On the 24th of December, Laurence Fletcher from the Financial Times wrote an article highlighting how investors seek opportunities in wine as a haven asset dodged the 2020’s big swings. Here is a summary and the link to the article
Our CEO, Gregory Swartberg explains our tremendous success this year by quoting: “To our surprise, even considering the fact that restaurants were not taking in a lot of stock and tried to sell stock, [the wine market has] seen a tremendous amount of demand coming from private clients.”
The article explains how the wine trade has been growing despite the numerous unplanned events that happened this year. It states that inquiries for wine investment has doubled and that it is linked to one main reason: wine is looking to be a more safe, less volatile investment that can resist big crisis of all kinds.
According to Liv-ex analysis, regions like Champagne and Italy rose 8.3% and 6.7% last year. These indicators support how important it is to have a diversified wine investment portfolio.
One of our best trades of 2020 is explained as well: There had been speculation, for instance, that Château Lafite Rothschild would change its famous label for its 2018 vintage, which marks 150 years since the Rothschild family bought the Pauillac winery. Cru Wine’s Mr Swartberg bought a large amount of the wine for clients and the company’s own account this summer. When the label was released two months ago, it featured a tiny hot air balloon with the letters CL — Roman numerals for 150. Mr Swartberg made a quick profit of about 30 per cent as collectors snapped up the wine, which will not be bottled until next year.”
You will find the complete article here.