Wine Investment Friday

This newsletter is designed to bridge the gap between trade and the investor. Each week we will help investors better understand the nuances of why some cases appreciate and some standstill. We will unpick the characteristics that construct financial potential to help your money work smarter. 

This week we are analysing a case of:

Ausone, 2005

Explaining what creates a great investment wine and how it interacts with the market. Ultimately showing you the role this case could play in your portfolio.  

Beneath the Label: 

Bordeaux Mythology suggests this Domaine dates back to 4BC and the poet Ausonias. History aside, today’s winemakers and chateau owners of Bordeaux agree, Ausone has the some of the best Terrior in all of Bordeaux.

Critic Score: 100 Points – Robert Parker
“A perfect wine…that should be drunk over the next 50-70 years.”

Region Rating: St.Emillion, 99T
Focus on the ‘T’, this is a tight, highly structured wine whose austere nature suggests it to be a multi-generational monster. 

Drinking Window: 2025-2095
The old style of Bordeaux with modern wine making tech. Designed to slowly evolve and grow.  

Production Volume: 1300 cases
By Bordeaux standards this is tiny. Extremely hard to get your hands on at release.

Ausone is an extremely unique Bordeaux wine. It is thought of in fantastically high regard amongst the few that get to try it. The financial barrier to entry is high and compounded by scarcity. However once a fan, always a fan. 

The focus for investment is on longevity, with the wine set to have an extremely long trading lifetime. This does have the effect of lessening the momentum created by a necessity to consume. However, it does mean this could acquire the very unique status of a 30+ year old 100 pointer. Something rarely achieved by any wine. 

“Masterpiece of concentration and balance, will no doubt be drinking well a century from now”


Money Matters:

Brand Power: 86/100, rank 30th in JF Tobias Brand Power Metric
A brand that is included in the discussion around the most prestigious and best wines in Bordeaux. 

Liquidity: 20%
A combination of price point and a unique customer base makes this wine somewhat stickier than others. Timelines for movement should be longer. 

Inter-Trade Price Volatility: 7.23%
Public exchange trading of this wine is relatively limited. Although data show this to be a stable Bordeaux wine that won’t produce any nasty surprises.

Price History:

The initial financial performance is unsurprising considering the release date and the projected longevity of the wine. There is no rush to consume it and therefore no real freneticism in trading. Movements are slow and predictable, with high correlation to the Liv-Ex indices. This is a very easily managed wine. 

Position for Profit: 

The Gold Bar of Bordeaux. 

Ausone is a wine to buy and stash under your proverbial financial mattress.

Over a long hold, this wine will increase in value, slowly and steadily. Its small production, enormous scores and ability to outlive most of us, all constitute a long term gain. This is a low-risk item to place in the centre of a portfolio and build from.

The 2000 vintage, a wine that is lesser in quality, is a good point of reference. Pricing here sat stable to flat until 2 years before the drinking window. It then began to steadily increase and is still going.
The current market depression makes this a very advantageous buying moment for Ausone considering we are sat 2 years before the above described moment for the 05. 

The Author

Jake Leighton