Strategic wine investments have reaped higher returns compared to equity investments over the past year.
This comes as stocks have had a rather difficult year, with several macroeconomic headwinds including rising inflation rates, global supply chain disruptions and heightened geopolitical tensions dampening investor sentiment. In addition, among alternative investment options, fine wine ranks higher than a majority of its peers, as vintage wines tend to be less volatile in nature.
With the total number of high-net-worth individuals rising since the pandemic, it’s no surprise that the global demand for fine wine has been rising. This, coupled with a naturally limited supply has sent luxury vintage wine prices soaring. According to the latest Gomberg, Fredrikson & Associates report, total wine sales in the U.S. amounted to $78.4 billion in 2021, up 16.8% year over year.
A Few Of The Best-Performing Wines
Chablis has been among the top-performing white wines over the past year, with prices surging more than 50%. These wines are produced using 100% pure Chardonnay grapes, making them one of the best white wines globally.
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, coupled 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 the 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
Wine Investment Returns 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
- The securitized wine investment platform Vint is launching its largest offering to date this week – Bordeaux En Primeur 2021 Collection at $50 per share. Merlot yields in the Bordeaux region were impacted by cold temperatures and early frost 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 break – A Connoisseur’s Classic Cellar | Finest & Rarest Wines. The auction comprises wines from some of the UK and Europe’s leading cellars and a span of vintages covering decades from the 1960s to the present day.
Find more news and alternative investment offerings on Benzinga Alternative Investments
Image by Aerial Mike on Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.