Strong Ownership And Great Price Increases: Invest In 2012 Clos De Tart And A Real Business Case

Historic Burgundy Monopoly In Great Condition

In Burgundy we find Clos de Tart, where 60-year-old vines in great condition provide grapes for the wine. As well as delivering formidable wines that show great momentum both in terms of yield and price, it is also a wine with a massive powerhouse behind it, when it comes to marketing and distribution. 

The 2012 vintage is available for investment, and if it performs as other Clos de Tart vintages under the management of RareWine Invest have, it too will be a strong and attractive investment.

Experienced, Strong Forces For Clos De Tart

Clos de Tart took on a new owner in 2018, who has brought some serious horsepower to the marketing machine. François Pinault is the name of the new owner, and in addition to becoming the proud proprietor of Clos de Tart, he is also behind the luxury conglomerate Artémis, which owns Yves Saint Laurent and Gucci, among others. 

Artémis and Pinault are by now seasoned in the wine world, having led major wineries in the past. Today, they own not only Clos de Tart, but also legendary Chateau Latour in Bordeaux, Eisele Vineyard in Napa Valley, Chateau Grillet in the Rhône, and Domaine d'Eugenie in Burgundy. All these properties are under the management of Frederic Engerer, who has been involved with Chateau Latour since Pinault took over in 1994. 

Pinault and Artémis have years of experience in developing and strengthening top-level brands. The fact that Clos de Tart is also under the management of Artémis means major branding and marketing forces of infinite dimensions. Such forces can have an impact on demand and thus result in price increases.  

Domain Acquisitions Have Resulted In Price Increases In The Past

This is not the first time Artémis has taken over a reputable domain. In fact, François Pinault's vision, competently combined with Frederic Engerer's winemaking skills, has significantly elevated Chateau Grillet. Since Artémis took over Chateau Grillet in 2011, price increases have been seen across almost all vintages. For example, the 2014 and 2012 vintages have seen increases of 71.3 % and 56.7 % in just one year from July 2017.

Know-how and market position therefore have a massive impact on the demand for a brand worldwide. 

Largest Burgundy Monopoly With Minimal Production In 2012

Although Clos de Tart, with its 7.53 hectares, is the largest monopoly in mountainous Burgundy, it is, after all, still a minimal area. Approximately 24,000 bottles of Grand Cru are produced here in an average vintage. But it did not work out that way in the 2012 vintage.

At Burghound.com they refer to the producer's own words about the production of the 2012 vintage. Here, they describe how the harvest yield in the 2012 vintage was as good as halved with only 12 hl/ha. With only 7.53 hectares, this gives a production in the 2012 vintage of only about 12,000 bottles. In other words, an almost catastrophically low quantity of the popular wine. 

97 Points For 2012 Clos De Tart

The Wine Advocate gives 97 points to the 2012 Clos de Tart. There are no other vintages from Clos de Tart that score more than 97 points, so this one place itself at the top. 

In fact, the 97 points from the Wine Advocate were awarded by Neal Martin before he left The Wine Advocate and instead started reviewing wines for Vinious. Vinous awarded the 2012 Clos de Tart 94 points, while Burghound landed on 92 points.

Taste is subjective, even for the world's leading critics, but the Wine Advocate is a lighthouse in this world, and 97 points from here is a strong benchmark.

Over the past five years, Clos de Tart wines with 97 Wine Advocate points have thus seen price increases averaging 10.7% per year over the past five years. 

9.5 Percent In Rarewine Invest Beats The Market

Clos de Tart is also an old friend at RareWine Invest. The wines under management here, which have been on the market for at least five years^*, have produced an average return of a full 19.8% over the past two years. 

This means an average annual return of 9.5 %, beating the market and underlining Clos de Tart's position, which underpins our expectations for the future. 

*Vintage 2008, 2009, 2010 and 2013 

Rarewine Invest's Opinion

This is an investment opportunity, where the numbers speak for themselves. There are more than impressive price increases over five years of up to 75 % on 97-point wines from Clos de Tart according to wine-searcher. Add here that we at RareWine Invest have seen an annual return of 9.5 % on just wines from Clos de Tart. 

Furthermore, we are dealing with a vintage where production is almost halved compared to the optimal yield in the vineyard. This, combined with an ownership that currently works with some of the world's biggest brands, makes for a very promising investment opportunity.