Champagne edges into the spotlight
Traditionally seen as a ‘slow burner’ in investment terms, Champagne has bucked the trend, hitting new highs thanks to the post-Brexit impact on sterling plus a raft of stellar releases
MosT pARTs of the fine wine market have enjoyed a bright and positive summer, buoyed by the impact on sterling of the UK vote to leave the European Union – at the time of writing, the pound had hit another 31-year low against the dollar.
But Champagne in particular has caught the eye in recent months, thanks to a blend of this post-Brexit vote surge and a series of starry releases.
salon 2004, Krug 2002, Krug Clos du Mesnil 2002 and Gosset Celebris Extra Brut 2004 – all have been unveiled this year, with more from the likes of Dom pérignon still to come this side of Christmas.
This activity, plus tempting prices for non-UK buyers, has helped to boost the fortunes of a number of older releases, as these pages have previously noted: Bollinger, Vieilles Vignes françaises 2004, up 34% on the year at the end of July; and the same house’s Grande Année 2005, which enjoyed a summer burst of trading after suffering a slow decline previously.
In some cases – the twin Krug 2002 releases being the most eye-catching – price rises have followed soon after their release, such has been the anticipation among collectors (and so high have been the critics’ scores).
But that’s not typical, as Liv-ex notes in a recent Cellar Watch report. Writing at the start of september, the company notes that its Champagne 50 index hit new highs in three consecutive months over the summer, rising faster over that time than it had during the previous three years.
Champagne, it explains, is a slow-burner investment, ‘traditionally released in very large quantities when it is ready to drink’, the report says. ‘prices then run flat for a number of years. It is only after the wines
have been available in the market for some time that supplies begin to diminish, and prices begin to rise.’
spearheading this growth are the 2002 and 2004 vintages. While a few of these wines – for instance, Krug, salon and Gosset above – have only recently hit the market, many others have been traded for about five years.
over the past year, Liv-ex reports, 2004 Champagnes from major houses have seen their prices rise by an average of 17.3%, led by Taittinger Rosé 2004 (up 35.7%), Ruinart 2004 (+19.7%) and Louis Roederer 2004 (+8.8%).
As the reaction to the Krug releases suggests, the 2002s have bucked this long-term trend. Told to expect greatness, buyers snapped up these wines eagerly, boosting prices strongly following release – after which they flatlined for some years.
More vintages are now hitting the market: 2005, 2006 and 2008. Liv-ex notes that few have seen much movement, particularly the hugely marketable names of Dom pérignon and Cristal, although there are exceptions – such as Taittinger 2005.