It’s National Prosecco Day on the 13th August and what’s not to enjoy! But for us, it’s got to be Champagne!
Why invest in Champagne now?
- Champagne offers a lower entry point into the wine investment market
- Growth potential can be significant
- The current market adjustment means that average prices are 10% lower than the market peak in October 2022
- Prices could be reaching their lowest point - price decline in the Champagne sector has reduced to an average 0.2% in July 2023
- Diversify your portfolio with an affordable luxury brand.
The effervescent sector of the wine investment world has been going through chilly times this year, but perhaps it was needed. The market for Champagne had overheated and the drop in prices in 2023 to date are now enticing buyers back into the market.
Our recent look at the July data, ahead of our August Market Update, sheds more light on the current price correction and why this could be the perfect time to top up a wine portfolio or get started as a new wine investor.
Champagne’s price correction this year has shaved over 10% off the average prices of some of the key investment wines of the region. Bollinger La Grande Anné 2014 and Louis Roederer Cristal 2008 and 2014 have been amongst the top ‘most in-demand’ wines on Liv-ex in the first half of 2023.
Diversify your Champagne portfolio
We advise our clients to diversify their wine investment portfolio by region, vintage and brand to optimise their returns. In Champagne we would also look at colour! That’s a bit flippant, but what we mean is – introduce some Rosé into the mix!
Rosé Champagne is only made in the very best vintages and as there is less supply, these wines command a premium to their Blanc de Blancs stable mates. See our recent blog to find out more about the benefits of investing in pink Champagne.
Which Champagne should you consider for investment?
If we look at the ‘most powerful’ Champagne brands as recorded by Liv-ex in their latest Power 100 ranking this provides a good guide to where you can expect to see the greatest liquidity and growth potential – as long as you buy at the right price. The market continues to evolve, of course, and buyers have sought value in an over-charged market, broadening the scope of their demand. For example, Piper Heidsieck Rare Champagne 2013 was one of the top traded wines on Liv-ex at the start of August.
The top Champagne brands in 2022
| Champagne | Average price growth in 2022 | Power 100 ranking in 2022 | Power 100 ranking in 2021 |
1 | Dom Perignon | 39.3% | 6 | 4 |
2 | Louis Roederer (Cristal) | 34.9% | 7 | 9 |
3 | Krug | 39.6% | 10 | 11 |
4 | Jacques Selosse | 104.9% | 11 | 36 |
5 | Bollinger | 34.4% | 28 | 41 |
6 | Taittinger | 16.4% | 48 | 27 |
7 | Salon | 64.2% | 51 | 28 |
8 | Pol Roger | 20.4% | 73 | 54 |
9 | Egly-Ouriet | 90% | 94 | 260 |
Source: Liv-ex Power 100 2022
So, enjoy your bottle of Italian fizz on the 13th, and raise a glass to that case, or cases, of French Champagne sitting in bond accruing value for you!
For more information on key opportunities to invest in Champagne, contact our expert team on 0203 384 2264.