akarua estate is located close to Cromwell in the Central Otago region. The group intends to convert the vineyard to organic viticulture. 
However, this is not The Rothschild Group’s first New Zealand purchase, it made a joint purchase in 2012 with Craggy Range of the 24-hectare Rimapere vineyard in Marlborough that is planted with Sauvignon Blanc.   
Commenting on the purchase, president of the Edmond de Rothschild Group – Ariane de Rothschild – highlighted that the Bannockburn soils were ‘on par with the Burgundy region’ and that they had the potential to create some of the world’s finest Pinot Noir.
Expanding further on the group’s strategy, she said: ‘The addition of our second New Zealand winery is part of our wider strategy to develop a portfolio of premium international wines from exceptional terroirs. Central Otago’s international reputation for Pinot Noir provides a unique opportunity for us to complete our range and move into the production of organic wines – one of the fastest growing categories.’
‘The purchase of Akarua has seen us add a winery with strong growth potential to our portfolio, expanding our Pinot Noir offering and solidifying our position as a premium producer that sells wines exclusively produced from our own vines,’ commented chairman of Edmond de Rothschild Heritage, Alexis de La Palme.
Sir Clifford Skeggs founded the Akarua estate in 1996. David Skeggs, managing director of the Skeggs Group, said of the recent acquisition: ‘It is not without sadness that we hand over the Akarua legacy to Edmond de Rothschild Heritage… But we are equally as excited to follow the brand’s future in New Zealand and overseas.’
Akarua currently produces over 60,000 bottles annually for both domestic and export markets. The wine will continue to be made and, from the 2023 vintage and beyond, certain elements of the Rothschild’s family crest will be included on the label. 
Edmond de Rothschild Heritage owns assets in wine, hotels and farming. Iconic wine brands in its portfolio include: Bordeaux’s Château Malmaison and a leading stake in Château Lafite Rothschild, Vega Sicilia in Spain and Rupert &amp; Rothschild Vignerons – with the Rupert family – in South Africa’s Franschhoek Valley.

Rothschild Group to Expand into Central Otago

While the plummeting pound may be bad news for many stock market investors in the UK, overseas fine wine collectors can pick up once-in-a-lifetime bargains. In this article, we’ll uncover why the strong dollar and weak pound represent a unique opportunity for investors in the US and Asia.
<h2>The pound has fallen, fine wine has not</h2>
To avoid dealing with burdensome conversion rates, fine wine is generally traded in sterling. Bottles from all over the world are listed and compared in British pounds on the global market.
This means that as the foreign exchange rates ebb and flow, the prices of the wine can seem more or less expensive to overseas investors. For example, on the 12th of February 2018, a bottle costing £1,000 would have set back US buyers $1,402.60. The following month, on the 12th of March 2018, the same bottle costing £1,000 would have come to $1,394.30 [1]. Usually, with stable currencies, you would expect the differences to be relatively marginal. High-end investors probably wouldn’t give too much importance to a couple of dollars difference when they are spending thousands.
Recently, however, the value of sterling has fallen dramatically against the US dollar. The pound has nose-dived to the lowest value in forty years, which is excellent news for opportunistic investors overseas. Buyers who deal in dollars can pick up exquisite wine for exceptionally low prices. On Tuesday 27th September, the same £1,000 bottle would cost US investors just $1,080. For collectors over the pond, Black Friday has come early in the wine markets.
<h2>US &amp; Asian investors surge forward</h2>
Data from Liv-ex shows that many overseas investors have already taken advantage of the plunge in prices. As the pound began to tumble on Friday 23rd September, US buyers became more active. By Monday morning, they had accounted for 39.1% of trade, more than double the previous weekend of 16.9% [2].
Investors in Asia also took part in the advantageous market. Some currencies such as the HK dollar are linked to the US dollar, so investors in Hong Kong could also ride the favourable FOREX wave. But even currencies which are not directly linked to the US currency could benefit from the low sterling.
Although the Chinese Yuan has also suffered historic lows against the US dollar recently, it’s still doing relatively better than the pound. Buying fine wine in sterling means these investors can also benefit from superior exchange rates. Over the weekend from the 23rd to the 26th of September 2022, Asian buyers also accounted for the larger share of Liv-ex trading volumes. Around 11.7% of all movements came from Asian investors in September, up from 8% in August.
<h2>More buyers are (probably) good for the market</h2>
As the old economic theory states, when demand exceeds supply, prices rise. Over the long-term, having a more varied and international group of buyers is likely to be a good thing for fine wine investors. It could lead to higher prices and more liquidity, which is almost always welcome.
As new buyers reveal themselves it will be interesting to see how they react to market events. At the time of writing, fine wine is a <a href="https://winecap.com/learn/how-does-fine-wine-react-in-a-recession" target="_blank" rel="noopener">famously recession-resistant investment</a>. This is partly because the market is niche and not susceptible to stock market fluctuations. However, if too many investors enter, seeking to shield from market shocks with short-term alternative income sources, this could reduce some of wine’s recession resistance.
Overall, however, more buyers – especially those who are less impacted by the value of the pound &#8211; are likely to bolster and raise the fine wine market.
<h2>How long will the low prices last?</h2>
It’s impossible to predict how long the weak sterling will last. What we can say with relative certainty is that the sudden drops over recent weeks have been triggered by internal political events. Specifically, the change of UK Prime Minister, radical tax plans and proposed national deficit increase have spooked investors.
On the morning of the 28th of September, the Bank of England stepped in to buy up government bonds. This saw a small uptick in the strength of the pound, which indicates that it is still possible for the pound to regain some of its power, with the right intervention. We also do not know at this stage if all of the proposed tax cuts and borrowing will go ahead. If they are abandoned, we could see the markets breathe a sigh of relief and the pound could resurface too.
For US and Asian investors looking to buy up exquisite wine at exceptional prices, there’s no time like the present. Precious bottles can also be an <a href="https://winecap.com/learn/is-fine-wine-inflation-proof" target="_blank" rel="noopener">excellent shield against inflation</a>, helping investors maintain the value of their wealth in spite of any market turmoil outside.
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[1] Source: <a href="https://www.macrotrends.net/2549/pound-dollar-exchange-rate-historical-chart" target="_blank" rel="noopener">MacroTrends</a>
[2] Source: <a href="https://login.liv-ex.com/login?state=hKFo2SB3Y2x6b1pKcEhiUXpLeHk2QlF6Q2JoWndvVTlhWjdpaKFupWxvZ2luo3RpZNkgamVaUDZhSzktUUpLdjQzV2p6MWYyM183ckNNM3h4UzajY2lk2SBqMnl5eUdMamowWjFEQWw5aHQ5MXJra2Z3Y21hdjE0OA&amp;client=j2yyyGLjj0Z1DAl9ht91rkkfwcmav148&amp;protocol=oauth2&amp;response_type=token%20id_token&amp;scope=openid%20email%20profile&amp;redirect_uri=https%3A%2F%2Fwww.liv-ex.com%2Flogin_callback%3Ftarget_url%3Dhttps%253A%252F%252Fwww.liv-ex.com%252F2022%252F09%252Fus-buying-rises-sterling-plummets%252F&amp;nonce=f6D7Z3UdL7258zshMtcBOnD9oNerNU28&amp;auth0Client=eyJuYW1lIjoiYXV0aDAuanMiLCJ2ZXJzaW9uIjoiOS4zLjAifQ%3D%3D" target="_blank" rel="noopener">Liv-ex</a>

Fine Wine & Sterling: Opportunities for Asian & American Investors

The French billionaire and luxury goods magnate, Francois Pinault, has revealed a new merger with Maisons &amp; Domaines Henriot. This deal will combine highly sought-after names in fine wine such as Bordeaux’s Château Latour, Burgundy’s Clos de Tart and Champagne Henriot all in one group.
This new group will adopt the name ‘Artémis Domaines’. With this new announcement, it was revealed that Francois Pinault will hold a 75% stake in the group, with the families behind Henriot controlling the remaining quarter.
This merger further consolidates the high-end French fine wine business. In recent years it has attracted investment from both foreign and corporate players, especially in regions such as Burgundy that historically was predominantly made up of boutique, family-run wineries. 
Brands that will now fall under Artémis Domaines include: Burgundy’s Clos de Tart and Domaine d’Eugenie – from the Pinault family – as well as Burgundy’s William Fèvre and Maison Henriot in Champagne, from Henriot. 
According to a statement, this new merger represents ‘a guarantee that a French group will ensure the long-term preservation’ of these brands and their winemaking expertise.
‘The merger of Maisons &amp; Domaines Henriot and Artémis Domaines is a wonderful opportunity to bring together the treasures of our wine heritage under the same banner,’ Francois Pinault commented.
Further afield, Artémis Domaines will also be in charge of producers including Beaux-Frères in Oregon and Eisele Vineyard in California’s Napa Valley. Pinault is 86 years-old and has an estimated fortune of over $30 billion and is also an avid art collector, counting Christie’s in the family’s holdings also. 
This move sees Pinault strengthen the group against the other major luxury player in fine wine and fashion – LVMH – which owns Bordeaux’s Château d’Yquem and Château Cheval Blanc, as well as Burgundy’s Domaine des Lambrays and the Champagne brands Krug and Dom Pérignon. Read more about LVMH&#8217;s <a href="https://dev.winecap.com/news/lvmh-buys-top-californian-winery-joseph-phelps" target="_blank" rel="noopener">recent acquisition of California&#8217;s Joseph Phelps</a>.

Pinault Family forms Merger with Maisons & Domaines Henriot

The Burgundy Wine Board (BIVB) announced that the wines from the 2022 Burgundy harvest have real ‘potential’. This vintage will be dedicated to Louis Fabrice Latour, the former president of the trade association, who passed away earlier this month.
Commenting on the recent harvest, the BIVB said that it had been ‘a pleasant surprise’ and that it was ‘a vintage of the kind we were all hoping for.’ Despite cold temperatures and frosts, the board is happy with both the quantity of grapes that will go into this year’s wines as well as their quality.
<h2>The 2022 Burgundy Vintage</h2>
The growing season began at the start of April having experienced a milder winter with less rain than usual. Temperatures dropped mid-April and two snaps of frost followed. Fortunately, budburst hadn’t taken place completely and buds were not fully exposed to the frosts, although some areas did experience small amounts of damage. 
Spring arrived and brought excellent conditions with it. Flowering took place two weeks earlier than usual which led to many commentators suggesting that the 2022 vintage could be one of the earliest ever. Thunderstorms in late June refreshed the vines but also brought some hailstorms which caused ‘significant damage’ in some areas.
Contrary to the belief that the harvest would start earlier than normal, pickers started harvesting Chardonnay on the 20th of August which is in line with previous years. It was a prolonged harvest due to the good weather which helped produce optimally-ripe grapes. 
The board agreed that this year’s grapes are ‘balanced with controlled degrees of alcohol and good acidity.’ It found that the compounds in the red grapes were ‘excellent’ which are needed for long-term ageing. The BIVB also commented that the musts of the whites and reds were ‘highly aromatic’ which is another positive sign. 
This year’s harvest is what the Burgundians had hoped for, as the 2021 vintage suffered very low yields and in turn triggered higher prices. However, 2022&#8217;s yields were still down on average.
Find out more about our initial thoughts on the Burgundy 2022 vintage <a href="https://winecap.com/news/why-the-2022-burgundy-vintage-is-looking-more-promising" target="_blank" rel="noopener">in this article</a>.

The 2022 Burgundy Wines’ Real Potential

One of the oldest wineries in Napa Valley’s Stags Leap District has appointed Ludovic Dervin as Senior Winemaker and General Manager. Christophe Paubert has managed the winery for 13 years and will retire after the 2022 harvest and return to France, his home country. Both Dervin and Paubert will work together on this year’s vintage.  
A fellow Frenchman who’s originally from the Champagne region, Dervin has been making wine in California since the 1990s. His CV boasts such prestigious wineries as Kendall Jackson’s Vérité, Hartford Court and Mumm Napa.
‘We believe Ludo’s global experience, diverse background and passion for producing world-class wines makes him an excellent choice to continue the Stags’ Leap Winery legacy,’ commented Rachel Ashley, Sr. Vice President, Supply, for Treasury Americas. ‘Christophe’s commitment to quality, authenticity and sustainability has made a profound impact on Stags’ Leap Winery and we feel fortunate that he led this historic property for many years.’
Dervin was attracted to Stags’ Leap’s signature style of winemaking in particular and commented that he’s ‘thrilled to join Stags’ Leap Winery as its newest caretaker and for the opportunity to work with a brand that is known for its refined elegance, finesse and level of traditionality that really showcases the incredible quality of the fruit.’ He also added that he’s ‘look(ing) forward to taking the leap into its newest chapter.’
Stags’ Leap Winery was established in 1893 in the eponymous Stags Leap District and continues to use traditional techniques to create estate wines from a 240-acre property situated on dark, well-drained volcanic soils. While the estate is best known for its classic Cabernet Sauvignon and Chardonnay, this authentic, time-tested brand is also admired for its expressions of Sauvignon Blanc, Petite Syrah and Viognier.
Read more about Shafer Vineyard’s recent purchase of a nine-hectare vineyard in the <a href="https://winecap.com/news/shafer-vineyards-buys-stags-leap-district-vineyard" target="_blank" rel="noopener">Stags Leap District here</a>.

Stags’ Leap Winery Appoints New Head Winemaker

Bordeaux’s Saint-Émilion Classification is reviewed each decade and the seventh edition has now been released for 2022. 
Both the wine trade and wine lovers across the globe have been expectantly waiting for this new edition as the classification has experienced unprecedented withdrawals over the past year and a half. Châteaux Angélus, Ausone and Cheval Blanc – all Premier Grand Cru Classé A – decided not to be a part of the classification over the past 14 months as they felt too much emphasis was being placed on brand building and not on the wine itself. And, in June earlier this year, Château la Gaffelière (status ‘B’) also withdrew, highlighting a concern with tasting notes it was being given.
Château Figeac has now been promoted to Premier Grand Cru Classé A status where it joins Château Pavie. There was a real sense of disappointment when Figeac wasn’t promoted in 2012 so there will be plenty of celebrations for this well earnt result. 
Châteaux Canon and Troplong Mondot have both been working hard to gain promotions, although it wasn’t to be this time round. Interestingly, there were also no demotions, leading some commentators to speculate that the commission had played it safe in order to avoid attracting any further controversy.
While there may have been withdrawals and lawsuits recently, more than 140 estates are estimated to have applied to the commission. Ten years ago there were around 90. This demonstrates the value of the classification and what it means for those fortunate enough to be included in it: the opportunity to command higher prices for their wines.  
Below you can find a full list of the producers featured in the new Saint-Émilion Classification for 2022. 
Interested in finding out more about the recent Bordeaux Blanc harvest? Read our <a href="https://winecap.com/news/bordeauxs-earliest-ever-harvest" target="_blank" rel="noopener">recent article here</a>.
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PREMIERS GRAND CRUS CLASSÉS
Château BEAU-SEJOUR BECOT
Château BEAUSEJOUR HERITIERS DUFFAU LAGARROSSE
Château BELAIR MONANGE
Château CANON
Château CANON LA GAFFELIERE
Château FIGEAC (Distinction A)
Château LARCIS DUCASSE
Château PAVIE (Distinction A)
Château PAVIE MACQUIN
Château TROPLONG MONDOT
Château TROTTEVIEILLE
Château VALANDRAUD
CLOS FOURTET
LA MONDOTTE
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GRANDS CRUS CLASSÉS
Château BADETTE
Château BALESTARD LA TONNELLE
Château BARDE-HAUT
Château BELLEFONT-BELCIER
Château BELLEVUE
Château BERLIQUET
Château BOUTISSE
Château CAP DE MOURLIN
Château CHAUVIN
Château CLOS DE SARPE
Château CORBIN
Château CORBIN MICHOTTE
Château COTE DE BALEAU
Château CROIX DE LABRIE
Château DASSAULT
Château DE FERRAND
Château DE PRESSAC
Château DESTIEUX
Château FAUGERES
Château FLEUR CARDINALE
Château FOMBRAUGE
Château FONPLEGADE
Château FONROQUE
Château FRANC MAYNE
Château GRAND CORBIN
Château GRAND CORBIN-DESPAGNE
Château GRAND MAYNE
Château GUADET
Château HAUT-SARPE
Château JEAN FAURE
Château LA COMMANDERIE
Château LA CONFESSION
Château LA COUSPAUDE
Château LA CROIZILLE
Château LA DOMINIQUE
Château LA FLEUR MORANGE
Château LA MARZELLE
Château LA SERRE
Château LANIOTE
Château LAROQUE
Château LAROZE
Château LARMANDE
Château LA TOUR FIGEAC
Château LE CHATELET
Château LE PRIEURE
Château MANGOT
Château MONBOUSQUET
Château MONTLABERT
Château MONTLISSE
Château MOULIN DU CADET
Château PEBY FAUGERES
Château PETIT FAURIE DE SOUTARD
Château RIPEAU
Château ROCHEBELLE
Château ROL VALENTIN
Château SAINT-GEORGES (COTE PAVIE)
Château SANSONNET
Château SOUTARD
Château TOUR BALADOZ
Château TOUR SAINT CHRISTOPHE
Château VILLEMAURINE
Château YON-FIGEAC
CLOS BADON THUNEVIN
CLOS DE L’ORATOIRE
CLOS DES JACOBINS
CLOS DUBREUIL
CLOS SAINT-JULIEN
CLOS SAINT-MARTIN
COUVENT DES JACOBINS

