March 2019 investment update

01-Mar-2019


March 2019 investment update

The 2018 Bordeaux En Primeur Campaign

Each year, the great vineyard estates of Bordeaux sell the previous seasons crop as a future. Wine that is still in barrel and not yet finished, which won’t be released in bottle for another three years. The trade and the critics taste the infant wines from barrel in the April after the harvest, and try to predict how good they’ll be, and what they’ll be worth, when they are released. The Chateaux also try to predict the market, from the opposite side of the coin – how much they can charge, and how much they can sell. By its very nature, it is speculative, but equally the biggest profits can be made when you buy well at this stage.

What to expect?

You can certainly expect big bold wines with higher than normal alcohol, from many producers. Unlike 2015, which favoured Merlot, and 2016, which favoured Cabernet, 2018 has been as kind on both sides of the rivers (the famous stylistic divide of Bordeaux, often referred to as Left Bank wines and Right Bank wines). In fact, the summer was so long and steady that wine makers had great opportunity to choose when to harvest and choose their style. Some estates now announce how early they managed to harvest, to achieve a more classic style, such as Troplong Mondot or Beauséjour-Bécot, while others harvest as late as possible to achieve big flavours.

 

Top scoring Bordeaux 2018 reds

 

Thirsty For Diversification? Consider Investing In Wine

Many of us enjoy a good glass of wine, and some of us go to great lengths to collect a fine, vintage bottle. For others still, an interest in fine wine may evolve into an investment strategy. Similar to investing in scarce tangible assets like rare coins, classic cars or antiques, there is a growing trend around passion investing specific to wine that goes beyond simply collecting for personal use, instead offering diversification and the potential for returns.

Showcasing the heightened interest in this type of investing, a series of indices has emerged to track prices in the fine wine market. The industry-leading benchmark is the London International Vintners Exchange, which includes the Liv-ex Fine Wine 100 Index that tracks the top 100 most sought-after wines. The index generated a five-year return of more than 22 percent through the end of 2018.

 

World-Record Auction Trades Met

Over 3,500 individual wines have recorded world records in Q1 2019 thus far, including 40 for Coche-Dury, 37 for Domaine Leflaive, 83 for Domaine Leroy, and a whopping 91 for DRC. Here are some notable highlights that eclipsed their previous records this quarter. Sales are in USD ($) and for individual bottles.

 

Latour 2008 And Forts Latour 2013 Released Ex-Chateau

March saw the release of two much anticipated ex-Château offerings from Latour. The château famously left the En Primeur system in 2012 and has since been releasing wines only when deemed ready to drink. Latour 2008 was released at £5,100 per 12×75, at an 11% premium to the current price of the wine already available in the secondary market. However, a small premium was expected due to storage and provenance considerations. The Second Wine of Latour, Forts Latour 2013, was also offered (for the first time) at £1,650 per 12×75. This price positioned it below all other vintages currently available in the market.

 

New Team Member

Kyle’s experience makes him uniquely placed to broaden and deepen Cru Wine Investment’s client base. He has helped investors on both the buy and sell sides, having previously worked with a top UK wine merchant for 5 years. Kyle also brings skills from his work in finance and alternatives in order to grow the Agency business. Working alongside IFAs, Wealth Managers and Private Banks across Europe, the Middle East and Asia to help clients benefit from active diversification. Outside of work Kyle is a passionate sports fan and a Fulham season ticket holder.

 

First En Primeur Offer

2018 En Primeur Release: Château Angelus

We are delighted to present our first offer from the 2018 Bordeaux En Primeur: 2018 Château Angelus.

With a release price 15% below the 2016 vintage, it looks an attractive buy given the critics reception. At present 2018 Angelus has only been reviewed by James Suckling, giving it an almost perfect 99-100 points.

The 2018 vintage as a whole has been widely praised by the critics, and after our recent visit to Bordeaux to sample the wines, we agree that there have been some outstanding wines produced.

Château Angelus is one of the largest and most prestigious St-Émilion estates and was promoted to 1er Grand Cru Classé A status in the 2012 St-Émilion reclassification – this was thanks in main to the excellent quality of the 2009 and 2010 vintages. The estate has been owned by the same family for over four generations. The Château was originally named for the bells that could be heard in the vineyard from three of St-Émilion’s churches, calling the workers to Angelus prayers.

2018 Château Angelus, Saint-Émilion Grand Cru, Premier Grand Cru Classé

£1,530 IB per 6x75cl

£1,535 IB per 3 Magnums

“This shows beautifully sensibility of generous fruit and soft and velvety tannins with an undertone of chocolate and cedar. Full-bodied, pure and supple with a direct delivery of vibrant fruit and real terroir expression. Savory at the end with hazelnut and crunchy-seed flavors. Reality check here. Incredible fruit quality”. 99-100 Points, James Suckling

 

 

Have A Look At Our Cru Wine Shop

Cru Wine Investment continues to innovate – we launched our online shop in June, and invite you to explore the range.

 

 

Link : http://www.cru-wine.com

 

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 this form, and we’ll get in touch.

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 

 

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