Investing in Champagne: A Lucrative Collectible for Your Portfolio

by Anthony Zhang

Over the years, Champagne has proven to be not only a luxurious bubbly to sip on but also a great collectible with stable returns on investment.

While the supply for Champagne is limited, the demand is steadily increasing, and so are the prices - which makes it a great alternative investment. The demand for Champagne grew significantly even during some of the 21st century's biggest economic and pandemic crises.

Besides, the Champagne 50 Liv-ex index surged by 40 per cent in 2021 - a record high.

Let’s discover more about the Champagne investment scene, why Champagne is a good investment, and factors you need to consider before investing in this sparkling wine.

We’ll also look at the best Champagnes to invest in and how Vinovest can help you to start your Champagne investment journey as easily as buying stocks!

Champagne Market Trends

First, let’s take a look at the main trends in the Champagne investment market in 2023:

1. Expanding Market Size

Champagne’s market size is growing steadily. In 2021, Champagne exports reached 320 million bottles, a 30% increase from the exports of 245 million in 2020. This accounts for over $6 billion in annual revenue.

The Champagne market is predicted to grow at 6.2% CAGR between 2020-2025.

2. Emergence of New Markets

The largest markets are the US and the UK, each importing about 20 million bottles annually.

On the other hand, China is the market with the biggest growth potential. In 2018, China imported 2.17 million bottles of Champagne - a 30 per cent jump from 1.63 million bottles in 2013, and we predict that demand will keep growing in the next few years.

Additionally, consumption and investment in the rest of the Asian market have risen significantly in recent years.

3. Shift From Brand Image to Vintage

Some of the most prestigious Champagne houses like Dom Perignon and Cristal rely heavily on their brand image. Their names are a synonym of premium quality, making them highly desirable in the wine investment world.

However, factors like Champagne’s vintage year, harvest, grape quality, and critics’ scores have become increasingly important for investors over the past few years.

For example, in 2021, the Dom Perignon Champagne house released its long-awaited 2012 vintage (at $2,406 per 12-bottle case), and Krug debuted its 2008 vintage (at $4,196 per 12-bottle case). Instead of promoting just their brand names, wine producers and critics make sure to promote the vintage wine instead.

7 Reasons Why Champagne Is A Great Alternative Investment

Besides the upbeat market trends, here are a few other factors that make Champagne an attractive investment for both beginners and seasoned wine investors:

Price Appreciation
Limited Supply and Growing Demand
Stellar Auction Performance
Stable Growth
Aging Potential
High Quality
Prestigious Brands

1. Price Appreciation

The Champagne market’s trade share has grown from 1% to 8% in recent years.

Also, Champagne production shortages and constantly increasing demand have resulted in steady price appreciation. For example, between 2020 and 2022:

1993 Dom Perignon Oenotheque Rose increased from $806 to $1,601, a jump of 98%.
2008 Krug Vintage Brut appreciated 183%, from $236 to $669.

Champagne prices usually experience seasonal fluctuations, with prices rising around the fall season when people tend to stock on wine for the holidays.

Another trend we observed is that after a new vintage is released, it usually experiences a level-off period before showing signs of steady price growth.

2. Limited Supply and Growing Demand

If you want to invest in Champagne, aim for vintage Champagne labels. However, they’re produced only in the best vintage years and have to be aged extensively on their lees (for at least three years.) Additionally, there are only a handful of Champagne producers.

These factors result in limited Champagne production and scarcity in the Champagne market.

On the other hand, the demand for Champagne is increasing on a global scale, as we’ve already seen. Scott Assemakis, the founder of European Fine Wines, also confirms that investors are increasingly interested in the Champagne market.

3. Stellar Auction Performance

Investment-grade Champagne is a solid performer at various auction events as well. For example, older vintage bottles can easily sell at skyrocketing prices:

1928 Krug Brut Vintage sold for $22,670 at an Acker Merrall & Condit auction in 2009.
1874 Perrier-Jouët Brut Millésimé sold for $56,200 at a Christie’s auction in 2021.