Updated Saint-Émilion Classification Announced

The Chilean fine wine ‘Seña’ has released a second label called ‘Rocas de Seña’.  This new 2020 vintage was sold via La Place de Bordeaux along with its older sibling. Both labels sold out within hours of their release on the market on the 1st of September.
Both wines hail from the same area, a remote and biodynamically-farmed estate in the Aconcagua Valley. However, the grapes that go into the blend differ in both expressions. 
Over half of Seña is made with Cabernet Sauvignon (53%), with Malbec (25%) and Carmenère (15%) in support. Petit Verdot completes the blend, adding the final 7%. However, the main grape variety in Rocas de Seña is Malbec (38%) and has no Carmenère. Syrah (25%), Cabernet Sauvignon (15%) and Grenache (14%) also feature, with Petit Verdot adding a final flourish of 8%.
Just under 3,000 cases were made of the first vintage of Rocas de Seña, that’s around half the annual production of the Grand Vin.
Seña’s 2020 vintage was released up 6.2% on 2019’s opening price and is offered at £1,029 per 12x75cl case. Rocas de Seña 2020 is being offered under half the price of the Grand Vin at £426 per 12x75cl case.
Winemaker Francisco Baettig said at a tasting in London that he wanted Rocas de Seña to have its own character which is why he selected different grape varieties.
‘I did not want to make a copy of Seña just with younger parcels (of vines), I wanted to give a personality to Rocas, which is why I used Malbec as a base instead of Cabernet and some Mediterranean varieties, with Syrah and Grenache,’ he commented.
He added that Petit Verdot’s inclusion in the blend was important in order to create ‘tension’ in the wine, which is needed in this part of Chile, as well as in the moderately hot, dry 2020 vintage.
His aim is for ‘Rocas… not to be a Cabernet-based wine – we have that with Seña, as well as Chadwick and Don Max.’

New ‘Rocas de Seña’ Label Released

Producers in Bordeaux welcomed the rain and cooler temperatures that arrived at the start of August with open arms. After six weeks of no rain, and with a prolonged heatwave, July of 2022 was announced as the driest on record since 1959.
The first white grapes of one of the key varietals that makes up the Bordeaux Blanc blend – Sauvignon Blanc – began arriving at wineries in the communes of Entre deux Mers, Graves and Pessac-Léognan from the 16th of August. The 2003 harvest that was previously considered very early, began on the 18th of August, making 2022 now the earliest ever vintage.       
The president of the Pessac-Léognan syndicate, Jacques Lurton, commented on this ‘earliest ever harvest,’ to French press agency AFP. He said that it was caused by ‘the exceptional conditions of the year that have speeded up ripening. Right now the aromatics are high in Sauvignon Blanc, making it the perfect moment to start bringing them in’.
Yields are expected to come in slightly under the 50-year average and are predicted to be between 13-21% higher than the 2021 harvest that was severely affected by frost. While there was a summer drought this year, both flowering and fruit set took place at the perfect time which meant that yields weren’t impacted too much.
The recent rain, up to 20mm in the majority of communes, has helped refresh soils and vines, as well as increasing the size of the grapes which are reportedly still some 30% smaller than usual.  
However, Bordeaux hasn’t been the only French wine region to have begun harvesting grapes early this year. The Rhône began on the 22nd of August: eight days earlier than last year. Roussillon also started picking grapes as early as the 3rd of August. Producers in both regions have expressed that, while the production levels may be down on average, they’re hopeful that great quality wines will be made.
Read more about the small but exceptional Port vintage expected in the Douro <a href="https://winecap.com/news/small-but-exceptional-port-vintage-expected" target="_blank" rel="noopener">here</a>.

Bordeaux’s ‘Earliest Ever’ Harvest

As the Port producing region of the Douro has just begun grape harvesting, producers are expecting dramatically reduced yields this vintage due to the impact of extreme heat and drought conditions that have characterised 2022. 
This year’s rainfall is more than 70% lower than the 30-year average and follows on from three years of below-average rainfall. Producers in the region are becoming increasingly concerned about this series of drier years. They are most worried about their younger vines as they are more susceptible to drought and hydric stress as the roots don’t reach as far down into the ground as those of older, established vines.
Less rainfall means reduced grape yields which in turn means higher production costs for winemakers at a time where there are other inflationary pressures at play. 
Another factor that has exacerbated the lack of rain is the combination of heat and wind. CEO at Taylor Fladgate, Adrian Bridge, commented that ‘the wind normally picks up at 6pm, but at 2pm it has been whistling up the (Douro) valley – having a hairdrier effect on the vines, so the grapes are shrinking’. He added that this has contributed to the grapes having very thick skins this year and a lot more grapes will be required to make the same quantity of Port.
‘I believe that this is going to be one of the lowest yielding harvests ever in the Douro,’ commented former chairman of Symington Family Estates, Paul Symington
However, while producers will have to wait over the coming weeks to see just how much wine it will be possible to make, there’s a sense of optimism among the Douro winemakers that this year’s vintage will turn out to be a small but exceptional one. 
Christian Seely, managing director at Quinta do Noval, commented that: ‘The occasional hot dry year is not a disaster and can produce remarkable, memorable wines: ‘45 and ‘17 had that sort of profile and both of them produced some of the most remarkable vintage Ports ever produced – and in 2017, remarkable red wines too, to my surprise’.

Small but Exceptional Port Vintage Expected in the Douro

China has suspended all imports from Australia and New Zealand, including wines, dairy products and beef, according to the country’s official logistics trade association: China Federation of Logistics and Purchasing (CFLP). The ban is set to significantly escalate tensions between China and its Pacific neighbours.
In a post by the Food Ingredients Supply Chain Association under the country’s official logistics trade association (CFLP), it announced that on the 15th of August an order had been given which requests incoming cargo wait at each port for further notice.
The news has not been officially announced by the Chinese Customs Administration, but the association highlighted that relevant organisations working in customs and logistics have already been informed.
It’s currently unknown whether this will be a temporary ban or long-term one. While the CFLP hasn’t given its reasons for the ban, it did cite Australia&#8217;s revoking of the ‘One Belt, One Road’ deal as having damaged mutual trust between the nations.
What’s made the situation even more confusing is that within just 24 hours after the CFLP published its article, it was deleted. Anyone now trying to open the WeChat post is presented with an error message that says ‘the article has been deleted by the author.’
<h3>Trade</h3>
New Zealand’s exports to China totalled US$22.83 billion in 2021 with the main products being lamb, butter and cheese.
Australia and China’s relations have been worsening since 2017. Recently, tensions were heightened due to the origin of Covid, 5G and Huawei that resulted in China imposing hefty tariffs in 2020 on Australian goods such as wine and barley.
Despite the tensions between the two nations, China is still Australia’s number one trade partner, with the Asian country having imported US$164 billion, over 40% more in value than a year ago according to China’s Ministry of Commerce.
If legitimate, the ban would be a huge blow to bilateral trade as the administration in Canberra has been in talks with the Chinese for over two years in a bid to repair relations.
What’s more, the timing couldn’t be worse as 2022 marks the 50th anniversary of diplomatic relations between China and Australia.

Australia and Chinese flags with tear in middle

China Suspends all Imports from Australia & New Zealand

In a year of drought, heatwaves and fires, producers in the three Bordeaux appellations of Pessac-Léognan, Pomerol and Saint-Émilion have been given special dispensation to water their vines. 
The lack of rain this year has been so pronounced that Météo France, the French national weather service, declared that July of 2022 was the driest on record since 1959. Irrigation is usually banned in the region from the 1st of May onwards. However, producers sent a request to the regulatory body, the Institut National de l’Origine et de la Qualité (INAO), which issued a derogation in light of the ‘extreme situation’ facing Bordeaux châteaux. Winegrowers are permitted to water their vines during times of persistent drought with permission and only if the drought ‘disrupts the good physiological development of the vine and ripening of the grapes.’ The vignerons were told by the INAO that their request was granted in this case but to use it when ‘only absolutely necessary’.
In Pomerol, the derogation states that producers must submit their proposals for irrigation two days ahead of any activity, along with the size of the vineyard area and grape varieties to be watered. Grapegrowers must also only use water from wells near the vineyard sites and not from the network.
The threat drought poses to vines, especially young vines, is hydric stress. This means that vines can’t get enough water to flourish and are unable to build up sufficient levels of sugars which delays ripening and harvest. Older vines have deeper roots which can draw water from further underground but vines aged between three to eight years old need the most attention.
The permission to irrigate vines is a much needed lifeline for wine producers this year who have had to deal with April frosts, the June hail storms, fires and a heatwave. With forest fires having started up again around Bordeaux, the region’s châteaux will be praying that the next few weeks bring cooler temperatures and long overdue rain.

3 Bordeaux Appellations Permitted to Irrigate Vines

Legendary Napa producer Shafer Vineyards has purchased a nine-hectare vineyard in proximity to its winery in the Stags Leap District from Screaming Eagle founder Arlie Jean Phillips as part of a $35 million deal.
Shafer Vineyards was acquired earlier this year by the Korean luxury firm, Shinsegae Property, and it has now purchased the nine-hectare Wildfoote Vineyard in the Stags Leap District of Napa Valley. 
The deal has been reported by various news outlets to form at least part of an overall acquisition of some 46 hectares for $35 million. 
In a statement, Shafer Vineyards said that the purchase ‘secures a key source for the winery, ensuring that winemaker Elias Fernandez will continue to select from the best-of-the-best fruit each vintage.’
Cabernet Sauvignon, Cabernet Franc and Merlot grapes are all grown in the Wildfoote Vineyard. Shafer Vineyards&#8217; President Doug Shafer commented on the sale that ‘the real winner in this is the consumer, as it gives our winemaking team the ability to choose the best possible fruit in a given vintage.’
General Manager Matthew Sharp highlighted that ‘this is a once-in-a-generation opportunity to acquire a world-class vineyard property of unequaled caliber’. He added that ‘it’s a great privilege to make this site part of the Shafer Vineyard portfolio.’
Shinsegae Property, the property arm of a Korea-based luxury company, purchased Shafer Vineyards in February earlier this year.
A historic Napa winery founded in 1972, Shafer Vineyards is one of a handful of the region’s producers that helped gain worldwide recognition for its wines.
Commenting on the sale, Doug Shafer added: ‘for those who are fans of our wines and our team, you’ll see a continuation of everything you love about the winery.’ &#8216;There may be some new things down the road that I think you will love and embrace as well.’

Shafer Vineyards Buys Stags Leap District Vineyard

Like a nervous first date wondering if they’ve been stood up, cryptocurrency has kept alternative investors biting their nails, on the edge of their seats and glancing restlessly at the door. As a decentralised asset, it shouldn’t have been impacted by rocketing inflation, rising interest rates or other market shocks. But the theory isn’t holding up. When disaster struck, crypto investors behaved in the same way as the stock markets – if anything, they panicked more. Over recent weeks, crypto enthusiasts felt their stomachs lurch as Bitcoin plummeted to less than the value of creating it [1] &#8230; It’s a punch in the face for hopeful diversifiers who turned to crypto as an alternative asset.
In this article, we’ll uncover seven fascinating and under-used diversifying investments, that truly steer clear of the market. In theory and in practice. ‘Alternative alternatives’ to inspire you as you build (or re-build) your portfolio.
<h2>1. Litigation finance</h2>
The up-and-coming investment that almost nobody has heard of. Litigation investors help people to cover the cost of their legal suit and take a share of the damages if they succeed. This type of finance has the potential to do good for society, while offering an alternative source of revenue to investors. Most recently, it’s being used in greenwashing and climate cases, so <a href="https://winecap.com/learn/5-ways-fine-wine-investments-good-for-environment" target="_blank" rel="noopener">alternative investors can help protect the environment</a> too. The downsides are that it is risky, not possible in every country and can take a while.
<h2>2. Art</h2>
An old favourite for seasoned alternative investors, but still relatively unknown in the wider world of investing. Buying art has the double advantage that you can appreciate and enjoy your investment while you own it. Many affluent investors purchase valuable art from museums, auctions and galleries. But if you’re looking for lower price tags, you could take a chance and buy from undiscovered artists directly … It’s certainly riskier, but if you have a good eye, you might just hit the jackpot.
<h2>3.   Domain names</h2>
Believe it or not, an aptly-named domain can rake in a fortune. Cars.com sold for $872 million. Carinsurance.com swept up $49.7 million. And Insurance.com went for a cool $35.6 million [2]. Not every domain name will be valuable, of course, around a third are never even used. But if you manage to buy a good one, you could reap serious rewards. Better still, this type of investment is completely uncorrelated to the stock market, meaning you can protect yourself from market shocks.<a href="#_ftnref1" name="_ftn1"></a>
<h2>4.   Whiskey</h2>
The water of life, as it’s known in Gaelic cultures, doesn’t just taste good on the lips… it can feel great on the wallet too. While whiskey may not offer the kind of eyebrow-raising returns that fine wine has, over the past years it has enjoyed a steady real return of 7.9% from 2011 &#8211; 2020 [3].
<h2>5.   Comic books</h2>
It’s hard not to smile when you imagine the likes of Wonder Woman, Spiderman, or the Joker in your portfolio. But, as well as being a passion investment, comic books have enjoyed a boost in recent years. According to one alternative investment site, ‘Comics continue to trend upwards with very little signs of the market slowing anytime soon’ [4]. Like fine wine and whiskey, these are much-appreciated collectables which become rarer over time.
<h2>6. Music royalties</h2>
Another fascinating yet little-known alternative investment is in music royalties. When investors own a share of the music rights, they should profit when the sounds are played. For example, in movies, adverts, video games and even cover songs. (Although, of course, there is always the risk that people will use the music without paying up). Investors could also pick up profits from hardware sales, such as the reproduction of vinyl disks or CDs. This is generally one for high net worth investors, as price tags can start quite high. But there are exchange platforms available for cost-conscious players too.
<h2>7. Fine wine</h2>
Our favourite alternative investment is – of course – fine wine. As well as offering <a href="https://winecap.com/learn/what-are-the-benefits-of-investing-in-fine-wine" target="_blank" rel="noopener">stable, yet strong returns of 12.6% CAGR each year</a>, it’s an excellent diversifier too. Unlike many other high-performing assets, the value of fine wine is not correlated to the stock market. Return is largely based on the vintage year, scarcity and storage, so fine wine owners have a lot more control over the value of their investment. This can help reassure investors in times of economic turmoil. What’s more, one advantage investment-grade wine has over other alternative assets is the availability of market data to analyse and a more regular marketplace. If you’re looking to bolster your wealth against market shocks, a 1-3% allocation of fine wine could help you reduce your exposure.
Finding a truly alternative investment takes time and research. Often investors will need to stray away from the beaten track. And, as we’ve seen recently, they may also need to laser through all the crypto-sphere hype too.
Call us old-fashioned, but we believe that the best alternative investments are the ones that have been around the longest. Proving themselves decade after decade, recession after recession and beyond. If you’re interested in learning more about the benefits of investing in fine wine, <a href="https://winecap.com/start-investing" target="_blank" rel="noopener">we’re here to support you</a> on your journey.
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[1] Source : <a href="https://finbold.com/bitcoin-mining-becomes-unprofitable-as-btc-price-falls-to-the-average-cost-of-mining/" target="_blank" rel="noopener">Finbold</a>
[2] Source : <a href="https://alts.co/investing-in-domain-names/" target="_blank" rel="noopener">Alts.co</a>
[3] Source : <a href="https://www.whiskyinvestdirect.com/" target="_blank" rel="noopener">WhiskyInvestDirect</a>
[4] Source : <a href="https://alts.co/category/comic-books/" target="_blank" rel="noopener">Alts.co</a>

