Wine Basics
Wine Investing
Apr 24, 2025
How will Interest Rate Cuts Affect the Wine Market?
Interest Rates and the Fine Wine Market
The Bank of England has cut interest rates for the first time since 2020 as inflation continues to remain steady, holding at their two percent target for two consecutive months.
Bank Rate has been moved from 5.25%, a 16-year high where it has been pegged for the last year to fight inflation, to 5% – a drop of 0.25 percentage points.
Wine prices, often regarded as both a luxury item and an investment, are influenced by interest rate changes through various channels. By examining the chart below (which displays the Liv-ex Fine Wine 1000, Bank of England interest rate, and the Consumer Prices Index (CPIH)), we can observe several instances where a drop in interest rates preceded a significant rise in the market – notably in early 2009, mid-2016, and early 2020.
These upward trends can largely be attributed to heightened demand from both consumers and investors. While a reduction in interest rates generally boosts the industry’s prospects, those looking to profit may anticipate certain indices to climb more rapidly than others. Additionally, buyers using Euros and Dollars stand to gain from the impact of rate cuts on exchange rates.
The market demand and interest rates dynamic is well documented. For instance, following the onset of Covid-19 in February 2020, the Bank of England reduced interest rates to stimulate economic growth. This led to a surge in spending across various sectors, including the wine industry. Increased disposable income, particularly during prosperous times, tends to boost demand for mid-range wines (£1,000–£2,000 per 12×75), making them accessible to a broader range of consumers.
However – the world of wines that WineFi considers as ‘investment grade’ tends to be above this price bracket. The chart below illustrates the price trends of the Liv-ex Fine Wine 1000 and Liv-ex Investables index since 2006. The Investables index contains a basket of wines at a higher price point than the £1,000–£2,000 per 12×75 listed above.
During the inflationary period from early 2021 to mid-2022, the Investables index exhibited less price volatility compared to the 1000.
This suggests that prices of these wines are less influenced by spending tendencies and more by expectations of future returns, similar to stock prices. This idea is further supported by the sharp decline in the Investables index in August 2011, which coincided with the stock market crash. Buyers investing in wine tend to be motivated less by affordability and more by the perceived stability of the market.
Enjoyed the article? Spread the news!
Read More
Wine Basics
Wine Investing
Aug 10, 2025
When is the Best Time to Invest in Fine Wine?
The fine wine market has always been a blend of passion and performance. For some, the allure lies in the artistry of the vineyard; for others, it’s the steady, tangible returns that make fine wine a compelling alternative asset.
But here’s the perennial question for investors: when is the right time to invest?
In our latest analysis at WineFi, we examined one of the most sought-after segments of the market—red Burgundy—to see how timing influences returns. We compared all red Burgundy wines in our investment universe to the Liv-ex Burgundy 150 index, the sector’s benchmark, and looked for patterns that could guide smarter entry and exit strategies.
The Findings at a Glance
Our data paints a clear picture of how red Burgundy performs at different stages of its lifecycle:
🚫 Don’t buy on release – On average, red Burgundy underperforms its benchmark in the first few years after release. That means paying top prices straight out of the gate often isn’t the best move for returns-focused investors.
🎯 Sweet spot: Year 6 – Performance begins to accelerate around the sixth year—coinciding with the median start of the wine’s drinking window. From here, returns tend to outpace the benchmark.
📈 Outperformance window: Years 6–25 – During this period, red Burgundy has historically delivered impressive relative gains. By year 25, the mean return in our dataset was 1.8x higher than the benchmark.
⚠️ After year 25: A trickier game – Performance tends to plateau, and volatility increases. As bottles become rarer and more valuable, prices can swing sharply in either direction. This aligns with the median end of red Burgundy’s drinking window, when investment and consumption dynamics shift.
Why This Matters for Investors
Fine wine, unlike many asset classes, is both finite and consumable. Every bottle opened reduces supply, creating scarcity—but also introducing unpredictability as remaining stock becomes fragmented across cellars worldwide.
By aligning purchases with a wine’s drinking window, investors can:
Maximise potential upside by entering when market demand is strengthening.
Reduce downside risk by avoiding the softer performance often seen in the early years.
Plan exits strategically before volatility overtakes predictable growth.
The Limits (and Power) of the Data
While this study looks at the mean performance of all red Burgundy wines in our universe, individual results will vary significantly by producer, vintage, and even format (bottle size). Legendary producers like Domaine de la Romanée-Conti may defy these trends altogether, while lesser-known estates might follow them more closely.
Still, using drinking windows as a timing tool offers a practical framework for making better-informed decisions—especially for investors building diversified portfolios across regions and styles.
Final Pour
The data tells us that patience pays in fine wine investment—particularly in Burgundy. If you can resist the urge to buy on release and instead enter around year six, history suggests you’ll be swimming with the current rather than against it.
In fine wine, as in life, timing is everything. And for Burgundy lovers, that sixth-year mark might just be the moment when the stars—and the corks—align.
Wine Basics
Wine Investing
Jul 14, 2025
WineFi Q2 2025 Quarterly Report
In Q2 2025, we have seen a stabilisation in wine market prices. In this quarterly report we dive into this finding to understand how list prices compare to trade prices, along with macro-analysis and regional comparisons.
In this edition, we explore:
🏦 Macroeconomic Analysis and the Effect on Wine Markets
📈 How Wine Compares to Other Assets
⚖️ Wine Market Stabilisation?
🔀 List Prices vs Trade Prices
🌍 Regional Performance Breakdown
Wine Basics
Wine Investing
Apr 24, 2025
WineFi Q1 2025 Quarterly Report
We’re pleased to share our Q1 2025 Quarterly Report, offering a concise, data-driven overview of fine wine’s performance in the first quarter of the year. As macroeconomic pressures persist and traditional markets continue to fluctuate, fine wine’s role as an alternative asset class remains in sharp focus.
In this edition, we explore:
🏦 Macroeconomic Analysis and the Effect on Wine Markets
📈 How Wine Compares to Other Assets
⚖️ Wine Market Stabilisation?
🌍 Regional Performance Breakdown
