10.05.2024
In this article:
The wine market can be as complex as it is fascinating, but without in-depth knowledge, it is difficult to separate the wheat from the chaff. Many investors are faced with the challenge of not knowing exactly which wines are actually worthwhile investments. White wines from Burgundy in particular are often overlooked, even though they could offer an excellent investment opportunity at this particular time.
‘At Timeless, we understand that choosing the right wine investment requires not only passion but also in-depth expertise. Our approach combines careful market analysis with a deep understanding of the traditions and growing regions to offer our investors exceptional potential for value appreciation.’
– Malte Häusler, CEO of Timeless Investment
And we are supported in this endeavour in no small part by our broad network of dealers and experts. In this article, Peter Irnish, Managing Director of Berghaus & Cie, shares his expertise on white wine from Burgundy with you.
Stock Image
Peter Irnich:
Burgundy is considered the most expensive and exclusive wine region in the world. World-famous wines are produced here. Probably the best-known winery in the region is the Domaine de la Romanée Conti. The estate’s wines are often sold for over €25,000 per bottle, making them even more expensive than the legendary Pétrus from Bordeaux. Most wine investors usually only have the red Pinot Noirs from Burgundy on their watch list. The white Burgundy wines, made from the Chardonnay grape variety, are often completely underestimated. White Burgundy from Grand Cru vineyards, not to be confused with Pinot Blanc (Pinot Gris), is excellent for ageing and often needs more than 10 years to reach the drinking window. An example:
Domaine Leflaive, Chevalier-Montrachet Grand Cru 2016
This Chevalier-Montrachet from Leflaive has received a very good rating of 94–97 points from leading Burgundy critic Allen Meadows (Burghound). According to Meadows, this wine will be ready to drink in 2031 and has increased in value by around +127.92% over the last 5 years—a good investment, even though 2016 was not a very good year in Burgundy. Considering that only around 3,000 bottles of this wine are produced per vintage, a further increase in value can be expected in the future.
Stock Image
Peter Irnich:
The terroir in Burgundy is unique. Every vineyard and every corner of the region has a different soil composition, soil surface, and microclimate. The winegrowers of Burgundy are known for their desire to reflect this different composition in their wines. The region’s chalky soils provide excellent drainage and give the wines a distinct minerality. In addition, the cool climate and moderate sunshine in Burgundy allow the grapes to ripen slowly and evenly, preserving their acidity and delicate flavours.
The wineries in Burgundy have a very long tradition. Wine has been cultivated there since the 2nd century. The history of the wine estates, such as Clos de Tart, dates back to the 12th century. They have usually been in the same family for generations, so the art of winegrowing is passed down from generation to generation. These wineries often have a deep understanding of the terroir of their vineyards and use traditional winemaking techniques that have been passed down through the generations as well. This combination of experience and expertise results in wines that reflect both the uniqueness of the land and the skill of the winemaker.
The production of Burgundy white wine is often romanticised, as winemakers are deeply in tune with the cycles of nature. The weather plays a crucial role in shaping each vintage, as fluctuations in temperature, rainfall, and sunlight influence the development of the grapes. The weather is considered to be particularly influential in Burgundy, and each vintage is therefore very sensitive. Winegrowers monitor these conditions closely and make decisions about the time of harvest based on the ripeness of the grapes and the desired style of wine. Tasting and blending are also highly intuitive processes where winemakers rely on their senses and experience to produce wines that capture the essence of the vintage and the vineyard.
‘I am delighted that we can offer our investors the chance to invest in some of the most exclusive white wines this month. Starting with the Domaine d’Auvenay Chevalier-Montrachet Grand Cru 2013, followed by other fine wines such as the Batard-Montrachet Grand Cru 2015, this is a rare opportunity for our audience to add such wines to their portfolios.’
– Leonardo De Keersmaeker, Asset Manager at Timeless Investments
Peter Irnich:
Only a few hundred to a few thousand bottles of the most investment-worthy white wines from Burgundy are bottled, making these wines very rare. Moreover, the very high demand for these wines leads to high prices.
Burgundy white wines made from Chardonnay mature very elegantly. Over time, they can develop complex aromas, flavours, and textures, which increases their value immensely for collectors and wine connoisseurs. Investments in the best Grand Crus are, therefore, very worthwhile. Burgundy is home to some of the most prestigious wine producers and Grand Cru sites in the world, whose names carry considerable weight in the market. Wines from prestigious estates such as Domaine de la Romanée-Conti, Domaine Leflaive, Domaine Coche-Dury, or Domaine d’Auvenay often achieve top prices and can increase in value over time.
Although past performance is not indicative of future results, Burgundy white wines have shown strong investment potential over the years. Certain vintages and producers have consistently delivered excellent returns to investors who have had the foresight to acquire them early.
Critics’ opinions are of course also important when it comes to Burgundy. Compared to Bordeaux the wines from Burgundy are traditionally always rated somewhat lower, but this has no relation to their investability. Investment wines, or wines deemed good for investments, start with a critics score of around 90 points.
