Wine Basics
Wine Investing
Apr 24, 2025
The Hills of Burgundy - And Why They Matter
The rolling hills of Burgundy are home to some of the world’s most sought-after vineyards, and the position of a vineyard on the slope can have a significant impact on the quality of the grapes it produces. Let’s take the example of the renowned Clos de Vougeot vineyard, which is situated in the heart of the Côte de Nuits.
Hautingly Beautiful. The Centuries Old Clos de Vougeot Vineyard
At the top of the hill, the soil is thin, and the grapes receive more sun exposure, resulting in a riper and more concentrated flavor. These grapes produce some of the most robust and full-bodied wines. The vineyards located in the middle of the slope benefit from a balance of sun exposure and drainage, which leads to wines that are well-balanced with a range of flavors. At the bottom of the hill, the soil is deeper, and the grapes receive less sun exposure, resulting in wines that are more delicate and elegant.
The Clos de Vougeot vineyard is situated mid-slope, giving its grapes a perfect balance of sun exposure and drainage. As a result, the wine produced from this vineyard is highly sought after and considered one of the best in Burgundy. Its reputation is built on its complex aromas, full-bodied flavor, and exceptional balance.
The grand cru vineyards of Burgundy have a storied history, and their reputation has only grown with time. The careful attention paid to the vineyards and the unique characteristics of each hillside is what makes these wines so sought after and valuable. Whether you are a collector, enthusiast, or simply appreciate a good glass of wine, exploring the grand cru vineyards of Burgundy is a journey well worth taking.
Understanding the impact of a vineyard’s position on the slope is crucial for any wine enthusiast, especially those who want to invest in fine wine. By selecting wines from the best vineyards, with optimal positions on the slope, investors can ensure they are getting the highest quality wine with excellent potential for long-term growth.
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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.
