A (very) brief history of fine wine investing
Wine has been enjoyed by humans of all social statuses since the dawn of civilisation. For centuries, wine was consumed as part of a religious ceremony. But this all changed when the Ancient Greeks realised that not only was wine delicious, it made you feel good too.
By the 18th century, a gap had formed between consumer-grade and fine wine. Those in high society began paying premiums for aged casks – A taste for vintage wine was beginning to develop.
Collecting and trading distinct bottles of wine had been a practice for millennia. But wine as an investment was practically unheard of until the late 1970s when certain US states legalised selling wine without a retail license. From there, things kicked into gear, and fine wine has become one of the world’s most popular alternative investments.
The fine wine market today
Liv-ex is the source for all things wine, and their graphs paint an accurate picture of the fine wine market’s ups and downs over the past few decades. 
Caption: This chart tracks the aggregate price of the world’s top 100 vintage wines. Source: Liv-ex
As you can see from the above chart, the fine wine market soared into the 21st century, with momentum building until 2011, when demand collapsed and bottle prices saw a quick correction.
Since then, the market has steadily re-built to peak levels, with vintages from Champagne (+71.7%) and Burgundy (+67.6%) enjoying immense growth over the past five years.
Why invest in wine?
Think back to the two greatest recessions in modern economic times – 2008’s Global Financial Crisis and the Coronavirus 2020 shutdown.
Quickly looking at the above chart, what sticks out immediately about these dates?
The pullbacks from the wine market during times of economic distress are very slight. And there lies fine wine’s biggest advantage as an asset – it traditionally performs well during recessions.
In general, fine wine has a low correlation to popular investments like real estate and the stock market. The asset class even outperforms “recession-proof” commodities like gold during leaner economic times.
How can i invest in fine wine?
You’ve got a few options to get started. You can buy vintage bottles directly from vineyards, auction houses, and even high-end wine shops. Sometimes, local boutique bottle shops carry collector-worthy wines—it never hurts to ask!
For those looking to invest big, experienced collectors buy wine by the barrel (known as wine futures or en primeur), meaning you purchase wine before it’s bottled.
You can also invest indirectly through funds that buy and store wine bottles on behalf of investors, or even through certain exchange-traded funds with wine industry exposure.
Why investing in wine isn’t quite like drinking it
Investing in fine wine seems simple enough – buy, store, wait, and profit, right? But it’s not quite that simple … yet.
You can head on down to your closest supermarket and scour the shelves for a 2019 Rhone vintage, but chances are you won’t find it.
Vintage wine isn’t just valuable because it tastes good. It’s also incredibly scarce. The best bottles are often hard to come by, snapped up by sommeliers, elite investors, and, yes, even royalty.
Even if you land a rare bottle, where do you store it? Wine needs just the right environment—think temperature control and humidity—to develop. A bit like water, it can freeze or cook at the wrong temperatures. So, even if you only buy one or two bottles, you will need a chunk of change to set up a climate-controlled environment.
And then there’s selling it. Finding a buyer for fine wine is more like selling a property than selling a stock. It might take an auction or a private sale to find the right buyer, and expert fees can add up quickly.
Wine can even be counterfeited, costing the industry over $3 billion a year! Without professional guidance, it can be hard to know if what you’re buying is the real deal.
How do we solve these problems?
As wine collectors ourselves, we know the pain points all too well. That’s why we created TradingGrapes, so others, like you, can easily discover, collect, and enjoy wines that get better—and more valuable—with time.
We provide access to some of Australia and the world’s most sought-after wines, along with flexible cellarage and delivery options, and education to help you learn more about wine; everything from producers to regions and performance.
We also partner with vineyards, négociants, and top-tier authenticators, so every bottle in your collection is genuine, expertly sourced, and has a story to tell.
Think of it this way – we’re a bit like a stock market for vintage wine but with the added benefit of being able to have your investment delivered to you.
Who are we? A word from our founders
Hi, we’re Steph and Mitch, the couple behind TradingGrapes!
We each collect wine a little differently—Mitch collects to drink, while I collect to invest—I guess that makes me the responsible one 🤷♀️. We bonded over a love of good food and even better wine, and that’s what led us here.
With years of experience in finance and property investment (and a few write-ups in places like Forbes and Business Insider), we wanted to create a platform that made wine investing accessible, even for those just starting out.
After a pandemic, a wedding, and a few bottles shared, we’re excited to bring the fun, thrill, and rewards of wine investing to you. Whether you're collecting for love or value, we hope TradingGrapes makes it easy—and enjoyable.
Cheers,
Steph & Mitch
Co-Founders
Caption: Our Founders at Clonakilla vineyard
Summary
Wine as an asset has all manner of advantages – low correlation, strong historic performance and if everything goes pear-shaped, you can drown your sorrows with a delicious bottle!
But for all its merits, investing in vintage wine hasn’t become as popular as it should. Mainly because of how inaccessible the market is for the average investor.
A great bottle of wine is meant to be shared, and we believe investing in fine wine should be the same.
Reducing the barriers to entry will go a long way to unlocking the wine market for generations of wine lovers to come.
