Finding Value in New-World Wine Releases: 5 Tantalizing Investment (or Drinking) Options

Non-French wines continue to take a greater share of La Place de Bordeaux releases, with new vintages of Napa Valley, Chilean, Argentine and Italian Super Tuscan wines taking center stage in the flurry of activity La Place sees in August and September, outside the normal springtime releases of Bordeaux en primeur.

Although the first non-Bordeaux wines sold through the distribution network – Napa Valley’s Almaviva and Opus One – struggled to find an initial foothold among negociants and merchants when they were first introduced (in 1996 and 2004, respectively) alongside their more pedigreed Bordeaux peers, their releases are now viewed as fixtures on the global wine scene, and they have been joined by nearly 50 other non-Bordeaux wines.

Some of the most popular New World wines, including the five highly rated ones below, have been released through La Place over the past month or so, giving eager consumers even more delectable bottles to uncork, swirl, sniff and finally quaff (or sip, if you must). Of course, holding is also an option, and many of the recent releases have solid potential for either drinking years down the road or as a (literal) liquid asset worthy of investment. With the global wine market estimated at a plump $6 billion-plus and growing, returns on wine investments have become more reliable and consistent.

Over the last decade, the Liv-ex Fine Wine 100 Index, which tracks the 100 most actively traded wines globally, has shown returns exceeding those of both the S&P 500 and FTSE, with much less of the volatility seen in other alternative investments, such as digital currencies, or even gold, which is at about the same price it was 10 years ago after a sustained dip and rapid upswing.

The Liv-ex 100 index rose 1.3 percent in August, to 350.9, and has now seen 16 consecutive months of gains. It is just 3.9 percent off its all-time high in June 2011. Part of the reason for the gains has been the broadening of the market, with Bordeaux’s grand crus no longer dominating. In fact, a large share of trading activity centers around wines from Italy and the United States.

Whether you want to buy the wines by the case or purchase shares in portfolios of investment-grade wine is up to you. Although investment gains are never guaranteed, a Knight Frank 2021 Wealth Report appraising the performance of luxury collectibles in the 10 years ending at the end of 2020 found that Fine Wine gained 127 percent, including 2020’s 13 percent increase. So it might be best to keep at least a few of your purchases uncorked.

POISED PETROLO

Starting closest to France, the pure merlot Petrolo Valdarno di Sopra Galatrona 2019 came to market priced at £864 (US$1,193) per dozen, which is a slight increase of 2.8 percent on the 2018’s release price of £840. This wine is a particular favorite of James, who rated it 99 points, finding it “muscular, yet agile … pure and poised,” and a “unique definition of merlot in Tuscany.”

“The 2019 vintage looks to be an outstanding year for Tuscany and may be along the same lines as the wonderful 2015,” James said. “It has more ripeness than the 2018 and more generosity and complexity."

Production of the Galatrona 2019 was limited to 30,000 bottles, but it did come in a commemorative bottle to mark the 25th anniversary of the wine. Although it’s the most expensive Galatrona release since 2009, it represents excellent value when considering James’ score. But is it a great investment?

The chart below plots the wine prices versus their score from Wine Advocate. Considered on that scale, the 2016 Galatrona, which is about 20 percent less expensive (about £700) than the new release but was rated 98 points, stands out over the past 10 years as having the greatest potential investment value, considering that the only other vintage rated as highly over the past 10 years – the 2009 – is now the priciest, at about £1,160.

However, the 2009 Galatrona has also seen wild price fluctuations since its release. On Dec. 31, 2018 (Hello, holiday shopping) its priced peaked at £1,635, but then dipped to £720 by the end of the March 2020 before recovering to its current, stable level.

The JamesSuckling.com Tasting Team also rated the 2016 at 98 points. Its price peaked at £858 at the end of June 2018 and hit a nadir of £526 at in February 2020 before recovering. It has been climbing steadily since.

WITH PRAISE, PRICE

Another wine that was rated 99 points by James was Napa Valley’s Opus One 2018, which James said was “full-bodied, yet ever so balanced and refined,” adding that “the quality of tannin is exquisite, with wonderful polish and refinement.”

