2023 Fine Wine Investment Round-up

2023 in Fine Wine

The global economic uncertainty of 2023, across diverse asset classes, was reflected in the fine wine market, which overall has shown a decline (estimated -1.5%) becoming a bear market. This was caused most of all by a decline in Bordeaux prices, largely driven by shrinking demand from Asia. Some Bordeaux has fallen by as much as 13%. Vindome’s Bordeaux index was 5.03% down, significantly outperforming the market in general. Many of the most prestigious blue-chip names have remained stable. Champagne and the greatest areas of Italy – Piemonte and Tuscany – performed well against this backdrop. However, This did not compensate for the Bordeaux fall or overall decline. Burgundy continued its correction from the highs of 2021 and fell slightly in 2023, continuing the 2022 trend.

Highlights of 2023

One highlight was definitely the quality of the 2022 vintage in Bordeaux. This created a lively En Primeur campaign, during which Vindome performed especially well. The shrinking demand in Asia, especially China, however, meant that the campaign as a whole globally was not as successful as the wines themselves. This looks likely to be good news for the wine investment going forward as the vintage is excellent and will provide wonderful drinking in the mid and long term, and great potential for long-term investment. Outside France, Italy was the best-performing country, and – despite a slight correction in October and November – the prices remained higher overall this year. 

Low-lights of 2023

While an overall contraction of the market is not a good thing, this was a correction of previous years’ bull-market gains in many respects. Prices that have decreased, however, offer enhanced opportunities for growth in the future. 

Vindome’s performance is all the more gratifying and exceptional in the context of the overall market decline. 

The Rhône saw some painful declines, with many prices now 20% lower than this time last year. This may lead to growth in 2024, which will be worth watching out for. 

Vindome versus the market

Some highlights for Vindome this year include:

Five collections that grew by more than 20%

  • Both our “Young Margaux” collections achieved growth of over 24%. The “Eldorado Collection,” with wines from South America, grew by more than 21%, and two of our other tailored Bordeaux collections, “September Starter” and “2020 Cinquièmes Crus,” both are up by over 20%. Quite astonishing growth under any circumstances but amazing against the market backdrop. 
  • Our best Spot Offers also offered double-digit growth with highlights including 2016 Carillon d’Angélus from €600 to €711 (+19%). 2020 Antinori Solaia from €1740 to €2011 (+16%) and 2020 Léoville Las Cases from €1470 to €1666 (+13%)

We also enjoyed a very successful 2022 Bordeaux En Primeur campaign for our clients.

  • From the stellar 2022 Cheval Blanc from €3300 to €3761 (+16%) to the much more affordable 2022 Les Grands Chênes growing from €75 to €88 (+17%) to the very lucky clients who got some of the amazing 2022 Les Carmes Haut Brion at €746 – now trading for €1124, an incredible increase of +51%.

Vindome Activities 2023

  • Vindome now has 34,000 active users, marking an impressive 160% increase in the community’s size, which continues to grow. 
  • The average rate of return for our users over 2023 has been +17% across their portfolios, vastly outperforming the market as a whole. 
  • We launched in the United Arab Emirates at Expand North Star in October, continuing our growth for consumers around the world
  • The Vindome team is now 17-strong as a reflection of our continued growth.
  • Vindome was named the Best Female-run Company in the South of France, as well as Best Prize for Innovation. 
  • 40 new Wine Collections were made available during 2023!

Vintage 2023 Preview

Bordeaux and Burgundy, and most of the rest of France, experienced a warm vintage with plenty of rainfall. This contrasted with the very hot and dry 2022 vintage. 2022 produced – especially in Bordeaux – deep and tannic wines for long-term ageing (the grapes develop more colour and tannins in their skins as a result of drought). 2023, although the exact quality is yet to become apparent, is likely to be superior but similar to, 2021 in style. The top producers in Bordeaux are very happy. 

Frost and hail in Tuscany severely reduced the quantities, with many producers as much as 50% down on crops. The remaining quality, however, seems very high. Conversely, in Piedmont, the crops are normal despite having experienced a very hot summer indeed. Quality, especially for the late-ripening Nebbiolo, looks very promising here. 

Looking forward in 2024

We at Vindome are braced to accept and maximise the opportunities of 2024 as fine wine prices look set to re-correct and increase again across the board. Within this, we will continue to seek out and bring to you the best opportunities with spot offers and collections that will outperform the market, whatever happens. However, the first quarter of 2024 will probably see a continuation of the conditions of late 2023. Consolidation in the wine industry in general, and the supply chain in particular, looks set to continue, which will present economic opportunities for storage and delivery, of which we will take advantage. The En Primeur campaign in Bordeaux in April will present to the world the quality of the 2023 vintage, and the likely increased available volumes should see some competitive pricing. As usual, we will be on the ground to taste, assess, buy, and present the greatest wines and investment opportunities to you. 

For all your fine wine market investment needs, ensure that you download the Vindome App and follow us for our proven advice, offers, and collections to help you maximise your investments in an uncertain financial world. 

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