Investment wines to watch in 2023

Which are the best investment wines investors should consider for growth in 2023 with inflation and interest rates remaining a global challenge?

Top 10 fine wine brands in 2022

Source: Liv-ex Power 100 Report, 2022 (published 25 November 2022)

Growth in the wine investment market averaged 13.1% in 2022 and was largely driven by Burgundy and Champagne. The Liv-ex Burgundy 150 index rose 26.7% and the Champagne 50 increased 18.7% across the year with significantly higher individual performances. Can we expect this trend to continue in 2023?

Seven of the top ten most powerful fine wine brands in 2022 were from Burgundy, with Champagne accounting for the remaining three. With very small production levels, a surge in demand can drive the price performance of Burgundy’s investment wines to extraordinary levels. The appetite for Burgundy led investors to seek value in the region with new labels entering the secondary market. As a result, the number of wines from the region traded in the secondary market doubled to 1,859 in 2022, up from 829 in 2018.

Burgundy investment wines to watch in 2023

The region accounts for some of the most aspirational fine wines in the world with price tags to match. Leroy has held the position of most powerful fine wine brand in the world for the last three years. Average growth has grown from 8.6% in 2022, 39% in 2021 to 59.5% in 2022 for the label’s wines. With an average price of £6,703 Leroy wines, if you can get hold of them, are some of the more accessible Burgundy icons to own.

Domaine d’Auvenay is associated with Leroy and enjoyed an average price growth of 127.2% in 2022, placing it second to Domaine de la Romanée Conti in average trade price on Liv-ex.

Owners of Domaine Arnoux Lachaux wines had good reason to celebrate an average increase in value of 487% last year with outstanding wines achieving over 1000% growth. This explosive performance is a result of insatiable demand which saw the label ranked as the second most powerful fine wine brand behind Leroy in 2022 by Liv-ex.

Source: Liv-ex Power 100 Ranking 2022

A wine investment portfolio built for growth should include Burgundy, but a savvy investor doesn’t need to pay a five or six figure sum to own and enjoy the rewards Burgundy has to offer. The 2021 vintage being released in January 2023 is significantly smaller than average and this will drive prices north for a good quality year.

Champagne investment wines to watch in 2023

Champagne continues to offer a more accessible entry point into wine investment and strong growth averaging 18.7% in 2022 provided great returns and stability. Louis Roederer Cristal, Dom Perignon and Krug remain firm favourites for investors building a diversified fine wine portfolio.

2022 was the second highest year on record for Champagne sales with 331million bottles sold across total production and forecast to set a record for turnover, 2007 pipped at 338million. Champagne’s trade share in the secondary market rose 54% from 8.8% in 2021 to 13.6% in 2022 with an average price growth approaching 20%.

Salon Le Mesnil was the highest ranked Champagne price performer in 2022 with average growth of 64.2%. Louis Roederer’s Cristal was the most traded brand on Liv-ex by volume and third by value in 2022. Dom Perignon enjoyed a stronger price performance and Krug a higher average trade price in the 2022 Power 100 review.

Source: Liv-ex Power 100 2022

The Liv-ex Champagne 50 index recorded a dip in Q4 2022 with an average decline of -2.4% in December. Investors should monitor performance and seek out potential discount opportunities. Lower supply levels are expected in 2023 so prices are still expected to remain stable in the longer term.

Key opportunities for growth could lie with grower Champagnes such as Jacques Selosse, and Egly Ouriet.

Bordeaux investment wines to watch in 2023

Bordeaux continues to be important for prolific brand prestige, market liquidity, longevity and increasingly good value when compared to soaring prices in Burgundy and some Champagne.

In reflection of the market focus on Burgundy and Champagne 2022, the Bordeaux First Growths experienced more modest average growth topped by Chateau Mouton Rothschild’s 14.5%.  Lafite Rothschild remains a dominant brand in terms of volume (ranked 2nd) and value (9th) traded on Liv-ex and its average growth across all vintages sold was 8.8%.

Right Bank wines achieved greater price performance in 2022 led by St Emilion’s Chateau Figeac. Its’ much-anticipated elevation to St Emilion Classe A status in the 2022 Classification saw price growth of 24.4%. Pomerol’s Petrus and Le Pin were in demand achieving 24.2% and 18.3% growth respectively.

Source: Liv-ex Power 100 Ranking 2022

The 2021 En Primeurs campaign failed to ignite the market and the release of the 2022 vintage will have an important influence on Bordeaux’s regional performance in 2023.

Italian investment wines to watch in 2023

The region lost ground in the market focus on Burgundy and Champagne in 2022, as a result the great wines of Tuscany and Piedmont could be compelling in 2023 as investors look to add value and diversify wine investment portfolios. Tuscany’s trade share peaked in November 2022 with focus on the 2019 vintage and the ren primeur launch of the 2018 Brunello di Montalcinos. Top performers included Soldera (Cse Basse) Toscana Sangiovese 2009 up 22.8% and Masseto vintages 2013, 2015 and 2010 rising 13.9%, 12.8% and 8.7% in the month demonstrating the strength of these Italian investment wines.

Sassicaia remains the top ranked Italian investment wine brand by value and volume on Liv-ex. Fellow Super Tuscan, Tignanello was the only regional label to rise from its 2021 position in the ranking, up 16 places to 49th.

Source: Liv-ex Power 100 Ranking 2022

Rhone investment wines to watch in 2023

Trade in investment wines from the Rhone was the least deflected by the bias towards Burgundy and Champagne. Rhone is extremely stable with consistently high quality scores from top critics, strong production levels which sustain market availability and value. As Champagne prices have risen, Rhone now offers the lowest entry point to the fine wine market with average growth of 5.6% in 2022. Over the three years 30th November 2022 the Liv-ex Rhone index rose by 27.4% but top performing wines saw growth around 50% last year.

Source: Liv-ex Power 100 Ranking 2022

California investment wines to watch in 2023

California also lost trade share on Liv-ex in 2022, in part currency was a factor as Sterling strengthened in Q4 making US purchases more expensive. Average growth of the Liv-ex California 50 stood at 5.2% for 2022. Individual wines delivered a stronger performance and Screaming Eagle was the region’s highest flyer with Harlan Estate the next most powerful US wine brand last year. Both made the 2022 Power 100 Ranking’s top ten average price performers, Screaming Eagle ranked 4th with an average case price of £24,555 and Harlan Estate 9th recording an average £10,940 for 12 x 75cl.

Source: Liv-ex Power 100 Ranking 2022

Our view on investing in wine in 2023

Fine wine is demonstrably protecting capital, adding strength, stability and value to investment portfolios, delivering outstanding tax-efficient returns in the current economic environment. Macro-economic factors that shaped the markets in 2022 will remain in force in 2023 with the war in Ukraine continuing to fuel uncertainty. Investors should look to continue to diversify fine wine portfolios by brand, region and vintage to optimise growth and take steps to manage any risk. Supply will be an issue for some regions with Burgundy in particular an issue with the smaller than average 2021 vintage release.

For more information on which are the best investment wines to consider throughout 2023, speak to a member of our expert team on 0203 384 2262. Alternatively you can see our latest Market Report for the latest trends by clicking the button below.