Finewine Investmentreport Volumeone
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FINE WINE INVESTMENT REPORT VOLUME ONE COLLECT, SELL, AND STORE THINK OF US AS THE GO-TO FOR ALL YOUR FINE WINE NEEDS As a fine wine retailer, storage facility, and market- place, we move with the market to create actionable insights for clients, many of which can now be found in this new guide. LOOKING TO DIVERSIFY YOUR PORTFOLIO? INVEST IN FINE WINE Over the last three decades, investment-grade fine wine has performed very strongly against most major asset classes. In fact, analysis of a representative selection of the foremost traded investment-grade wines reveals a Compound Annual Growth Rate of 11 percent since 1988. Furthermore, wine has a pleasingly low correlation with other assets during periods of market disruption—making it a valuable support to a diversified portfolio. LEARN MORE VINPULSE MARKET OVERVIEW 2020 OVERVIEW 2021 PROJECTIONS Between the tariffs put in place in With the tariffs now lifted, October 2019 and the pandemic that European fine wine pre-arrivals are followed in March 2020, one might now excellent options to begin have expected wine investments to investing in again. flop as other investments did during this time. On the contrary, many our take New releases of Bordeaux and segments soared to meet the Burgundy—especially the 2018 moment. on the vintages—are solid investments. current Additionally, Rhône and Spanish Propelled by a favorable wines are a great way to start high-quality-to-price ratio on market diversifying your portfolio. Brunello di Montalcino and Super Tuscans, Italian wine experienced historic growth. Even Bordeaux en primeur proved successful with many châteaux choosing to release the excellent 2019 wines at incredible values. *GROWTH STATISTICS AS REPORTED BY LIVE-EX VINPULSE MARKET OVERVIEW GOODBYE, TARIFFS! Go ahead, get that case of Bordeaux! In March 2021, the European Union and the United States announced the mutual four-month suspension of tariffs related to the World Trade Organization (WTO) Aircraft disputes, including those on select European wines. We are hopeful that a permanent resolution to this dispute will be found in the near future, but we certainly recommend investors stock up on pre-arrival Bordeaux and Burgundy, as well as Rhône, Spanish, and Port wines now during this guaranteed period without tariffs. VINFOLIO TOP TEN VOLUME ONE We’ve gathered the hottest wines on the market right now, based on growth statistics reported by global wine marketplace Liv-ex. According to respected wine reviewers, our top ten are just now hitting their drinking windows—meaning they are excellent choices for investments as the wines progress through peak maturity. These are definitely worth grabbing by the bottle or case. VINFOLIO TOP TEN • VOL 1 TOP-PERFORMING WINES FROM 2019 TO 2020 2010 Château 2013 Sassicaia 2008 Bollinger 2009 Château 2013 Solaia L’Eglise Clinet La Grande Année La Conseillante BORDEAUX TUSCANY CHAMPAGNE BORDEAUX TUSCANY 37% 30.7% 27.4% 24.4% 24.1% 2019-2051 2020-2037 2022-2043 2018-2045 2018-2037 REGION GROWTH PEAK MATURITY VINFOLIO TOP TEN • VOL 1 TOP-PERFORMING WINES FROM 2019 TO 2020 2016 Vieux Télégraphe 2016 Tignanello 2008 Vega Sicilia Alión 2013 Tignanello Châteauneuf-Du-Pape 2006 Dom Perignon Ribera del Duero La Crau Red CASTILLA Y LEÓN TUSCANY RHÔNE CHAMPAGNE TUSCANY 22.8% 21.8% 20.9% 20% 19.2% 2019-2036 2019-2031 2022-2035 2018-2033 2022-2040 REGION GROWTH PEAK MATURITY REGIONS TO WATCH INVEST IN BORDEAUX Bordeaux is our No. 1 recommended buy for investors, as the region has a history of performing exceptionally well, year after year. In fact, producers’ seasoned blending techniques almost always produce very good to excellent vintages, even in difficult years. Now is a great time to purchase more recent vintages like 2015, 2016, and 2018 and historically top-notch vintages like 2005, 2009, and 2010 on pre-arrival. We are currently sourcing these wines heavily ourselves. REGIONS TO WATCH INVEST IN BURGUNDY Burgundy is another historically excellent choice for investors, but be careful not to buy overpriced stateside bottles. Some Burgundy producers brought wines into the U.S. and have included the cost of the tariffs in the retail price of the bottle. To avoid inflated pricing in this segment, we suggest securing European pre-arrival stock. REGIONS TO WATCH INVEST IN CHAMPAGNE & RHÔNE Historically, seasoned wine investors have often turned to Bordeaux and Burgundy wines, but it’s clear from recent trends that they are no longer the only French wines worth considering. Several wines from Champagne and Rhône have performed exceptionally as of late, and we see this trend continuing through 2021. REGIONS TO WATCH INVEST IN ITALY & U.S. Both the Italian and U.S. fine wine segments have performed well over the last year, likely in response to the tariffs on European wines and the emergence of some