Super Tuscans and Powerful Piedmonts are adding some ‘Italian Stallion va-va-voom’ to fine wine performance this year.
Why invest in wine in 2023?
It’s a buyer’s market right now and an important opportunity to acquire some leading investment wines at prices not seen for a few years. A key aim in any market is to ‘buy low to sell high’ - 2023 is a window you don’t want to miss!
An extremely complicated economic back-drop has had some influence over softening prices since the peak of the bull-run in October 2022 and this year to date has seen a period of price adjustment in the fine wine market. A number of leading wines are being transacted at ‘discounts-not-to-be-missed’ to prices a year ago. Some Napa investment wines may be 10% cheaper, Rhone even more, and specific Champagne and Burgundies are offering stronger potential upside right now.
Why invest in Italian wines in 2023?
Italy is beating the trend. Over the last five years average returns from the Super Tuscans and Piedmont Power House wines stands at 43%, third to Burgundy’s 67.6% and Champagne’s 71.7%.
How do Italian investment wines perform?
In the last two years Liv-ex’s Italy 100 index has grown 16.3%, over the last five average returns are 43%. In the current period of correction Italian wines have held ground maintaining 0.3% growth in one year. In contrast, the Liv-ex Champagne 50 has slipped -5.3% and currently Californian investment wines offer an average discount of -10.9% to prices in June 2022. Burgundy prices have softened by an average -6.2% providing in the last year. Right now there is an exciting opportunity, as some of the region’s wines will become more accessible for a period, opening them up to new buyers.
Top performing Italian wines in Q2 2023.
Italy has been the leading region for investment wines by price growth in the first half of 2023, and equally with Champagne in the month of June. Two of the top performing fine wines in Q2 were Italian; Fontodi Colli dell Toscana Centrale Fiacenello delle Pieve 2011 rose 22.1% and Piedmont’s Bruno Giacosa Barolo Failetto Vigna Le Rocche Riserva 2012 up 21.9%.
Which Italian wines are investable?
For those new to investing in Italian wines the key focus is the great vineyards of Tuscany and Piedmont. Traditionally, the five Super Tuscans were the only labels investors may have considered as having the capacity to deliver notable returns. However, since Trump imposed his tariffs in 2019 (later dropped by Biden), a growing, value-seeking global market broadened its focus to other labels in that region and also Italy’s Burgundy equivalent, Piedmont.
Top Italian wine producers for investors
Tuscany | Piedmont |
Masseto | Giacomo Conterno |
Ornellaia | Gaja |
Sassicaia (San Guido) | Bruno Giacosa |
Solaia | Comm. G.B. Burlotto |
Tignanello | Bartolo Mascerello |
| Giuseppe Rinaldi |
San Guido’s Sassicaia is one of the most traded labels on Liv-ex by volume and value and along with Masseto, tend to be the most active Super Tuscan brands. Tignanello was the highest rising Italian label in the Liv-ex 2022 Power 100 which could be due to its accessibility as the lowest priced of the top five legendary Tuscan brands and its celebrity following, being a favourite of the Duchess of Sussex and Boris Johnson!
Piedmont has seen strong demand growth in the last few years. With typically smaller vineyards and scarcer supply, Piedmont wines tend to have higher average prices than the Super Tuscans. Leading brands include Giacomo Conterno, Gaja and Bruno Giacosa.
Our view on investing in Italian wines in 2023.
When planning a portfolio of wines for investment you need to consider varying performance trends which include degrees of volatility, conversely stability, average price performance and current and foreseeable trends in demand. With wine you should also be considering the longer game but buffer where you can against potential downturn.
Italian wines have performed differently to Burgundy, Champagne and Bordeaux since 2019. This is currently being evidenced in the overall market trends. We strongly advocate that a rounded wine investment portfolio includes some of the great Italian wines. A huge plus is that they are priced to be accessible and deliver strong returns.
Find out more about the current market conditions from our Q2 Market Report and the best wines to invest in this year by contacting our expert team on 0203 384 2262.
Data: Liv-ex.com 30.06.2023