7 Under-Used Alternative Investments

The innovative Australian producer Penfolds is pushing winemaking boundaries even further with its soon-to-be-released wine that is a blend of Bordeaux and Australian grapes.
‘Penfolds II Cabernet Shiraz Merlot 2019’ blends Bordeaux-grown Cabernet Sauvignon and Merlot grapes with Shiraz from South Australia. The project was brought to fruition through Penfold’s partnership with Thiénot, a Champagne house that owns Dourthe in Bordeaux.
Peter Gago, Penfolds’ chief winemaker, was delighted at a press conference in London with the imminent release of the new project, but highlighted the logistical problems in shipping a container of French wine to Australia where it was blended with the Shiraz. Both components were from the 2019 vintage, although the Shiraz was six months older due to its grapes having been harvested from vineyards located in the southern hemisphere.
Penfolds’ aim was to make wines sourced from around the world in its ‘house style’. Gago added that the key to making the wines was to have ‘ripe tannins from the start’. 
The wine is being released this month under the label ‘FWT’ (French Winemaking Trial), along with another expression that’s a Bordeaux blend which also forms part of the ‘Collection’. The objective behind this activity is to expand the Penfolds range while keeping its signature character.
Gago commented on this new release, saying: ‘it is done through the Penfolds lens: we are not saying the wine is better, but done in the Penfolds way.’
This is just the beginning of the pioneering Australian brand breaking new ground. One interesting future project would be a blend of Australian Shiraz with Syrah grapes from the Northern Rhône, as the Rhône is the original heartland of Syrah, better known as Shiraz in the New World. Gago confirmed that we might not have too long to wait as a ‘project with the Rhône Valley’ is in the pipeline. 
There’s certainly a lot going on at Penfolds and we’re excited to learn what the next new innovative launch looks like.
Read more about Penfolds&#8217; recent <a href="https://winecap.com/news/penfolds-to-produce-special-made-in-china-bottling" target="_blank" rel="noopener">made in China project here</a>.

Penfolds Innovates New French-Australian Blend

Our Bordeaux 2021 En Primeur Report is now available to download. Read our full analysis of the new 2021 vintage which is considered to be an approachable, good quality one that differs in style to the wines from the three previous years.
2021 was the coolest and second wettest vintage in the past decade with frosts, rain and mildew. This meant yields were down significantly in some appellations. Meticulous sorting in both the vineyard and the winery enabled producers to select only the best fruit and this created the finest wines possible. 
Critic reports suggested that quality was better than expected and there is a selection of outstanding wines on offer that will bear comparison with the very best and various châteaux have produced some of their highest ever rated wines.
Prospective buyers have been expectantly waiting for the 2021 vintage’s scores and prices. Release prices were expected to be lower than those of the top rated trilogy of 2018, 2019 and 2020 as this is a different style of vintage from a challenging year. However, there were economic reasons that could justify price rises such as inflation, wine shortages and the US dollar’s appreciation against the Euro.
In general, wines have been released at the same price as 2020 &#8211; just 1% lower on average. However, some châteaux released at up to 15% discounts, while others at up to a 15% premium with lower scores than last year.
Discover our analysis and the fine wines we recommend fully in this report. While it was a mixed vintage, there are some excellent wines on offer at attractive prices.

Bordeaux 2021 | Vintage Report

The UK recorded some of the highest temperatures on record at over 40°C on the 20th of July and fires broke out across England. For the WineCap team that was in Bordeaux at the time, it was an all too familiar scene.
France, like other countries on the continent, has endured sweltering temperatures in recent weeks. The combination of the mercury rising and the tinder-dry ground have provided the perfect conditions for forest fires which have ravaged large parts of South and South-West France since the 12th of July. Around Bordeaux, over 6,500 hectares have already been burnt in the Landiras commune and over 3,000 have been scorched in La Teste de Buch according to the <a href="https://emergency.copernicus.eu/mapping/list-of-components/EMSR592" target="_blank" rel="noopener">Copernicus</a> website.
While no vineyards have been directly affected yet, the fires have come too close for comfort for some producers. Loic Pasquet, owner of Liber Pater, based in the previously mentioned Landiras commune just North-West of Sauternes, revealed that a fire had come almost within 500m of his vines. Fortunately, it has now been fought back to 7km away.
Some 2,000 firemen and a combination of sea planes and water bombers have been battling the blazes in the region. This, combined with temperatures dropping from 41°C to ten degrees cooler, has provided a much needed respite and the forces are currently optimistic that they will be able to contain the fires unless circumstances change.        
Although Bordeaux has experienced large scale fires before – in 1949 and 1989 – none have been as severe as these. For wine lovers, the risk of fires and smoke taint affecting wineries and grapes is something that they’ll probably have read about most with California wines. In 2020, Napa’s ‘Glass Fire’ caused wineries Cain, Newton and Behrens Family on Spring Mountain to suffer complete losses.
It’s too early to tell in Bordeaux if smoke taint has affected grapes and therefore the 2022 vintage. Producers who think their vineyards may have come into contact with the smoke are being urged to take samples and perform tests. The mood in Bordeaux remains optimistic, but with the August and September months still to go before harvest, we’re sure many producers are keeping everything crossed.

Heatwave Provokes Bordeaux Fires

WineCap CEO Alexander Westgarth spoke to Forbes Advisor&#8217;s Andrew Michael about wine investment&#8217;s benefits and long-term performance. Below is a summary of the &#8216;How to Invest in Wine&#8217; article which you can read <a href="https://www.forbes.com/uk/advisor/investing/how-to-invest-in-wine/" target="_blank" rel="noopener">in full here</a>.
2021 was a good year for wine investment, as reported by Knight Frank’s Wealth Report released earlier this year. In fact, fine wine shared the top spot in the &#8216;alternative investments&#8217; category with collectible watches. Both delivered a 16% return over the course of a year.
More and more money is being invested in the wine market. Alexander Westgarth highlighted fine wine&#8217;s solid and consistent returns over the past 15 years, with compound annual growth of 8% and some regions, such as Burgundy, delivering 12.5%.
In the current economic climate, traditional asset classes, including stocks and shares, aren&#8217;t performing as well as they historically have. The US stock market has entered a &#8216;bear market&#8217; and is down 20% since January this year.
More and more investors are considering tangible assets as they are less likely to be affected by market fluctuations.
Mr Westgarth commented that &#8216;wine is a low-stress investment that doesn’t require constant attention, or frequent trading in and out of.&#8217;
Other advantages of investing in wine and advice include:
&#8211; There is no capital gains tax to pay on profits. HMRC classifies wine as a &#8216;wasting asset&#8217; as it determines the wines to have a lifespan of fewer than 50 years.
&#8211; Think about working with a reliable investment specialist that can build a portfolio for you, manage storage and insurance, keep you updated with valuations and advice and eventually manage the sale of your investment.
&#8211; Consider an initial investment of between £5,000 and £25,000. Even at the lower end, you can start building a portfolio with exposure to different wine regions.
Want to find out more about how to get started investing in wine? Download our <a href="https://winecap.com/download-guide" target="_blank" rel="noopener">free guide here</a>.

WineCap in Forbes Advisor

A magnum of Château Avenue Foch 2017 has sold for a record-breaking US$2.5 million at auction, making it the world’s most expensive Champagne and perhaps the world’s most expensive wine. Interestingly, the magnum wasn’t the sole item in the auction lot. The Champagne also came accompanied by an NFT – a non-fungible token – a digital image that trades on the blockchain. The NFT is of a ‘Bored Ape Mutant’ whose face features on the bottle and that was designed in collaboration with the artist Mig. It also includes the digital image’s intellectual property rights.
The British entrepreneur Shammi Shinh was responsible for commissioning and selling the bottle and whose aim was to boost NFTs’ profile through associating it with the luxury fizz. ‘I&#8217;m hoping for more awareness — I want people to understand NFTs now’, he commented. Shinh also hinted that this may be the first in a series of limited edition bottlings. 
The successful buyers at auction were brothers Giovanni and Piero Buono. They are Italian investors in cryptocurrencies, as well as in fashion and technology markets. However, while they are involved with cryptocurrencies, the purchase was reportedly made in dollars &#8211; as first reported by the <a href="https://www.wsj.com/articles/most-expensive-bottle-of-champagne-sold-for-2-5-millionnfts-included-11657636077" target="_blank" rel="noopener">Wall Street Journal</a>. Giovanni confirmed to the paper that they have no plans to open the bottle.
Château Avenue Foch is a new Champagne brand that’s made from Premier Cru grapes grown at the family-owned estate of Allouchery in Chamery.
Want to discover the ten most expensive wines in the world? From Burgundy to Bordeaux, we’ve put together a list of the world’s most expensive bottles, and their intriguing stories, in our <a href="https://winecap.com/news/ten-of-the-most-expensive-wines-in-the-world" target="_blank" rel="noopener">article here.</a>

Bottle of Champagne Avenue Foch on table with glasses

Champagne Sells for Record $2.5 Million at Auction

Our Q2 Report is now available to download. In it, we examine the wine investment trends that shaped the fine wine market over the past three months. The report looks at how inflation and the possibility of recession have impacted fine wine, the success of the 2021 Bordeaux En Primeur campaign, the top-performing regions and the most in-demand wines.
Fine wine proved itself as a stable investment in the second quarter of the year, which was characterised by exacerbated economic pressure. As stagflation worries grew, equities experienced increased volatility and some entered bear markets. Meanwhile, fine wine prices continued their steady ascent and even outperformed safe haven assets like gold. The best-performing wines were blue-chip labels, which attract regular demand, hinting at narrowing focus and increased caution in the current economic situation.
On a regional level, Burgundy and the Rhône experienced the biggest price rises. The top-performing wines can now be seen on Wine Track, our latest tool, which helps you track wines’ price performance over any given period at a wine label level.
In Q2, Champagne and California continued to trade actively, with Louis Roederer Cristal cementing its place as the most in-demand Champagne. The 2021 Bordeaux En Primeur campaign stimulated interest in previous vintage wines, which presented many good value wine investment opportunities. Some of the most successful 2021 releases included the First Growths and their second wines, Châteaux Lafleur, Calon Ségur, Les Carmes Haut-Brion, Léoville-Barton, Ausone and Cheval Blanc.
The third quarter will throw the spotlight on releases from the Rest of the World, with the La Place de Bordeaux campaign taking place in September. Almaviva, Opus One, Vérité, Seña, Catena Zapata, Masseto and Solaia are few of the star names that will offer their latest vintages internationally, with many more new additions. The next three months will also further test the bullishness of the fine wine market.
WineCap’s independent market analysis showcases the value of portfolio diversification and the stability offered by investing in wine. Download our brand new quarterly report for your summary of the past quarter in fine wine.

Q2 2022 | Report

With an increasing number of investors looking to alternative investments, and in particular fine wine, WineCap&#8217;s CEO Alex Westgarth explores why this sector has risen to prominence in recent years in <a href="https://www.wealthadviser.co/2022/07/01/310060/fine-wine-investing-during-market-volatility-and-uncertainty" target="_blank" rel="noopener">Wealth Advisor</a>. Read his opinion piece in full below:
&#8216;Although wine is mainly known for its leisure benefits, many would be surprised to discover that fine wine investments can provide both stability and returns to investment portfolios during times of market volatility and uncertainty.
Fine wine investing can be a safe haven for investors in times of instability. As global markets experience increased levels of volatility due to factors such as the conflict in Ukraine, the threat of rising interest rates and spiking inflation, investors are exploring different ways to shield their wealth and assets.
We cannot predict what ways the current factors will affect the economy and financial markets and many experts expect volatility will stick around even when these short-term drivers have faded away. Therefore, investing in more stable options, such as fine wine, has grown in popularity in recent months.
Fine wine’s ability to hold its value through times of instability can be seen from historic data. At the start of the 2008 recession, the Liv-ex Fine Wine 1000, which tracks 1,000 wines from across the world, dropped 10 per cent from its peak in August 2008 to a low in December of that year. But by early 2009, it began a steady recovery and recouped all its losses by the end of 2009.
In contrast, the FTSE 100 fell 47.82 per cent and took over five years to return to pre-2008 levels. More recently, the first quarter of 2020 saw stock markets spiral down in the wake of COVID-19. While the S&amp;P Global Luxury Index fell 23 per cent, the Liv-ex Fine Wine 1000 slipped just 4 per cent and had already begun its recovery by May 2020.
How is fine wine able to maintain such stability? As with the very nature of wine itself, the longer you hold on to it, the more valuable it becomes; and in investment terms, the more consistent your returns become. This is because, over the long-term, the demand-supply imbalance is exacerbated by increasing consumption and subsequently decreasing availability, and therefore wines become more desirable due to rarity and improvements in quality as they age.
Furthermore, the fine wine market is self-contained and, to a large extent, divorced from equity markets. This is because the value of the wine market is not determined by a single economy, rather, it shadows the movement of wealth around the world.
This unique characteristic means it is less vulnerable to the fluctuations witnessed in conventional equity markets which ultimately allows people to safeguard their investments and distance themselves from the exposure that traditional investors are often forced to endure. Moreover, the wine investment market provides flexibility as it is less open to fashionable interpretation compared to most other luxury collectables.
Particularly, when market volatility increases or economic conditions go south, investors acknowledge that fine wine can offer great capital preservation, real value growth and a way to diversify a portfolio away from the most volatile assets. Good wine will always be in demand, which means long-term returns will continue to be supported by consistent consumption.&#8217;

Fine Wine Investing during Market Volatility & Uncertainty

The French luxury goods house LVMH has announced that it is expanding its portfolio of northern Californian wineries with the purchase of high-end producer Joseph Phelps. 
Phelps has produced sought-after bottles from Napa and Sonoma for almost 50 years. The winery’s top cuvée – Insignia – was one of Napa’s first Bordeaux-style Cabernet blends and helped the region’s new style of wine to gain recognition in the 1970s.
The purchase means that Moët Hennessey has now deepened its foothold in California where it already owns three other wineries: Domaine Chandon, Newton Vineyard and Colgin Cellars.  
Included in the sale is the Phelps brand, winery and inventory, as well as approximately 500 acres in vineyards in Napa and Sonoma counties. No purchase price was disclosed.   
Moët Hennessy Chairman and CEO Philippe Schaus said that Joseph Phelps is ‘an iconic name and an iconic winery’. ‘It’s important for us that we are acquiring a family business with a legacy and heritage. It’s super important that we keep that heritage.’
For Schaus, Moët Hennessy’s aim is to be able to offer ‘all the different moments of consumption’: from apéritifs, Champagne and fine dining wines to bars, clubs and cocktails. The company’s Cloudy Bay brand covers white wines and its Whispering Angel line offers rosé, but, Schaus commented, ‘we were missing a strong red wine.’
It’s clear than LVMH &#8216;s purchase of this Napa stalwart fits comfortably into its portfolio, as Schaus declared: ‘Joseph Phelps has been to the Napa Valley what Nicolas Ruinart, Mrs. Clicquot, Joseph Krug and Claude Moët were to the Champagne region and likewise we will continue to develop this new House in the respect of the founder’s heritage and vision.’

