With the eruption of the global financial crisis in 2008, paper assets around the world sank rapidly in value while wine, rare malt whisky, fine art and certain hard as well as soft commodities held their ground, and in many cases benefited handsomely. In this stormy financial climate, vintage wine, typically from France, has appreciated because not only is it in scarce supply – any vineyard by definition can only produce a limited number of bottles per year – but also because each year and each French terroir is unique in its features, adding further value to the better vineyards and vintages.
But with economic recovery are wines becoming overpriced as new buyers enter the market, bidding up prices while a range of new regions around the world begin to compete with the classic French vineyards? Although Bordeaux remains the strong standby for recreational wine drinkers and global dealers alike, in the not too distant past professional wine investors have brought new regions, such as Burgundy, into the limelight and indeed helped them rapidly climb the ladder of global premium status. Until the 1980s the eastern French region was avoided by many experts and criticised by others for allegedly variable standards and viticultural shortcomings. Today, Bourgogne is known as one of the greatest world wine producing regions, and its Cote d’Or reds and Chardonnay whites command the respect – and the price tags - of investors and serious drinkers alike.
Spotting the next growth market around the world is certainly one idea for wine investors who want to take a gamble – in the western hemisphere for example in the 1960s and 70s many bet – and won --on California as a region offering both quality and reputation, and more recently others have looked to Argentina where the traditionally south-western French grape Malbec has put the South American country firmly on to the world wine map.
Colin Waugh / Anny Chen - Wine Magazine, April 2010
