Investing in Wine: Guide to Getting Started in 2024

Once you’re on track with your long-term investing goals and strategy, you might have a little extra cash to put toward alternative investments. Many people like adding alternative assets because they offer diversification and aren’t tied to the bond or stock markets.

Investing in wine as an asset that not only has potential for future growth but can be tangible. If the price drops or the performance isn’t what you expected, you and your friends can drink the bottle (if you’re not making money, at least you can make an experience).

If you’re interested in wine investing, here’s what you need to know to get started.

What is wine investing?

Wine investing involves purchasing wine-related assets and (ideally) profiting if they increase in value. While there are several ways to invest in wine, it often involves buying bottles that have the potential to become worth more.

The fine wine market includes a variety of vintages considered long-lasting, rare, and in demand. The wine you’d invest in isn’t the mass-produced kind you can buy at your grocery store. Instead, you invest in bottles worth thousands or hundreds of thousands of dollars.

Who should invest in wine?

Wine investing may be a good option if you already have a diversified portfolio of stocks and bonds and are looking for ways to add alternative asset classes. I’d recommend putting some money into it once you’re confident you’re on track for your other goals, including retirement.

Next, fine wine may be an attractive option if you feel the wine market looks promising. Wine is generally considered a long-term investment and lacks liquidity, but if you’re comfortable locking away that money for at least five years, you could benefit from the industry’s growth. After all, over the last 15 years, wine has offered annualized returns of 10.6%, according to wine investing platform Vinovest. That puts wine at a slight advantage over the stock market, which earns about 10% on average, and it’s considered less volatile than real estate investing.

Finally, you might consider investing in wine if it’s something you’re passionate about and can afford to do. You may have a picture in your mind of a wine investor being older — and it’s true the average age used to be around 60 — but now many buyers at wine auctions are in their 40s. If you're financially comfortable getting started, don’t let your age stop you.

Who should avoid it?

Wine investing probably isn’t the right choice if you’re still working to build your financial foundation. Instead, you should focus on your emergency fund, retirement, and other savings.

Though wine is a good way to diversify your portfolio, it shouldn’t be your first investment either. If you’re new to investing, start with traditional investments like stocks, bonds, and exchange-traded funds (ETFs). Once you’ve accomplished that, you can consider adding wine or other alternative assets.

Finally, wine investing often requires extensive knowledge of wine. If you aren’t interested in or knowledgeable about wine, I wouldn’t recommend this asset.

Examples of good wine to invest in

When considering making a wine investment, it’s a good idea to think of vintages and varietals from producers that have performed well in the past. For example:

• Cabernet sauvignons from Napa Valley, like Screaming Eagle’s wines, Madrona Ranch from Abreu Vineyard, and Old Sparky from Schrader Cellars have been known to do well.
• French Grand Cru wines, like Lafite-Rothschild, Haut-Brion, and Lafleur, are well-known Bordeaux investment wines.
• Brunello wines, made from Sangiovese grapes, and Barolo wines, made from Nebbiolo grapes, are popular investment wines from Italy.
• In Australia, the producer Penfolds has been astute at producing investment-grade wines.

If you choose the right wine investment, you could end up with quite the payday.

Fine wine prices

The most expensive wine bottles in 2024 range from $7,321 for the 2010 Screaming Eagle Sauvignon Blanc produced in Napa Valley to $207,075 for the 1869 Chateau Latife Rothschild from the Médoc region of France, according to Vinovest.

Here are some sample prices of other fine wine bottles in 2024:

• 1847 Château d’Yquem, Sauternes: $101,986
• 1959 Egon Miller Scharzhofberger Riesling Trockenbeerenauslese: $41,580
• 1959 Dom Perignon Rose, Champagne: $26,636
• 1994 Domaine de la Romanée-Conti Montrachet Grand Cru, Cote de Beaune: $9,690

Of course, you can sell wines for considerably more. There are several notable instances where bottles sold for more than expected, bringing in between $250,000 and $500,000. For example, in 2018, a rare bottle of 1945 Domaine de la Romanée-Conti from the Côte de Nuits wine region in France sold for $558,000, making it the most expensive wine bottle ever sold at auction.

How to invest in wine

There are a number of ways to invest in wine, which gives you options for what might fit your situation, budget, and financial goals. Here are some of the best ways I’ve found to start investing in wine.

Investing in wine bottles

Who it’s best for: Investing in wine bottles is best for wine enthusiasts who have the time, interest, and money to research and buy individual bottles of wine and then store them properly.

One of the most popular avenues to investing in wine is buying individual bottles, which you can do through secondary markets and wine auctions. Investing in bottles can require a great deal of knowledge and a lot of capital. While it’s possible to purchase investment-grade wine on websites like WineBid for less than $30 a pop, you might need thousands to grow your collection with those that are more likely to be in high demand later.