Exterior of Joseph Phelps winery and vineyard

LVMH Buys Top Californian Winery Joseph Phelps

WineCap featured in the &#8216;Money&#8217; supplement of Saturday&#8217;s The Telegraph. You can read <a href="https://www.telegraph.co.uk/money/consumer-affairs/buying-hermes-bags-beat-stock-market/" target="_blank" rel="noopener">Lauren Almeida&#8217;s full article here</a> and find a summary below on how investors are turning to fine wine to protect their savings:
With share prices falling, investors are looking at how fine wines and luxury goods can protect their savings.
Historically, stocks and shares have delivered solid returns over the course of a decade during a bull market. However, with a global recession looming, markets are on a downward trajectory with global stocks down %12 year to date. With inflation at a 40-year high, savvy investors are looking to protect the value of their money through other means.
Rod Peel worked as an engineer at British Gas and is now retired in Bolivia. His portfolio of investment-grade wines are valued at over £1m. &#8216;I started in 2004, when I received a call from my current broker WineCap&#8217;.
&#8216;You only make profits on the wines when you sell them. Otherwise, they sit there gaining hypothetical money. I pay around £1,000 for storage and insurance each year.&#8217;
One of the advantages of investments in wine and whisky is that there is no need to pay capital gains tax on profits as they are classified as a &#8216;wasting asset&#8217; by HMRC.
&#8216;It’s also very fun,&#8217; Mr Peel commented. &#8216;It’s interesting to learn about the wines. You discover something new every day. I think it’s more engaging than investing in shares.&#8217;
Another investor is Cameron Scott, a 78-year-old accountant from Staffordshire who has been building up a portfolio of wines and is nearing retirement.
&#8216;My wine makes up between 5pc and 10pc of my overall portfolio,&#8217; he commented. &#8216;I like it because I can’t imagine that its value would ever fall to zero and it helps reduce currency risk. My best investment has been in an American wine that I bought seven or eight years ago, Screaming Eagle. It cost a few thousand a bottle, and its price doubled in just three years.&#8217;
&#8216;But overall I view it as a long-term investment. I don’t sell many, because I’d like to pass my wine down to my beneficiaries, rather than cash in now.&#8217;
Both Mr Peel and Mr Scott highlighted that they had found it hard finding a trustworthy broker in wine. &#8216;It is not a fully regulated market, so there are a lot of rogues out there,&#8217; said Mr Peel.
Keen to find out more about the benefits of wine investment? <a href="https://winecap.com/download-guide" target="_blank" rel="noopener">Download our free guide</a>.

WineCap Featured in The Telegraph

Rocketing inflation is no longer creeping toward us. It’s striding. Currently at 9% in the UK (jumping from 1.5% in April 2021)[1], inflation rates are set to hit a crisis point. And worried <a href="https://winecap.com/learn/investing-in-fine-wine-what-to-consider" target="_blank" rel="noopener">investors are understandably looking for solutions</a> to hedge their exposure.
Investing in wine is one of the most effective inflation hedges because of three main reasons:
• The performance of fine wine is uncorrelated to global markets 
• Fine wine is a scarce asset, becoming rarer over time 
• The growth of fine wine has been exceptionally stable, even more so than gold
In this article, we’ll explain the inflation-shielding qualities of fine wine as an investment.
<h2>The performance of fine wine is uncorrelated to global markets</h2>
For many investors, the bulk of their assets will be in marketable securities – publicly-traded stocks, bonds, or currencies. Famously, for generations, the rule of thumb has been to invest 60% in stocks and 40% in bonds. But this style of investing has a huge downside, which many are now coming to terms with. Even with diversification, entire asset sectors and classes are still affected by the same market turbulence.
Inflation is one such market shock. Even at a rate of just 3%, the entire value of cash will erode after just 24 years[2].
At the current rate of 9%, outpacing inflation will be an uphill struggle for investments in bonds and currency. <a href="https://winecap.com/learn/investing-in-wine-vs-investing-in-stocks-which-is-safer" target="_blank" rel="noopener">The stock markets – although slightly more resilient – will also feel the force of inflation</a>. As businesses grapple to remain competitive with soaring prices, stagnant wages, and less consumer spending, all sectors are likely to be affected in some way.
Fine wine investments, however, do not derive their value from the broader markets. And shocks like inflation have almost no effect on their worth. This is because the price of the fine wine is determined by a niche, insider group of passionate investors. As the supply and demand come from within, fine wine is almost entirely uncorrelated to the global markets. Interestingly, <a href="https://winecap.com/learn/q1-2022-report" target="_blank" rel="noopener">fine wine continues to grow in value despite market turbulence and soaring inflation levels</a>.
Other value drivers for fine wine include qualities that are personal to the bottle. For example, the brand of wine, the quality, and how it has been stored. None of these drivers have any direct link to the wider markets. While all of them give investors a lot more control over the value of their investment.
<h2>Fine wine is a scarce asset, becoming rarer over time</h2>
There are many ways to define value, but one of the most enduring is the scarcity of an asset. When there is less supply than demand, the value usually goes up. Fine wine is one of the purest examples of this.
Unlike other treasure assets such as gold or precious stones, fine wine naturally depletes over time as people drink it. Some bottles are so rare they are known as Unicorn Wines. One example is the legendary 1945 Domaine de la Romanée-Conti. The wine is famed for its iconic flavours and complexity. But the fact there are so few left in the world drives up the price exponentially. Only 600 were produced and there are almost none left today. In 2018, two such bottles were sold at auction for over $1 million[3], beating all records along the way. This bodes extremely well for long-term investors.
<h3><a href="https://winecap.com/news/ten-of-the-most-expensive-wines-in-the-world" target="_blank" rel="noopener">What are the most expensive wines in the world?</a></h3>
There is a clear trend showing how fine wines have increased in value over time. This is great for hedging against inflation. The Liv-ex index is one of the ways investors can track this steady increase. Since it began life in 2004, the fine wine market has grown in value by a staggering 315% (as of the end of 2021). Adjusting for inflation, the real value has grown by 125%. This is compelling growth, especially for those looking to outpace the 9% rates of inflation.
<h3><a href="https://winecap.com/news/why-the-2022-burgundy-vintage-is-looking-more-promising" target="_blank" rel="noopener">Which wine looks the most promising for 2022?</a></h3>
&nbsp;
<h2>The growth of fine wine is exceptionally stable, even more so than gold</h2>
Wine has been on a steady upward trajectory for some time now. In 2021, the collectible saw record gains and topped the Knight Frank Luxury Investment List. Some performed exceptionally well. Cases of Domaine Bizot, Vosne-Romanée, Aux Jachées, for example, soared by a whooping 414% over the past twelve months[4]. And an incredible 3,004% over five years[5].
By contrast, the worst-performing wine on our books – the Château Croizet-Bages 5eme Cru Classé, Pauillac – fell by just 23% over twelve months. And it’s already increasing in value, again. Over a five-year period, the brand has increased in value by an average of 29%.
<h3><a href="https://winecap.com/wine-track" target="_blank" rel="noopener">Discover the biggest risers and fallers this month</a></h3>
This illustrates the promising risk and return outlook for fine wines. Overwhelmingly, wine as an investment has shown growth.
In recent years, the strong performance of fine wine has even caused economists to question if the asset is more steady than gold. For centuries, gold has been considered an inflation hedge. Demand for this asset – and therefore value – has tended to spike during times of market turbulence. However, the flip side of this is that the precious metal can also tumble when the environment calms. Fine wine, to date, has not suffered this volatile fate. Investors in wine tend occasionally buy more during times of turbulence, as we saw in 2020. But there are no signs of mass sell-offs later. Arguably, this makes fine wine even more stable than rock-solid gold – an impressive feat!
<h2>How can you hedge against inflation with fine wine?</h2>
Shielding against inflation <a href="https://winecap.com/learn/seven-delicious-reasons-to-invest-in-fine-wine" target="_blank" rel="noopener">is just one of the many delicious benefits of investing in fine wine</a>. To name a few, fine wine investors benefit from tax perks, compelling growth potential and improved diversification. What’s more, they also support a much-loved industry, filled with passion. And, with fine wine investments, they can even <a href="https://winecap.com/learn/5-ways-fine-wine-investments-good-for-environment" target="_blank" rel="noopener">help to protect the environment</a>.
For the best results, experts recommend allocating a small proportion of your investments into treasure assets like wine.
Getting started is simple and hassle-free. For more information, contact us or explore our <a href="https://winecap.com/learn/fine-wine-investment-tips" target="_blank" rel="noopener">tips for investing in fine wine</a>.
[1] Source : <a href="https://ycharts.com/indicators/uk_inflation_rate" target="_blank" rel="noopener">Y Charts</a>
[2] Source : <a href="https://www.cnbc.com/2021/09/02/traditional-60/40-portfolio-has-actually-reached-its-expiration-date.html" target="_blank" rel="noopener">CNBC</a>
[3] Source : <a href="https://www.bloomberg.com/news/articles/2018-10-15/most-expensive-bottle-wine-1945-romanee-conti-burgundy-auction" target="_blank" rel="noopener">Bloomberg</a>
[4] Source : <a href="https://winecap.com/wine-track" target="_blank" rel="noopener">WineCap</a>
[5] Source : <a href="https://www.credit-suisse.com/media/assets/corporate/docs/about-us/media/media-release/2018/02/giry-summary-2018.pdf" target="_blank" rel="noopener">WineCap</a>
[6] Source : <a href="https://www.credit-suisse.com/media/assets/corporate/docs/about-us/media/media-release/2018/02/giry-summary-2018.pdf" target="_blank" rel="noopener">Credit Suisse</a>

Two men looking at a laptop drinking glass of wine

Is Fine Wine Inflation-Proof?

It’s English Wine Week and there’s now one more reason to raise a glass of Sussex sparkling wine. It has just been awarded Protected Designation of Origin (PDO) status from the Ministry for Farming, Fisheries and Food.
A product with a PDO means that it’s made in a particular way and comes from a specified region. It represents a guarantee to consumers that the product they’re buying is the real thing and prevents imitations.
Top wineries including Nyetimber, Bolney Estate and Rathfinny Estate all make wines in the region and will soon have another layer of protection in the form of the Sussex Sparkling Wine PDO that they can add to their bottles.  
Sussex currently has just under 50 wineries and – like many of the extraordinary English sparkling wines out there – has gained well-deserved international recognition. Its still wines are gaining momentum too. As the region gains accolades, awards and wineries, the only way is up and it continues to produce some of the finest sparkling wine in the world, giving top Champagne cuvées a run for their money.
Another element the Sussex PDO highlights is the difference in terroir in English winemaking by drawing a clear line between them and others made in Kent or Surrey.
Simon Thorpe, CEO of WineGB, commented on the new PDO: ‘The approval of a PDO for wines grown and made in Sussex comes at an important time for English and Welsh wines… There has never been more interest in and demand for our wines and the reputation they have gained in both domestic and international markets is based on high quality viticulture and winemaking excellence.’

Nyetimber vineyard with rows of vines in the sun

Sussex Sparkling Wine Secures PDO Status

The fine wine market has seen immense growth and <a href="https://winecap.com/learn/q1-2022-report" target="_blank" rel="noopener">broken numerous records</a> in the past year – here we outline four of the biggest wine investment trends to watch in 2022.
<h3>Bordeaux investment wines</h3>
Bordeaux remains the most important region for investable wines globally. It attracts the greatest liquidity, meaning that its wines, particularly the classified Growths, see consistent levels of trade. Bordeaux is a staple in <a href="https://winecap.com/learn/fine-wine-market" target="_blank" rel="noopener">most investment portfolios</a>, and the annual En Primeur campaign draws attention from collectors and trade year after year.
2022 sees the <a href="https://winecap.com/news/bordeaux-en-primeur-2021-initial-thoughts" target="_blank" rel="noopener">launch of the 2021 vintage</a>, which critics have largely claimed exceptional for dry and sweet white wines. Many of the new releases offer great value for money but there is also a plethora of exceptional older vintages like 2019 which are already enjoying serious price growth. A category to watch this year is the second wines of the First Growths, which benefit from the same technical expertise as the Grand Vin but represent a lower-priced alternative. These wines tend to deliver some of the biggest <a href="https://winecap.com/learn/wine-investment-market" target="_blank" rel="noopener">return on investment</a>.
<h3>Strong competition from Burgundy</h3>
On the global fine wine market, Burgundy has emerged as Bordeaux’s strongest competitor. For the first time in 2022, Burgundy has even taken a greater share of the UK fine wine market than Bordeaux. Demand is greater than ever but so are allocations.
Driven by scarcity, early investors in the sector have seen <a href="https://winecap.com/learn/burgundy-region-report" target="_blank" rel="noopener">increases of over 2,000%</a> in some wines. Over the past two decades, Burgundy’s leading index, which tracks the price performance of the 150 most sought-after wines, has risen over 740%. Today, the trend is to seek value – and stock – within Burgundy’s appellations, as the region continues to give investors reasons to want more.
<h3>Vintage Champagne </h3>
The start of the year was all about bubbles. Vintage Champagne led the charts in our <a href="https://winecap.com/learn/q1-2022-report" target="_blank" rel="noopener">Q1 wine market report</a> – a trend that is set to continue. Looming shortages due to the 2021 grape harvest, which was one of the smallest on record, have only increased global demand and pushed up prices. Consistent returns, stability, brand appeal and unparalleled distribution are just <a href="https://winecap.com/news/invest-in-champagne">few of the other reasons</a> why Champagne is very much in vogue in 2022.
<h3>The rise of other wine investment regions</h3>
The <a href="https://winecap.com/learn/fine-wine-investment-for-beginners" target="_blank" rel="noopener">ongoing broadening of the fine wine market</a> means that there are plenty of investment opportunities to discover outside the aforementioned French regions.
One such example is California. A string of good vintages in the past decade and high critic scores have elevated the region’s share of the fine wine market from just 0.1% to 7.6% over the past decade – a theme that is set to continue.
Italy is another success story. More Italian regions outside the pillars of Tuscany and Piedmont are delivering value and stable returns.
Want to discuss these wine investment trends in more detail with an expert? <a href="https://winecap.com/schedule-a-call" target="_blank" rel="noopener">Schedule a call with one of WineCap’s investment advisors.</a>

The Biggest Wine Investment Trends in 2022

We’re delighted to launch <a href="https://winecap.com/wine-track">Wine Track</a>, the most comprehensive index available. It enables you to identify the right, undervalued wines to buy and sell across the global market at the right time and price.
Our in-house technology collates and analyses Liv-ex and Wine-Searcher data, along with over 400,000 wine prices a day collected independently from 250 leading wine merchants across the globe, helping you navigate fine wine markets with confidence.
We’re proud to have also developed our own bespoke scoring system: the Wine Track critic score. It aggregates more than 100 wine critics’ scores from 12 worldwide publications to produce a simple and transparent score that marks each wine out of 100. This helps you reference a wine’s quality at a glance, as some critics use different scales to grade wines.
To demonstrate just how powerful Wine Track is, we’ve identified that Chateau de la Tour, Clos de Vougeot Grand Cru, Vieilles Vignes – at £1,794 per case – represents a real opportunity for retail investors to diversify their portfolio. This wine is from the same vineyard in Burgundy as Domaine Leroy, Clos de Vougeot Grand Cru – at £65,816 a case – and has an almost identical Wine Track critic score: 93.8 points compared to Domaine Leroy’s 94.7 points. While Domaine Leroy’s price is driven by its excellent reputation, Chateau de la Tour offers better value and accessibility.
Our tool monitors over 75,000 investment-grade wines from 1990 to the present day, enabling you to track how prices have changed over any given period.  
Wine Track is testament to the hard work of our development team and we’re proud to launch this free tool that harnesses the latest technology. Our data-led investment decisions are the reason our customers continue to experience positive returns.

Free Wine Investment Tool ‘Wine Track’ Launches

Le Clos Lanson is set to become the second Champagne ever to be sold on La Place de Bordeaux, one of the world’s oldest marketplaces. The single vineyard expression – and Champagne Lanson’s top cuvée – follows Champagne Philipponnat’s Clos des Goisses onto the historic marketplace.
La Place de Bordeaux is over 800 years old and is a distribution system that consists of around 300 négociants (distributors) and courtiers (middlemen) who buy and sell wines from Bordeaux châteaux. Historically, La Place only sold wines that were made in Bordeaux. However, in 1998 the marketplace opened its doors to its first non-Bordeaux bottling: Viña Almaviva’s 1996 vintage, a joint venture between Château Mouton-Rothschild and Chile’s Concha y Toro. In subsequent years, more and more non-Bordeaux wine producers have been invited to sell on La Place. Think Napa’s Opus One, Australia’s Penfolds Grange and Argentina’s Catena Zapata.
The advantage of selling wines on La Place is its access to global markets and experience selling into Asia, especially China. Négociants have salespeople around the world primed to sell high-end wines. Lanson’s president, François Van Aal, commented on this new approach:
‘This distribution method will enable our icon cuvée to reach a larger amount of wine lovers and collectors around the world, while strengthening the awareness of our Champagne house which is already present over 80 countries’.
Le Clos Lanson 2009 will be the first expression sold on the platform. This top cuvée is produced from 100% Chardonnay grapes harvested from a one-hectare, walled vineyard in the heart of Reims. Only just over 7,000 bottles, along with some magnums, were produced of the 2009 vintage.

