Our optimism for the Champagne region is driven by its long-term stability and higher risk adjusted returns when compared with other regions of the market. We think that the current environment of the wine market calls for a more balanced portfolio, and the merits of diversification found in Champagne are supporting our view for a long term 10% allocation to Champagne with a tactical Overweight stance.
Our research on the Champagne market revealed several interesting facts, including the following trends:
- Over the last five years, Champagne is the second-best performing region of Liv-ex 1000 with a total return of 47%.
- With portfolio resilience crucial at a time of broader market uncertainty. Champagne plays a defensive role with steady returns and low volatility.
- We have witnessed a positive picture for Champagne this year, with special mention to Rosé Champagne.
- Salon, which remains the No.1 ranked Champagne brand, led the gain in the region, while other investment-grade Champagne also performed favourably.
- Prices of back vintages tend to appreciate over time irrespective of vintage variation or quality.
- Earlier this year, excitement was generated around the release of Champagne 2008, which is considered to be one of the region’s best-ever vintage by several wine critics.
Please contact us to discuss buy recommendations for the region.
Diversify your Wine Investment Portfolio with Champagne
Having only recently been considered a Fine Wine investment, Champagne has seen consolidating prices despite some volatility surrounding other major regions for the past few months. Increased market share and the appetite generated by landmark celebrations are also positives for Champagne market next year.
While some inexpensive Champagne brands have posted disappointing results due to weak French demand, the likes of super-premium Champagne brands reported their Asian and US sales accelerated in 2018. In particular, China, Hong Kong and Russia also have seen strong increase in demand for Champagne last year. According to Drinks Business, exports to Hong Kong Rosé by 14% in value and by 12% in volume. Shipment to China Rosé by 12% in value to 40.9 million euros and by 10% in volume to almost 2.2 million bottles.