Burgundy 2022 en primeurs have hit the secondary market and it’s a key vintage for investors. Is now the time to invest?
The region’s winemakers are claiming the 2022 vintage is one of the best in recent years … and the critics don’t disagree. A highly notable London merchant is quoted as stating:
“These are the best wines our Burgundy buyer has come across in 10-plus years of tasting [Burgundies].”
The general view from the key critics and fine wine journalists who have published a critical opinion so far on the 2022 Burgundy en primeurs, is this is a consistently excellent vintage and a great example of modern vintages with all the challenges our changing climate is throwing at the region’s winemakers.
Not only a high-quality year, 2022 also delivered yield (see 2022's top performers). This is significant as the scarcity of Burgundy investment wines is one of the drivers of value, this was turbo-charged with the 2020 and 2021’s vintages where severe frosts and other climate events created a significant fall in productivity and supply in the market. 2022 is a welcome relief in terms of supply and a double whammy in that it also looks to be of outstanding quality.
Considerations before buying Burgundy 2022
1. Price
The 2023 market correction impacted wines from all regions and Burgundy’s recent heady ‘bull run’ left its investment wines more exposed to the adjustment in price. The market is looking for the producers and their negociants to recognise this shift which saw average prices adjust by -16.2% last year and provide value for en primeur buyers.
The average prices of the most traded vintages of Liv-ex Burgundy 150 wines in the last six months could provide some insight into the pricing of top Burgundies, bearing in mind the ongoing price correction in that period.
| Vintage | Average price |
|---|---|
| 2020 | £41,192 |
| 2019 | £40,187 |
| 2018 | £34,908 |
Source: Liv-ex.com January 2024. The average 6-month market price for wines is listed on the Liv-ex Burgundy 150 index.
Burgundy’s complicated structure of ownership and wine commerce makes determining the pricing strategy for this vintage in a market that is yet to find its feet and return to sustained growth a challenging one. By its very nature a high-quality vintage would normally lead the negociants to up their prices, but will the market swallow it? To underprice (in their view) would be to undermine the quality of the vintage, as the price is a natural pointer to how good a wine is.
No doubt determining the release prices of the 2022 wines will have taken some effort. Early indicators so far have shown some recognition of the need to consider the overall state of the market in Q1 2024 and the importance of engaging merchants, investors and consumers.
2. Quality
Burgundy produces some of the rarest, most extraordinary, powerful wines in the world and, for this, they are the most expensive. Critics are stating that Burgundy 2022 looks to be a great red wine vintage, showing a perfect balance and ripeness in tannins. The wines are looking approachable whilst young but also have great ageing potential.
Burgundy’s pricing and levels of trade are not as influenced by critics’ quality scores as Bordeaux. This has been partly because there had been only a relatively small number of producers with low supply wines that were considered for investment. Because these were also some of the most expensive in the world the region had a built-in filter if you like. Those that could afford it, were in. However, the demand for Burgundy has driven a greater number of brands and wines to be traded and considered for investment. The growing number of buyers are actively seeking a qualitative view on the broader and deeper market in the region’s wines.
Key critics such as Neal Martin (Vinous.com) and Jancis Robinson (Purple Pages) stand out and have published copious tasting notes on Burgundy 2022 wines on their websites.
3. Brand
Investors should consider the most traded Burgundy wines on Liv-ex as an indicator of where they may discover value in the current market conditions and bank resilience for future fluctuations. The most powerful Burgundy brands are some of the most significant investment wines you can own.
Top 10 most powerful fine wine Burgundy brands
1. Leroy
2. Leflaive
3. Armand Rousseau
4. Domaine de la Romanee Conti
5. Joseph Drouhin
6. Comte Georges de Vogue
7. Faiveley
8. Jacques Frederic Mugnier
9. Bouchard Pere & Fils
10. Ponsot
Source: Liv-ex.com January 2024
4. Supply
Scarcity is one of the important reasons to invest in Burgundy. Where annual production in some of the iconic vineyards such as Domaine Romanée Conti is low in an average year, the impact of frost damage in 2020 and 2021 took rarity to a new level. DRC produced just 4,000 bottles in 2021.
Two consecutive low-yield years during the pandemic rush for tangible wine investments took prices to a whole new level. But it wasn’t sustainable and 2023’s price correction coupled now with a good supply vintage in 2022 may help reinvigorate the market in 2024. It certainly provides an opportunity for newcomers to Burgundy and those investors looking to top up their portfolios to position for future growth. It’s also worth pointing out that 2023 in Burgundy was even more generous in yield with a record-breaking harvest, too early to comment on quality.
Our view on investing in Burgundy 2022
There is no doubt, 2022 Burgundy is an important vintage for investors. There are key wines we are going to want to provide for our clients and we are appraising the release prices and the opinions of notable critics.
Timing is key and Q1 2024 is an exciting period for investors to be adding wine to their investment portfolios. Older Burgundies are currently offering strong future value due to the market correction. There’s plenty to choose from – it’s a ‘Buyer’s Market!’
For more information on investing in Burgundy speak to a member of our expert team on 0203 384 2262 and see our latest Market Report for detail on investing in wine in 2024.