Champagne rewards patience
While returns on top-level Champagne cuvées have been strong in recent years, investors should still allow time for value to accrue
TOP VINTAGE CHAMPAGNE is not just for Christmas, according to new investment research highlighting consistent returns on top names.
Liv-ex said its Champagne 50 index has shown a compound annual growth of 9.5% since it was created in 2004.
The index has risen in value by 35% since the beginning of June 2016, said Liv-ex in its Otober 2018 report, Champagne: a market without bubbles.
Champagne is a relative newcomer to the wine investment scene and there may be cause to question whether the success story would hold should the world find itself facing another financial crisis.
But several top houses have perennial appeal, according to about 50 merchants surveyed by wine ratings agency Wine Lister.
Salon, Krug and Dom Pérignon vintage brut, Roederer’s Cristal and Jacques Selosse’s Substance grand cru brut were all considered names that every collector would still want in their cellar in five years from now, Wine Lister said prior to its release of a full report on the Champagne market.
Champagne’s appeal has also widened beyond traditional EU markets, with demand for top-end wines in the US and Australia driving global sales to a record €4.9bn in 2017, according to the Comité Champagne trade body.
On the secondary market, 95% of trades are for vintage and prestige cuvée-level wines, confirmed Liv-ex.
Purchasers shouldn’t necessarily expect a quick return if they’re in the market for investment purposes, however.
‘Age stands out as the most important price determinant when it comes to Champagne vintages,’ said Liv-ex.
Some Champenois believe that wine lovers still underestimate Champagne’s capacity to age. ‘Most people don’t have the chance to be exposed to very old Champagne, so it’s more about a lack of understanding,’ said Bruno Paillard, of the eponymous producer.
However, he would rather drink his personal cellar than sell it. ‘I’ve never looked on Champagne as an investment,’ he said.