Merchants debate value of Italian wine investment

Are investors looking to Italian wines as the next big thing? Merchants are reporting growth, but whether the wines are being bought as investments remains to be seen.

Bordeaux Index reported a sales rise of 63% in Italian wine and said the country’s wines were becoming more attractive to investors. But other merchants, while acknowledging the popularity of some Italian wines, are doubtful that they are being bought for investment.

BI’s managing director Gary Boom said: “Italy now boasts fine wine producing areas and producers capable of competing with the top French and international names while retaining an exceptional quality/price ratio. This trend is attracting a wave of interest in wine buyers all around the world who are not only willing but are also keen to understand these wines more.”

For Fine & Rare, Italian wines are also performing well. Simon Davies, head of marketing, said: “Italy has always been very strong for us (relatively speaking) and last year we took the bull by the horns and I was dispatched to Tuscany to taste the 2006 Brunello vintage and to build relationships with estates. As a consequence we sold hundreds and hundreds of cases of 2006 Brunello which contributed to our nearly £2 million of sales of Italian wine.”

But Stephen Browett, chairman of Farr Vintners, has not picked up on the trend, and says investors are still firmly focused on traditional markets. “We’ve not noticed any interest in Italian wine from investors. Certainly these are not wines that have proved to be particularly good investments in the past. Italian wines are an acquired taste that appeal to a very limited market, particularly at the top end. They account for about 1% of our turnover, compared to 3 or 4% a few years ago.

“There is certainly increased interest in Burgundy but Bordeaux remains very much the focus of most wine investment and of fine wine demand from old and new markets. We don’t see this changing in the future,” said Browett.

Liv-ex’s head of data and research, Jack Hibberd, agreed: “Last year was very strong for the Super Tuscans, but it’s doubtful whether these are being bought purely for investment. The investment market is staying very centred on Bordeaux.