The Ongoing March of Italian Fine Wine

“Given the stark price difference between premium Italian & Burgundian wines it makes sense to sample what Italy has to offer, even if it means purchasing multiple cases to increase your return.”

 

“Italy’s market share has risen from 6% to 8% (over 2 years), a sign perhaps that the region’s potential is only now being discovered”

  – Anthony Maxwell, Liv-Ex Director, August 2019

 

It’s no secret to us that Italian fine wine has been making great price movements in recent years but market statistics have recently placed Italy just behind Burgundy in terms of the growth it has delivered.  As covered by various articles in both the trade, and regular press – Italian wine is somewhat of the market’s darling right now and its performance is predicted to continue for the foreseeable future.Even though the price of premium Italian wine on the secondary market trails far far behind that of top flight Burgundy, the price performance gap is closing.   Over the last five years the Burgundy 150 index which tracks the price performance of Burgundy’s most tradeable wines, has grown by 97%.  Over the same five year period Italy is the next best performer at 39%.  To be fair, both statistics are appealing but if you compare the buy-in price of prime examples from both regions, Italy’s 39% comes at a much more cost effective level – a good Burgundy can cost considerably more per bottle than a top Tuscan example does per case.

 

 

You could take a position with a very good Super Tuscan wine for less than £1,000 but a similarly scored example from Burgundy could cost more than £10,000.  Given the stark price difference between premium Italian & Burgundian wines it makes sense to sample what Italy has to offer, even if it means purchasing multiple cases to increase your return.

None of the above is news to Cult & Boutique.  We have been recommending top flight Italian wines regularly since 2013 and many clients that purchased Italian wines through us have seen good growth and sold at a profit.  Here are a few historical examples:-

 

 

“Other regions are also taking big strides – top wines from Piedmont have grown by more than 12% since December 2017”

 

Although Tuscany dominates Italian trades, taking more than two thirds of total sales but this level of performance is not limited to the traditional go-to Super Tuscans.  Other regions are also taking big strides – top wines from Piedmont have grown by more than 12% since December 2017 and trades in Piedmontese wines have risen by an astonishing 3,300% over the past ten years, with price performance year-to-date reaching 40%.

If you missed out on our previous Italian recommendations there is still time to act.  We have an impressive range of Italian wines currently available, at varying price levels that allow us to cater for all budgets. Speak with your Portfolio Manager directly to discuss your options and find a wine that suits your budget, and also fits in with your wider investment strategy.

By Spencer Leat

October 8th, 2019