Strategic wine investments have reaped higher returns compared to capital investments over the past year.
This comes as stocks have had a tough year, with several macroeconomic headwinds including rising inflation rates, global supply chain disruptions and heightened geopolitical tensions dampening investor sentiment. Additionally, among alternative investment options, fine wine ranks higher than most of its counterparts, as fine wines tend to be less volatile in nature.
With the total number of high net worth individuals increasing since the pandemic, it’s no wonder that global demand for fine wine has increased. This, along with a naturally limited supply, has caused the prices of luxury vintage wines to rise. According to the latest report by Gomberg, Fredrikson & Associates, total US wine sales will reach $78.4 billion in 2021, growing 16.8% year over year.
Some of the best performing wines
Chablis has been among the best performing white wines over the past year, with prices rising more than 50%. These wines are produced using 100% pure Chardonnay grapes, making them some of the best white wines in the world.
Domaine Raveneau, one of the most prominent wine producers in the Chablis region, is often hailed as the King of Chablis. The dry white wine produced in this region is known for its pure aroma and taste. This, along with the limited production, make Raveneau Chablis one of the most coveted vintage white wine brands globally.
The Chablis 1er Cru appellation accounts for approximately 15% of total wine production in the Chablis region, while the Grand Cru appellation accounts for approximately 1.8% of total production. These appellations boast some of the most prestigious vineyards in this region of France. In fact, the Burgundy region of France, where Chablis is located, is a UNESCO World Heritage Site.
Related: How to invest in wine
Summer return on investment at a glance
|
asset |
One-year price performance |
|
2018 Raveneau Chablis |
57.98% |
|
2018 Raveneau Chablis Valmur Grand Cru |
66.47% |
|
2019 Raveneau Chablis Montée de Tonnerre 1er Cru |
75.25% |
|
2020 Raveneau Chablis |
57.98% |
|
2020 Raveneau Chablis Butteaux 1er Cru |
69.97% |
|
index |
One-year price performance |
|
Liv-ex Fine Wine 1000 Index |
22.28% |
|
S&P 500 Index |
-7.90% |
Related News Highlights in Alternative Investments
- Titled wine investment platform twenty is launching its biggest offering yet this week – Bordeaux En Primeur 2021 Collection at $50 a share. Merlot yields in the Bordeaux region were affected by cold temperatures and early frosts in 2021, leading to lower volumes and higher demand for the vintage.
- Bidding opened this week on Sotheby’s First London sale after the summer holidays – A Connoisseur’s Classic Cellar | The best and rarest wines. The auction includes wines from some of the UK and Europe’s leading cellars and a range of vintages covering decades from the 1960s to the present day.
Find more alternative investment news and offers at Benzinga Alternative Investments
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