Investment Tips - Other - 2. July 2020

Invest In Spottswoode With Magic 100 Parker Points

See how much you save on this Napa veteran, compared to the other great 100p classics and see the historical return on a comparable vintage!

Napa Veteran Now As Investment Wine

Spottswoode Estate is a family business with roots dating back to 1882. However, it was not until 100 years later, in 1982, that the family harvested the first Carbernet Sauvignon grapes from their Napa Valley vineyards. Although Spottswoode is in many ways an old classic in Napa Valley, it is new to RareWine Invest. As a result of Spottswoode Estate appearing to have risen to a new high level, and having presented towering quality in recent years, we have identified attractive potential and welcome Spottswoode Estate as investment wine.

2016 Spottswoode: Outstanding Value And Solid Potential

It hardly comes as a surprise whether one is wine connoisseur or not that the sunny state of California supplies great wine. In fact, also good enough for the best to be included in the Fine & Rare segment and the investment potential is certainly not to be overlooked. We are experiencing high demand for the US top wines and all of the greatest are widely represented in portfolios under the administration of RareWine Invest.

Where Spottswoode really stands out among Napa Valley's gems is the price, and Spottswoode thus comes with a particularly interesting relationship between price and quality that offers interesting opportunities:

Vintage 2016WA-scorePrice*
Screaming Eagle100 € 2.600
Harlan Estate100 € 950
Hundred Acre Ark**- € 325
Opus One98 € 265
Dominus100 € 225
Spottswoode100 € 165
WA: Robert Parker’s Wine Advocate *WA score not released. This one, however, got 100 points by Jeb Dunnuck

In other words, the 2016 Spottswoode allows investing in a 100 point wine from Robert Parker’s Wine Advocate at a fraction of the cost, compared to other top shelf Napa wines.

Invest in 2016 Spottswood The 2016 Spottswood Estate Cabernet Sauvignon

What To Expect?

The historical trade data on Spottswoode is relatively limited, which can make it difficult to give an accurate answer to what the return would have been if you had bought Spottswoode years ago. But we can still get some valid indications:

If you  from 2007 Spottswoode (a comparable 100 point vintage), which has approximately 10 years longer on the back than the year 2016 covered by this investment tip, the following can be stated: According to Wine Advocate, 2007 Spottswoode was released at $ 135. Is this translated to Euro, at that time’s rate, the release price is approx. € 98. According to wine-searcher, a bottle of 2007 Spottswoode today costs between € 250 and € 300. Based on these assumptions, the price of this wine has increased between 150% and 206% over the past 10 years *

Under these terms 2007 Spottswoode has delivered an average annual return of 9-11%. A return that can be increased if further interest is directed to the US 100p wines.

* Assuming the price has not changed significantly over the past six months i.a. because of the Corona crisis.

Huge Market For American Wine

We have previously reported on the great potential for American wine and especially on their domestic market. Namely, the United States is the country in the world that drinks the most wine (by volume) and at the same time extremely many Americans can afford drinking the best and most expensive wines.

The United States accounts for more than 40% of the world's dollar millionaires and the market for  the best wines is huge.

The estate produces around 90,000 bottles of Spottswoode a year, and while this may seem overwhelming in comparison to a classic burgundy cases, it is not actually not considering a wine of this caliber and in a price range where extremely many Americans (and wine lovers from the rest of the world by the way) can afford it. By comparison, Opus One produces around 300,000 bottles a year while Screaming Eagle, at the other end of the price range, probably only produces around 20,000 bottles.

RareWine Invest’s Opinion

We have opened our eyes to Spottswoode and see solid potential in, among other, the top vintages of 2015 and 2016. The case here, in all its simplicity, is that you have the opportunity to invest in the top wine from a strong and established Napa Valley veteran, in perfect quality and with the famous and magical 100 Robert Parker points. All this at a very attractive price, which, compared to other great 100p wines from Napa Valley, looks like an attractive bargain.

Invest in Spottswoode Estate Cabernet Saugvignon

VintageWinePackingVOL.QTYPrice*
2016Spottswoode Estate Cabernet Saugvignon OWC120,75108€ 165
*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.

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