Strong opportunities for fine wine investment in 2012

Published: 15 February, 2012

The fine wine market is expected to grow by 10% in 2012, as strong value buying opportunities for buyers and investors emerge, says a global survey of the wine trade.

Canvassing the opinions of 120 leading merchants, auction houses and investment fund managers in the fine wine sector, the survey shows an overcorrection in the second half of last year has led to good opportunities for buyers.

The Fine Wine Market Outlook 2012 is a joint report by journalist-based intelligence service Wealthmonitor and online magazine Wine Yields.

Almost 60% of respondents said they expected the fine wine market to increase in value over the year, with most those expecting gains of 10%. Just 12% expected the market to fall further.

Most respondents felt last year's en-primeur campaign damaged consumer sentiment, and said 10 to 15% price reductions were necessary for the 2011 campaign to restore consumer favour.

The size of reductions required varied depending on the region. Asian respondents answered that a 10% decline would suffice, while Europeans said reductions of 20% or more were necessary. Despite the Bordeaux backlash, the survey showed only limited shifts away from Bordeaux to other wines. Respondents still overwhelmingly selected Bordeaux to lead market gains in 2012.

Wine Yields publisher Jackson Taylor said: "After two years of strong growth in 2009 and 2010, indices for investment grade wine closed 2011 down 10-20% for the year, with some wines recording a fall of 45%. The report today suggests that sectors of the market have been oversold, providing some of the best buying opportunities wine collectors and investors have seen in several years."

As for Bordeaux, he said the survey showed "damage isn't yet irreparable", but delivered a message - "get this year's en primeur pricing right".

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