Wine investments are experiencing record growth in 2021 and, as equities face another Covid challenge with the emergence of Omicron, the latest performance data shows the benefits wine investors are enjoying. The key Liv-ex 100 benchmark, had risen 19.9% YTD at the 30th November, compared to FTSE 100’s 9.4%. With Q1 2022 primed to be a tough one, investors are looking at the buoyant growth in the fine wine market to protect capital in the New Year.
Fine wine investment compared to FTSE 100 and Gold – 1 year
Source: Liv-ex.com 08.12.2021
Where are the top wine investment performances coming from?
Champagne is the current top regional performer with average growth of 8% in November, possibly fuelled by festive fizz purchases (for parties or not). Leading labels from the region are enjoying price rises of around 20% and Dom Perignon and Louis Roederer are ranked in Liv-ex’s Top Ten most powerful brands in 2021. The 2012 Champagne vintage has been the most traded this year and Salon 2012 led Champagne trade last month.
Alongside Champagne, Burgundy has been a key driver of growth and accounted for 27% of trade on the secondary market in November, nearly equal to Bordeaux’s 30.6% for the first time. Domaine de la Romanee-Conti, Romanee-Conti 2010 was the most traded wine by value last month and Domaine Leroy recently rated the most powerful fine wine brand. Burgundy had the highest number of wines trading this year on Liv-ex, but supply is particularly challenged in the 2021 vintage with the lowest yields on record due to climate conditions, suggesting ongoing price growth.
US wines have also been key for growth and Wine Spectator’s recent title of Wine of The Year awarded to Dominus 2018 stimulated trade in November, seeing its price rise 34.9%.
Blue-chip Bordeaux investment wines have seen strong growth throughout 2021, with Lafite Rothschild the most traded wine by value and second most traded by volume on Liv-ex, as recorded in the 2021 Power 100. Mouton Rothschild unveiled its 2019 vintage label in November, titled Solar Iris of Mouton, created by Icelandic -Danish artist Olafur Eliasson. The label announcement as usual triggers press commentary and collector interest.
Protect your capital from further volatility and inflation
All previous wine performance records have been exceeded in 2021 and it is lauded by the wine exchange as the most successful year ever for the secondary market. Wine investment is becoming more widely understood and valued by investors to diversify and strengthen portfolios. With Omicron now creating further uncertainty and volatility in markets, inflation remaining unchecked and forecasters predicting interest rate rises no later than early February 2022, investors are looking at fine wine as an option to protect capital and secure growth tax efficiently.
Get the latest performance data
See our December 2021 Market Update for the latest wine investment performance data and contact us on 0203 384 2262 to get insight on current wine investment opportunities.