Header image copyright: Chateau Mouton Rothschild, Pierre Revelle
Why 2019 Mouton Rothschild has all the fundamentals of a great investment wine
The 2019 Mouton Rothschild is one of the best investment opportunities in Bordeaux right now. It has all the fundamentals of a great investment wine.
Firstly, the Mouton Rothschild has global brand recognition. Upgraded to First Growth status in 1973, Mouton Rothschild is the only Château that ever successfully induced a change to the original 1855 Classification. Strengthening the brand appeal, each vintage, the estate commissions one of the world’s top artists to design the bottle’s label.
2019 hosts Olafur Eliasson’s illustration “Solar Iris of Mouton,” depicting the path of the sun in relation to the planet at the location of Château Mouton Rothschild and mapping all the sunrises and sunsets at the vineyard. It is no wonder Mouton Rothchild is the highest-ranking Bordeaux in the Liv-Ex Power 100.
The 2019 vintage is ranked as one of the top vintages in Bordeaux by Wine Advocate achieving an ‘extraordinary’ rating, placing it alongside the great vintages of 2016, 2010 and 2009 in recent history. Not only is the 2019 vintage of elite quality, but it was also released on the primary market during COVID and as such was priced well. It was the last vintage where the EP futures system provided consistent returns to investors. Elements of this discount remain in the price today however this dissolve over time as scarcity, brand, vintage and score become the main price determinants.
Looking at the 2019 vs comparable vintages in the graph below, we can see that the 2019 vintage shows good relative value (below the line).
Due to the current market correction, the 2019 Mouton is trading at a discount to its intrinsic value based on its strong fundamentals mentioned above. Pricing is -18.4% on the B2C market (Wine-Searcher) and -23% on the B2B market (Liv-Ex) from its all-time highs achieved in November last year. This creates a compelling entry point for any mid to long-term investor.
If we look at the comparable vintages of 2016 and 2010 we get an idea of the potential price appreciation excluding market growth and inflation.
Château Mouton Rothschild
- Solid Investment Fundamentals – Strong brand, extraordinary vintage and high critic scores
- Relative Value to Comparable Vintages
- Compelling entry point at significant discount to all time highs
- Strong returns from comparable past vintages
This is one of the best investment cases in Bordeaux if not the wine investment sphere.
100 Points – Lisa Perotti-Brown
“The 2019 Mouton Rothschild is a blend of 90% Cabernet Sauvignon, 9% Merlot, and 1% Petit Verdot. Deep garnet-purple coloured, it races out of the glass with gregarious scents of creme de cassis, redcurrant jelly, black raspberries, and chocolate-covered cherries, giving way to a serious undercurrent of licorice, forest floor, candied violets, and cardamom with a touch of cast-iron pan. Medium to full-bodied, the palate is jam-packed with expressive red, black, and blue fruit layers, framed by fine-grained tannins and bold freshness, finishing with floral, exotic spices and a mineral firework display.”
Lisa Perrotti-Brown MW, TheWineIndependent.com, May 2022
Following a career in Investment Banking, Matt is fascinated by tracking and understanding the analytics of the fine wine market. He works with our investor clients, helping them to build robust, diversified portfolios with long-term earnings potential.