Champagne Lanson to sell on La Place de Bordeaux

The wine investment market is characterised by its stability, increased diversity and high returns, which are particularly valued when traditional markets underdeliver.
Long considered a niche, the global fine wine market has considerably grown in size over the past two decades and has attracted <a href="https://winecap.com/learn/fine-wine-market" target="_blank" rel="noopener">more and more investors</a>. This, in turn, has contributed to greater price transparency (making it easier to discover the price of a wine) and market liquidity (making it easier to sell it), which have <a href="https://winecap.com/learn/fine-wine-investment-for-beginners" target="_blank" rel="noopener">facilitated the trade</a> of fine wine. The more wines that have been in demand, the more prices have risen, creating something of a virtuous circle.
But the fine wine market is not without its intricacies. Below we examine the importance of market data, the returns you can expect from wine investment and the reasons why the market is growing.
<h3>What is the ROI on wine?</h3>
Fine wine prices are <a href="https://winecap.com/learn/q1-2022-report" target="_blank" rel="noopener">currently at record levels</a> so there is arguably no better time to be involved in the wine investment market. The globally recognised Liv-ex Fine Wine 100 index, which monitors the price movement of the 100 most sought-after fine wines in the world, has risen 307% over the past two decades. The broader Liv-ex 1000 index, which tracks 1,000 wines from around the world, has seen even greater returns: 361% since its conception in 2003.
Individual wines have risen by <a href="https://winecap.com/learn/fine-wine-investment-for-beginners" target="_blank" rel="noopener">different amounts</a>, like the First Growth Château Mouton Rothschild 2000, which has appreciated over 800% in value since release, or Domaine de La Romanée-Conti Romanée-Conti Grand Cru 2010 – up by over 1,000%. Such rare fine wines impress with their stellar performances, but there are other more widely available alternatives that can deliver your desired return on investment (ROI). There are currently over 12,000 different wines that can be considered investment worthy.
While ROI is dependent on the wines you choose to invest in, there are additional factors such as provenance, <a href="https://winecap.com/learn/investing-in-fine-wine-what-to-consider" target="_blank" rel="noopener">storage</a> and the time of buying and selling that will affect your profits. Reliable market data can help you make informed investment decisions.
<h3>Is wine a risky investment?</h3>
Wine is a <a href="https://winecap.com/learn/what-are-the-benefits-of-investing-in-fine-wine" target="_blank" rel="noopener">low-risk investment</a>. Physical assets like fine wine are stable sources of value in times of uncertainty. While stock markets can crash and share prices can collapse overnight, tangible assets do not cease to exist. As a <a href="https://winecap.com/learn/fine-wine-market" target="_blank" rel="noopener">low-volatile investment</a>, fine wine delivers stability and consistent returns. It is a proven way to <a href="https://winecap.com/learn/fine-wine-taxation-2022" target="_blank" rel="noopener">strengthen and diversify an investment portfolio</a>. Additionally, wine is not reliant on a single economy and it can be traded internationally.
Fine wine also tends to perform well in <a href="https://winecap.com/learn/seven-delicious-reasons-to-invest-in-fine-wine" target="_blank" rel="noopener">inflationary environments</a> due to its inherent tangibility and scarcity. It is a combination of investment and luxury good, which benefit from rising global wealth.
<h3>Is wine a good investment? </h3>
Fine wine has a proven track record as an investment. A quick look into the <a href="https://winecap.com/learn/q1-2022-report" target="_blank" rel="noopener">history of the fine wine market</a> shows how it has delivered stability and returns during the 2008 financial crisis, Brexit, the Covid-19 pandemic and other global events that have shaken equities.
As a passion investment, fine wine benefits from global demand. Wine is, after all, one of the oldest beverages in the world and its appeal has never waned. Its inherent value only adds to the strength of the fine wine investment market.
Interested in speaking to one of WineCap&#8217;s <a href="https://winecap.com/schedule-a-call" target="_blank" rel="noopener">investment experts</a>, now you know the wine investment market’s fundamentals?

The Wine Investment Market: What You Need to Know

When it comes to fine wine investments, the environment probably isn’t the first thing that crosses people’s minds. We&#8217;ve taken a closer look at why, we believe, it should be reconsidered as an Environmental, Social and Governance (ESG) or Socially Responsible investment.
With ESG, alcohol is usually one of the first asset classes to get screened out[1]. Interestingly, this could stem from the Quaker movement, who first started the trend of ethical investing about three hundred years before it became mainstream[2]. This famously teetotal religion encouraged investing, but only if it toed the holy line. In the late twentieth century, other investments came under fire too, especially those which profit from war. Today, it’s generally accepted that investments in alcohol, pornography, gambling, and weaponry cannot be “ESG”[3].
But is this approach a little sour? Especially when you can find the likes of British American Tobacco, McDonalds, Coca-Cola, PepsiCo, British Petroleum, Phillip Morris, ExxonMobil and more featured on popular ESG funds[4]? How could fine wine possibly be worse for the environment than junk food or oil companies? And is it time to reset the dial and realise the true environmental potential of this asset?
Here are five sobering reasons why fine wine should be reconsidered as an ESG investment: 
<h2>1. Vineyards are a carbon sink</h2>
A rugby-pitched-sized area of vineyard soaks up a respectable 2.84 tonnes of carbon every year[5]. For context, three of these plots would balance out what the average Brit emits annually[6]. Unlike most other ESG investments today, this off-setting is a natural and intrinsic part of the business model of wine-making. It’s not an &#8216;extra&#8217;. This is no ESG stunt or short-term project.
Supporting the healthy growth of plants is essential to the production of winemaking. There are precious few investments which literally grow on trees and soak up carbon as part of their day-to-day functioning.
<h2>2.   Soil quality can be enhanced through fine wine</h2>
What’s more, vineyard managers who mulch or compost their old or unused vines (rather than burn them) can save an additional 4.5 tonnes of carbon[7]. As well as helping to mitigate climate change, this also raises the quality of the soil, which is great news for local ecosystems too.
Soil degradation is hot on the radar for concerned environmentalists. Around a third of the planet’s land is damaged from intensive farming[8]. And, alarmingly, fertile soil is being lost at a rate of 24 billion tonnes a year[9]. Sustainable vineyards provide a welcome respite against this concerning environmental damage.
<h2>3.   Organic wine production supports pollinators</h2>
Vineyards can also offer welcome sources of nectar for pollinators, like bees. These tiny creatures are vital for our planet and well-being. It’s estimated that one third of all our food is thanks to the humble pollinator moving from plant to plant and spreading seeds along the way[10]. Sadly, over the past decades, irresponsible agriculture, overzealous pesticides, and the loss of wild meadows have seen these essential creatures fall into steep decline.
Organic or pesticide-free vineyards – often one of the hallmarks of fine wine – helps bees and other pollinators get back on track. Small flowers bud around the vines as by-products, and split grapes provide rewarding sweet juice for the hungry invertebrates. Some wineries are now planting more native shrubs around vineyards to further support pollinators[11].
<h2>4.   Fine wine fights back against single-use plastic</h2>
Plastic is fast becoming a dirty word – and especially single-use plastic. Even 400 years after it&#8217;s thrown away, this packaging will not have biologically degraded[12]. As activists and environmentalists call for an end to this era, fine wine could help carve out a new way forward. Unlike disposable plastic, fine wine glass bottles are something to be treasured.
What’s more, glass has a much higher recycling rate than plastic alternatives, and unlike plastic it can be 100% recycled.[13] Although glass is by no means a perfect solution, it seems to be a better way forward than many other “ESG” junk food, soft drink or oil companies are offering. Fascinatingly, some wineries are even experimenting with light-weight glass and even cardboard bottles as we type[14]. Watch this space!
<h2>5.   Vineyards help fill rocky terrain and hills with plants</h2>
As anyone who spent a youthful summer picking grapes will be able to tell you, it was more of a work-out than expected! This is because the knee-high vines are usually grown on steep sunny hills and even over rocky terrain.
While this may be strenuous on the hamstrings, it’s great for using up space wisely. Vineyards often voyage up mountains and valleys to face the sun. This helps to fill up otherwise unsuitable stretches of hillside with plants and flowers.
The higher altitude also acts as a natural pesticide, making it much easier to create organic wines. What’s more, these vineyards are also less likely to catch and spread grape diseases[15], adding yet another environmental benefit to the investment.
<h2>… Is it finally time to consider fine wine as a sustainable investment?</h2>
As assets go, wine is one of the least carbon-intensive. As WeForum recently pointed out[16], you’d have to drink a bottle of wine every single day for three years for it to have the same impact as a single London to New York flight.
The fundamental business of creating wine is so intrinsically sustainable that most of its emissions come from just the packaging [17] and tourism[18]. And winemakers are keen to cut these down! Every day, we’re seeing more and more environmental initiatives coming from the industry. From renewable energy to sustainable wine tours, there’s a vast range of bright and brilliant programmes coming into the mainstream.
So, is it time to start considering fine wine as a viable environmental investment? We believe so.
If you’d like to learn more about the fascinating world of wine investments, <a href="https://winecap.com/download-guide" target="_blank" rel="noopener">download our complimentary guide</a>.
&nbsp;
[1] Source : <a href="https://www.unpri.org/an-introduction-to-responsible-investment/an-introduction-to-responsible-investment-screening/5834.article" target="_blank" rel="noopener">UN PRI</a>
[2] Source : <a href="http://www.the-ethical-partnership.co.uk/historyofethicalinvestment.htm" target="_blank" rel="noopener">The Ethical Partnership</a>
[3] Source : <a href="https://www.unpri.org/an-introduction-to-responsible-investment/an-introduction-to-responsible-investment-screening/5834.article" target="_blank" rel="noopener">UN PRI</a>
[4] Source : <a href="https://www.hdinvestmentcontent.com/post/5-vice-fund-companies-in-esg-investments" target="_blank" rel="noopener">HD Investment Content</a>
[5] Source : <a href="https://www.winegb.co.uk/home-visitors/sustainable-winegb/carbon-calculator/" target="_blank" rel="noopener">Wine GB</a>
[6] Source : <a href="https://www.winegb.co.uk/home-visitors/sustainable-winegb/carbon-calculator/" target="_blank" rel="noopener">Wine GB</a>
[7] Source : <a href="https://www.winegb.co.uk/home-visitors/sustainable-winegb/carbon-calculator/" target="_blank" rel="noopener">Wine GB</a>
[8] Source : <a href="https://news.un.org/en/story/2019/06/1040561" target="_blank" rel="noopener">United Nations</a>
[9] Source : <a href="https://news.un.org/en/story/2019/06/1040561" target="_blank" rel="noopener">United Nations</a>
[10] Source : <a href="https://ourworldindata.org/pollinator-dependence#:~:text=When%20we%20calculate%20how%20much,35%25)%20relies%20on%20pollinators." target="_blank" rel="noopener">Our World in Data</a>
[11] Source : <a href="https://www.forbes.com/sites/lizthach/2021/09/08/how-napa-and-sonoma-vineyards-are-going-beyond-sustainability-to-embrace-climate-positive-goals/?sh=da607e376521" target="_blank" rel="noopener">Forbes</a>
[12] Source : <a href="https://www.nationalgeographic.com/science/article/plastic-produced-recycling-waste-ocean-trash-debris-environment#:~:text=Plastic%20takes%20more%20than%20400,12%20percent%20has%20been%20incinerated." target="_blank" rel="noopener">National Geographic</a>
[13] Source : <a href="https://www.sustainablejungle.com/sustainable-living/glass-vs-plastic/" target="_blank" rel="noopener">Sustainable Jungle</a>
[14] Source : <a href="https://www.winemag.com/2020/07/27/paper-beer-bottles-wine-sustainble/" target="_blank" rel="noopener">Beverage Industry Enthusiast</a>
[15] Source : <a href="https://www.olivemagazine.com/drink/high-altitude-wine-guide/" target="_blank" rel="noopener">Olive Magazine</a>
[16] Source : <a href="https://www.weforum.org/agenda/2021/07/what-can-the-wine-industry-teach-us-about-sustainability/" target="_blank" rel="noopener">We Forum</a>
[17] Source : <a href="https://www.upmraflatac.com/news-and-stories/articles/2021/08/reducing-the-carbon-footprint-of-wine--from-vineyards-to-packaging/" target="_blank" rel="noopener">UPMRAFLATAC</a>
[18] Source : <a href="https://theconversation.com/vineyard-tourism-is-a-big-source-of-carbon-emissions-want-to-help-then-buy-more-wine-164600" target="_blank" rel="noopener">The Conversation</a>

5 Ways Fine Wine Investments are Good for the Environment

Château La Gaffelière has announced that it has decided to leave the Saint-Émilion classification. That now makes it the fourth Premier Grand Cru Classé to withdraw from it.
The Malet-Roquefort family has owned the estate for over 300 years and released a statement which detailed the reasons for its departure. The château no longer recognises ‘the values in the criteria for evaluating the great terroirs and fine wines of Saint-Émilion as set out by the Classification Committee’.
The château cited the committee’s first report which it said ‘called into question the quality level of our terroir, which has been acclaimed and distinguished by the AOC authorities for more than 65 years’. The Malet-Roqueforts argue that the scoring system put in place for the tasting, ‘contradicts all the scores that Château La Gaffelière has obtained over many years from the greatest wine professionals’.
The classification is updated every 10 years and in 2012 it awarded Premier Grand Cru Classé A status to Châteaux Angélus, Ausone, Cheval Blanc and Pavie. Only Pavie currently remains. Angélus said that the classification had become a ‘vehicle for antagonism and instability’. 
Châteaux Ausone and Cheval Blanc withdrew from the classification last year as they found that there had been ‘a profound change in its philosophy’ in 2012. They believe that there was now ‘too much of a focus on marketing drift such as the importance of product placement, how often an estate appears in media, including PR and in social media, along with wine tourism infrastructure’. 
Defending the classification’s process, the Saint-Émilion wine council said that the new ranking system is ‘a formidable tool for challenge, innovation and modernity’.

Château La Gaffelière to Leave the Saint-Émilion Classification

Frosts descended on some of France’s key fine wine regions in April for the second year in a row. Producers in Burgundy, Bordeaux and Champagne braced themselves for the coldest temperatures the country had experienced since April 1947. Burgundian winemakers were perhaps the most hypervigilant out of all the country’s producers who were taking measures in the vineyard to prevent the frost from settling. Burgundy’s vignerons were poised to battle the elements each night in the hope of escaping the same losses that impacted the 2021 vintage.       
Fortunately, the Bureau Interprofessionnel des Vins de Bourgogne (BIVB) – Burgundy’s wine board – has just announced that this year’s frost damage isn’t as bad as first thought. While ‘everyone had feared the worst’, due to a mild winter and two snaps of frost in April, it commented that ‘this event is different’ to last year’s. ‘The vines are less advanced in the growth cycle and in general terms, the frost was shorter and less intense.’ The areas which came under the most pressure from frost were ‘certain sectors in the northern part of the region.’
The BIVB’s technicians found in their analysis of vineyard plots that early May’s warmth and rainfall had helped accelerate the growing season and that flowering had begun mid May.  
While the climatic challenges experienced this year hadn’t resulted in as much damage in Burgundy’s vineyards as previously feared, the BIVB warned last month that there are still potential difficulties that lie ahead. This stems from a combination of increased global demand from consumers and reduced yields in 2021. Another factor the wine board highlighted was the financial pressure winemakers were under, having had to pay for additional vineyard equipment, such as candles, to ward off the frost. 
With frosts becoming more and more of a yearly occurrence and with producers’ margins becoming even tighter, could we see already high Burgundy prices rise even more? WineCap will be keeping a close eye on the 2022 Burgundy vintage and its progress. 
October 2022 update: Now that the harvest is in, discover the BIVB&#8217;s initial thoughts on the quality of the vintage and yields <a href="https://winecap.com/news/the-2022-burgundy-wines-real-potential" target="_blank" rel="noopener">in our article</a>.
Want to learn more about Burgundy, its producers and appellations? Download our <a href="https://winecap.com/learn/burgundy-region-report" target="_blank" rel="noopener">Region Report</a> to find out more.

