Uncorking Profits: Fine Wine for the Bottom Line

Abstract: Using a larger dataset covering a time period not previously studied, we examine the price drivers and investment performance of wines from the five Bordeaux Premier Cru producers during 2013-2023. Our results indicate that prices are significantly impacted by producer, weather quality, yield and age. We then construct a price index of all wines in our sample using a repeat-sales regression and compare its development to that of other commodities and traditional investments. The results show that investments in fine wine have not been a good endeavour financially over our sample period. However, the results are different between wines of different qualities.