Investment Tips - Burgundy - 16. January 2019

Domaine Leroy Rises + 50 % In 2018 And Becomes The World's Most Expensive Wine!

Domaine Leroy delivered extraordinarily high returns in 2018 and has taken over the title as the world's most expensive wine from Romanée-Conti

Another Record Year Brings Domaine Leroy To The Front

With a 40-50% price increase during 2018, Domaine Leroy has delivered exceptionally high returns - and has taken over the title as the world's most expensive wine from Romanée-Conti, after more than two decades of dominance.

Investing in Domaine Leroy before vintage 2016 is released, with expected price increases as a result.

Year 2014 Has Delivered Record Returns

Just over a year ago, we made a clear recommendation of the wines from Domaine Leroy. At the time the investment case dealt with the 2014 vintage.

After just six months, in relation to the release of the first 2015 vintage from Domaine Leroy, we were able to report price increases of 40-50% in the year 2014.

The Greatest Wines Delivered The Highest Returns

Over the past six months, we have witnessed a clear trend - the most expensive wines have become even more expensive and have thus delivered the best returns.

In the past six months, the price of Domaine Leroy Grand Cru wines has increased by approximately 25 % while Premier Cru wines have increased approximately 10 % in price. This places Domaine Leroy at the top of the table, along with the other top wines from Burgundy, when we talk about price increases in Burgundy.

It is all about rising demand, which is largely driven by consumption. Particularly exquisite and high quality is sought-after, and that is a synonym of Domaine Leroy.

2011 Domaine Leroy Chambertin 2011 Domaine Leroy Chambertin

Romanée-Conti Deprived Its Crown After More Than Two Decades

2018 was the year, for the first time in a lifetime, that the most expensive wine in the World is no longer called Romanée-Conti.

With a retail price of € 38,000 * per bottle, Domaine Leroys Musigny, is 50 % more expensive than the same vintage 2015 Romanee-Conti, which "simply" traded for approximately € 21,000 * - which by the way is a new record for Romanée-Conti.

The Queen Of Burgundy

Madame Lalou Bize-Leroy is the person who has had the greatest impact on the wines of Burgundy for the past 20 years, and her contribution is equal with Henri Jayer and his work in the 80s and 90s, which contributed to todays cult status in Burgundy.

Madam Leroy is a true Burgundy-legend! She has a past at Domaine de La Romanée-Conti and continued co-ownership of the same. She has been a power factor in Burgundy for more than half a century. She especially gained recognition for her work in 2018, when her wines, for the first time since the founding of Domaine Leroy in 1988, are traded at prices higher than the wines of DRC.

It is therefore not without reason that Madame Leroy is known as the Queen of Burgundy.

Madame Leroy - The Soul And Heart Of The Domain

As mentioned above, DRC and Domaine Leroy are closely linked and have several common characters. They both have history, reputation and quality, and their uncompromising wines are among the best in the world, but they differ on a significant point.

While the DRC has close to 800 years of history, and thus has, of course, been led by dozens of talented winemakers throughout history, Domaine Leroy is more a one person army and that person is Madame Lalou Bize-Leroy.

Madame Leroy herself founded the domain, and today constitutes the entire domain identity and history, and it can be extremely difficult to imagine Domaine Leroy without Madame Leroy.

This means that when one day she is no longer part of the operation of Domaine Leroy, the last "real" bottle of Domaine Leroy has also been produced and the fate of the domain will be uncertain. However, whether production continues or not, there will be a distinction between wines made before and after Madame Leroy's retirement.

In other words: Madame Leroy IS Domaine Leroy!

Madame Lalou Bize-Leroy Madame Lalou Bize-Leroy

The 2016 Vintage Is Just Around The Corner

The time for investing in Domaine Leroy is optimal as the 2016 vintage will soon be released. 2016 has the potential to be even better than the already legendary 2015 vintage. Add to that the production is extremely limited due to difficult cultivation conditions, which is why the 2016 vintage is expected to set a new record for what the wines from Domaine Leroy can cost. This in itself provides an opportunity for other vintages from Domaine Leroy to become more expensive as well.

In short: buy Leroy before the market responds to the 2016 release.

Grand Cru Or Premier Cru?

The Grand Cru wines from Domaine Leroy, have recently risen more in price than the Premier Cru wines, and the price gap between the best and the second-best wines has grown considerably.

Of course, if the current trend of making the most expensive wines more expensive continues, the best investment will be found in Domaine Leroy's Grand Cru wines.

If the price gap, which has recently grown historically, will be answered with rising prices for the Premier Cru wines, there are interesting investment prospects in the second-best wines from Domaine Leroy.

The fundamental difference in the above consists in a marginally greater price sensitivity of the Grand Cru wines, which to a greater extent than the Premier Cru wines, is subject to speculation, but which, in turn, has also historically produced the best return.

Rare Wine Invest‘s Opinion

It is inherently difficult to predict the future, but surely there will come a day when the wines of Domaine Leroy are no longer produced by Madame Leroy. Add to that the wines today are widely recognized as being among the absolute best in the world, which in 2018 was reflected by the fact that the domain's Musigny took the place as the world's most expensive wine after DRC's Romanée-Conti, which has held the title for more than two decades.

This Leroy recommendation is an extension of our previous recommendations of November 2017 and June 2018, and although the wines have recently risen significantly in price, we still see plenty of investment potential in Domaine Leroy, which has never been stronger.

We expect the release of the 2016 vintage from Domaine Leroy will result in an unprecedented high price level for Leroy's wines. This can have a positive impact on the other vintages, including the 2011 and 2015 vintages, which are expected to rise in price.

Investment in both Grand Cru and Premier Cru wines from Domaine Leroy is recommended, and both are considered solid long-term investments with potentially great short-term upside.

Rare Wine Invest recommends the following wines from Domaine Leroy for investment:

Domaine Leroy vintage 2011 (packed in wooden boxes of 3 x 75 cl)

Grand CruChambertin3€ 9,000
Grand CruCorton-Renardes3€ 3,750
Grand CruLatricières-Sain3€ 4,200
Premier CruGevrey Chambertin Les Combottes6€ 1,400
Premier CruNuits Saint Georges Aux Boudots3€ 1,100
Premier CruSavigny Beaune Les Narbantons6€ 950

Domaine Leroy vintage 2015 (packed in wooden boxes of 3 x 75 cl)

Grand CruClos de la Roche3€ 5,500
Grand CruClos de Vougeot9€ 4,950
Grand CruLatricières-Sain3€ 6,000
Premier CruChambolle Musigny Les Charmes3€ 1,800
Premier CruGevrey Chambertin Les Combottes6€ 1,800
Premier CruNuits Saint Georges Aux Boudots6€ 1,750
Premier CruSavigny Beaune Les Narbantons6€ 1,600
VillagePommard Les Vignots15€ 1,025
VillageVosne Romanee Genaivrières12€ 1,450
VillageNuits Saint Georges18€ 975
*All prices are in EUR ex. customs duty, tax and VAT for delivery to a bonded warehouse. Prices including customs duty, tax and VAT can be sent on request. The wines are only sold in whole cases unless otherwise specified and the price is per bottle. Minimum order size € 2,500. Assumes a total minimum investment of € 10,000. Prices may have changed since release of this article.

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