Why the 2022 Burgundy Vintage is Looking Promising

If you&#8217;re considering fine wine investment, here are some tips to help you get started.
<h3>How to get the right information?</h3>
It is important to do your own research and stay up-to-date on fine wine investment trends but where do you get started?
Looking into wine types, growing regions and brands is a useful first step. Researching average prices for the <a href="https://winecap.com/learn/investing-in-fine-wine-what-to-consider" target="_blank" rel="noopener">wines you want</a> will help you make sure you are being quoted a reasonable price when you come to buy them. Nowadays there is a wealth of pricing data online for investors to navigate.
Meanwhile, regional fine wine investment reports and vintage overviews can help you understand the fine wine market in more depth. <a href="https://winecap.com/learn" target="_blank" rel="noopener">WineCap’s Academy</a> provides a resource on producers and their wines so your knowledge grows, as your portfolio does. News websites like The Drinks Business, Decanter, Bloomberg, and the Financial Times, regularly cover topics related to fine wine investment. Critical coverage can also help you navigate the world of fine wine and inform your investment decisions.
Regularly researching the fine wine market and identifying emerging trends will help you find the best investment opportunities available.
<h3>Should I use a wine investment company?</h3>
Wine investment companies have years of experience dealing with the fine wine market and its intricacies. Relying on the latest digital innovations, wine investment experts can share their unbiased knowledge with you and advise you on the best wine investments. WineCap’s unique proprietary technology analyses over 400,000 wine prices a day to identify buying and selling opportunities across the global market.
Working with a reputable fine wine investment company helps you get the wines that you want. WineCap has <a href="https://winecap.com/learn/your-wine-investment-questions-answered" target="_blank" rel="noopener">access to the top investible allocations</a> and an extensive portfolio of wines stored in secure government bonds.
While it is possible to conduct your own research, find your own storage and buy your selected wines, investing in fine wine through a trusted specialised company saves you time and money.
<h3>Looking for a wine investment guide? </h3>
Our <a href="https://winecap.com/learn/fine-wine-investment-for-beginners" target="_blank" rel="noopener">Fine Wine Investment for Beginners guide</a> can help you get started. The guide provides an overview of the fine wine investment market and how it works in practice. It also outlines the wine investment process in four simple steps.
Get started now you&#8217;ve discovered these top fine wine investment tips. <a href="https://winecap.com/schedule-a-call" target="_blank" rel="noopener">Speak to one of WineCap’s advisors</a> to find out more about next steps.

Laptop open on a desk with a cup of coffee

Fine Wine Investment Tips

WineCap featured on <a href="https://www.yourmoney.com/investing/blog-why-fine-wine-might-be-a-better-investment-than-you-thought/" target="_blank" rel="noopener">YourMoney.com</a> today in an article that focused on how fine wine is gaining an increasing amount of investor attention in a climate of rising inflation and market volatility. You can read a summary below:
In the current climate of war, instability and rising inflation, alternative asset classes such as fine wine, are in the spotlight for investors.
A lot of asset classes have been materially hit by factors including the war in Ukraine and issues arising from Covid-19 including record inflation.
High inflation creates a big problem for some investors. Price increases reached 9.2% in the UK in March, hitting a 30-year high and that rate is predicted to continue to grow over the rest of the year.
Economies in Europe and North America are also experiencing these kind of pressures. Central banks have begun increasing base rates and further rises aren&#8217;t ruled out later in 2022.
With uncertainty in the markets, lots of investors are looking to diversify their portfolios and reduce risk.
Alternative asset classes are attracting a lot of attention and investment-grade wines are exhibiting capital strength. The fine wine market is fostering a stable environment, even during periods of economic uncertainty.
The high end of the fine wine market is self-contained and not linked to financial markets. This is due to the fact that it shadows the movement of wealth around the globe. It has low volatility when compared to conventional markets and other ‘luxury’ asset classes.
The past 25-30 years has seen investment-grade wines grow in popularity due to their finite production levels, flexibility and stability.
It also has a proven track record of resisting inflation. The main fine wine 1000 index – from its launch to the end of 2021 – has gone up 270.7%, survived three global financial crises and delivered more returns than the S&amp;P500.
Interestingly, in the current economic climate, as inflation spiked towards the end of 2021, the price of fine wine did too and the 1000 index rose over 19% last year.
Fine wine is generally viewed as way to store value. In the past few years, wine has performed better than gold. In 2021, wine returned 22.5% while gold returned -2.69%.
The market has grown in recent years with more investment from both sophisticated and retail investors; this has generated more demand for limited physical cases of wine. This demand is continuing to grow. For the world&#8217;s most sought-after wines demand always outstrips supply.
Companies are democratising wine investment, something that historically was only for high net worth individuals and sophisticated investors.
Retail investors can now take advantage of lower fee models and harness cutting edge technology to benefit from fine wine’s diversifying powers in a currently uncertain and unstable environment.
WineCap is a new wine investment company which analyses over 400,000 wine prices a day to identify the right, undervalued wines to buy and sell across the globe.

Why Fine Wine Might be a Better Investment Than You Thought

In this article, we outline the key things that you need to consider when investing in fine wine. Fine wine investment experts like the team at <a href="https://winecap.com/learn/your-wine-investment-questions-answered" target="_blank" rel="noopener">WineCap</a> can help you make informed decisions relating to the following factors.
<h3>Is investing in fine wine a good idea?</h3>
Investing in fine wine is <a href="https://winecap.com/learn/fine-wine-taxation-2022" target="_blank" rel="noopener">a proven way</a> to strengthen and diversify your portfolio. Fine wine is a stable, low-risk investment thanks to its tangibility and low volatility. As an alternative asset, fine wine has shown very little correlation to mainstream markets. When traditional investments like bonds and equities fall, fine wine tends to hold steady. Moreover, fine wine has been one of the best-performing assets over the last 30 years, delivering consistent returns even in times of uncertainty.
<h3>How much should you invest in wine?</h3>
Fine wines are a luxury commodity, which means they can sometimes command high prices. <a href="https://winecap.com/learn/your-wine-investment-questions-answered" target="_blank" rel="noopener">Most people</a> tend to start off in the vicinity of £5,000-£10,000 to make their investments worthwhile. However, there are <a href="https://winecap.com/learn/fine-wine-investment-for-beginners" target="_blank" rel="noopener">a range of options</a> depending on the region and the producer, how much of the wine is made and the wines’ age. Setting your budget before you start will help you narrow your focus and ensure you have exposure to the wines that suit your investment goals. This figure may change as time goes on, but it’s good to have a starting point.
<h3>Which wines should you invest in?</h3>
Once you have set your budget and determined your investment goals, you need to decide which wines you want. Factors such as region, producer, grape variety and critical acclaim will affect their final value.
A wine investment expert will help you find the appropriate wines for your investment portfolio. <a href="https://winecap.com/about-us" target="_blank" rel="noopener">WineCap</a> has formed long-lasting relationships over the past decade with négociants, wholesalers and private collectors. This means that we have access to some of the world’s most prized wines. What’s more, our unique proprietary technology analyses over 400,000 wine prices a day to identify the right, undervalued wines to buy and sell across the global market at the right time and price.
<h3>How will you store your wines?</h3>
Investment-grade wine should be stored correctly to help protect its value. For long-term storage, this means holding the wine in a cool, dark place with minimal disturbance. Bonded storage (a secure location approved by the HMRC that stores items that haven’t paid VAT or duty tax) will give you the peace of mind that your wine is being kept in the right conditions. World-class care ensures that when you come to sell, your wine’s provenance will quickly secure maximum prices.
Ready to embark on your wine investment journey? <a href="https://winecap.com/schedule-a-call" target="_blank" rel="noopener">Schedule your free consultation with one of WineCap’s investment experts</a> to find out the next steps.

Investing in Fine Wine: What do You Need to Consider?

Penfolds is Treasury Wine Estates’ most iconic brand. Its most sought-after bottling is undoubtedly ‘Grange’ which is revered by wine lovers and collectors the world over and has received a wealth of 100 point scores, rave reviews and awards since its first official vintage in 1960.
China is an important market for Treasury Wine Estates and its Penfolds wines are in high demand. However, due to the eye-wateringly high tariffs (up to 200%) that were imposed by Beijing in <a href="https://www.smh.com.au/politics/federal/pm-warns-of-economic-challenges-ahead-as-china-wine-tariffs-hit-20201128-p56irn.html" target="_blank" rel="noopener">November 2020</a>, its exports to the country are down by 26%. 
In order to supply its wines to China as smoothly as possible in future, Treasury Wine Estates has found a way to bypass the tariffs: by growing grapes and making wines domestically to create ‘Penfolds China’. The international drinks company has been experimenting with viticulture in the western province of Yunnan in the Ningxia and Shangri-la regions and is happy with the results of its ‘primarily Cabernet-based’ wines so far, as Chief Executive Officer Tim Ford commented: ‘China is an emerging fine winemaking region and we’re confident we can produce a premium Chinese Penfolds that maintains the distinctive Penfolds house style and uncompromising quality’.
Penfolds is expected to release this new wine in the second half of 2022 and each bottle will reach between A$30 &#8211; A$50, as reported by <a href="https://www.bloomberg.com/news/articles/2022-05-18/made-in-china-penfolds-wine-will-dodge-crippling-import-tariffs">Bloomberg</a>.
This isn’t the first time that Penfolds has looked to foreign shores in order to push winemaking boundaries. It launched Penfolds California last year, with a series of wines made in Napa from Cabernet Sauvignon and Shiraz. ‘Quantum’, its top cuvée, was released at £545, 10% higher than Grange in the UK. Interestingly, its parent company has also acquired vineyard holdings in Champagne and Bordeaux.
All eyes are sure to be on China, Champagne and Bordeaux over the coming months and years as the fine wine world waits to see which other innovative and ground-breaking wines Penfolds releases from both established and emerging wine regions.

Penfolds to Produce Special Made-in-China Bottling

Fine wine has numerous investment benefits that distinguish it from other assets. More than just a passion investment, fine wine provides stability and substantial financial returns. Below we examine seven of the reasons <a href="https://winecap.com/learn/fine-wine-investment-for-beginners" target="_blank" rel="noopener">why fine wine makes a good investment</a>.
<h3>High-performing asset</h3>
Fine wine has been one of the best-performing assets over the last 30 years, meaning that its value has been increasing over time. The compound annual growth rate since January 1988 has been 12.6%. During the Covid-19 pandemic, leading fine wine indices registered double-digit increases in contrast to the extreme volatility experienced in financial markets. 2021 was a record-breaking year for the fine wine market, which outperformed mainstream equities. In the past year, the broadest measure of fine wine prices, the Liv-ex 1000 index, has risen 24.6% versus 4.2% for the FTSE100, and declines of 2% for the S&amp;P500 and 11.7% for the tech-heavy Nasdaq index.
<h3>Tangibility</h3>
Wine is a tangible physical asset, which only adds to its allure. While stock markets can crash and share prices can collapse overnight, tangible assets do not cease to exist (unless, in this case, they are drunk and enjoyed). Fine wine can be compared to real estate but without the high maintenance costs and without being reliant on a single economy. It can also be traded internationally.
<h3>A stable, low-risk investment</h3>
Physical assets are stable sources of value in uncertain times. Fine wine is an effective hedge against inflation and recession. Its performance has proved that it can successfully weather rising prices and economic downturns. As a <a href="https://winecap.com/learn/fine-wine-market" target="_blank" rel="noopener">low-volatile investment</a>, fine wine delivers stability and consistent returns.
<h3>Finite supply and rising demand</h3>
Investment-grade wines are finite as they are both physical goods and vintage products. Supply is limited due to the strict conditions under which they are produced and as the wines enter their drinking windows and are consumed. This, plus rising demand from a growing global market and new wealth from emerging economies guarantees stable price appreciation over time – a phenomenon relatively unique to fine wine.
<h3>Portfolio diversifier</h3>
As an alternative asset, fine wine has shown very little correlation to mainstream markets. When <a href="https://winecap.com/learn/investing-in-wine-vs-investing-in-stocks-which-is-safer">traditional markets</a> fall, fine wine tends to hold steady. This makes it a popular alternative to more traditional investments, such as bonds and stocks. As a portfolio diversifier, fine wine reduces the overall risk of an investor’s portfolio, protecting wealth and providing returns.
<h3>Tax exemption</h3>
Fine wine is a tax efficient investment. As a ‘wasting’ asset – an item with a life span of no more than 50 years – most fine wine is exempt from Capital Gains Tax when it is sold. Although wine can be drinkable some 60 years later, most wine sales would not give rise to a potential tax liability, meaning that investors can enjoy more significant returns.
<h3>Passion investment</h3>
Last but not least, fine wine is a passion for many investors. There is a growing trend for people who profit from what they might consider their hobby. Buy, sell or drink, fine wine allows you to simultaneously grow your passion and profits.
Ready to get started now you know more about investing in wine? <a href="https://winecap.com/schedule-a-call" target="_blank" rel="noopener">Speak to one of WineCap’s investment experts</a> to discover the next steps on your wine journey.

What are the Benefits of Investing in Fine Wine?

