Wine Investment Friday

This newsletter is designed to bridge the gap between trade and the investor. Each week we will help investors better understand the nuances of why some cases appreciate and some standstill. We will unpick the characteristics that construct financial potential to help your money work smarter.


This week we are analysing a case of:

Screaming Eagle, 2007

Explaining what creates a great investment wine and how it interacts with the market. Ultimately showing you the role this case could play in your portfolio.  


Beneath the Label: 

Screaming Eagle is the epitomy of a cult wine, superbly rare, huge quality and expensive. With a 12 year-long waiting list, it is the wine every wine enthusiast knows about, but has never tasted. 

Critic Score: 100 Points – Robert Parker
One of only 4 vintages to receive the magic 100 from Parker.  

Region Rating: Napa Valley, 96E
Napa is known for utterly perfect wine-growing conditions. So for this vintage to distinguish itself from the rest is quite something. 

Drinking Window: 2018-2027
This an interesting facet of Screaming Eagle, it is not going to live forever. 

Production Volume: 500 cases
A small production by any standards, of which the majority will be tucked into the cellars of those who have waited 12 years to get onto the mailing list. Resulting in a tiny volume on the secondary market.

Summary:
From a quality perspective, this sits amongst those wines at the very top tier. The heritage and rarified mythology around the wines combined with the elusive perfect Parker points make this a very special wine indeed. 

The most notable takeaway is the maturity of this wine. It is not a long-lived wine when compared to those over the pond. The optimal drinking window has just begun and consumption will be beginning to take place. Soon the underlying supply and demand dynamic will kick in and the already small supply will become non-existent spurring prices on. 


“I have tasted the 2007 several times recently and it has always been perfect”

Galloni


Money Matters:

Brand Power: 94/100, rank 13th in JF Tobias Brand Power Metric
This is the highest scored wine outside of France in our metric. The wine certainly sits on most oenophiles bucket list thanks in part to a host of auction records, perfect scores and utter peerlessness in Napa. 

Liquidity: 60%
There will always be a home for a wine like this. Popular in every major market, serious collectors will always consider this when offered. 

Inter-Trade Price Volatility: 16.7%
The lack of data points is a slight issue but volatility in this instance is positive with the price bounding upwards.

Price History: (12 bottle case not 3, Fault of Liv-Ex models)

Summary:
For an item such as this, you would expect similar characteristics as those icon tier wines from Burgundy. Seriously low data points, very volatile with low price transparency and ultimately very illiquid. However, this is not the case. The wines price is easily identifiable and importantly this can translate into an exit should it be necessary. Thanks to the reputation of the brand this is a wine that despite commanding over £3,000 a bottle will sell. 


Position for Profit: 

Own an Icon. 

Estimating the full extent of the potential upside for truly iconic wines such this can be hard to fully quantify. However with the 2007 we have a reasonable point of reference. The only other 100 pointer to proceed the 2007 is the 1992. A single bottle of which now fetches just shy of £9,000 per bottle in Asia. A case was listed last year at £35,433 per 3*75.

These incredible figures are because of the fundamental quality and rarity of these bottles. The bottles we are offering are equally special and the price will, over time, react accordingly.

We are offering you a chance to cut the 12-year line. 

The Author

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Jake Leighton