With prices for the best Bordeaux and Burgundy becoming prohibitive, investors should look a little further north.
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Investors looking for a more affordable way to get into wine should look to Champagne rather than Bordeaux or Burgundy, according to a London-based wine merchant.
Woolf Sung founder Sebastian Woolf talks vintage Champagne currently offers the best value for money in the fine wine investment market, with a further 10% growth expected over the next 12 months.
“The world’s best Champagne vintages, 1988, 1996 and 2002, have consistently shown great appreciation and steady, continued growth over the years. Over a two-year period through August 2014, these vintages collectively grew by 10.2 percent,” he said.
As the investment market seeks alternatives to increasingly unaffordable Bordeaux and Burgundy, vintage Champagne offers volume production, global distribution and prestige. According to the fine wine exchange Liv-Ex, the Champagne index increased by 11.9 percent between 2011 and 2013 and its share of trade increased from 1 percent to 2.3 percent.
Champagne is relatively affordable compared to Bordeaux or Burgundy of equivalent quality, with the average price per case of the best vintage Champagnes costing $2,500, compared to $10,000 and $165,000 for Bordeaux Premiers Crus and Domaine de la Romanée -Conti, respectively.
“Champagne offers new investors a lower entry point and seasoned investors good value as they diversify their portfolios,” Woolf said.
“Champagne is marketed when it is ready to drink and is therefore rarely kept for long in the cellar, vintages then become rarer and prices rise.”
He said Woolf sang focuses on the sourcing and supply of these old and rare vintages which present an investment over 3 to 5 years; these bottles are consumed now, so scarcity and – consequently – prices continue to increase.
“Pommery 1999 Cuvée Louise Brut Vintage, 2002 Salon Cuvée ‘S’ Le Mesnil Blanc de Blancs, 2002 Dom Pérignon Rosé2006 Louis Roederer Raw Crystal are our top suggestions to watch out for. A case of six bottles from the 2002 Show is currently worth $2,750, a low investment threshold, and we expect 10 percent growth over the next 12 months.
The Champagne market is rapidly expanding beyond traditional favorites, he added, and as growing Asian markets increase their training in fine wines and seek more prestige, Champagne’s appeal will grow. expand towards the East.
“With restricted production and increased consumption in growing markets, steady Champagne revenues will continue and are likely to increase. We focus our efforts on sourcing rare and rare bottles for our customers; it is almost impossible to obtain supplies directly from homes or in stores. “
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