Playing the long game in Port
Vintage Port fans have been spoilt for choice recently, but merchants and analysts remain lukewarm about the sector’s investment credentials. It’s an exciting time for vintage Port collectors, from 2018 vintage declarations to the acclaimed 2016 and 2017 wines, plus a growing focus on single quinta bottlings.
The demand for new releases has been strong, say Will Hargrove, head of fine wine at Corney & Barrow, and Matthew O’Connell, head of investment at BI Wine & Spirits.
So far, however, vintage Port remains a minor player on the investment market. ‘Compared to the broader market, the Port story is not one of investment gains,’ said Liv-ex in October.
‘Over the past five years, the Port 50 index, which tracks the price performance of Dow’s, Taylor’s, Fonseca, Warre’s and Graham’s, has risen just 2.2%.’ For drinkers, this can mean ‘incredible value’, Liv-ex noted.
O’Connell told Decanter: ‘Over a long period [vintage Port prices] generally move in line with inflation.’ The advantages are often low volatility and a gradual climb, but wine investors might expect stronger returns on investment, he said.
Vintage Port’s longevity means supplies traditionally diminish slowly, although O’Connell noted single quinta vintage bottlings are ‘rarer to start with’.
Hargrove agreed that prices do not often rise rapidly after release, although he cited Dow’s 2011 as an exception (see column, right). He noted that buyers need to factor in storage costs, as well.
There can be opportunities with a longerterm view. Richard Harvey MW, international director of fine and rare wine and whisky at Bonhams auction house, said vintage Port ‘always commands interest’.
Quinta do Noval Nacional and Ports owned by Symington Family Estates and The Fladgate Partnership were among the most sought-after bottles at auction. ‘It’s a long-term investment, but rare old vintages command high prices,’ Harvey said.