Champagne brands have delivered solid returns to wine investors as its profile as an alternative asset has grown over recent years. The great Champagne houses have produced some of the top performing wines of 2021 adding sparkle to investment wine collections.
Why you should add Champagne to your investment wine collection:
- Champagne produced some of the top performing wines in H1 2021
- Louis Roederer, Cristal Rose 2008 saw 35% growth in first 6 months
- Champagne can add consistent, stable growth to your portfolio
- Entry point is accessible and offers value
- Top Champagne brands enjoy sparkling investor appeal
Consistent Champagne is famous for its stability and long-term growth. Liv-ex’s Champagne 50 index has been the investment wines exchange’s top performing regional index in the three years to the end of Q3, 2021.
With the announcement that Philipponnat Clos des Goisses 2012 was to be the first Champagne to be released on La Place de Bordeaux ever, at the end of September 2021, we are reminded to look at why investors should diversify and strengthen their investment wine collections with Champagne.
In September 2021, Champagne accounted for 8% of trade on Liv-ex. The region is in the process of embarking on a period of strategic change, in part pushed by the climate change agenda. The increasing price of grapes has led some of the major Champagne houses to ‘reposition’ their entry level wines to a more premium product. This has the potential to influence an upward wave in prices through to the great marque’s luxury collectable, investment wines.
Most traded investment-grade Champagne brands on Liv-ex in 2021
- Bollinger
- Dom Perignon
- Krug
- Louis Roederer Cristal
- Salon Le Mesnil sur Oger
- Perrier Jouet
- Philipponat
- Piper Heidsieck
- Pol Roger Sir Winston Churchill
- Ruinart
- Taittinger Comtes de Champagne
A key development influencing Champagne production directly linked to the intensifying climate change agenda is the expected comprehensive ban on the use of herbicides. This has led pretty much all the top brands to now cultivate their soils mechanically. Greener practices are expected to improve the quality of the Champagne and possibly reduce some supply, these factors could also positively influence price performance.
In the Pink!
Rose Champagnes have seen a rise in demand this year and have been some of the top performers. Diversification within the region’s offering can be achieved by adding pink to your portfolio, along with different brands and vintages.
- Liv-ex trade in Rosé Champagne tripled the three-year average in 2021
For more information on the latest investment Champagnes being released onto the market speak to a member of our expert team on 0203 384 2262.