really exceptional vintages to the market like 2015 and 2016 Brunello di Montalcino. Italian investments that performed the best included Tuscan wines like Tignanello, while investments from the U.S. that performed the best primarily came from California, specifically the Oakville region of Napa Valley. WINE SUCCESS STORIES 2010 Marques y Murrietta Castillo Ygay Rioja Gran 53.85% Reserva 99 POINTS, JAMES SUCKLING Representing Wine Spectator’s No. 1 wine of 2020, the 2010 Marques The day Wine Spectator made the No. 1 wine announcement, y Murrietta Castillo Ygay Rioja Gran Reserva has increased in Vinfolio’s agile buying team was able to acquire about 90 percent of value by 53.85 percent over the last five years. This available Liv-ex stock and then offer it at a great value for Tempranillo-dominated blend from Spain’s Rioja region is “rich yet customers. harmonious,” Wine Spectator says, and “should drink well for decades.” WINE SUCCESS STORIES 2009 Château Lafite 30.43% Rothschild 100 POINTS, JAMES SUCKLING From King Louis XV to Thomas Jefferson, some of the world’s most commenting on the wine’s “freshness and delicacy.” At 12 years old, famous oenophiles have coveted and collected the spectacular “time has already worked its magic and this is already delicious,” wines from Château Lafite Rothschild. Signifying just what a top Suckling says, but it has “decades in front of it.” Now is a great time First-Growth Bordeaux can do on the market, the 100-point 2009 to secure this impressive Grand Vin. vintage has increased in value by 30.43 percent over the last five years. “This is what Medoc is all about,” says James Suckling, EXPAND YOUR COLLECTION 2018 Tenuta San Guido 82.93% 63.39% Sassicaia 2004 2010 97+ POINTS, WINE ADVOCATE Tenuta San Guido’s Sassicaia wine is unquestionably one of Italy’s top-rated Sassicaia vintages, 2010 and 2004—both rated most highly anticipated releases vintage after vintage. Not only did 97 points by Wine Enthusiast—have increased at incredible rates the most recent release, 2018, deliver quite the memorable over the last five years (63.39 percent for the 2010 and 82.93 percent Sassicaia bottling, but it also represents this iconic wine’s 50th for 2004). With the price currently down on the 2018, we highly anniversary! With a drinking window from 2024 to 2045, this recommend collectors buy this wine now! monumental wine will only increase in value as it ages. Similarly EXPAND YOUR 25.38% COLLECTION FINE AUSTRALIAN WINE 1998 Penfolds Grange From the Barossa Valley to McLaren Vale, Eden Valley, Marlborough, Australia’s fine wine producers have also enjoyed a large growth in and beyond, Australia produces wines of supreme complexity with “a the value of their wines. The 98-point–plus (Wine Advocate) 1998 hedonistic charm that makes them disarmingly approachable,” Karen vintage of Penfolds’ acclaimed Grange bottling, for instance, has MacNeil of The Wine Bible says. The grape that reigns supreme here increased 25.38 percent in value over the last five years. For is Shiraz, or Syrah produced in a riper style, that results in value-seeking investors, this is a great region to start watching. “seductive, lusciously textured, complex” reds, MacNeil says. Over the last 20-plus years, Australian wine has grown in demand, and EXPAND YOUR COLLECTION MCLAREN VALE’S CLARENDON HILLS In 2020—after a 10-year-hiatus—Australia’s iconic Clarendon Hills Astralis, is sourced from vines planted in the 1920s, and we expect began importing wines back into the U.S. exclusively through recent vintages like the 100-point (Wine Advocate) 2015 vintage to Vinfolio. Thus, we can guarantee that these winery-direct, continue to increase in value through its drinking life over the next single-vineyard Syrah, Grenache, and Cabernet Sauvignon treasures two decades. The 2016 Clarendon Hills wines are out with critics from McLaren Vale offer perfect provenance. The winery’s flagship now, and—after tasting these ourselves—we expect great results. Syrah, the lush and concentrated ON THE HORIZON WHAT’S TO COME 2020 BORDEAUX Picked during a pandemic, Bordeaux’s 2020 vintage already holds great historical significance, but producers say the grapes also offer a lot of potential for a very good to exceptional vintage. “There’ll be some terrific wines from 2020,” Jancis Robinson says. “Yields for many estates are lower, with less juice due to heat and drought, but the quality is high,” she adds. We hope the recent four-month tariff suspension is a good sign for a full lift to come, making this release even more alluring for investors. ON THE HORIZON WHAT’S HOT 2018 & 2019 BORDEAUX The releases of 2018 and 2019 Bordeaux—both featuring wines of incredible quality—were met with unfortunate market circumstances. 2018’s en primeur season was followed just a few months later by the announcement that certain European wines— including Bordeaux—would be subject to a 25 percent tariff.