Investment Tips - Champagne - 15. September 2022

2008 Krug Vintage: Powerhouse, Power Vintage, And Sublime Historical Returns

The wait is over. And while the 2008 Champagnes dominate the Champagne trade, a Champagne drought awaits ahead. Read much more about the potential of 2008 Krug Vintage here.

“Oh, how many of us that have longed to taste this wine. The extremely slowly developing wine is internally called Classic Beauty at Krug.” – Richard Juhlin

The whole world's Champagne guru Richard Juhlin honours the above statement with 96 great points for the 2008 Krug Vintage, which has indeed been awaited by wine lovers from all corners of the world. Krug is among the greatest of the greatest on the champagne scene - whether it comes to their non-vintage champagnes, Grande Cuvée, Vintage Brut, Clos du Mesnil or Clos d'Ambonnay. Each excels in its own category.

Now we can finally offer 2008 Krug Vintage for investment. This is the first time, though probably not the last. When it will happen again, we do not know. So if you want to make sure you get your hands on investment-grade 2008 quantities, now is the time. At the same time, there is nothing to suggest price will do anything but follow its predecessors and its 2008 colleagues. Dive into the Krug potential.

The Vintage Waiting Time Is Finally Over

The 2008 Krug Vintage was released in October 2021, and both expectations and hype have been huge. This is of course due to the Krug brand, but also to a significant extent to the prefix "2008", which has marked itself as a formidable vintage in Champagne.

So why is it only coming to investment now? The 2008 Krug Vintage has been immensely difficult to acquire in investable quantities. Add to that the fact that both expectations and demand can lead to rapid price increases upon release - especially on the big prestige cuvées. The price may also be reduced if distributors have pre-purchased and fewer than expected are buying the latest releases.

Now that a year has passed since the release, here is your chance to secure investment-grade volumes at a price that has found its level.

Almighty Krug - The Uncrowned King

Joseph Krug founded the Krug champagne house in Reims in 1843, and since then the road to worldwide success has been paved with diligence, dedication, and a strong immanent champagne spirit.

Many would argue that Krug Vintage wears the imaginary royal crown as a symbol of dominance over the vintage champagnes of Champagne. This is, of course, due to consistently high quality and a marketing apparatus of the utmost potency. In 1999, the world's most powerful luxury goods group, LVMH Group, took ownership of Krug, but deliberately kept the Krug family close. This was to preserve the very special Krug quality that has reigned in the house since the beginning.

The world's wine lovers want Krug. Krug is synonymous with excellence. Krug is a top brand in the land of Champagne. And Krug Vintage is the sublime expression of the best years, when only extremely high quality allows release.

2008 Krug Vintage 2008 Krug Vintage

Krug Vintage in Juhlin Perspective

When it comes to Champagne, Richard Juhlin is the master, which is why it makes sense to look at Krug Vintage from his professional perspective. Juhlin has tasted his way through almost every Krug Vintage vintages, and in this perspective, 96 points is especially great. By comparison, he awards Krug Vintage between 95 and 98 points in the really great Bencharmark vintages* in Champagne, none of which have scored 97 points, and only two vintages have scored 98 points (1988 and 1996).

The 2008 Krug Vintage gets 96 points from Juhlin and 97 points from Vinous. The Wine Advocate does not fully agree with the others' assessment and awards 94 points.

This 2008 Krug Vintage gets great points across critics and in Juhlin's perspective. After all, high quality is a condition of release. This is 2008 - one of the most hyped and sought-after champagne vintages in recent memory.

*1988, 1996, 2000, 2002 and 2008.

Classic Beauty: Krug Vintage At RWI

Every rare time, RareWine Invest offers Krug Vintage for investment there is a great demand for the available quantities. Nice historical returns underline that it is not only at RareWine Invest that the demand is high. Since September 2019, all Krug Vintage* under management of RareWine Invest has given an average return of no less than 93%.

There is demand for classic fine Champagne from perhaps the world's best Champagne house, and therefore there is nothing to suggest that prices will fall on Krug Vintage in the future. On the contrary. The present investment opportunity deals with 2008 Krug Vintage, which is why it is essential to look at how the 2008 Champagnes are performing.

*Vintages 1995, 1996, 1998, 2000, 2002, 2003 and 2004 in regular size, whole boxes and perfect condition.

2008 Leads Champagne Trade In 2022

The 2008 Champagnes deserve much of the credit for the Champagne 50 sub-index at Liv-ex rising 50.6% over the past year. Indeed, according to Liv-ex, the 2008 vintage dominates the Champagne trade in the secondary market, making it the most traded vintage in May 2022. Furthermore, the 2008 vintage has been the most traded in 2022, accounting for 18% of total Champagne trade.

Krug Vintage has guaranteed great returns. And with these 2008 results in mind, expectations for the future of 2008 Krug Vintage are high. However, it is here worth noting that the 2008 vintage will not continue to be the most traded. Volumes are steadily disappearing from the market and new vintages are taking over. 2008 is becoming increasingly difficult to find over time and this is where price increases tend to accelerate.

Krugs 2008 Vintage, by the way, is one of the absolute last 2008 champagnes to hit the market*, making this one of the last opportunities to get in early.

*Except for a few single market champagnes and special late disgorged versions

Champagne Drought

A pandemic shook the world and Champagne did not go free. Today, Champagne has become more difficult to find and, according to the Comité Interprofessionnel du Vin de Champagne (CIVC), demand for Champagne fell in 2020 in response to Covid. This meant that sales in 2020 fell by 18% in volume terms, compared to the previous year.

Fortunately, the grip of the pandemic was released, and by the end of 2020, demand for the bubbly wine was on the rise again. This trend continued into 2021, bringing price increases and record returns for investors, but a new challenge emerged. The CIVC sets an annual limit on how much champagne can be produced. In response to falling demand, they reduced champagne production by 25% in 2020 compared to 2019.

This reduction in production cannot just be changed overnight and reduced production and increasing demand through 2021 has created an imbalance between demand and supply. Furthermore, supply issues have affected virtually everyone, meaning that even if production could simply be increased, shortages of glass and packaging, for example, create major challenges for producers. Gabe Barkley, CEO of the LMVH Group, predicts that reduced production will affect the market for many years to come.

Read our analysis of the wine market here

Rarewine Invest's Opinion

There is no doubt that Krug has seriously cemented its place among the world's leading Champagne houses. They have, of course, because Krug quality is consistently sublime. And they have, because they have big marketing muscle in the engine room in the form of LVMH group.

That is why this is an investment in the power of the Krug brand.

But it is also an investment in the 2008 Champagne, which leads the trade in the secondary market. And it is an investment in a Vintage Champagne whose predecessors have performed formidably.

Demand for the world's best Champagne is unlikely to abate when the expected Champagne drought shows its true face. If you believe in the future of Champagne, in Krug and in 2008, it really does pay off. The 2008 Krug Vintage will undoubtedly be one of the great champagnes of the future.

Invest In 2008 Krug Vintage

Contact us via the contact form at the bottom of the page if you want to know more about your investment options or order the wines directly through the form.

2008Krug Vintage750OC6€ 625
*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. Reservations are made for errors.

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