Should I invest in Champagne?

As Bordeaux licks its wounds following a couple of weak campaigns, investors are often tempted to look to wines from other regions. While Bordeaux will inevitably recover, it does give us a chance to reflect on other wines that might be of interest to the investor, in particular Champagne. In the last decade, Champagne has become a popular choice for investors and deserves to be taken seriously as an investment grade wine.

How does Champagne investment differ from Bordeaux?

ChampagneChampagne doesn’t usually offer the longevity of Bordeaux – it isn’t destined to be stored for half a century by any means, but the top wines will cellar for a decade after release and the wines of some vintages much longer. There is no ‘En Primeur’ campaign for Champagne – although the media attention that a release of a top vintage wine warrants has a lot in common with En Primeur, as wine merchants grapple to secure their allocation.

One reason why investors are drawn to Champagne is it is perceived to be good value compared to wines of a similar level. You could expect to pay in the region of £80 – £120 per bottle (on release) for wines like Taittinger’s Comte de Champagne and Moet’s Cuvée Dom Pérignon. The marketplace for fine Champagne is both buoyant and global. And as many corks are popped not long after release, the remaining wines that are laid down tend to increase in value quite rapidly.

Encouraging signs

There are signs from the last 12 months that the market for investment grade Champagne has really taken off – this is often attributed to two very strong vintages being released in a short period of time (2002 and 2004 are both excellent). While wines like Dom Perignon will always be popular, there are also signs that investors are broadening their search to include wines not previously considered. Liv-ex reported on this trend in August 2013. Similarly Decanter reported on the growing success of Champagne as an investment grade wine last year, and it seems to show no signs of slowing down.

Portfolio diversity

Ultimately it will only benefit you to have some diversity in your portfolio, so why not take a look at what Champagne has to offer? The top wines are only made in vintage years so there are no ‘red herrings’ among them – the quality speaks for itself, and has never been better. As long as corks are being popped and Champagne is increasingly recognised as a great wine for food pairing as well as merely a celebratory fizz, this trend seems set to continue.

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