Champagne for Investment?

I recently added some 2002 Dom P and 1999 Taittinger Comte de Comte to my portfolio for the long term, and found this recent Liv-ex post (“Focus on Fizz”) on the bubbly extremely interesting.  Apparently Champagne values have increased but no where near the levels of Bordeaux which probably makes it a good buy from an investment point of view.  Dom Perignon 2002 has serious potential to appreciate as it is one of the worlds most sought after wines, and one of its highest rated vintages in history.  They do make a lot of it, but it does disappear over time as it so hugely popular in hotels, restaurants, bars, etc. A wine consultant of mine at Sokolin wines in NY also recently told me something intriguing:  Dom Perignon is always the first wine to be bought by credit card fraudsters, because of its prestigous status.  Hmmm, I guess this makes sense though, because even the crooks know what the best stuff is.  The 2002 Vintage is highly rated and could be legendary…..forget stocks. buy Champagne  

21 September 2010 

Focus on fizz
This month, the start of the 2010 harvest in Champagne coincided with reports that global shipments of fizz increased by nearly 40% in the first six months of the year. And though champagne trade on Liv-ex remains well below last year’s average, prices appear to be edging up. The Liv-ex Champagne 25 Index – which tracks 25 top vintage wines from Dom Perignon (9 vintages), Louis Roederer Cristal (8) and Krug (8) – rose 5.58% in August to a new high of 262.57. The index is currently up 3.23% year-to-date and 4.63% year-on-year. If we take a closer look at each brand individually, it appears that Louis Roederer Cristal has put in the strongest price performance since August last year, having risen in value by 8.84%, followed by Dom Perignon at 4.05%. Krug vintages have seen very little movement, gaining just 0.03% year-on-year.  The chart below shows the year-on-year price performance of the three brands that make up the Liv-ex Champagne 25 Index. With Christmas and New Year just around the corner, will champagne prices continue to push upwards?   

 Champagne performance by brand 

 

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