4. Stable Growth

The Champagne market is quite stable, and the sparkler is generally a low-volatility investment with positive returns. All Champagne 50 Liv-ex indices have risen steadily in the past decade, showing stellar growth, which is why some consider it an investment safer than gold.

5. Aging Potential

Contrary to popular misconception that Champagne has a short shelf life, most investment-grade bottles can age for several years. If you store your Champagne bottles under optimal conditions, some of the best ones can age for up to 15 to 20 years.

Note: This longevity usually applies to vintage Champagne (produced with grapes from a single harvest.) In contrast, non vintage Champagne (made with grapes from a few different years) has a shorter shelf life of about 3 to 5 years.

6. High Quality

Champagne is made exclusively in the Champagne region, following strict winemaking regulations.

This sparkling wine can be made only with the Pinot Noir, Chardonnay, and Pinot Meunier grape varieties in different proportions. In the case of investment-grade bottles, only the highest-quality grapes from the most prestigious Premier and Grand Cru vineyard sites go into the final Champagne blend.

7. Prestigious Brands

Champagne is a synonym of luxury, lavish lifestyle, and celebration. Some of the most coveted Champagne brands are endorsed by celebrities and are well-established globally, which means there’s a constant demand for this sparkling wine.

Some of the most prestigious Champagne brands include:

Moët Hennessy Dom Perignon
Louis Roederer Cristal
Krug
Salon
Armand de Brignac
Bollinger
Taittinger
Pol Roger Sir Winston Churchill
Veuve Clicquot

Fun fact: Besides promoting the bubbly, famous celebrities also invest in Champagne companies. For example, recently actor Leonardo DiCaprio invested in the eco-friendly Telmont Champagne brand, currently managed by Ludovic Du Plessis.

6 Key Factors to Consider Before Investing in Champagne

Now, let’s see what you should look for when deciding on which Champagne to invest in:

Invest in Exceptional Vintages
Consider Investing in Rosé Champagne
Invest in Cases
Include Larger Bottles in Your Portfolio As Well
Buy Authentic Bottles Through a Reliable Wine Merchant
Store Your Champagne Collection Under Optimal Conditions

1. Invest in Exceptional Vintages

Invest in a specific Champagne vintage instead of a brand. Some Champagne brands are a symbol of luxury and generally come with a hefty price tag, but the goal is to invest in a bottle that will bring you a substantial return on investment.

The most remarkable Champagne vintages of the last few decades are 2014, 2013, 2012, 2008, 2000, 2002, 1995, 1996, 1997, 1998, and 1999.

Be ready to invest a substantial amount since well-performing vintages usually cost more. However, the initial excitement around them can lead to shortages later on, and that’s when holding such a vintage in your portfolio will pay off.

2. Consider Investing in Rosé Champagne

Rosé Champagne is becoming increasingly popular among wine investors. It constituted about 12% of the total Champagne market in 2015.

Additionally, pink Champagne is made exclusively from the red wine grape variety Pinot Noir, which increases the wine’s tannin levels. Thus, Rose Champagne usually has bigger aging potential, making it a great investment-grade wine.

3. Invest in Cases

Investment wines’ value is usually calculated per case (one case contains 12 bottles.) So, buying only one standard-sized bottle might not result in an impressive return on investment. Plus, buying by the case means you can easily resell to hotels, restaurants, and bars.

4. Include Larger Bottles in Your Portfolio As Well

Investing in Champagne, Large format bottles

Large bottle formats such as Magnums, Jeroboams, and Imperials can turn out to be a great investment choice. While these bottles usually sell at a premium compared to standard-sized bottles, they can also fetch much higher returns on investment in the years to come.

That’s because a Champagne house would usually produce very few large format bottles, and they’re considered rare collectibles. Also, wine stored in bigger bottles tends to preserve for longer, extending its aging potential.

5. Buy Authentic Bottles Through a Reliable Wine Merchant

Before you start your Champagne investment journey, make sure you choose a reliable wine merchant. Do thorough research on your merchant of choice and make sure they have a good reputation and sell only high-quality, authentic wines.

