WELCOME TO THE CRU WINE INVESTMENT
JULY 2018 INVESTMENT UPDATE
Fact of the Month
“The number of the month: £26.3 million!
This last 17th June 2018 an auction of Henri Jayer’s private cellar took place. The final sale total was more than double the initial estimate for the top-ten wines. At the top, a 15 Magnum vertical of Cros-Parentoux 1er Cru vintages stretching from 1978 to 2001, selling for a total price of £880,000.”
End of primeur in Bordeaux – mix feelings towards the 2017 vintage
Despite the frosts, the vintage of 2017 is doing well. The en primeur campaign ended with a decrease in price and volume sold compared to the two previous vintages, as we expected. For the Chateaux who got the balance right, they have shown that they have what it takes to make a beautiful expression of wine from a challenging vintage, and judge the market well. After two exceptional vintages, prices across the board have been reduced by 3% to 25%. From the 250 wines released, we believe about 20 wines have been priced at an attractive quality/value ratio versus back-vintages: it is key to take all components into account when purchasing investment-grade wine.
Of the 2017 vintage, we believe Saint-Julien stands out the most. They received the most acclaim from the critics. James Suckling notes that the beautiful structure and big rich aromas of this appellation has good cellaring potential.
Another appellation who did particularly well is Pomerol, with the elusive Le Pin at the top. Producer Jacques Thienpont decided to offer its wine at an attractive price compared to previous vintages, at a mere £18,000 per case. Pomerol is one of the smallest appellations in Bordeaux, and the only one that doesn’t have its own classification. Three estates are at the top of the list: Lafleur, Petrus and Le Pin, followed by La Conseillante, Clinet, Trotanoy and Vieux Château Certan.
Château Suduiraut escapes serious fire damage
On 20th of June 2018, a wing of the estate has been gutted by fire which is presumed to come from an electrical fault. Around 200m2 of the roof has been burnt, but thanks to the quick reaction of the 80 firefighters, the cellar and the vats have not been touched. The damage has principally impacted the dining room, kitchen, and some bedrooms.
CWI 2018 Bordeaux wine trip
In June, we went on our annual wine tasting weekend in Bordeaux with clients. The weather was immaculate, Bordeaux city was looking beautiful, the vineyards were bursting with fresh green leaves and abundant wild flowers, and we had some superb Château lined up.
If you have yet to come on one of these trips, be prepared for a weekend of a near continuous stream of sumptuous meals in gorgeous settings, punctuated by visits to some of the most prestigious Châteaux there are. We toured two of the finest First Growth estates on the first day alone, Château Margaux and Château Latour. Find out what else we got up to here.
The awards keep coming
Following on from winning the Acquisition International Business Excellence Award for Best in Wine Investments 2018, earlier this year, we have just been named as Leaders in Wine Purchase Advisory Services – Europe in their Global Excellence Awards. Find more information, click here: LINK.
Our performance on behalf of our clients remains strong at +11% year-to-date, outperforming the market index and most other asset classes.
Movers and shakers
The second wine of the renowned Lafite Rothschild, Carruades, has shot up in value since the end of the en primeur. Indeed, the ex-chateau price was about £97 per bottle – if you could get hold of any – but by last week offers were up to £216, an increase of 122.7% in a month. This wine consistently performs well. Another wine to make some noise is Haut-Brion 1989, which grew 19% in one month!
Start your own wine portfolio
If you would like to speak with one of us or receive more information in regards to starting your own wine portfolio, just fill in the following, and we’ll get in touch: LINK TO START WINE PORTFOLIO.
The Cru Wine Investment Team – www.cruwineinvestment.com
You can check out all our offers on our newly launched online webshop: www.cru-wine.com