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Investment in:

Champagne


A high production and even higher consumption characterise Champagne. However, a sublime level of quality and attractive prices, compared to other categories of top wines, are also the mechanisms behind Champagne's growth – a growth that has only just begun.

How Champagne Is Characterised As An Investment

For many, Champagne is synonymous with extravagance and luxurious opulence. From Napoleon to Sir Winston Churchill and the Russian Tsars to Coco Chanel, Champagne has been an exclusive status symbol throughout history, glorified in Hollywood by world famous people like James Bond and Jay Gatsby.

Without losing its exclusive character, Champagne has to some extent become a common household item, with stratospheric consumption as a result. From private homes, to restaurants, bars, hotels, nightclubs and better flights, the sparkling drops are flowing. This has created an attractive environment for the Champagne investor – because while consumption is taking place, there is no significant tradition of collecting and storing, which makes the mature bottles even more attractive.

Champagne has consequently been a category on the rise for several years. Incomparable distribution networks, extremely strong brands and international appeal have made Champagne one of the most important forces in the wine market, and there is no doubt that this is a category to keep an eye on in the future. As an example, China as a key market for Fine Wine, which has been a major driver for booming price increases (first in Bordeaux - now in Burgundy) is only now starting to open its eyes for the sparkling wines.

Another interesting feature of Champagne is that prices for the best Champagnes are still low compared to top wines from some of the other major categories. Combine this with high supply, even higher consumption, a commitment from the producers to promote Champagne further, and a minimal tradition of collecting and storing, and we have some very attractive opportunities for the investors, who in the future will be able to offer perfect, mature Champagne.

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Performance

2020 was Champagne's best year ever, and there is nothing to suggest that the momentum will stop – certainly not if you ask the UK wine exchange, Liv-ex. In fact, the Champagne 50* was the best-performing Liv-ex sub-index in 2020, growing by 8.3 % – this in a Corona-plagued market.

Another indicator that Champagne is a category that is attracting increased interest is that trading by value has increased from 1.2 % of total trading on Liv-ex in 2010 to 8.2 % in the first half of 2021, a growth in trading activity by value of +583 % in just over 10 years.

In addition to being among the leading sub-indexes on Liv-ex in recent years, Champagne 50 has also shown good momentum over the past five years (2016-2021) with a growth of 58 %.

Champagne has thus provided very attractive investments for investors in recent years, but with the increasing interest in Champagne and huge markets that have not yet opened their eyes for Champagne, everything suggests that the category is only about to enter a new era.

A) One thing is certain – we have great expectations for the future of Champagne and are therefore very focused on this category.

B) While the rest of the wine world looked to Bordeaux, we looked to Burgundy ahead of the massive growth from 2015. Now we have a big focus on Champagne as well.

*An index composed of some of the most traded prestige cuvées from Krug, Cristal, and Dom Pérignon

 

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Examples Of Strong Champagne Investment Cases

+ 56 % - 2002 Salon Cuvée ”S”

 

Wine:

2002 Salon Cuvée ”S”

Purchased: July 2019
Purchase price: € 450
Valuation date:  June 2021
Valuation:  € 700
Yield: 56 %

 

Average annual return:

26 %

 

+ 64 % - 1996 Dom Pérignon

 

Wine:

1996 Dom Pérignon

Purchased: January 2019
Purchase price: € 220
Valuation date:  June 2021
Valuation:  € 360
Yield: 64 %
Average annual return: 23 %

 

+ 104 % - 1998 Krug Vintage

 

Wine:

1998 Krug Vintage

Purchased: January 2017
Purchase price: € 130
Valuation date:  June 2021
Valuation:  € 265
Yield: 104 %
Average annual return 18 %

 

Advantages And Disadvantages Of Investing In Champagne

Advantage: World-famous luxury brands and a sky-high level of quality have added interest to the Champagne category, while the pricing of the best Champagnes is still very attractive compared to the other top wines from France.

Advantage: Lobbying for the promotion of Champagne, and thus the demand for it, is led by some particularly big powerhouses specialising in positioning and building luxury brands. The biggest players here are Louis Vuitton Moët Hennessy Group and Artemis Group respectively, which together are behind everything from Gucci, Dior and Marc Jacobs to Krug, Dom Pérignon, Veuve Clicquot, Chateau Cheval Blanc and Chateau Latour.

Disadvantage: Investing in new and hyped vintages of eagerly awaited Champagnes can be affected by volatile prices just after release. Hype and a fear of not being able to source sufficient quantities, results in the prices being traded up. If it subsequently turns out that supply is plentiful, the price may fall until it stabilises at what will become the market price. For the Champagne investor, it is then a matter of waiting patiently, while the supply is reduced by the enormous consumption, and the Champagne in the bottle matures.

 

Examples Of Previous, Exciting Investment Tips From Champagne:

Investment tip

Invest In 2002 Krug Clos d'Ambonnay: One Of The Best Single Field Vineyard Champagnes Ever

Take part in the extremely rare single vineyard Clos d'Ambonnay. Only 25,000 bottles have been produced since the first vintage in 1995 - it does not get more exclusive!

Read the full article
Investment tip

New Release: 2013 Cristal Now Available For Investment

The 2013 vintage comes in the wake of two strong top vintages, but comes with both solid quality and an opportunity to invest at the world's lowest price

read the full article
Investment tip

2002 Salon: Exceptionally Rare And Extremely Attractive

Both investors and consumers are queueing up for the magical Salon when it is available. And it almost never is. Get your hands on a minimal quantity.

read the full article

 

How to invest?

Invest through RareWine Invest and gain access to extensive experience, in-depth knowledge of the wine market and a unique trading network. Here you can get both professional advice and the opportunity to trade the world's most exclusive wines at market prices.

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1. Advise And Investment

When you invest in wine through RareWine Invest, the process starts with a dialogue with one of our portfolio advisors. Here we will work closely with you to map out your needs, investment horizon, and risk appetite. Then a personal wine portfolio is put together according to your needs.

We recommend an investment horizon of at least five years and preferably more, as price increases are historically greater the more mature the wine. We also recommend a portfolio composition of 40% Burgundy, 30% Champagne, 15% Italian, 10% Rest of World, and 5% Bordeaux to ensure optimal risk spread and diversification.

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2. Handling and storage

We handle and store your wine under optimal conditions in our top-secured and insured warehouse north of Aalborg. You will be able to follow the progress of your investment at any time via our investor portal, MyRareWineInvest.

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3. Divestment

When you want to sell all or part of your portfolio and realize the investment, you simply let us know and we sell the wines through our international trading network, and you will subsequently have the funds available and can then reinvest if desired.

Investment requires a minimum investment of €10,000. Thereafter, additional purchases can be made on an ongoing basis. Costs are dependent on the total portfolio size. Read more about costs here.

Want to learn more? Contact us with no obligation here:

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