The world’s top 10 most powerful fine wines4th February, 2013 by Patrick Schmitt
Often described as the wine lovers’ Champagne, Krug is the only sparkler to make it into the top 10 fine wine power brands.
Benefitting from its rock-solid image, high scores and moderately high production, Krug has broken away from Cristal and Dom Pérignon in terms of price appreciation during 2012.
Nevertheless, prestige cuvée Champagne as a whole performed well in 2012 as merchants declared the likes of Krug, Dom Pérignon and Cristal good value relative to the likes of top grower Burgundy or Right Bank Bordeaux.
Having pushed hard on the recent run of first-rate vintages from Champagne, the merchants have brought the region a new audience of fine wine collectors.
Furthermore, as Justin Gibbs at Liv-ex points out: “Champagne delivers a consistent five to 10% return [on investment] because it’s pretty much drunk the moment it’s released, and fairly recession proof.”
As previous drinks business analysis has shown, Champagne has avoided the peaks and troughs seen from blue chip still wine brands but has shown a slow and steady increase in price over the last decade.
Hence, it’s often seen as good defensive stock when times are tough. Indeed, it’s interesting to note that the last time Krug featured in the top 10 was in the 2008 fine wine power survey, which incorporated the market correction after the Lehmann Brothers collapse.
Moving back to today, it should be added that the market for Champagne has broadened from the big names. “It used to be just Krug, Cristal and Dom Pérignon, but this year we’ve traded a lot of Taittinger and Bollinger,” says Gibbs, noting in particular the success of Taittinger’s Comtes de Champagne 2002 vintage launch.
A few facts:
- Krug was established in 1843 by Johann-Joseph Krug and was kept in the family until the 60s when a major stake was sold to Rémy Cointreau. LVMH the bought Krug from Rémy Cointreau in 1999.
- The Krug lineup of wines currently includes:
- Grande Cuvée NV
- Rose NV
- Vintage bottling
- Clos du Mesnil vintage
- Clos d’Ambonnay vintage
- Krug Collection (a recently disgorged older vintage bottling