Is the leading wine investment region seeing a return to strength and is July’s market uptick the anticipated signal to ‘buy’ Champagne?
Champagne isn’t just for Christmas! On National Prosecco Day in the UK, Liv-ex has revealed that France’s home to the world’s finest sparkling wines is seeing increased trading on the secondary market as the region records an uptick in prices. Leading wines have seen price growth of nearly 10% in July 2024.
The Liv-ex Champagne 50 index recorded a 0.9% uplift in July with some of the best Champagne investment opportunities seeing prices rise nearly 10% in the month.
Best performing Champagnes - July 2024
| Wine | Vintage | July 2024 Performance | 1 Yr Return | 5 Yr Return |
|---|---|---|---|---|
| Dom Perignon | 2006 | 9.5% | -4.3% | 57.1% |
| Louis Roederer, Cristal Rosé | 2008 | 9.1% | 0.5% | 75.3% |
| Pol Roger, Sir William Churchill | 2009 | 7.5% | -0.9% | * |
| Taittinger, Comtes de Champagne Rosé | 2009 | 7.4% | 0.6% | * |
| Pol Roger, Sir William Churchill | 2015 | 6.7% | * | * |
| Pol Roger, Sir William Churchill | 2013 | 5% | -1.2% | * |
| Krug Brut | 2006 | 4.4% | -4.7% | * |
| Dom Perignon | 2012 | 4.3% | -4.2% | * |
| Bollinger RD Champagne | 2008 | 4.3% | * | * |
| Louis Roederer, Cristal | 2009 | 4% | -9.8% | 24.8% |
The Liv-ex Champagne 50 index has seen a change in direction at the start of Q3 2024, with the 0.9% monthly rise bucking the general wine market trend. It’s important to note that, despite an average price drift of -27.1% since the market peak in October 2022, its current position is still a very positive 41.4% up on the pre-pandemic levels.
Which Champagne vintages should you invest in?
July 2024 saw a boost in the performance of older vintage Grandes Marques with rarer older Champagnes holding value better than newer releases in the current conditions. Key Champagne vintages seeing demand include 2006, with Dom Perignon 2006 enjoying a 9.5% price growth in the month of July, leading the top performers.
The stellar 2008 Champagne vintage is key for investors. Cristal Rosé 2008 is an excellent example with a 9.1% monthly rise in July and a very strong 75.5% five-year growth well ahead of the current trend. The Liv-ex Champagne 50 is the leading regional measure over five years, and it recorded 40.2% growth last month.
In early July, Taittinger Comtes de Champagne Blanc de Blancs 2008 enjoyed strong growth in volume and value traded in the secondary market. The 2009 Rosé also saw strong price growth of 7.4% in July, raising it to the fourth top performer.
With increasing trade through the month saw Champagne increase its trade value share from 10.28% in June to 12.4% by the 25th July. Salon Le Mesnil 2012 was a key driver, lifting share to 16% at one point as buyers took advantage of the discount on offer.
Our view on investing in Champagne in Q3 2024
Is it the right time to invest in Champagne? The July increase in some key individual wine prices and the Liv-ex Champagne 50 index’s 0.9% rise are pointers to a potential change. We believe that there is a real opportunity for investors in Champagne in Q3. The region’s top wines remain some of the most accessible for investors and Champagne currently offers the highest average returns over the long term on regional trend.
We strongly recommend that a diversified wine investment portfolio must include Champagne and there are some excellent opportunities available now.
To find out more about the current opportunities in the fine wine market, see our latest Quarterly Report and speak to a member of our expert team on 0203 384 2262.