California delivered a vinous ‘gold rush’ in Q4 as some US wines offer bargain prices for investors.
Napa’s top wines saw a boost in price performance recently with leading benchmark wines recording double-digit growth.
Top performing US investment wines
A spike in demand in October 2023 saw the following wines all achieve double-digit growth and are the top performers in the month:
| Wine | Vintage | Change |
|---|---|---|
| Screaming Eagle, Oakville Cabernet Sauvignon | 2015 | 11.1% |
| Dominus, Napa Valley | 2011 | 11.1% |
| Screaming Eagle, Oakville Cabernet Sauvignon | 2012 | 11% |
The Liv-ex California 50 index recorded 0.3% growth in the month of October and Napa wines boosted the 0.2% lift in the Liv-ex Rest of the World 60 benchmark.
Year-to-date, Californian wine icons have seen an average price correction of -10.1% in 2023, slightly better than the sector norm of -11.7%. Over one year the region performs to the overall trend of -12.6% discount from the market peak at the end of October 2022.
The most traded US investment wines in Q3, 2023
| Wine traded by value | Wine traded by volume |
|---|---|
| Opus One | Opus One |
| Screaming Eagle | Opus One, Overture |
| Promontory | Promontory |
| Harlan Estate | Dominus |
| Scarecrow | |
| Dominus |
The key US investment wines
California’s investment wines are still very few, but their impact is significant. These ‘new world’ vinous icons were all founded in partnership with, or influence from, some of the legendary Bordeaux winemakers.
Opus One is the highest ranked US fine wine brand in the Liv-ex 2023 ranking, soaring from its 82nd place in 2022 to 4th this year. It was the most traded US investment wine in Q3 2023 by both value and volume. This demand was boosted by a ‘library release’ of the 2019 and 2018 vintages via La Place de Bordeaux in September.
This great vineyard was founded in 1979 through the collaboration between Baron Philippe de Rothschild and Robert Mondavi with the aim of making exceptional wines with Bordeaux varietals and techniques. Mondavi’s share in Opus One was acquired by Constellation Brands in 2005, a year after they acquired the Robert Mondavi Winery.
Screaming Eagle is probably the most lauded of the region’s labels. Founded by the extremely astute Jean Phillips who acquired the original 57-acre estate in 1986. She focused on the one-acre plot of 80 Cabernet Sauvignon vines to create her great Screaming Eagle wine, getting Robert Mondavi’s team involved. Heidi Peterson-Barrett was appointed as the first winemaker and later, Michel Rolland has also been involved as a consultant oenologist.
The first vintage in 1992 was scored 99 points by Robert Parker in 1995 and he became instrumental in establishing the wine’s global reputation. Annual production of between 400 and 750 cases keeps supply tight. A record sale was an Imperial (6-litre bottle) of Screaming Eagle 1992 sold for US500,000 at the 2000 Napa Valley Wine Auction.
Screaming Eagle has suffered from the market conditions this year and seen its average price slip by 11%. As with many of the normally recognised most powerful fine wine brands, it has seen its ranking fall in the Liv-ex Power 100 2023.
Screaming Eagle's tight supply and superb quality make it one of the most expensive wines in the world. With an average case price (12 x 75cl) of £23,333 this year, it was ranked 6th for this measure in the Liv-ex Power 100. Current prices offer investors a rare opportunity to acquire this US icon at a discount offering strong potential for future growth.
Dominus has 'blue-blood' vinous connections with the legendary Chateau Petrus, both owned by the Moueix family. Along with Lafleur Petrus, Trotanoy and St Emilion’s Belair-Monange this Napa icon is in great company. Vines are reported to have first been planted on the site of the estate’s Napanook vineyard by the very first owner of the land, George Yount in 1838.
Christian Moueix has oversight of Dominus which is organically and sustainably farmed and engaged in a long-term campaign of environmental restoration and biodiversity.
Dominus’ popularity has grown over recent decades and it is one of the most traded US investment wines on the secondary market.
Harlan Estate was founded in 1984 by H William Harlan, a property developer with the ambition to create a ‘Californian First Growth’ on the 240 acre site in Oakville. A brand on the rise, the estate’s ranking in the Liv-ex Power 100 has ascended from 41 in 2022 to 31 in 2023.
The Harlan team included Michel Rolland as consultant oenologist supporting the founding wine maker Bob Levy. Their success has led to several Harlan vintages being scored 100 points by the acclaimed critic, Robert Parker.
A record sale was the 10-vintage vertical of Harlan Estate magnum bottles sold at the 2000 Napa Valley Wine Auction for US$700,000. Harlan’s average trade price in 2023 rose to £12,861 (12 x 75cl).
Scarecrow has all the glitter of its Hollywood connections. The vineyard land, which lies alongside the lauded Inglenook estate, was originally acquired by film producer J J Cohn. The legendary film maker was involved with classics Ben Hur and The Wizard of Oz, and the vineyard is famously named for Dorothy’s erstwhile friend.
Cohn was encouraged to plant 80 acres of Cabernet Sauvignon vines by his winemaker neighbour, Gustave Niebaum, to provide Inglenook with grapes and the Scarecrow vines also supplied Opus One before Cohn developed his own wine. The Scarecrow ‘Old Man’ vines date back to 1945 and are some of the oldest in the region providing fruit which have become the hallmark of these great wines.
Inglenook was originally acquired by the famed Captain Gustave Niebaum in 1879 with the aim of establishing a vineyard that would create wines to rival the great European estates. The first vintage was produced in 1882 and the Inglenook ‘chateau’ completed in 1887.
Niebaum was highly innovative and devised the first grape sorting machine and bottling line in California. In 1915 Inglenook wines won 19 gold medals in the San Francisco International Exposition. The 1941 vintage, produced under the management now of Niebaum’s grand-nephew John Daniel Jnr, was rated “as one of the best red wines ever made”.
Inglenook was sold in 1964 to United Vintners and finally famed film-maker Francis Coppola acquired the depleted estate in 1975. He and his wife Eleanor then set about returning the vineyard to its former glory. They went on to grow Inglenook’s footprint and repurchase the brand.
Coppola appointed Bordeaux First Growth, Chateau Margaux’s Philippe Bascaules to manage the estate and he currently has oversight over both Inglenook and Margaux. Inglenook is now re-established as one of the great Californian ‘cult wines’.
Our view on investing in US wines
The key US investment wines offer an excellent diversification option and particularly at the current market prices.
Discover more about the most powerful fine wine brands in 2023 and which are offering growth potential now. Speak to a member of our expert team for more information on investing in fine wine on 0203 384 2262.