If you go the route of investing in individual bottles, you’ll need a place to store wine properly. This means having a wine cellar to keep the bottles out of the sunlight and at the correct temperature. Additionally, I suggest looking into extra home insurance.

How to invest: You can buy and sell wine through auction websites like WineBid, Sotheby’s, and Christie’s. It’s important to note, though, that if you decide to resell your wine bottle through an auction house in the future, you could end up paying a commission. In some cases, you may also be able to buy directly from a producer, though this can require more planning.

Investing in wine futures

Who it’s best for: Investing in wine futures is a good option for wine enthusiasts who want to buy wine from its first release, who are comfortable gambling a bit on the wine’s value, and who have the capacity to store wine properly.

Another way to invest in wine is to purchase wine futures, also called “en primeur.” This means you purchase the wine before it’s even bottled while it’s still maturing in a barrel. It’s a great way to access vintages and may open up more choices (I saw a lot of Bordeaux offered this way when researching).

It’s important to note, though, that the wine doesn’t usually ship right away — you typically have to wait between 18 months and three years. However, depending on the wine, you could potentially buy wine futures for less than $200, and they may later end up being worth much more. Because wine futures result in you receiving cases of wine after it’s matured and bottled, you need a place to store it and maintain it at the proper temperature.

How to invest: You can purchase wine futures through wine stores like Sotheby’s, Wine.com, and Total Wine.

Investing in wine stocks

Who it’s best for: I see investing in wine stocks as best for investors who want to add the asset to their portfolios without the risk and effort required to buy and maintain bottles themselves.

Rather than buying wine bottles, you could invest in the wine industry itself by purchasing stocks of companies that are merchants or producers. When investing in wine stocks, you don’t have to worry about whether a bottle contains investment-grade wine. Instead, you’re betting on the fact that people are increasingly interested in purchasing alcoholic beverages.

Some wine stocks that offer you the chance to invest in wine include:

• Constellation Brands, Inc. (STZ): A distributor of a wide variety of alcoholic beverages, including spirits and beer, in addition to wine.
• Duckhorn Portfolio, Inc. (NAPA): A producer of wines under brands such as Duckhorn Vineyards, Decoy, Kosta Browne, Goldeneye, Paraduxx, Calera, Migration, Canvasback, Greenwing, and Postmark. It sells to retailers, restaurants, and agents domestically and internationally.
• Willamette Valley Vineyards, Inc. (WVVI): Based in Oregon’s Willamette Valley, this is one of the leading producers of popular Pinot Noir for general consumption.

There are also wine ETFs like the Wine Source Fund and the Vini Sileo Vineyard Fund, which also contain other spirits. However, these funds can tie up your money for years, and you have to make redemption requests that can take weeks to fulfill. You might also need to meet minimums since capital management firms often actively manage these funds.

How to invest: When investing in wine stocks or ETFs, you can use any investment app that allows you to buy individual shares. Simply use the ticker symbol to find what you’re looking for. An app like Robinhood or Stash that permits you to buy fractional shares can be helpful in letting you begin purchasing portions of wine stocks for as little as $1.

Investing in wine through a dedicated platform

Who it’s best for: Investing on a platform like Vinovest may be best for someone who wants to dip their toe into wine investing but who doesn’t have the knowledge or ability to buy and store bottles.

Another choice is to invest through a dedicated platform that combines the ability to invest in bottles of wine with a service where someone does the work for you.

For example, Vinovest specializes in wine investments. You can buy and sell wine, but you don’t have to store it yourself. On top of that, you can take advantage of the fact that wine experts handle most of the curation. It’s possible to start investing with as little as $1,000, allowing you to build a portfolio for less than many of the other options on this list, like bottles and futures.

How to invest: You can set up an account on Vinovest or a similar platform in just a few minutes. Once you’ve deposited a minimum of $1,000 into your account and answered a short questionnaire, Vinovest will build your portfolio. You can buy or sell bottles at any time.

FAQs

Bottom line

Investing in wine is one way to add alternative assets to your investment portfolio and may be especially appealing to wine enthusiasts. However, before you get started, be sure to review your goals and long-term investment strategy. Experts generally recommend limiting exposure to alternative investments in your portfolio, often to 10 to 30% or less of your total investments (where 10% would be better for more conservative investors).

Wine investing is generally considered a long-term commitment. You can’t turn around and sell a bottle of wine tomorrow the same way you would be able to with stocks or bonds. Consider what you’re best suited for, whether choosing your own bottles, using a platform like Vinovest, or sticking with wine stocks.

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