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The history of Champagne investment

Vines were first planted in Champagne by the Romans, but the region's signature sparkling wines were not developed until the 17th century under the stewardship of the Church. Legendary monk and 'father of Champagne', Dom Perignon, was a primary influence and attributed to producing the first sparkling wine.

Growing demand in the 18th century led to innovation with glass bottles and in the early 19th century Madame Veuve Clicquot was key to the development of corks and the process of in-bottle second fermentation. Rhineland entrepreneurs Bollinger, Krug and Roederer then entered the market which blossomed under their commercial prowess.

Wars and phylloxera were significant challenges, but Champagne was established as the world's leading producer of sparkling wines and in 1941 the Comite Interprofessionel du Vin de Champagne (CIVC) was formed and is now probably the most powerful trade body in the wine world.

By the latter half of the C20th the region's annual production had risen to more than 200 million bottles with demand defying economic trends. Champagne growers represented by around 140 cooperatives controlled grape prices which led to consolidation culminating in 70% of the region's production being owned by just seven of the largest grand Marque houses.

Today, Champagne is created in vast volumes but only the rarest vintage Champagnes are the primary focus for wine investors.

Champagne facts

Champagne is the most famous wine growing region in the world, as the source of the greatest sparkling wines and enhanced by the brilliant marketing of the iconic Champagne houses, whose 'luxury' brands have global recognition.

The Champagne growing region extends across 30,000 hectares from Charly, just 50 km east of Paris in the Marne Valley and spreads north to Reims and south to Epernay. It is the only vine growing region to have just one appellation, with the very best vineyards sited on the chalky hills.

The northerly climate can see extreme frosts and vintage production can be variable which explains why Champagne is usually produced from a blend of different vintages from assorted villages and plots to create consistent style. Outstanding vintages will see the very best Champagnes made exclusively with that year's grapes and these are the focus for investors.

Vineyards are graded on a quality scale out of 100, with Premier Cru rated at 90% to 98% and Grand Cru at 98% to 100%.

Just a select few Champagnes are considered investment grade for their quality, stable price growth and value. Rare, older, great vintages of the most prestigious Champagne offer the potential for excellent wine investment returns.

Champagne grape varieties

The three main grape types planted in Champagne are Pinot Noir, Pinot Meunier and Chardonnay, along with a little Petit Meslier. Pinot Noir provides structure and depth, Pinot Meunier delivers early maturing richness and Chardonnay imparts austerity and elegance, but is long-lived and matures to a fine fruitiness.

How do Champagne investments perform?

Champagne's typical performance is strong, stable growth. When compared with the general trend of other wine investment regions, Champagne investments enjoy the greatest stability due to the much larger supply when a vintage is first released. Over time, as a vintage becomes rarer, demand drives sustained price growth.

The Liv-ex Champagne 50 has been the top performing regional indices in recent years, and leading Champagnes have been the most highly traded wines by volume and value on Liv-ex in certain periods with some of the highest returns.

Champagne data