As alternative assets go, fine wine is one of the most vibrant and exciting on the market. Not only does it add depth and passion to an investment portfolio, but it can deliver extraordinary returns too. Experts recommend allocating between 1 – 2% of an overall portfolio to this intriguing asset class<a href="#_ftn1" name="_ftnref1">[1]</a>. And among the super wealthy high net worth individuals, the proportion is anticipated to be even higher<a href="#_ftn2" name="_ftnref2">[2]</a>.
Here are seven compelling benefits to consider investing in fine wine:
<h2>1.   Impressive potential for returns</h2>
Investors should always remember that there are no guarantees, and historical returns do not mean future ones. But it’s hard to ignore the impressive and steady performance of the fine wine markets.
Overall, the fine wine market has enjoyed a compound annual growth rate (CAGR) of 12.6% since 1988<a href="#_ftn1" name="_ftnref1">[3]</a>. Another report by Knight Frank that fine wines had increased in value by a staggering 127% over the past decade<a href="#_ftn2" name="_ftnref2">[4]</a>. And it’s showing no signs of slowing. Already within the first months of 2022, fine wines outperformed all other major markets, except commodities<a href="#_ftn3" name="_ftnref3">[5]</a>. What’s more, experts are optimistic for the future. Burgundy wines and <a href="https://winecap.com/news/the-champagne-brands-driving-price-growth" target="_blank" rel="noopener">Champagne have particularly flourished over recent months</a>. And – as adverse weather and climate change impacts the creation of new wine<a href="#_ftn4" name="_ftnref4">[6]</a> &#8211; these vintages are likely to become ever more sought-after.
<h2>2.   Powerful inflation-beating properties</h2>
Today’s market is overheating. And as central banks frantically increase interest rates in a bid to slow down inflation, it shows no sign of cooling. In May 2022, the Bank of England warned Britain to brace itself for inflation levels to rise above 10% &#8211; the highest since 1988<a href="#_ftn1" name="_ftnref1">[7]</a>. This leaves traditional stocks and bonds investors feeling nauseous. The markets are staggering, with cash and debt instruments on the edge of plummeting.
Meanwhile, those assets such as gold, art or fine wines which have inflation-beating properties are in demand. This could make it an excellent choice for concerned investors.
<h2>3.   An exceptional diversifier</h2>
Nobel Prize laureate, economist Harry Markowitz famously quipped that diversification is the only “free lunch” in investing<a href="#_ftn1" name="_ftnref1">[8]</a>. This is the process of spreading wealth across many different investments to take advantage of market opportunities while shielding against turbulence. Diversification doesn’t just mean investing in different asset types, sectors, or geographical locations though. Crucially, it also means investing in assets with different income sources and value drivers. Or to put it another way, the value of some assets should be uncorrelated to the stock market.
This is often a stumbling block for investors. How can you invest in an asset that’s uncorrelated or even negatively correlated to the stock market? Whether it’s tech companies in the US, or renewable energy plants in Europe, most assets are all impacted by the same market events. However, fine wine is different. The value of fine wine is determined by a completely unrelated set of criteria to publicly-traded stocks or bonds.
Some of these value-drivers are unique to the bottle. The wine-making technique, region, weather, year, packaging, storage, age and more all play a part. While the supply and demand factors are generally kept within a niche and exclusive circle of connoisseurs. This makes fine wine a truly exciting diversifier, akin to art. During the 2020 pandemic and recession, for example, the value of fine wines increased by a whopping 13%<a href="#_ftn2" name="_ftnref2">[9]</a>. This highlights a powerful negative correlation to the wider market performance.
For forward-thinking investors, fine wine could just be the strategic hedge against market volatility they’ve been looking for.
<h2>4.   A refreshingly tangible investment</h2>
In a world filled with bitcoin, the metaverse and crypto-assets, an investment you can touch is a breath of fresh air. Physical assets like gold, property, or fine wines can feel extremely reassuring during periods of market turbulence – which becomes reflected in their value.
Tangibility is one of the most significant benefits and differentiators of fine wine as an asset. While the costs of storage and insurance can eat into returns, it’s a small price to pay for the durability of the asset. After all, companies can collapse, rendering their shares and stock options useless. Inflation can eat away at cash or debt. And companies or governments can default on their loans, and file for bankruptcy. Electronic shares are only real if they exist on a screen.
But, regardless of the economy outside, a premium bottle of fine wine still be there. It will still be a desirable and solid asset which becomes better and rarer over time.
<h2>5.   Fine wine is exempt from Capital Gains Tax</h2>
Fine wine falls into a curious tax bracket. As it is deemed by the HMRC to have a useful economic life of 50 years or less, it’s known as a “wasting chattel” or a “wasting asset”. While this may not sound flattering to the purveyors of fine wines, this unsightly name is really a blessing for investors. It means returns from these assets are free from costly Capital Gains Tax (CGT) &#8211; currently set at 20% for all annual income after £12,300.<a href="#_ftn1" name="_ftnref1">[10]</a> This is a major benefit of fine wines and can seriously boost returns for investors.
If the wine is considered to have a life of more than 50 years, some CGT may apply, but it’s still somewhat shielded from the full hit. Tax is payable only for returns of more than £6,000. This is a significant perk for investors which could more than compensate for storage and insurance costs. <a href="https://winecap.com/learn/fine-wine-taxation-2022" target="_blank" rel="noopener">Find out more about fine wine taxation.</a>
<h2>6.   More room for price negotiation</h2>
More than one million trades<a href="#_ftn1" name="_ftnref1">[11]</a> are made on the London Stock Exchange every single day. With so many people jostling to buy and sell shares, this makes the public investment markets extremely efficient. Whatever price a stock has at any moment of time is probably exactly what it’s worth, according to thousands of investors. Because of this, it’s almost impossible to get a bargain in the short-term. Instead, investors need to buy at a pre-determined price and wait until the asset appreciates or depreciates.
With fine wine, the process of buying and selling is completely different. And unless, you’re investing with an index fund or something similar, you’ll likely find yourself at exclusive auction houses or negotiating a sale privately. Just like buying a property or bidding online, this opens the possibility of getting a better price than you expected.
<h2>7.   Support a much-loved industry</h2>
It’s no coincidence that fine wines are known as “passion assets”. Investors who want to do more than simply generate financial returns often turn to this unique world because of its vibrant industry and exclusive inner-circle.
Being part of this group of investors means supporting a sector steeped in history and culture. It means putting value on true quality and appreciating some of the finest craftsmanship in the world. It is the only asset class that you can sip and savour, bringing exquisite flavours and exceptional taste to your portfolio.
<h2>Interested to learn more …?</h2>
Incorporating fine wine into a diversified investment portfolio could be a tasteful way to; boost returns, enhance diversification, shield against inflation, benefit from tax perks and even support an industry steeped in culture. If you’d like to learn more about the fascinating world of wine investments, <a href="https://winecap.com/download-guide" target="_blank" rel="noopener">download our complimentary guide.</a>
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<a href="#_ftnref1" name="_ftn1">[1]</a> Source : <a href="https://www.honestgrapes.co.uk/news-events/could-capital-gains-tax-exemption-on-fine-wine-get-the-axe/" target="_blank" rel="noopener">Honest Grapes</a>
<a href="#_ftnref2" name="_ftn2">[2]</a> Source : <a href="https://delphia.substack.com/p/fine-wine-the-liquid-investment-thats?s=r" target="_blank" rel="noopener">Alt Class</a>
<a href="#_ftnref3" name="_ftn3">[3]</a> Source : <a href="https://www.liv-ex.com/2022/04/fine-wine-market-q1-2022/" target="_blank" rel="noopener">Liv-ex</a>
<a href="#_ftnref2" name="_ftn2">[4]</a> Source : <a href="https://www.knightfrank.com/research/article/2021-03-01-covid19-and-its-impact-on-luxury-investments" target="_blank" rel="noopener">Knight Frank</a>
<a href="#_ftnref1" name="_ftn1">[5]</a> Source : <a href="https://www.liv-ex.com/2009/07/fine-wine-investment-long-term-view/" target="_blank" rel="noopener">Liv-ex</a>
<a href="#_ftnref4" name="_ftn4">[6]</a> Source : <a href="https://www.thedrinksbusiness.com/2022/05/this-is-why-burgundy-is-going-to-get-even-pricier/" target="_blank" rel="noopener">The Drinks Business</a>
<a href="#_ftnref1" name="_ftn1">[7]</a> Source : <a href="https://www.theguardian.com/business/2022/may/05/bank-england-raises-interest-rates-inflation-cost-of-living" target="_blank" rel="noopener">The Guardian</a>
<a href="#_ftnref1" name="_ftn1">[8]</a> Source : <a href="https://www.netwealth.com/ourviews/diversification-is-the-only-free-lunch-in-investing/" target="_blank" rel="noopener">NetWealth</a>
<a href="#_ftnref2" name="_ftn2">[9]</a> Source : <a href="https://www.knightfrank.com/research/article/2021-03-01-covid19-and-its-impact-on-luxury-investments" target="_blank" rel="noopener">Knight Frank</a>
<a href="#_ftnref1" name="_ftn1">[10]</a> Source : <a href="https://www.gov.uk/capital-gains-tax/rates" target="_blank" rel="noopener">HMRC</a>
<a href="#_ftnref1" name="_ftn1">[11]</a> Source : <a href="https://www.statista.com/statistics/325326/uk-lse-average-daily-trades/" target="_blank" rel="noopener">Statista</a>

Seven Delicious Reasons to Invest in Fine Wine

The esteemed northern Rhône producer E. Guigal has acquired Château d&#8217;Aqueria in Tavel, one of the jewels of the southern Rhône. The celebrated maison made the purchase from the de Bez family and the estate spans 242 hectares with 168 under vine. Some 100 acres are in Tavel with the remainder in the neighbouring Lirac appellation.
This isn’t <a href="https://www.guigal.com/en/" target="_blank" rel="noopener">Guigal’s</a> first purchase in the southern Rhône; the maison bought Domaine de Nalys – now Château Nalys – five years ago. It had previously sourced grapes from there over the course of three centuries for its négociant arm.
Château d’Aqueria dates back to 1595, when Louis Joseph d’Aqueria purchased the land for grape growing. The estate has been bought and sold over the centuries and, most recently, Paul de Bez’s sons, Vincent and Bruno, were in charge of it until this new purchase. 
The Tavel appellation lies just across the Rhône river from Châteauneuf-du-Pape and spans some 933 hectares. The region is famous for producing complex and deeply coloured rosé wines from primarily Grenache and Cinsault grapes, with Syrah and Mourvedre supporting. Tavel rosé must have at least 11% alcohol which renders it suitable for ageing.
The estate produces approximately 16,000 cases of wine each year and it will be kept by E. Guigal as a separate domaine, aside from the négociant arm. 
Lirac is gaining more and more interest recently as Châteauneuf-du-Pape lovers look to this region which shares a similar terroir. Producers from Châteauneuf have been buying vineyards here and making more accessibly priced white and red wines from old vines. 
Philippe Guigal, winemaker and CEO, said that the team is ‘eager to make its contribution to Château d&#8217;Aqueria’ and that its first project will be to ‘drive forward the practice of biological-ecological viticulture, with the help of the existing team at the Château.’

E. Guigal Buys Château d’Aqueria

The Bordeaux En Primeur 2021 campaign is set to begin this quarter. Critics and the wine trade have descended – in person this year – on the famous French wine region to taste samples of last year’s vintage which will be sold as new releases while the wines are still in barrel.
Performance isn&#8217;t just about how good a wine or a vintage is though, growth can be seen across the spectrum. For instance, Château Lafite Rothschild 2013 (Neal Martin, 90 points), is up 110% since release, Carmes Haut Brion 2012 (Antonio Galloni, 94 points) is up 160%.  Younger wines haven&#8217;t had the chance to move as far yet, but there are still good numbers to be found: Château Beychevelle 2017 is up 30% and Château Pontet-Canet 2019 45%
<h2>Initial Thoughts on the Bordeaux 2021 Vintage</h2>
After speaking with winemakers, the négociants who sell the wine, journalists and other members of the trade, the general opinion is that 2021 is a fresh and approachable vintage that’s good quality and that many remarked is similar to other cooler years. WineCap will make a full assessment of it once critics’ scores and release prices are out in the next quarter. 
2021 was a more challenging year than each of the three vintages that preceded it. January started off mild but with some heavy rain. Temperatures were cooler than normal which helped create wines with a fantastic freshness to them with lower alcohol levels. Many producers experienced frosts in April and May. However, some châteaux weren’t affected at all due to their terroir’s elevated topography, as is the case with Pomerol’s Troplong Mondot which had almost no loss of yield. Rain in mid August and September helped promote downy mildew in the vineyard which affected grapes, although this wasn’t a problem for all châteaux. Merlot was the most affected grape as it is an early ripener and is also the most prone to suffer from mildew. This meant that production levels were down, as rigorous sorting in the vineyard allowed only the finest grapes to be used. Many producers on both the Left and Right Bank held off harvesting until as late as possible in the hope of warmer weather to ripen grapes a final bit more. This paid off as those who waited were rewarded with sun and higher temperatures. 
<h3>New Technology Helping Create the Best Bordeaux Wines</h3>
Producers now have excellent technology at their disposal to help them identify and select the finest grapes possible. In 2021, many châteaux used optical sorting machines that have cameras and/or lasers to determine grapes’ colour, size, structure and chemical composition. Another technique that was employed last year and that is gaining more and more prominence is density sorting. Grapes are bathed in a sugar solution at a sweetness level the winemaker desires. Ripe grapes that meet the desired sugar level sink to the bottom. These methods are enabling winemakers to create fantastic wines even during a challenging vintage. 
Of course, while these machines are gaining more popularity, the hard work begins in the vineyard: taking care of the vines and hand sorting grapes there before further quality control can take place in the winery. Château Pontet-Canet in Pauillac is the posterboy for good vineyard management and – in particular – biodynamic practices as it retained most of its yield in 2021 as it was prepared for inclement weather.  
2021 appears to be continuing a trend of fresher wines that are approachable earlier, while still having the potential to be able to age for decades to come.
<h3>Left Bank Bordeaux</h3>
As with many of the Bordeaux wines we tasted regardless of appellation, the Left Bank producers were happy with their wines, despite not having been able to make as much of them as they’d like. Pessac-Léognan’s Château Haut-Bailly and Saint-Julien’s Château Beychevelle were textbook examples of the 2021 vintage, delivering fantastic freshness, purity of fruit and fine tannins.
<h3>Right Bank Bordeaux</h3>
What stood out in Saint-Emilion and Pomerol was the higher percentage of Cabernet Franc used in the 2021 blend, typically with Merlot, as it is a late-ripening grape. Château Angelus’ 2021 Grand Vin contains the highest amount of Cabernet Franc on record: 60%. This gives the wine fantastic freshness and soft tannins. It was a similar story for many producers on the Right Bank, with higher levels of the grape used than usual. 
<h3>The Outlook for Bordeaux En Primeur 2021</h3>
While we eagerly await the release prices and critics’ scores that will appear during this quarter, the general opinion is that the 2021 vintage has produced fresh, approachable wines that are good quality. With yields down significantly in the case of some châteaux, we can expect there not to be as many bottles released as in previous years. Therefore it’s reasonable to expect that producers won’t be pricing these En Primeur wines at a discount. As always, it’s a question of individual châteaux prices.
Want to keep up-to-date on the Bordeaux 2021 En Primeur campaign? <a href="https://winecap.com/download-guide" target="_blank" rel="noopener">Sign up here</a> to receive the latest news and releases.

Bordeaux En Primeur 2021: Initial Thoughts

Rare Burgundy wines are set to feature in Christie’s upcoming ‘Luxury Week’ in May and also in its Finest and Rarest Wines and Spirits sale in June. Spring heralds warmer weather, new growth and for one of the world’s most famous auction houses, a series of auctions that include some of the finest wines, watches, jewellery and handbags ever produced.
<h2>Christie’s Auction House </h2>
Last year’s sales of luxury items at Christie’s was incredibly successful, topping just over $980m and the highest since 2015. Interestingly, 35% of buyers across all categories were new to the business and 32% of them were millennials, according to Christie’s CEO Guillaume Cerutti. It’s these new buyers that are driving the current buoyancy at the top end of the luxury auction market and that continue to push prices up on rare, collectible wines. What’s more, Christie’s has heavily invested in technology, a move brought about by the pandemic, in order to livestream auctions.  
All eyes will no doubt be focused on the upcoming rare Burgundy auction in June. It’s sure to be a real highlight as all of the 45 lots have been brought above ground from the deep, vaulted cellars of King’s College Cambridge. King’s College is said to have one of the most well respected cellars out of all of the university colleges and a real heritage when it comes to wine as its University Wine Society was founded in 1792. The college bought all of the wines on release from UK importer Richards-Walford and the cases were then moved to the university’s cellars, where they have remained since then. Only four wine stewards have been appointed in the past two centuries and their enviable role is to act as the cellar’s guardians and curate its collection.
<h2>A Wine Investor’s Dream</h2>
The 45 lots are set to feature rare Burgundies from such highly sought-after producers as Henri Jayer and his nephew Emmanuel Rouget, who is now the proprietor of some of Jayer’s most famous vineyards. Wines from these producers are expected to hail from such revered appellations as Echézeaux and Vosne-Romanée Cros Parantoux. Bids are sure to reach eye-wateringly high amounts for stand-out wines from a region that has tiny production levels.
Speaking about the upcoming auction, Adam Bilbey, Christie’s Global Head of the Wine and Spirits Department commented: “The hallowed cellars of King’s College, Cambridge are steeped in such history and tradition that this sale will garner the imagination and attention of wine lovers around the world. This small glimpse into the King’s College cellar will most certainly be a highlight of Christie’s wine sales this season”.
Want to find out more about rare Burgundy wine? Download our <a href="https://winecap.com/learn/burgundy-region-report">Burgundy report</a> and discover why the region and its producers’ wines command some of the world&#8217;s highest prices.

Rare Burgundy Auction at Christie’s

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Our first quarterly report, analysing the trends that shaped the <a href="https://winecap.com/about-us">fine wine market</a> 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.

