As far as high-end red wine is concerned, China is quickly taking on the position as the largest consumer of fine drops globally, and as the leading export market for French Bordeaux, the country is credited with pushing prices for coveted vintages to record levels.
Along with accumulating fine wine to drink at dinner parties and the like, niche wine investments are also growing in status. While wine investment funds and private collections are proving to be an enjoyable hobby and profitable tool, buying vineyards themselves– in particular those sprawling picturesque properties with French chateaux’s attached – is vastly becoming a leading portfolio option for Chinese investors wishing to diversify their fortunes.
It is with this trend that the Far East is undoubtedly becoming a mecca for Burgundy, with a steady and hearty acquisition of vineyards in the legendary French winemaking regions surpassing 100 estates and putting the country ahead of Britain in the prestige of global vineyard ownership.
Fortuitously, with Chinese investment at just 1.5% of the 7,000 vineyards in the coveted French Bordeaux area, there is great opportunity to obtain wine producing properties that encompass a widespread and respected international reputation.
For Chinese who are interested in pursuing a vineyard for their investment array, it just so happens that some of the best wine producing operations are available on the current market. Red wine estates in both Bordeaux and Burgundy are proving the most sought after, mostly due to investor familiarity with the locations and the oenological renown of both regions.
Buying a vineyard in essence will provide the new owner with the land, the vines, the winemaking facilities, full rights to the wine produced and ultimately the prestige of vineyard and – given the right opportunity – chateaux ownership.
For the Chinese investor, there is the option to have their new vineyard remain fully functioning under the existing management with no adjustment to day-to-day happenings. Or for the more hands on buyer, there are numerous ways to become involved in the wine making process and influence the complexity of the vintages themselves.
Vineyard buyers have the added option of exporting a high percentage of wine back to China to meet growing domestic demand – lucratively so, as in China bottles of vintage wine can sell for up to 10 times the price in France!
Vineyard acquisition remains the top choice for those investors wishing to have maximum control and ownership of the future production and development of any given wine. Whether as a lifestyle option, investment option or both, welcoming a vineyard into ones portfolio of assets brings with it a multitude of dynamics for enjoyment, status and financial gains. The sheer fame of certain wine labels presents significant value to elite Chinese investors who do their homework. As the French would say, Tchin Tchin!
First Published on Luxify, The Lux Column