Why There's Good News Ahead for Iconic Wines
There has never been a more opportune time to invest in the world’s most iconic wines. Over the past two years, these prestigious wines have reached their lowest price levels, influenced by a slowing global economy, higher interest rates, and subdued consumer spending. This convergence of factors has created a unique buying opportunity, as prices are down, and the market is less crowded than before.
Post-En Primeur, July and August are typically quieter months in the fine wine calendar, with limited new releases. This period, however, often presents the best opportunities to acquire iconic and trophy wines. Recognising this, we have empowered our investment and sourcing team with a mandate to hunt for these rare treasures over the coming weeks.
The fine wine market, much like other investment markets, has its cycles, and we believe we are on the cusp of a strong recovery phase. Timing is everything!
What Makes an Iconic Wine?
Rarity, unrivalled quality, and widespread name recognition make selections from our iconic producer category priceless commodities. The tiny quantities of these wines anchor their ability to overcome any short-term swings in the market to deliver excellent long-term investment potential.
The fine wine market is inherently distinct from other luxury sectors, such as watches and handbags. The production of these wines is extremely limited, making them genuinely rare assets. This rarity enhances their long-term value and appeal, positioning them as a prudent addition to a diversified investment portfolio.
Our long-term conviction for these wines has not changed. As the market recovers, we expect the key wines from the most fabled of regions to excel in terms of performance.
Iconic Wine Investment Analysis
We’ve created an index tracking the performance of wines within this category (see below).
*To create the index, we tracked the average market price for each of the available vintages since 2000 for each wine (according to wine-searcher price data.)
Iconic Wine Index
The table below shows the performance from a group of our target producers within this category. As we analyse the data, we start to see a pattern emerging of prices stabilising.
Turning the tide: Iconic Labels showing signs of recovery
Looking deeper into the numbers, we can see an uptick in the performance of several iconic wines, as per the graph below, which is the first positive sign of price stabilisation in the past two years. Wines such as Roumier, Amoureuses, Selosse Millesime, Rousseau Chambertin and Chave Hermitage have found market support at their current price levels.
Iconic Wine Performance Comparison
We believe the fine wine market is on the brink of a significant upswing. The major market indices stabilised in Q2, and economic indicators suggest that consumer confidence and spending are set to improve, which historically correlates with increased demand for assets such as fine wines.
Register Your Interest in the Cult Wines Iconic Wine Strategy
Join savvy investors capitalising on the unique opportunity to invest in Iconic Wines as part of a diversified portfolio. Register your interest in the iconic wine strategy using the form below to discuss the strategy and the wider investment in Fine Wine. You will have the opportunity to ask any questions you may have.
With a minimum total investment of £25,000 or local currency equivalent, your portfolio will be expertly tailored to your investment objectives, term, and risk appetite by your appointed Relationship Manager, ensuring the perfect balance of regions and producers for optimal returns.
