WineFi Weekly

Welcome to the seventeenth edition of WineFi Weekly👋 
📅 July 15th 2024

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Champagne co-investment opportunity filled in two weeks

Our first co-investment opportunity, the Champagne Collection has now filled its full allocation within two weeks of announcement. We’re really excited to continue to release new opportunities on a regular basis, so if you missed out on this one don’t worry - there is a new collection coming soon!

New Wine Investment Podcast Episode

In Episode #11 of The Wine Investing Podcast, we welcomed Mario von Bergen of Splint Invest.

Mario and Callum discuss the growing trend towards alternative investments, the story of founding Splint, and fine wine as an asset class more generally.

Splint are a fascinating platform (and WineFi 🍷 partner!) that allows investors to gain exposure to fine art, classic cars, whiskey and fine wine from just €50.

We have been blown away by their integrity and the professionalism of their approach, and we share their vision of making alternative assets accessible.

Check this episode out on Spotify, Amazon, Apple, or wherever you get your podcasts.

Oh, and if you want to get a free €50 just use the code 'WINEFI50' on sign-up 😉

Lay & Wheeler - great value drinking wines and discount code!

We are pleased to announce a new partnership with Lay & Wheeler. Lay & Wheeler are one of England’s oldest fine wine merchants, established in 1854, and are also a subsidiary of our part-owners Coterie Holdings.

We're looking forward to working with them to provide WineFi customers with special offers on excellent wines.

WineFi customers can use the code ”WineFi” to receive 5% off their first order.

Lay & Wheeler: Wine of the Week

Bollinger PN VZ 19

Disgorged in January 2024, this iteration of Bollinger’s PN series – a spotlight on Pinot Noir – is predominantly 2019 base with reserve wines coming from 2018 and 2009. The finest iteration of the PN series to date, this opens with aromas of oatmeal biscuits, ginger, and peach skin. Behind this comes red apple fruit and fresh summer berries. There is a real sense of focus and saline energy to this wine. An irresistible charm bubbles from the glass with a lacy feel to the mousse on the palate. Chalky and crystalline on the finish.

What’s happening in the wine investing world?

The Q2 Market Report - An Overview

Resilient Economic Growth Bolsters Markets

In the second quarter, global equity markets displayed robust performance, driven by steady economic growth and positive earnings forecasts. This economic strength enabled equities to prosper, despite the ongoing challenges of inflation. Bond markets also appeared attractive, although the economic resilience supporting equities posed some near-term risks for fixed-income investments.

In the United Kingdom, investor sentiment improved significantly following a decisive electoral victory for the Labour Party. The British pound, the strongest major currency against the dollar this year, saw a slight increase as the election results became clear. The domestically focused FTSE 250 index outperformed the globally oriented FTSE 100 on a year-to-date basis, reaching its highest level since April 2022. This reflects renewed investor confidence in the UK's economic outlook.

Bordeaux Legends - value in the classics?

An increase of just 0.3% might not generate a lot of excitement, but it's worth examining the Bordeaux Legends 40 index more closely. This index tracks the performance of 40 exceptional Bordeaux wines from older vintages (1989 and later). As we highlighted during the Bordeaux En Primeur campaign (see our final report for a comprehensive analysis), it was challenging to justify investing in most 2023 releases when many older vintages offer better value, are physically available, and in some cases, are even ready to drink.

When considering longer-term trends, the Liv-Ex Fine Wine 50 index—which includes 50 wines from recent vintages of the Left Bank First Growths (starting from 2007 for Latour and 2012 for the other châteaux)—has underperformed compared to the Bordeaux Legends 40. Similarly, the Right Bank 50 index, which features more recent vintages from Ausone, Cheval Blanc, Lafleur, Le Pin, and Petrus, has also struggled to keep up.

Global Collaboration

In June, several prominent European wine producers made notable acquisitions of U.S. estates. Faiveley has acquired a majority stake in Sonoma’s Williams Selyem, Antinori has fully acquired Washington State’s Col Solare, and the Bouygues Group—owners of Montrose and Clos Rougeard—has purchased Virginia’s RdV Vineyards.

Against this backdrop, we turn our attention to the recent performance of Opus One, a premier example of European-American wine collaboration.

Established in 1978—just one year before Williams Selyem—Opus One was the result of a partnership between Baron Philippe de Rothschild and Robert Mondavi. This venture marked Bordeaux’s first significant entry into the New World wine market. Since then, Opus One has become one of the most coveted wines from Napa Valley, ranking as the second most-traded U.S. wine by value on Liv-ex, just behind Screaming Eagle, and leading in trade volume.

Benefiting from the Rothschild brand’s prestige and a strong distribution network, Opus One has adopted a methodical and long-term strategy to enhance its reputation. This approach has yielded impressive results, evidenced by its steady price performance over the past two decades and robust trading volumes.

Climate Change Impact on Viticulture

Climate change remains a significant factor affecting global wine production. Regions like California and parts of Europe faced challenges due to extreme weather conditions, impacting yields and quality. However, some producers are adapting with innovative viticultural techniques, such as introducing drought-resistant grape varieties and implementing sustainable farming practices. These measures are helping mitigate adverse effects and ensure the continuation of high-quality wine production.

Source: Liv-ex, WineCap