The easier option would be to entrust a reliable wine investment company like Vinovestto help you build your portfolio easily.

6. Store Your Champagne Collection Under Optimal Conditions

While knowing Champagne's best vintages, brands, and current market trends is vital for your portfolio’s success, it is also crucial to know how to store your wines properly.

If you don’t store your bottles correctly, you run the risk of jeopardizing your investment - the wine might age prematurely or even spoil.

So, whether you want to build your own wine cellar at home or entrust your bottles to an external wine storage facility, make sure that the storage space has optimal temperature, light, humidity, and vibration levels at all times.

Now that you know all the Champagne investment basics, let’s check out the best bottles you can add to your portfolio!

The World’s Best Champagnes to Invest in 2023

Here are 10 cult wines to invest in this year:

2002 Moët Hennessy Dom Perignon Rose ($537)
2008 Moët Hennessy Dom Perignon Brut ($280)
Armand de Brignac Ace of Spades Gold Brut ($315)
2009 Louis Roederer Cristal Millesime Brut ($295)
2007 Bollinger Vieilles Vignes Francaises Blanc de Noirs ($1,402)
2006 Krug Brut Vintage ($346)
2004 Salon Cuvee 'S' Le Mesnil Blanc de Blancs Brut ($1,137)
2008 Pol Roger Cuvee Sir Winston Churchill Brut ($317)
2008 Henri Giraud 'Argonne' Ay Grand Cru Brut Rose ($1,597)
2008 Veuve Clicquot Ponsardin La Grande Dame Brut Rose ($286)

Now, it’s not an easy task buying these coveted bottles.

But, here’s how you can do it.

How to Invest in Champagne

There are a few ways in which you can start investing in Champagne and other fine wine labels. Here are the three main methods we recommend:

1. Use a Professional Wine Investment Platform

Vinovest is a leading wine investment platform that lets you invest in sought-after wines from all around the world, whether you’re looking for a classic Nebbiolo, Chardonnay, or a rare Screaming Eagle.

You can use a professional wine investment platform like Vinovest. Vinovest is an AI-based platform that helps you buy, store, and sell fine wine labels from around the world with just a few mouse clicks.

Vinovest requires only a $1,000 minimum investment, so you don’t need to have a fortune to start your fine wine investment portfolio.

The platform also makes the investment process quick and hassle-free. You just have to:

Sign up on Vinovest.
Answer a quick questionnaire so Vinovest can determine your investment goals.
Fund your account.

Then Vinovest’s Master Sommeliers will start building your portfolio with the help of advanced quantitative investment models.

Additionally, your wine collection will be safely stored at bonded warehouses that maintain optimal storage conditions at all times. And you can buy or sell bottles whenever you want or even get them delivered to your doorstep.

2. Get Help from a Wine Investment Manager

Some companies allow you to invest a certain amount of money, and in return, you get a personal fine wine investment manager who picks and buys wines for you.

If you prefer more personal service, this can be a good way to start trading on the fine wine market. However, keep in mind that the minimum investment amount would typically be anywhere between $15,000 to $50,000.

Also, do extensive research before choosing your wine portfolio manager and be 100% sure that the service you choose is reliable.

3. Buy Bottles on Your Own

To buy wines yourself, you just need to find a few good fine wine merchants. You’ll have full control over what you buy and how much money you invest (you can start with as little as a few hundred dollars.)

However, be prepared to spend a good amount of time researching the different wine producers, labels, vintages, and fine wine market trends. Also, make sure you’re buying only authentic bottles since counterfeits are quite common.

Get Hold of The Best Champagne Collectibles Today!

Champagne is a great asset that can diversify your investment portfolio. The demand for this prestigious bubbly from the coveted Champagne region is on the rise while the supply of the most investment-worthy bottles remains limited.

The good news is that creating a successful wine collection of Champagne and other cult wines can be quick and easy, and it’s just a few clicks away with Vinovest!

So what are you waiting for?Sign up today to build a winning wine investment portfolio.