French Wine Investors May Now Go Abroad

Fine wine has grown dramatically in popularity among investors after holding up well during the financial crisis and a recent boom in interest from Asian markets Photo: Alamy

French Wine Investors Should Look Overseas -- The Telegraph

When it comes to investing in fine wine, expensive and well-established French vineyards are traditionally regarded as the safest bet.

But prudent investors should consider moving into Italian, Australian or even Portuguese wine to avoid "putting all their eggs in one basket", researchers claim.

Although the history and reputation of French wine makes it the most robust player on the international fine wine market, a single year of bad weather could destroy the value of a portfolio consisting solely of Burgundy and Bordeaux.

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My Comment: The election of the Socialists will impact France's wine industry. The previous Socialist government specifically targeted wineries and their cellars with special taxes, I would not be surprised if the new French government starts to do the same thing.

How Global Economic Shifts Changed the Wine Industry

How Global Economic Shifts Changed the Wine Industry — For Better and For Worse -- Time

The international wine market was a favorite subject for classical economists in the 18th and 19th centuries to help explain the benefits of free trade. Adam Smith advocated free trade in his opus, An Inquiry into the Nature and Causes of the Wealth of Nations. He wrote against the backdrop of mercantilism, which urged countries to export products to accumulate gold and import as little as possible so that they could husband their yellow metal.

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My Comment: A few months old, but this article is still relevant in today's wine market.

Wines Are Not Getting The Prices That They Got Last Year

A lot of six bottles from Domaine de la Romanée-Conti, each from a different year starting in 1996 to 2001, sold for HK$726,000 at a Christie’s auction last weekend. Christie’s

Young Wine Fails to Sell -- The Telegraph

The auction, held Saturday in Hong Kong, was only 74% sold, reflecting the choppy market for the world’s most coveted wines. Earlier in the month, Sotheby’s sold all of its wines at another Hong Kong event.

Christie’s results contrast with last year’s record-breaking sellout events, but these days, the market is fickle.

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My Comment: Money is tight this year .... expect future auctions to also disappoint.

Scotland's Scotch Exports Unaffected By Recession

Scotch Whisky Industry Unaffected By Recession -- Times of India

LONDON: The whisky industry in Scotland, one of the most popular in the world, has not been affected by the economic downturn because of developing overseas markets, especially in India, China and Brazil, a report said.

Scottish whisky exports increased by 23 percent last year, Sky News reported.

Whisky has become one of Britain's biggest exports at a time when the country's economy was ailing. The drink is now worth over 4.5 billion pounds (Rs.370 billion) a year.

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My Comment: The BRIC countries love their scotch .... and I expect even more exports to these countries in the future.