Wine has always been a popular alternative investment among high net worth individuals. In 2022, the fine wine market saw strong price growth despite economic headwinds. Some investors are looking to add wine to their portfolios as an inflation hedge and diversification play. So what were the best wine brands to invest in for 2022 returns? This article analyzes several high-end wine regions and labels that offered strong capital appreciation last year.
Bordeaux first growths gained over 15% in 2022
The Liv-ex Fine Wine 1000 index that tracks prices of Bordeaux first growths (Latour, Haut Brion, Margaux, etc.) rose over 15% in 2022. Top chateaux with highly rated vintages from 2010 and 2016 saw particular investor interest. For example, a case of Chateau Margaux 2010 traded around $20,000 by end of 2022, up from just $15,000 a year earlier. Bordeaux’s resilience amidst recession fears make blue-chip producers the best wine to buy for long-term holdings.
Burgundy continues rapid multi-year price appreciation
Over the past decade, Burgundy has been one of the fastest appreciating fine wine regions globally. The region’s tiny, allocated productions and strong critics ratings have made even Grand Cru bottles attractive investments. For example, a case of Domaine de la Romanee-Conti’s 2018 vintage was trading above $80,000 by end of 2022. That’s nearly double its price just 3 years ago in 2019. Burgundy’s rapid rise doesn’t appear to be slowing either.
Champagne sees strong interest ahead of Chinese New Year
Champagne has historically correlated more strongly with luxury goods than fine wine. Many champagne houses and vintage cuvées appreciated by over 20% in 2022 alone. This was helped by strong demand from Asia ahead of Chinese New Year gifting season. Most champagne is purchased for near-term consumption rather than long-term investment. Nevertheless, well-rated houses like Krug, Salon and Dom Perignon still carry good value retention that can hedge inflation.
Mature California cult cabernets reach new peaks
The 1990s and early 2000s were a golden age for boutique, cult California wine producers. Brands like Screaming Eagle, Harlan Estate and Scarecrow produced tiny quantities of cabernet sauvignon blends that earned perfect critic scores. These sought-after wines have skyrocketed in value and continue breaking auction records. In 2022, a case of 1992 Screaming Eagle sold at Sotheby’s for over $150,000 – marking California wine’s rising collectability.
In summary, 2022 saw continued strong price appreciation for luxury wine labels. Top Bordeaux chateaux, Burgundy producers and California cult wines reached new record values and remain attractive holdings. Champagne and fine wine broadly also saw collector market growth. For those considering fine wine investment, sticking with reputable merchants and indexes can help manage risk.