WineFi Weekly

Welcome to the eighteenth edition of WineFi Weekly, and a special Burgundy Deep Dive👋 
📅 July 22nd 2024

Summary

Following the demand shown for our first co-investment opportunity, the Champagne Collection, we are releasing a new collection, this time centred around Burgundy!

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.

Here are some examples of the highest returning labels we have identified.

Domaine d'Auvenay, Chevalier-Montrachet Grand Cru - with average annualised returns of 26.4%, and an average 12×75cl case price of over £100,000.

Domaine Leroy, Pommard, Les Vignots - with average annualised returns of 22.04%, and an average 12×75cl case price of around £30,000.

Why Burgundy?

• Reputation
  Burgundy is home to some of the most sought after wine in the world. Producers like Domaine de la Romanée-Conti (DRC) and Domaine Leroy (pronounced ‘lewah’ for those that are unsure) are synonymous with luxury and quality.
  9 of the top 10 most expensive wines in the world (by average case price) are from Burgundy, highlighting the extreme prices that buyers are willing to pay to secure these top wines.

• Scarcity
  The elite producers in Burgundy produce at levels far below their Bordeaux, or Champenois counterparts. DRC release fewer than 500 cases a year of their flagship wine - “Romanee Conti”. To put this into perspective, Chateau Lafite Rothschild produce between 15,000 and 20,000 depending on the vintage. This limited production exacerbates the market dynamics present across wine investment markets. When the already low supply starts to contract as the wines are drunk, upwards pressure is put on price.

• Performance
  Our analysis of Burgundy shows strong returns. The average annual returns for vintages between 2013 and 2022 over the last 10 years is 18.6%.

  

• Market Timing
  In terms of timing the market a strong argument can be made that - after a period of madness during and post covid - prices appear to be returning to a long term trends. This can be seen in the price performance charts of several of the more liquid wines:

The Data

The Dataset

• All prices referenced are Liv-ex market prices for a 12x75cl case (GBP).

• Mean case price: £13,000

• Median case price: £4,600

• Case prices range from: £360-£632,000

• Average drinking window length:
  - Reds: 19 years
  - Whites: 17 years

• Vintages ranging from 1978-2022

Regional Analysis

• Chablis is the highest performing geographical region when looking at a broad level comparison over the last 10 years.

• More northern Cote de Nuit (Romanée-Conti, La Tâche, Richebourg, Chambertin, Clos de Bèze) outperforms the Cote de Beaune (Montrachet, Corton-Charlemagne - whites, Volnay, Pommard - reds) over 10 and 20 years periods.

Producer Analysis

The big names hold centre stage but there are stand-out producers in all price brackets from £2,400+.

Next week we will go into even more depth, with a detailed look at the top performing producers and labels!

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

Website update

We’re excited to announce that our website has had a makeover and is live!

As always, we build any new developments with your feedback in mind, so please feel free to reach out with any thoughts or feedback you may have.

Platform Update

Hot on the heels of our new website going live, we will also be rolling out an update of the WineFi Platform in the very near future.

Users will now be able to categorise their wines, and instantly export spreadsheets of their portfolio, and how it is performing.

Founding members will also notice a shiny new ‘Founding Member’ in the top right of their screen.

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.

Use code “WineFi” to receive 5% off your first Lay & Wheeler order.