- Champagne and Burgundy have been the two best performing investment regions of the last two years.
- Dom Pérignon has done extremely recently, but it is still reasonably priced.
- The 'Fab Four' modern vintages for Champagne are: 1996, 2002, 2008 and 2012.
- Dom Pérignon 2012 is comfortably the least expensive of these four vintages, and hence represents the best long-term investment value.
- Secondary market supply is also drying up now on the 2012, with the last bits of inventory making their way through the primary market. This is always the optimal time to buy..
Champagne Challenges Burgundy for ‘Best Investment’ Region
Champagne vies with Burgundy as the best performing investment region. Over the past two years the Champagne 50 index (Liv-ex.com) is up over +60%, only just outpaced by Burgundy.
Dom Pérignon 2002 & 2008 Explode in Price
The best comparable vintages to Dom Pérignon 2012 are the 2002 and 2008. These two wines have seen their prices explode in the last two years, up +90.4 and +70.0% respectively.
The ‘Fab Four’ Investment Vintages
For investment purposes, you need to buy Champagne based on vintage, as opposed to score. Vintage perception is more important in Champagne than in any other region.
There is, we believe, clear consensus now on the ‘Fab Four’ vintages of the modern times. This is supported by the Wine Advocate vintage ratings, which put these four vintages above all others in modern times:
| The "Fab Four" Best Champagne Vintages (Wine Advocate) | ||
| Vintage | Score | Rating |
|---|---|---|
| 2012 | 96 | Extraordinary (highest) |
| 2008 | 99 | Extraordinary (highest) |
| 2002 | 95 | Outstanding (second highest) |
| 1996 | 97 | Extraordinary (highest) |
We have shown that Dom Pérignon is a proven investment performer. As the 2012 is already established in the hierarchy of ‘best vintages’, it is only a matter time (we believe) before the 2012 rises to the level of the other three established ‘best’ vintages (1996, 2002 and 2008):
| Dom Perignon "Fab Four" Vintages | ||
| Vintage | Score (Wine Advocate) | Price (6x75cl) in USD |
|---|---|---|
| 2012 | 96+ | $1,175 |
| 2008 | 95+ | $1,400 |
| 2002 | 96 | $1,560 |
| 1996 | 98 | $2,460 |
IMPORTANT NOTICE
This report has been issued or approved for issue by an entity forming part of Cru (as defined below) and has been forwarded to you solely for your information and should not be considered as an offer or solicitation of an offer to sell, buy, or subscribe to any securities or any derivative instrument or any other rights pertaining thereto (“financial instruments"). This report is intended for use by professional or business investors only. This report may not be reproduced without the consent of Cru.
The information and opinions expressed in this report have been compiled from sources believed to be reliable, but, neither Cru, nor any of its directors, officers, or employees accepts liability from any loss arising from the use hereof or makes any representations as to its accuracy and completeness. Any opinions, forecasts or estimates herein constitute a judgement as at the date of this report. There can be no assurance that future results or events will be consistent with any such opinions, forecasts, or estimates. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied is made regarding future performance. This information is subject to change without notice, its accuracy is not guaranteed, it may be incomplete or condensed and it may not contain all material information concerning the product or products mentioned. Cru is not agreeing to, nor is it required to update the opinions, forecasts or estimates contained herein.
The value of any products mentioned in this report can fall as well as rise. Foreign currency denominated products are subject to fluctuations in exchange rates that may have a positive or adverse effect on the value, price or income of such products.
This report does not have regard to the specific instrument objectives, financial situation and the particular needs of any specific person who may receive this report. Investors should seek financial advice regarding the appropriateness of investing in any products or investment strategies discussed in this report.
Cru (or its directors, officers or employees) may, to the extent permitted by law, own or have a position in the products of any company or related company or products referred to herein and may add to or dispose of any such position or may make a market or act as a principal in any transaction in such products. Directors of Cru may also be directors of any of the companies mentioned in this report. Cru (or its directors, officers or employees) may, to the extent permitted by law, act upon or use the information or opinions presented herein, or research or analysis on which they are based prior to the material being published. Cru may have issued other reports that are inconsistent with, and reach different conclusions from, the information presented in this report. Those reports reflect the different assumptions, views and analytical methods of the analysts who prepared them.
For the purposes of this disclaimer, “Cru” shall mean: (i) Cru London Limited; (ii) Cru Asia Limited and (iii) from time to time, in relation to Cru London Limited and/or Cru Asia Limited, the ultimate holding company of that entity, a subsidiary (or a subsidiary of a subsidiary) of that entity, a holding company of that entity or any other subsidiary of that holding company, and any affiliated entity of any such entities.
This publication is confidential for the information of the addressee only and may not be reproduced in whole or in part, copies circulated, or disclosed to another party, without the prior written consent of an entity within Cru. Products referred to in this research report may not be eligible for sale in those jurisdictions where an entity within Cru is not authorised or permitted by local law to do so. In particular, Cru does not allow the redistribution of this report to non-professional investors or persons outside the jurisdictions referred to above and Cru cannot be held responsible in any way for third parties who effect such redistribution or recipients thereof. © 2022.
