Are the newly released investment wines priced for investors?

Are international fine wines currently being released via La Place de Bordeaux attracting investors?

Each Autumn the global global merchants, investors and collectors look forward to top vineyards from around the world launching their latest vintages through the oldest, and most prestigious, distribution network for fine wine. This year the releases are being made into a challenging market for sellers but highly opportunistic for investors.

What is La Place de Bordeaux?

With origins dating back to the 17^th Century, La Place de Bordeaux was first established for the aristocratic vineyard owners of Bordeaux to develop a global market for their most revered wines.

Since then ‘La Place’ has evolved over hundreds of years to have more than 300 negociants who trade with a network of merchants and collectors in more than 170 countries around the world. See more details on the history and how La Place de Bordeaux works.

This extraordinary trading system is highly efficient providing the ability for a producer to sell their total vintage production, or as much as it wants to sell at that point in time, in minutes. Caveat that statement with ‘as long as the price is right’.

Autumn 2024 fine wine releases and market conditions

Analysts have commented that prices across most regions are now at or near their market lowest, with some seeing a return to growth. Liv-ex’s latest data reveals that a number of the exchange’s regional benchmarks recorded a modest upturn at the end of August 2024.

Regional Fine Wine Performance compared to equities

Source: Liv-ex.com, data at 31.08.2024

Despite the overall market trend still recording ongoing price pressure, with the Liv-ex 100 recording -1% dip in August, the trajectory of the key indices are lifting with pockets of growth and an increasing feeling of reaching a potential turning point. The exchange’s leading regional benchmark in August, the RoW (Rest of the World) 60, rose 0.8%. The Champagne 50 recorded its second consecutive month of growth in August of 0.1% in line with the FTSE 100.

Which newly released wines are grabbing investor attention?

This season’s Place de Bordeaux releases are taking place in a market at or near its market bottom and pricing is sensitive. These conditions offer investors an exciting opportunity to acquire some of the world’s most important international investment wines at prices offering significant opportunity for growth.

Key wines released in September 2024

Source: Liv-ex.com, September 2024

Opus One 2021 was released at a price fairly positioned to older vintages already trading on the secondary market, 2% higher than the 2019 vintage. There was no release by the estate in 2020 due to the impact of devastating wild fires that year. Opus One 2021 became the top traded wine on Liv-ex in the first week of September. Market dynamics have seen the price drift since launch and buyers have taken advantage.

The legendary Sauternes icon, Chateau Yquem’s second wine Y de Yquem 2022 has also been well received by the trade.

It was launched as one of this wine’s cheapest vintages on the secondary market and priced -12.7% lower than the similarly rated 2020 vintage at first release.

Almaviva 2022, the Chilean collaboration established between Mouton Rothschild and Concha Y Toro, is one of the country’s top wine estates. The 2022 vintage (scored 99 points by James Suckling) has been released 5.7% lower than its 2021 wine last year, however it is one of the label’s current most expensive on the market.

Cheval des Andes 2021 is the latest vintage offering from the joint-venture between LVMH’s iconic Chateau Cheval Blanc and also LVMH owned Bodega Chandon in Argentina. The wine has been scored 97 points by Vinous and the Wine Advocate and has been released 17.9% lower than the 2020 vintage. This still positions it at a slight premium to older versions already trading.

Masseto 2021 has been scored the perfect 100 points by Antonio Galloni and released at the same price as the 2020 vintage last year.

Galloni has referred to it as “the most exquisite, refined young Masseto" he had ever tasted. As a consequence the release price is deemed to have been fair and offers value for investors.

This wine also has collector appeal as one of the last vintages managed by Axel Heinz at the famed Super Tuscan estate before he moved to Bordeaux’s Chateau Lascombes.

Penfolds Grange 2020 (Vinous 95 points) was released on the 9^th September at £4,750 (12 x 75cl), up 1.3% on the 2019 launch price last year. That vintage has seen a 12.3% price drift in the 12 months to September 2024 and investors should consider this as potentially offering significant value. Penfolds has reported strong growth in 2024 since China lifted tariffs on Australian imports in March.

Solaia 2021 and Sena 2022 have both been released at a significant premium to last year’s launch prices, which may prove more challenging.

Our view on investing in the Autumn releases from La Place

There is no doubt that the 2024 releases of international wines via La Place are being launched into a fine wine market at its lowest point for years. Consequently, there are some real bargains to be had with those wines that have been priced to reflect the conditions. These wines also offer the opportunity to diversify a portfolio that may be weighted towards Bordeaux, Burgundy and Champagne, to provide resilience and good value. Investors should seek out those highly scored wines from key brands priced for growth.

For more information on investing in fine wine see our Guide and speak to a member of our expert team on 0203 384 2262.