Main regions for fine wine investment
Considered to be the epicentre of the fine wine world – Some of the most prestigious producers from this region have history dating back to the 12th century and wine making across the globe owes itself to traditions created here.
Over 50% of the world’s investment grade wines are produced in Bordeaux and most wine investment portfolios will have a high percentage of Bordeaux wines as a foundation. To this day wines from Bordeaux still account for a high percentage of market share on platforms such as Livex.
Burgundy holds a reputation for producing some of the rarest and most coveted wines in the world, with prices for some cases easily reaching six figures. Finite production levels and a rich history have seen some wines from this region reach a somewhat mythical status.
Celebration, opulence and extravagance. These words are synonymous with the sparkling wines from the French region of Champagne. Huge demand stemming from top bars, restaurants, hotels and collectors all over the world has seen Champagne become a focus point for wine investors.
Although not necessarily in every investor’s portfolio, wine making in the Rhone Valley can be traced back to the 1400’s and in more recent times certain producers have become recognised globally for their continued quality and dedication to their craft. Trade of wines from this region has increased massively over the last 30 years.
Italian wines have carved out a place for themselves as a very popular alternative to their more traditional French counterparts, with a history that can be traced back to the Roman empire. In today’s marketplace, Italian wine is generally viewed as the perfect mix of fair, reasonable pricing, combined with extremely high quality and growth potential.
Known for its ‘Super Tuscans’ – Tuscany produces a higher volume of wine than any other province in Italy. The last decade or so has seen ‘Super-Tuscans’ become viewed as a very strong alternative to Bordeaux’s ‘First-Growths’.
If Tuscany is the ‘Bordeaux of Italy’ the Piedmont is the ‘Burgundy of Italy’ – Tiny production levels coupled with huge demand from collectors around the world have seen values of the top wines from this region go to new heights.
You can track Spanish wine production all the way back to 4000BC and as you could expect, expert wine marking is deeply embedded in the roots of Spanish culture. Characterised by their full bodied reds with high alcohol content, the top Spanish wines are popular all across the globe – With that being said, there currently only two producers from Spain which can be confidently be recommended for investment and they happen to be from two different regions of the country.
Ribera del Duero
Since 1982 there have been strict regulations imposed on the production of wine from this region, similar to those implemented across Bordeaux in 1855 – This has seen an influx of experienced growers and producers establish properties in the region.
Castile y Leon
With wine making tradition from this region dating back to Catholic monks in the 11th century, Castilla y Leon is the largest wine making region of Spain whilst also being subject to the same restrictions on supply as other regions.
In 1976 there was a blind tasting held in Paris, aptly named ‘The Judgement of Paris’. It was here that American winemaking defined itself and staked its claim as one of the best wine making regions of the world. Napa Valley wines beat a number of the best Bordeaux offerings at this event and since then California has emerged as one of the world’s most popular wine locales.
Despite not having the same history as its European competition, there’s no escaping the quality coming from some of the estates from this region. The top brands have incredibly small production levels and are already being traded heavily on the secondary market. Furthermore, many Bordeaux estates have laid roots and begun developing stateside counterparts to their already established brands.
There are over 2000 wine producers in Southern Australia, yet despite having such a high overall wine production Australia is home to only one proven investment grade fine wine.
The most valuable Australian wines are produced here but aside from a brief period in the early 00’s there has only been one producer from this region to produce a wine that could be considered for investment.
Rest of the World
There are also other wine making regions/countries that may one day establish themselves in the ‘investment grade wine’ scene. But it takes a long time to cultivate a long lasting luxury brand with global appeal – Therefore wines from these regions of the world are seen as risky investments for the time being.
Even though fine wine investment can be greatly rewarding, there are many important things to consider such as finances, timeframes and risk appetite.
Our team of fine wine investment experts are on hand to help you on your journey with our clear and simple on-boarding process.