What’s happening for fine wine in 2023?

Fine wine prices reached an all-time high in September 2022. Since then, the market has stagnated, and prices of certain iconic wine brands (e.g. Romanée-Conti, Rayas) have fallen steeply. In this post-Covid era – which sees the end of fine wine’s biggest demand spike to date – portfolio selection and a disciplined strategy in fine wine collecting are both more crucial than ever.

Taking the market’s temperature – some trails go cold

 

While global market indices report negative returns at the end of Q2 2023, wines in 1275’s custody rose an average 2.3% in value during the same period. We put this down to the strong proportion of investment-worthy wines in our portfolios and to longer hold times, which have allowed ultra-rare vintages to gain traction in an otherwise flat market.

Value growth  – harnessing dispersion

 

1275’s top-performing quartile returned 22% from April – June 2023, while the bottom quartile, made up of drinking wines, dropped 12% in value. At the top of the performance league table, we find wines from rising star, Colgin Estate, as well as classic names such as Lafleur and Vega Sicilia. Looking forwards into H2 2023, we expect strength and momentum of individual brands, over and above their region of origin, to be the key driver of positive performance.