Investment Tips - Burgundy - 17. February 2020

Dominant Domaine Dujac: 10-20 % In Average Annual Return

Today, if you find a whole case of Grand Cru from Domaine Dujac, with just a few years old, it is almost a miracle. A miracle you can deliver in the future…

A Classic Burgundy Investment In Record Time

Between the often long and complete stories of Burgundy domains, there are unique stories that are so brief that it is hard to imagine that they are among the best. Domaine Dujac is just one of these. In 1968 Jacques Seysses took over the obsolete and defaulted Domaine Marcel Graillet and founded Domaine Dujac. With experience from the banking world and later master studies at Domaine de la Pousse d'or, Jacques Seysses had acquired the necessary skills to manage his domain towards success and has since built a strong brand that seems to be gaining in popularity.

Domaine Dujac is in many ways a classic burgundy case with a strong brand, high demand and limited production as the focal point. A production that, among the domain's seven Grand Cru wines, normally limits itself to less than 100,000 bottles per year!

Attractive investment in Domaine Dujac The 2017 vintage from Domaine Dujac is an attractive investment case

Gangsters Want Cristal, Hennessy And… Dujac

Pop culture within hip hop and rap has for many years been associated with an extravagant lifestyle. Luxury products such as Cristal, Dom Pérignon and Hennessy have a special status among names such as Snoop Dogg, Drake and Tupac. Popularity seems to be embraced by the ip hop and rap culture and is often inherited by its huge amounts of fans.

Exclusive red wines also seem to have their roots in this scene. That came to light when the American DJ, DJ Khaled, with huge media attention in 2018 threw his love at Domaine Dujac. The American rapper Jay-Z recommended Dujac to Khaled, who in a Weightwatcher program severely saved parts of his Weightwatcher points to ensure that the diet could accommodate Dujac.

In this way, Domaine Dujac suddenly went from being a coveted brand only among the world's wine lovers to also receive endorsement from an extensive younger audience and famous people all over the world. An audience that for many years has maintained loyalty to for example Cristal and Hennessy.

2017: Investment Potential In Underperforming Vintage

This investment tip is a general recommendation of the top wines from Domaine Dujac, but with a special focus on vintage 2017, which right now brings an increased potential.

Vintage 2017 in Burgundy is a sensible, mediocre vintage that came right in the wake of two quite unique vintages 2015 and 2016. However, 2016 characterized by a significantly lower total production, due to spring frosts.

For Domaine Dujac, however, things are a bit different as vintage 2017 seems to underperform with the region's general potential and can best be compared to vintage 2011 and 2013:

Bonnes Mares93,5959695,594,59693,75
Clos de la Roche9392,59694949592,5
*Average score of Wine Advocate and Burghound scores

Wine prices usually reflect, to some extent, the quality of the wine and the vintage, which also applies under Domaine Dujac under normal circumstances. However, right now there is an extraordinary discount to be gained when investing in vintage 2017. While the quality is comparable to vintage 2011 and 2013, prices for vintage 2017 through Rare Wine Invest are between 5 % and 20 % lower than the market prices for vintage 2011 and 2013.

However, one could be tempted to question whether one should invest in a weaker vintage. This is simply to say that the potential is impeccable because today it is extremely difficult to find older vintages of Grand Cru from Dujac in a whole box, including the year 2013 and 2011. It is not only a matter of having the freedom to choose a specific vintage if you want Dujac, but whether Dujac can actually be obtained if you want wines, with just a few years of age.

To what already looks like an under-supply of Dujac, compared to demand, it is reported that frost has affected the 2019 harvest at Domaine Dujac in a particularly bad way. Quantities of wine from this vintage are therefore expected to be extremely limited if anything is released - something that could increase the demand for the previous vintages.

Historical Price Trends

Domaine Dujac's great popularity and success has also left its mark on price trends among the domain's top wines. Excluding the domain's recent vintages (2017, 2016 and 2015) that are still available to a greater or lesser extent in the primary market, which in normal circumstances keeps price trends at bay, there are clear upgoing trends.

Looking at historical trade data from Wine-Searcher for vintage 2011-2014 across Dujac's wines Bonnes Mares, Charmes Chambertin, Clos de la Roche and Echezeaux, there have been solid returns to collect. Excluding the vintage 2012 of Bonnes Mares and Charmes Chambertin, prices have risen by 30-90 % in just over 2.5 years, which means double-digit annual returns.

This is interesting in the perspective that vintage 2017 in broad terms is comparable to these vintages and also has the same great potential.

Investment in Echezeaux og Bennes Mares Four solid 2017 investments from Dujac. Above you see the beautiful Bonnes Mares and Echezeaux

Rare Wine Invest’s Opinion

Domaine Dujac is in many ways a classic investment case from Burgundy. Over time, a strong product has created an even stronger brand, which has become the subject of great interest throughout the wine world.

The quantities produced are limited and we have to look no further than the vintage 2013 before the house's top wines, including all wines included in this investment tip, are very difficult to find - especially in whole boxes, and even just a few bottles can be hard to find.

The wines from Domaine Dujac have, in a broad perspective, in the years 2011-2014 delivered returns between 30 % and 90 % in just over 2.5 years, which means double-digit average annual returns.

What is also particularly interesting is the fact that Domaine Dujac's top wines have also had price increases in both mediocre and weaker vintages. The year 2017, which belongs in this category, has the same potential and can now be purchased exclusively at Rare Wine Invest at a price that is between 5 % and 30 % cheaper than the comparable vintages 2011 and 2013 of the same wines.

Domaine Dujac is hot and sought after and appeals to an even broader audience than other top wines from Burgundy. Add to this that the 2019 vintage will probably only be produced in a very limited quantity, if anything at all, which can help increase the demand for the existing vintages even more.

If you want to secure the possibility of delivering Domaine Dujac to the world's wine drinkers in the future, the timing is ideal: the particularly sharp price helps to maximize a potential future return.

Invest in the 2017 vintage from Domaine Dujac

2017Bonnes Mares750OC6€ 575
2017Charmes-Chambertin750OC6€ 200
2017Clos de la Roche750OC6€ 400
2017Echezeaux750OC6€ 350
*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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