Investment Tips - Champagne - 17. May 2022

The 2004 Krug Clos Du Mesnil Is One Of The Very Best In Recent Memory

+45.5 % in just two years and a sublime 2008 vintage in the horizon to further boost the investment potential of this rare single vineyard Champagne.

“There is little doubt the 2004 is one of the very finest Clos du Mesnil in recent memory. Will it join the 1979, 1988 and 1996 as one of the all-time greats? Now, that is a tasting I would love to do!”

– Anonio Galloni, Vinous 

The stage is set for the present investment tip, where the 2004 Krug Clos du Mesnil is explored. The essence is high quality, scarce supply, great returns and an imminent 2008 vintage that could mean the world to this case. 

Joseph Krug Sought Adventure And Found The Greatest Of Its Kind

In 1824, Joseph Krug left his childhood town of Mainz behind and went off in search of adventure. In 1834, this quest takes him to Paris, where he continues his journey to Champagne. Here he becomes bookkeeper for the Champagne house Jacquesson, but this is not the end of his adventures. 

Over the next eight years, Krug got to know every corner of the Champagne house and proved to be a more than capable blender, which is why in 1840 he began to assist in blending for other Champagne houses. 

Joseph Krug founded the adventurous Krug Champagne House in Reims in 1843, to the delight of wine lovers the world over. He found the greatest adventure and through generations the Krug family has managed to keep a constant high level, but formidable management and quality as the ultimate goal. 

Learn much more about the history of Krug in the article: Krug Champagne - The Story Of A Complete Symphony Orchestra And Inherited Perfect Champagne Spirit

Krug Clos Du Mesnil: Extremely Rare Single Vineyard Champagne

In 1971, the Krug family bought the 1.84-hectare Clos du Mesnil estate in Mesnil-sur-Oger, whose grapes up to this purchase had been used for Champagne Salon. Since 1698, the vineyard has been enclosed by a stone fence and for just as long, Chardonnay has been planted here. 

Krug first used the grapes for Grande Cuvée, but after a few years the family realized that the microclimate was optimal for bottling separately. In 1979 Clos du Mesnil was bottled separately, which was far from normal in Champagne. Clos du Mesnil became an exclusive single vineyard Champagne - and it still is. It is only released in the very best vintages, and the total production per vintage is about 12,000 bottles, which only makes this champagne even more exclusive.  

It Is Almost Unnecessary To Talk Scores. Almost...

... Scores are always high for Krugs Clos du Mesnil. Therefore, the essential thing here is not to determine the quality of the 2004 Clos du Mesnil from Krug, but rather to consider it as a possible part of a legendary champagne club. 

This article began with a cementation of the quality of the 2004 Clos du Mesnil. And then a pertinent question was asked about whether it would join the club of all-time greats that counts members like the 1979, 1988 and 1996 Clos du Mesnil. 

Vinous gives the 2004 vintage 98+ points. So do Richard Juhlin and James Suckling. Wine Advocate has yet to assign scores, leaving it with an overall score of 98 points. 

The remaining members of the all-time great group score 99.3 points (1996), 100 points (1988) and 99 points (1979) respectively, across scores from Richard Juhlin and Vinous, making 2004 the closest Krug Clos du Mesnil has come in recent memory to a place in the amiable club.

Strong Returns On Krug Clos Du Mesnil

Back in April 2020 you could invest in 2004 Krug Clos du Mesnil for the first time through RareWine Invest. The price back then was € 825*. If you invested then, you have achieved a gain of 45.5 % in just two years. Add to this the fact that, according to Liv-ex, across the last five* released vintages of Krug Clos du Mesnil, there has been an average return of 61.3 % over the last three years. That means an average annual return of a whopping 17.3 %. 

Although wine should be viewed as a long-term investment, Krug has performed formidably over a relatively short period. And global demand for quality champagne is gigantic. 

*2000, 2002, 2003, 2004 and 2006

Clos du Mesnil Clos du Mesnil

The Magic Ingredient: Marketing

The Krug family has made a name for itself worldwide, due to the towering quality of their champagnes. Until 2007, Krug was run by brothers Remi and Henri Krug, and then strong forces took over the helm of the champagne ship. 

Quality is of course the basis for success, but there is another ingredient that can be crucial for a brand: and that is marketing. So, it is not at all insignificant that the new Krug helmsmen are the luxury LVMH group (Louis Vuitton Moet Hennesy). They own 16 different houses in Champagne, and Krug is the diamond in their collection. A diamond they want to market and develop in every possible way. 

What Happens When The 2008 Krug Clos Du Mesnil Is Released?

Marketing is important. So is hype. And there is already global hype and mystery about the 2008 vintage in Champagne, as it is recognised by many as the absolute greatest vintage – ever. Whether this is true can only be determined when all the 2008 Champagnes have been released and judged. However, 2008 is already an icon and will be a benchmark vintage. 

As said, wine investment should be seen as a long-term investment, but there is a bit here that might make the wait worthwhile: Indeed, it could easily be several years before the 2008 Krug Clos du Mesnil is released. But the hype is already there, and the price of a 2008 Krug Clos du Mesnil is likely to hit unprecedented highs for a newly released Clos du Mesnil. This and the general hype and attention will undoubtedly also affect the prices of earlier vintages - including the 2004. 

RareWine Invest's Opinion

The Krug adventure is far from over. Fortunately. Time and time again Krug cements its status as one of the world's very best Champagne houses, and this 2004 Krug Clos du Mesnil is certainly no exception, receiving fantastic scores from critics. 

Add to that the fact that this exclusive single vineyard champagne is only produced in around 12,000 bottles per released vintage, which is negligible for a hungry champagne market. And with six years on the market, it is also not hard to imagine how drastically volumes of 2004 Clos du Mesnil have been reduced.  

Great Krug returns also underscore the potential of Krug. Furthermore, massive marketing forces may further spread the thirst for Krug. And so, we have a 2008 vintage on the horizon that could really boost the 2004 Krug Clos du Mesnil. In conclusion, an impending Champagne drought will probably only make existing Champagne volumes even more desirable - especially the good ones. 

We have managed to source a limited quantity of 2004 Krug Clos du Mesnil and we expect massive interest in these. 

Invest In 2004 Krug Clos du Mesnil

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.

2004Krug Clos du Mesnil 750OWC1€ 1.200
2004Krug Clos du Mesnil 750OWC1 (US-Label)€ 1.100
*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.

Us Label - What Does It Mean?

In the old days, French wine producers labelled wines that were to be sold in the USA, for example, with US labels. For wine connoisseurs and collectors, these labels became a sign that the wine had endured an extremely long journey under poor conditions - conditions a good wine does not benefit from, to say the least. So, if you came across a wine with an American label in Europe, you knew that it had almost certainly been across the Atlantic twice - something that is not desirable when you have to pay a lot of money for a sublime wine experience.

Today, wine handling and transport are handled in a completely different way, with temperature, humidity, light and even vibration all taken into account to ensure the wine is as safe as possible. However, tradition and "fear" have become so entrenched that wines with, for example, American or Japanese labels are still traded for less - more or less without reason.

Compared to "regular" bottles, this means in practice that investors will be able to buy bottles with US labels a little cheaper and resell them again a little cheaper.

In this case, the price difference between an "ordinary" 2004 Krug Clos de Mesnil and one with the US label is estimated at € 100.

But when it comes to wines of this calibre, where the supply is almost non-existent, it really comes down to what can be sourced.

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