Wine Investment Friday

This newsletter is designed to bridge the gap between trade and the investor. Each week we aim to 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 very special set of cases:

DRC Assortment – 2009


There are few cases in the world that hold such special and mythic characteristics as a DRC assortment. Combine this with one of DRC’s greatest ever vintages and you are left with a spectacular set of wines. 


Beneath the Label: 

Everyone is familiar with DRC, but perhaps not the assortment case. The assortment cases come in various sizes and variations but are in essence a way to sample every one of the red wines from the top appellations. This assortment is split across a case of 4 and a case of 8 containing: 2 x Echezeaux, 2 x Grands Echezeaux, 1 x Romanee Conti, 2 x Romanee Saint-Vivant and 3 x La Tache. 

Critic Score: 95-98 Points – Burghound
Every single wine is either the highest, or joint highest-scoring iteration ever made. 

Region Rating: Vosne Romanee – 95E
While there are higher scoring vintages, the balance in this vintage is unrivalled, a perfect meteorological complexion.

Drinking Window: 2030+
There is no danger of these wines exiting the window for decades. 

Production Volume: sub 100 assortment cases
Released only in the best years these assortment cases are spectacularly rare. 

Summary:
Unquestionable quality, heritage and even diversity amongst some of the most finite wines in the world. Nothing short of oenological perfection. This is simply exquisite wine. 


“Simply Mind Blowing”

Burghound


Money Matters:

Brand Power: 98/100, rank 2nd in JF Tobias Brand Power Metric
Only Leroy places higher than DRC and only by a shade. DRC is without a doubt on every wine connoisseurs desert island list. The brand is famous the world over and synonymous with luxury, refinement and perfection.

Liquidity: 75%
These cases despite their price tag move very well. Driven by the absolute rarity of the case and a demand amongst the very wealthiest in the world for the brand.

Inter-Trade Price Volatility: n/a
Liv-Ex is a particularly bad place to gauge the volatility of a case like this as public listings are so very infrequent. However, it is worth looking at the potential for positive volatility. The spikes in this graph show the extent of the pricing that these cases can warrant around the globe.  

Price History: 

Summary:
The financial traits follow suit from the first section, exemplary at every turn. A brand power that both drives and insures demand seeing the case maintain liquidity. The rarity also combines with this characteristic to leave the wine prone to positive jumps in price. Finally, the longer this case is held the more power is passed to the eventual seller. If there are no listings in the world, which is entirely possible, a seller may set his or her price. 


Position for Profit: 

There are some cases that are so special, so faultless as investments that once you have completed the tricky task of finding a good one, you can consider yourself done. You can put your feet up and forget about it, there will be no need to check the market. Simply the longer this case is held the more money it will accrue. There are few investments in the world left that have this level of security. Assortments from previous vintages, of near comparative quality such as the ’99 vintage, are at present selling at auction for £55-60,000. Worth commenting that the ’09 vintage is widely considered a better and more complete vintage. As such it is entirely reasonable to say that in 10 years time this case returns your purchase price plus 50%. If we were to speculate at the worth another 10 years on and we could well be within the realms of 1.5 to 2x thanks to the ever-increasing supply and demand element. A case that allows the sampler to taste every red wine from one of the greatest winemakers, in one of the greatest modern vintages. It is a simple yet superb concept that stands to make the patient owner a handsome sum. 

The Author

Jake Leighton