Q1 2022 | Report

Champagne looks set to capitalise on its excellent 2021 performance. Last year was fantastic for Champagne brands as sales figures for the category rocketed beyond pre-pandemic levels. Over 350 million bottles were exported worldwide last year and the appetite for French bubbles – synonymous with luxury, indulgence and good times – gained the most ground in the US which has now surpassed the UK (37.4%) as the largest export market by volume (39.1%). 
This price growth can be attributed to two things: restaurants, nightclubs and bars reopening worldwide, as well as ultra high net worth collectors focusing their attention on the category. With less supply available, prices surged.
The sky was the limit for Champagne in 2021 as it ended the year up 40% and at a record high level. 2022 looks incredibly promising for the category too as it’s up 9.6% so far this year. 
<h2>Louis Roederer Cristal Rosé</h2>
Prestige Champagne brands were the key price drivers in 2021 and the headline acts with the top performance were highly sought-after names including Louis Roederer Cristal (with high demand across the 2008, 2012, 2013 and 2014 vintages). Interestingly, the most traded wine by value was the 99 point scoring Louis Roederer Cristal Rosé 2012 as the market for rosé Champagne expands. Other Grande Marques with top billing were the ultra-premium Salon (2007, 2006 and 2002 vintages), as well as Taittinger’s Comtes de Champagne 2006 and Dom Pérignon’s Rosé 2005.
<h2>Non-Vintage Champagne</h2>
However, it wasn’t just vintage Champagne that sparkled. The trade of non-vintage (NV) Champagne also broke new ground and made up the most-traded part of the category. The market has also broadened with NV Champagne’s trade share up from 5.1% in 2018 to 17.6% in 2021.
With such impressive performance in 2021 as well as in Q1 this year, there’s no doubt that Champagne has now cemented its place in the secondary market for fine wine. What’s more, there is no other region where the top wines are still this affordable. Savvy investors who hold top Champagne know just how approachable this category is, when compared to the most prestigious Burgundies, top Napa wines and the very best of Bordeaux.
Want to find out more about investing in Champagne? Read WineCap’s in-depth analysis in our <a href="https://winecap.com/learn/champagne-report-2022" target="_blank" rel="noopener">Champagne Report</a>.

The Champagne Brands Driving Price Growth

Bordeaux wine producers braced themselves this week as temperatures dropped as low as -7℃ in certain areas. It’s the second year in a row that the region has experienced Spring frosts and the coldest temperatures for this season since 1947. As châteaux try to ward off the frost that can wreak havoc on their entire crop, we’ve taken a closer look at how it impacts vines and what producers can do to try and combat it.
<h2>Frost and Wine: How Does it Affect Vines?</h2>
Spring frosts happen when cold air below 0℃ collects at ground level and freezes any water that has settled on surfaces. If this happens to new buds that have burst it kills them. The impact of this is huge and can impact the vintage yield significantly.
<h3>Vineyard Frost Protection</h3>
There are several ways that wine producers can try to combat frost in the vineyard. One popular and traditional method in French winemaking regions is the use of ‘bougies’, literally ‘candles’ in French, but more often ‘burners’, using old oil drums. They are placed throughout the vineyard to generate heat which helps the air to circulate and prevents the cold air from settling and causing the frost.
Wind machines are more common in areas that are prone to frosts. They act as large fans with a heating element inside and aim to keep the temperature at ground level above freezing. You might have even seen photos of some producers using helicopters above the vineyards in order to circulate the air!
Sprinklers are also used to spray water onto the vines. As the water freezes around the green tissue, it releases some heat which gives vines just enough protection to fight off the frost. 
One Bordeaux producer who has fought frost with 100% success using another method this year is Liber Pater in the Graves region on the Left Bank. Owner ​​Loic Pascquet no longer bottles his wines adhering to the AOC system which has strict production requirements. Instead, he chooses to bottle his wines as ‘Vin de France’ and is free to use frost nets in the vineyard, something that AOC classified producers are not permitted to do. Frost nets cost half the price of burners and are also reusable.
<h3>The Impact on the 2022 Vintage</h3>
While we don’t know just yet the full impact the Spring frosts may have had in Bordeaux, it’s likely that yields will be down. With less fruit available to make the wines, the amount of the 2022 vintage released on the market could be drastically reduced, meaning that the global demand for Bordeaux would struggle to be satisfied.
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Aerial shot showing burners in Bordeaux vineyards

Spring Frosts in Bordeaux

Our Burgundy Report is available to download. Discover more about this historic wine region that produces some of the world’s most expensive and sought-after wines.
With only two primary grape varieties and three classification ranks, Burgundy may appear simple, but with dozens of controlled places of origin (AOCs), hundreds of producers and many thousands of wines, it can be fiendishly complicated.
Growing liquidity and increased awareness of the sector has made Burgundy much more accessible to those looking to make a return and its prominence has grown significantly over the last decade.
Thanks to Burgundy’s status and its tiny production levels, early investors in the sector have seen eye-watering growth: upwards of 2000% in 15 years for some wines. This fascinating and wide-ranging region is a significant one for both wine enthusiasts and investors. Part of the region’s allure is due to its limited production levels. Only small quantities of particular wines are produced and this only adds to the appeal of the often hard-to-find and highly sought-after top quality bottlings.
The volume, value and breadth of trading has increased significantly and wine values have increased dramatically over the last decade; the major index is up almost 200% in the past ten years. After a quieter 2019–2020, it appears that the Burgundy market is on the up and it now makes up around 25% of all trades on the largest platform.
WineCap has analysed the data and the fundamentals suggest that continued growth is likely. With the market now more active than it was five years ago, all portfolios should include some Burgundy. Download the report to discover further market analysis and lesser-known producers with impressive recent performance.

Burgundy | Region Report

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There is no question that appreciation of wine is increasing all over the world which, subsequently, has piqued the interest of potential fine wine investors across the globe.
The fine wine market has established itself as a low-risk marketplace for anyone looking to get into the investment world or wanting to expand their existing portfolio. But why is it so popular?
In this article, discover why more and more people are investing in fine wine and, if you’re considering becoming a fine wine investor yourself, find out how to get started.
<h3>Differences between fine wine and other investment methods</h3>
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<h4>An alternative investment</h4>
An alternative investment is any way of growing your capital that doesn’t fit into the traditional categories, such as equity and bonds.
Alternative investments, such as fine wines, allow investors to diversify their investment portfolios. Doing so decreases the risk over their entire portfolio, giving them the chance to strengthen what they already have.
<h4>Low correlation with the stock market </h4>
The fine wine market doesn’t correlate with the stock markets because its value relies on the good old-fashioned supply and demand model.
Investment-grade wine producers only make a small amount of wine every year, this already increases its value. As soon as someone drinks that bottle of wine, there is one less bottle to buy, but the demand for that wine doesn’t go away.
This continuous cycle is what often gives fine wine investors such a healthy return on investment, unlike traditional investment methods where prices often rise and fall unexpectedly.
<h4>It’s a tangible asset</h4>
A tangible asset means it is a physical object. A fine wine investor invests in a real-life, physical product, which means they have direct ownership of that wine and can crack open and enjoy it should they wish to.
This differs to stocks and shares, where although you may receive paper confirmation, you don’t truly own the product – making it less secure than tangible assets.
<h4>Low volatility</h4>
Volatility is a term to describe the rate prices of an item increase and decrease in a market over a period of time.
Traditional investment methods, like stocks and bonds, have very high volatility. Prices can increase and decrease for any reason at any given time. Indeed, sometimes it only takes one prominent and influential figure to publicly criticise it for its price to dramatically drop.
The fine wine market has low volatility with stable price growth over time, which is why fine wine is considered a low-risk investment.
<h3>So, how can you turn fine wine into profit?</h3>
One of the many great things about fine wine investment is that you can take it up whether you are an investment expert, or a hobbyist looking to expand your portfolio.
If you are new to fine wine investment and would like some help deciding where to invest your money, you could look into working with a fine wine investment company like WineCap.
Here at WineCap, we offer expert, unbiased advice on strategic investment opportunities and can walk you through how to get the most out of your investment.
We also store your fine wine in government bonded warehouses, ensuring your wines are stored in optimum conditions.
Learn more about wine investment and <a href="https://winecap.com/schedule-a-call" target="_blank" rel="noopener">schedule a free consultation today</a>.

The Fine Wine Market is Seeing More & More Investors

If you’re looking for viable investment opportunities then you’ve likely considered a range of potential investments, including stocks and wine. But of these two drastically different investment arenas, which is the safer option during the current economic climate?
In this article, discover the pros and cons of investing in wine and investing in stocks to help you make a more informed decision about which investment direction is best suited to you.
<h3>The pros of investing in wine</h3>
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<h3>A low-risk investment</h3>
Fine wine is a physical asset, so it represents a very low-risk investment. When you invest in the market, your wines are stored in optimal conditions within a secure bonded warehouse.
<h3>Wine is a physical, tangible asset </h3>
Wine, unlike stocks, is a tangible asset created to be drunk and enjoyed. This gives it intrinsic value as a medium to long-term investment.
<h3>A relatively resilient marketplace  </h3>
<a href="https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/fine-wine-investors-toast-despite-stock-market-tumble-58149302" target="_blank" rel="noopener">According to S&amp;P Global</a>, wine is one of the few luxury assets to have withstood the harsh impact on assets triggered by the coronavirus pandemic, proving the market relatively resilient. Indeed, wine is widely considered to be a ‘safe haven asset’.
<h3>The cons of investing in wine</h3>
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<h3>Portfolio valuation can be tricky</h3>
Traders tend to purchase and sell wine at a less frequent rate than stocks are purchased and sold, and there is no standardised international market. These factors can make it challenging for wine investors to get an accurate idea of the value behind the wines in their portfolio.
<h3>Selecting well-known wines could be disadvantageous</h3>
Many wine investors tend to choose mainstream wines from well-known wine regions such as California, Burgundy, or Bordeaux. Owing to their ubiquity, these wines can have a reduced chance of transitioning to rare wine status.
<h3>Selling wine can take a while </h3>
It can take wine investors some time to sell a bottle of wine in their portfolio, particularly when trying to navigate the marketplace without expert support. This can make it more difficult to access funds quickly should the need arise.
<h3>The pros of investing in stocks</h3>
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<h3>The potential for large cash gains</h3>
Though the prices of individual stocks rise and fall daily, the potential to grow your money over time can be significant. Investing in stable companies that have the ability and intention to grow can often result in profit for investors.
<h3>Quick purchases and sales</h3>
Thanks to their liquidity, stocks can usually be bought and sold fairly quickly, and often at a fair price.
<h3>Diversification</h3>
The stock market gives investors the ability to build a diverse stock portfolio across a wide variety of different industries and sectors. This diversity can help to reduce the overall risk of stock investment.
<h3>The cons of investing in stocks</h3>
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<h3>An erratic, volatile marketplace</h3>
Unlike the fine wine market, the stock market is a high-risk, erratic and volatile investment arena. Although stocks can be highly lucrative when invested in tactically and sensibly, the rapid, widespread price fluctuations can make it difficult to achieve the desirable returns on your investments.
<h3>Limited company information </h3>
It’s important to remember that when you invest in stocks you are investing in a public company. However, investors may not be able to access all relevant information about the company, which can make it more difficult to make good investment decisions.
<h3>Capital Gains Tax</h3>
If you make a profit on shares you sell, then you will likely have to pay Capital Gains Tax, depending on your total gains for the tax year.
However, it is worth noting that you do not have to pay Capital Gains Tax when you sell fine wine because the HMRC classes it as a ‘wasting asset’.
<h3>Wine Vs. stocks – which is the safer investment?</h3>
While the stock market represents a high-risk, high reward investment arena, investing in wine tends to offer more security – which is an important consideration if you want to create a sustainable investment portfolio.
Fine wine has a long, proven history of robust returns on investment. According to the world’s largest online wine stock exchange, Liv-ex, fine wine has delivered 13.6% annualized returns over the last 15 years – outperforming most stock markets. One need only review the <a href="https://www.liv-ex.com/news-insights/indices/">Liv-ex fine wine indices</a> to see how modest but consistent annual growth adds up over time.
So, in the case of wine vs. stocks, it is our opinion that wine is a much safer investment.
<h3>Talk to our wine investment experts</h3>
We hope you found this article helpful. If you’d like more information or advice about investing in wine, simply schedule a free 30-minute consultation with one of our wine investment experts.
<a href="https://winecap.com/schedule-a-call" target="_blank" rel="noopener">Schedule your free consultation</a>

Investing in Wine Vs. Investing in Stocks – Which is Safer?

Our Bordeaux En Primeur 2020 Report is available to download. Discover our wine investment experts thoughts on 2020, a vintage that has widely been heralded by prominent wine critics as excellent and the third in a row of top Bordeaux vintages. Find out which Bordeaux sub-regions and producers they feel delivered top class wines that are worth seeking out. 
As with the two vintages that preceded it, conditions in 2020 favoured producers with multiple plots of different soil types due to the abundance of both sunshine and rainfall. Right Bank clay soils were better able to retain water and thus sustain the vines. 
Although Bordeaux En Primeur 2020 is undoubtedly a fantastic vintage, investors are advised to be selective and search for relative value rather than being led solely by critics’ scores. 
Through careful study and data analysis, WineCap provides insight into the wines that we feel present both value and opportunity for capital growth. With our bespoke, industry-leading graph and analysis tools we have concluded that the wines selected in this report are attractive prospects and that any carefully built investment portfolio should consider 2020 Bordeaux.
Click the button below to download our Bordeaux En Primeur Report. Do not hesitate to get in touch and speak to one of our wine investment advisors to reserve your allocations.

Bordeaux 2020 | Vintage Report

Hello, we’re WineCap and we’ve changed our name from Westgarth Wine Investments to give it a bit of a refresh, invested more in our technology, streamlined the new site and have added extra features that benefit our visitors. You can now schedule a <a href="https://winecap.com/schedule-a-call" target="_blank" rel="noopener">free 30-minute consultation</a> with one of our investment experts. We&#8217;ve also created the <a href="https://winecap.com/learn" target="_blank" rel="noopener">Academy</a> which is a hub of online resources.
<h3>New Name. Same Team.</h3>
We’re still the same independently-owned company and team who’ve been proud to serve you for the past ten years and who will continue to offer expert investment advice for the next chapter of your wine journey.
<h3>Do I Need to do Anything?</h3>
You don&#8217;t need to take any action. Your online details remain the same, there are no changes to the wines you hold or where they&#8217;re stored and you can phone the same people using the usual number.
<h3>What&#8217;s New?</h3>
You&#8217;ll see our updated branding on our new website. We&#8217;ve also launched the <a href="https://winecap.com/learn" target="_blank" rel="noopener">WineCap Academy</a> where you can learn more about the producers you invest in, stay up-to-date on what&#8217;s been happening in the market and get the low-down on everything in the wine investment sector. What&#8217;s more, you can expect new quarterly reports in order to stay informed with market trends.
So, a big &#8216;hello&#8217; and &#8216;welcome&#8217; from all of the team here at WineCap and we&#8217;re excited about this new phase of our wine investment journey together.

Welcome to WineCap

<h1 data-pm-slice="1 1 []">Considering investing in Champagne?</h1>
It&#8217;s not necessarily the most costly, nor the rarest of fine wine. However, Champagne is supremely consistent, making it arguably one of the strongest and most appealing sectors of the fine wine market.
Its steadfast presence can be attributed to its brand strength, liquidity and an aura of exclusivity it maintains despite being well-known in the main. 200-plus years of expert marketing by the best producers is what arguably makes Champagne the most broadly understood luxury good in the world.
As with all fine wine, as Champagne ages, its quality improves. As it is consumed, its supply decreases. This virtuous circle drives prices over time. This luxurious bubbly tends to be released later than other investable wines and as consumption begins in earnest immediately, we can see the impact of this cycle faster.
<h3>Top Champagne Brands to look out for</h3>
For those considering investing in Champagne, the most important brands to keep in mind are Dom Pérignon, Cristal, Krug, Taittinger and Salon. Volumes produced vary considerably from producer to producer. Dom Pérignon is widely believed to make around 4,000,000 bottles a year across all their wines. In contrast, in 2020 Salon released just 8,000 bottles of their 2008.
<h3>The Best Champagne Vintages </h3>
The strongest vintages include 1996, 2002 and 2008. Unlike in Bordeaux or Burgundy, producers tend not to release vintage wines every year, emphasising the exclusivity. This means there are vanishingly few &#8216;bad&#8217; Champagne vintages. Although of course, some are superior to others, it is no more necessary to focus on only exceptional vintages in Champagne than it is in other regions.
Over the past five years Krug&#8217;s value is up 75% and Dom Pérignon up by 65%. These numbers demonstrate that Champagne is a smart addition to any diversified investment portfolio and should no longer be considered just a celebratory indulgence.
Want to find out more about investing in Champagne? <a href="https://winecap.com/learn/champagne-report-2022" target="_blank" rel="noopener">Read our in-depth report here</a>.

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