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Summer 2017 Wine Market Report, Part 1: Grand Cru Burgundy & DRC

Welcome to the first entry in our new series on the current state of the wine investment market. According to the most recent auction summaries, the first and second quarters of 2017 witnessed a strengthening of the wine market across all major indices, but due to voracious worldwide demand, Grand Cru Burgundy continues to dominate. As of the end of Q2, the finest red and white Burgundy wines from highly regarded vintages have increased in value by an average of 12.87% over EOY 2016, while the wines of Domaine de la Romanee Conti have increased in value by a staggering average of 17.72% in the same period. To take one example from our inventory, the DRC Echezeaux Grand Cru 2009 has a historical average auction value of $924.91, but in a dramatic upward swing, a single bottle sold for the price of $1,348.00 at a Christies auction in July of this year (this 45% increase is especially notable in light of the fact that the Wine Advocate initially panned the 2009 with a score of 91+ points). As such, we wholeheartedly recommend this category for investment purposes, and vintages to seek out include 2014 Grand Cru whites from the Cote de Beaune along with 2010, 2009, and 2005 Grand Cru reds from the Cote de Nuits. In addition, while many of the wines have yet to hit the market, a number of prominent importers and critics are hailing 2015 as an extraordinary collector’s vintage in Burgundy, particularly for red wines.