The Opus One comes from a terrific Napa vintage, and James also called it one of several “super collectible” reds from the appellation for that year, being a “near perfect example of the ultimate in intensity and balance of vintage.” The Opus One 2016 was our Wine of the Year in 2013.

At £2,760 per 12 bottles, it has a price to match the glowing praise, and the 2018 is only slightly more expensive (2.2 percent) than the current market price of the ’17. The prices for past Opus One vintages are notably higher, so the 2018 has to be considered a great value when considering its investment potential and its JamesSuckling.com score. (The Liv-Ex chart below uses ratings from Vinous, which scored the 2018 a 95.) All the Opus Ones from 2005 to 2013 are currently priced at or above £3,000, with the 2005-08 vintages all £3,500 or above.

The mostly cabernet sauvignon Opus One is a typical Bordeaux blend, being a Rothschild/Robert Mondavi brainchild, which is why it was one of the first wines outside of France to hitch its wagon to La Place de Bordeaux.

A PENFOLDS WONDER

Three wines from the Southern Hemisphere are also being sold via La Place de Bordeaux: Cheval des Andes Mendoza 2018, from Argentina, Penfolds Cabernet Sauvignon Coonawarra Bin 169 2018, from Australia, and Chile’s Sena Valle de Aconcaqua 2019.

The Bin 169 2018 is the first Penfolds wine to be sold through La Place, and at £1,450 per dozen bottles, represents excellent value when compared with past vintages. Although Bin 169 is made irregularly, the 2018 seemingly has high investment potential, at least according to the JamesSuckling.com ratings, which Liv-Ex uses for its graph. The last-released vintage, the 2016, was rated 98 by James, but the premium quality is reflected in its price – about £1,600. The 2010 and 2013 are even more expensive, with the 2010 topping out at £1,800.

The JamesSuckling.com Tasting Team rated the 2018 a 97, saying that its “palate has a very elegant, focused and piercingly central delivery of fine tannins, carrying pristine redcurrant and blackcurrant flavors. Seamlessly long, super fine and really packed with concentrated, contained, red-cherry and redcurrant flavors.”

Some of the Bin 169 vintages have seen wide price swings, if not wild ones. The Bin 169 2008, which is currently priced at about £1,650, reached a peak of £2,084 in October 2016. One year later, it was at £1,570, then dipped even further to £1,400 by November 2018, and hit a nadir of £1,300 in January of this year before climbing back up to its present level.

ARGENTINE BARGAIN?

James called Argentina’s Cheval des Andes 2018 “a great wine indeed,” and rated it 98 points. “The depth and richness are impressive, as are the ripe yet fresh tannins. Very long and structured, yet controlled and in balance,” he said.

La Place de Bordeaux has released it at a relative bargain of £708 per case, although that is up 9.3 percent on the current market price of the 2017 (£648). But in the universe of JamesSuckling.com wine ratings, the 2017 looks like the better investment option if you’re buying now – it was rated a perfect 100 points by James, who called the ’17 “the greatest Cheval des Andes ever." However, its price has remained stable since it was released via La Place, seeing only a slight dip to about £600 at the end of 2020 before rebounding.

The 2016, which James rated 99 points, is another great buy at £630 per case, and since it already has a few more years in bottle than the 2018, it may be a better investment option. But it has also traded in a narrow band, from £600 to £650, since its release in the fall of 2019, so it might be better to uncork now rather than wait on it as a potential moneymaker.

Finally, the Seña Valle de Aconcagua 2019, from Chile, was rated 98 points by the JamesSuckling.com Tasting Team, who called it a “wine with soul and length,” although they recommended drinking after 2025. At £958 per case of 12, it offers excellent value when compared with past vintages, especially considering the 2019 comes in a commemorative bottle for its 25th anniversary, with only 100,000 bottles produced.

Liv-ex again used the Wine Advocate as the benchmark for the rating versus price in its chart. The Wine Advocate’s rating was the same as James'.

The 2018 vintage offers even better value than the 2019, and carries a current market price of £850 per case, even though it also scored a 98. The 2016, with a rating of 97 points, trades at a 15 percent discount to the 2019.

– Vincent Morkri

PUTTING CHILE ON THE WINE MAP: Eduardo Chadwick, owner of Seña Wines, talks about his original dream for the winery when he began collaborating on it with Robert Mondavi.