WineFi Weekly #20

The Burgundy Collection 50% filled - a closer look at selected producers.
An update on sourcing for the Champagne Collection.
A fine wine market update.
📅 August 5th 2024

The Burgundy Collection - Continued

We have now filled 50% of the allocation for The Burgundy Collection, and in this week’s newsletter we will look more closely at the producers in scope.

What is The Burgundy Collection?

Our co-investment opportunities allow investors to access a diversified basket of the rarest investment grade wine from £3,000 - a fraction of the cost of owning the underlying assets outright.

The Burgundy Collection will be investing in ultra rare wines from arguably the most prestigious region in the world.

The Producer Spotlight

Domaine de la Romanee-Conti (DRC)

It wouldn’t be a Burgundy collection if DRC wasn’t included, and here is an insight into the results of our analysis on this well-renowned producer.

A third of the Burgundy “holy trinity” along with Leroy and d’Auvenay. Lalou Bize-Leroy is a co-owner of DRC and was previously co-manager. Currently, Lalou's daughter Perrine represents her interests on the DRC board, while the de Villaine family manages the domaine:

- Case prices (12x75cl): £25,000 - 200,000

- Annualised Returns: 10%-17%

- Low yield production, around 85,000 bottles a year.

The Recent retirement of legendary co-director Aubert de Villaine after over 50 years may affect prices. His nephew Bertrand de Villaine took over alongside Perrine Fenal in December 2021.

The 2021 vintage faced severe challenges due to spring frosts, resulting in extremely low yields (up to 90% reduction in some vineyards) and potentially increased scarcity and prices for these wines. In spite of this tastings suggest the 2021 will perform well, though may have a sooner and shorter drinking window than other vintages.

_{Data: Liv-ex}

Domaine Leroy

Both Leroy and Domaine d'Auvenay are owned and managed by Lalou Bize-Leroy. They are known for their biodynamic practices and extremely low yields, resulting in highly sought-after wines:

• Case prices (12x75cl): £40,000 - £110,000

• CAGR: 15% - 30%

• Leroy yields 15 ha/l annually (source) and produces only around 600 cases of wine per year (source).

Domaine Armand Rousseau

Family-run wine producer based in Gevrey-Chambertin, known for crafting exceptional Pinot Noir wines, Grand Cru and Premier Cru from vineyards in the Côte de Nuits.

• Eric Rousseau, the current winemaker, has been gradually handing over responsibilities to his daughter Cyrielle Rousseau, ensuring continuity wine quality and making tradition (source).

• Average production of only ~65,000 bottles per vintage (source).

Domaine Leflaive

Based in Puligny-Montrachet, renowned for its exceptional Chardonnays from Grand Cru and Premier Cru vineyards, and recognised as a pioneer in biodynamic viticulture (source).

• In 1997 all vineyards became biodynamic, in the “footsteps of Lalou Bize-Leroy and Nicolas Joly, who believe herbicides and fertilisers cause long-term damage to the soil”(source).

• From 2004 the domaine started acquiring new vineyard holdings in southern Burgundy, particularly in the Mâconnais region (source).

• Anne-Claude Leflaive passing in 2015 does not appear to have affected prices or returns negatively. Nephew Brice de la Morandiere took over management, with Eric Remy as winemaker.

If you’re interested in the Burgundy Collection, please register your interest by filling out this form.

The Champagne Collection - Sourcing Update

We are pleased to report that we have now sourced over 50% of the target wines for The Champagne Collection at an average of 6.27% below target price.

We will continue to source the remaining wines with the same focus and aim to maintain our cost-saving performance. Further updates will be provided as we progress towards completing the collection.

What’s happening in the wine world?

Last week, Bordeaux led the market with a 42.0% share of traded value. The region saw trades of some rare older vintages, including Château Mouton Rothschild 1945, Château Lafite Rothschild 1974 and Petrus 2002.

Burgundy came in second with an 18.3% share, while Champagne followed with 11.5%. Burgundy was buoyed by Domaine de la Romanée-Conti’s La Tâche 2011, which traded below its last auction price of £37,000.

Piedmont saw an increased share of trade on last week’s close, with wines from 15 different producers changing hands.

Tuscany’s trade share was down slightly on last week. The region is usually led by Super Tuscans, but Brunellos saw an uptick in demand this week. Biondi-Santi Brunello di Montalcino Riserva 2016 was the top traded wine by value from the region.

_{Data: Liv-ex}

The Top 10 Selling Wine Brands of 2024 so far

Dom Pérignon 5.3%
Bollinger 2.9%
Gaja 2.8%
Domaine Joseph Drouhine 2.7%
Taittinger 2.6%
Sassicaia 2.5%
Louis Roederer 2.4%
Giacomo Conterno 2.1%
Château Lynch Bages 2.0%
Tignanello 2.0%

^{% of trade volume}

_{Data: Liv-ex}

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