Wine Basics
Wine Investing
Apr 24, 2025
Bordeaux - where has it all gone wrong... Part 2
This one isn’t actually going to be slating Bordeaux like part 1.
Almost all I spoke about in the last part was pricing, so I won’t cover that off here.
While the region has its issues, the decline of market share that the region has faced has been as much about what other regions have done right as what Bordeaux has done wrong.
The common theme is, are these games that Bordeaux estates even have an interest in playing?
Shifting tastes
Consumer tastes are shifting away from the big oaky tannic style that Bordeaux is famous for. Cab Sav grapes have thick skins and naturally high tannin levels.
In a way, this is kind of out of Bordeaux’s hands – would you change hundreds of years of style because of shifting tastes? Chances are that they will come back around – taste is cyclical.
Burgundian wines, particularly the reds made from Pinot Noir, are lighter and fresher. Burgundy’s cool climate, combined with the natural characteristics of Pinot Noir, generally results in wines that are more delicate, lower in tannins, and often have higher acidity than Bordeaux’s Merlot and Cabernet Sauvignon-based wines.
Sidenote: I know that there are hundreds of examples that could be used to portray a lighter style than Bordeaux – Burgundy just felt like a nice comparison, check out the price increases of Armand Rousseau over 10 years, and then look at Mouton Rothschild if you don’t believe me.
Cultural Appeal
This is something that Champagne obviously does really well, Dom Perignon made a ‘Lady Gaga’ wine, and collaborated with fashion brand Comme des Garcons. Obviously it makes it easier when your region is effectively synonymous with luxury and celebration.
Dom Perignon x Lady Gaga 2010
It’s not just Champagne though, and it doesn’t just need to be collaborations with famous people.
Regions like Tuscany, and Napa Valley have marketed themselves as luxury lifestyle destinations, blending wine culture with tourism, gastronomy, and exclusive experiences.
Tuscany, for instance, has expanded its wine tourism industry, with estates such as Antinori and Tenuta San Guido offering immersive experiences that attract a global, affluent clientele.
Napa Valley’s proximity to Silicon Valley and its luxury branding have likewise contributed to its appeal as both a wine and lifestyle destination, attracting a younger, high-net-worth demographic.
Market Expansion and Transparency
The transparency and availability of data have made it easier for investors to make informed decisions, which in turn has contributed to the broadening interest in wines outside of Bordeaux.
In recent years, critics have paid greater attention to wines outside of Bordeaux – we’ve seen Robert Parker give 100 points to wines from Mendoza, Mosel, and Montalcino to name a few.
People are learning that other places make great wine, and can now go online and buy this great wine for a third of the price of what it costs in Bordeaux.
Gran Enemigo, Gualtallary 2019 was awarded 100 points by Robert Parker
Conclusion
As consumer tastes shift and markets expand, Bordeaux faces a choice: adapt or hold fast to tradition. With lighter, fresher wines gaining traction and regions like Napa and Tuscany redefining luxury wine culture, there is a genuine conundrum.
Wait it out, and see if humans will do what humans often do (inexplicably revert to trends from 40 years ago), or are these foundational shifts that Bordeaux must adapt to?
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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.
