Fine Wines for Investment Returns

The wine investment market is concentrated on a tiny proportion of the world's wine production yet there can be significant variations between wines from the same region and vintage.

Bordeaux Wines

Traditionally, investment portfolios have focused exclusively on classed growth red Bordeaux (referring to the 1855 classification of Bordeaux) from great vintages. These wines have a long-established secondary market and have built up good reputations for consistent quality and the ability to age well.

The top 30 chateaux produce no more than 500,000 cases per year. There are, on average, only three vintages of investment quality in a decade. This strictly limited production pushes prices high. Ch. Lafite, Ch. Latour, Ch. Margaux, Ch. Mouton-Rothschild, Ch. Haut-Brion and Ch. Leoville Las Cases are generally reliable. Pomerol properties, such as Ch. Le Pin, Ch. Petrus, Ch. Lafleur, and Ch. La Fleur Petrus, and St Emilion properties such as Ch. Pavie and Ch. Valandraud, are also traded frequently.

You may also find interesting our comparison of prices for the Bordeaux 2005 En Primeur (Futures) campaign for UK and US merchants.

Burgundy Wines

The finest red and white Burgundies are now traded and include wines from Domaine de la Romanee-Conti, Domaines Leflaive, Leroy, Meo Camuzet, Armand Rousseau, Henri Jayer, Roumier, Ponsot, Lafon, Coche-Dury, and de Vogue. Made in very small quantities, the finest Burgundies are generally bought on release by Burgundy enthusiasts for drinking and rarely reappear on the market. The exception is Domaine de la Romanee-Conti, which has developed a secondary market.

Other Regions

Over the last decade the range of fine wines to invest in has increased greatly. Burgundy and the Rhone Valley, along with Italy, Spain and California, all produce wines that can fetch prices as high as the top Bordeaux. They include wines from Rhone producers such as Chave, Jaboulet, Guigal, Beaucastel, and Ch. Rayas; and Italian wines such as Sassicaia, Solaia, Tignanello, and Ornellaia. From Australia: Penfold's Grange, Clarendon Hills' Astralis, Yarra Yerring, Jim Barry's Armagh, and Mount Mary are in demand while Californian Cult wines such as Screaming Eagle, Harlan Proprietory Red, Dominus, Caymus Special Selection, Opus One and Ridge Monte Bello are regularly traded.

The shortage of some of these wines in any serious quantity makes the development of a secondary market slow. Furthermore, relatively few New World wines have proven long-term ageing potential.

Vintage Port

An alternative, more traditional investment is Vintage Port, the principle names being Fonseca, Graham, Croft, Taylor and Quinta do Noval. Because of its potential to age, port was regarded as an excellent long-term investment. However, prices have remained fairly static over the past couple of years (when compared to fine table wines); plus, due to their longevity they form a rather grey area in terms of attracting Capital Gains Tax in some countries. For investment purposes, Vintage Port should be bought as an investment in future drinking rather than for financial gain.