Investment Tips - Burgundy - 5. August 2021
A Very Promising Investment: The 2018 Rouget Echezeaux...
It sounds too good to be true. But read on and see why the 2018 vintage of Rougets Echezeaux looks like a solid investment.
You have often been told that if something sounds too good to be true, it probably is. But that is not always the case, and an investment opportunity involving Domaine Emmanuel Rouget, and the classic Echezeaux, looks like just one of those cases where it is actually not too good to be true. At least not when quality and historical price increases are considered. Find out more here…
In The Footsteps Of A Legend
If you are just a little concerned about the best and most exclusive wines from Burgundy, then the name Henri Jayer is probably not completely unfamiliar. Henri Jayer is often described as the godfather of Burgundy and is quite possibly the greatest figure to ever produce wine in Burgundy. The reason why this is relevant here is that Jayer's nephew, the tractor mechanic Emmanuel Rouget, was apprenticed to Jayer himself before starting his own business in 1985 - well guided by Jayer's tradition, vision, and craftsmanship.
Domaine Emmanuel Rouget, despite its relatively short history, already enjoys a special status among the world's wine connoisseurs and is today recognized for a wide range of different wines from village to Grand Cru classifications.
By the time Jayer finally retired in 2001, all of his vineyards and parcels had been handed over to Rouget, who was in charge of running Domaine Emmanuel Rouget. In 2011, Emmanuel handed over the management of the domaine to his two sons, who today produce wine from the domain with the same respect for the profession that their father inherited from Henri Jayer.
Great Potential In Rougets Grand Cru: Echezeaux
In the small wine municipality of Flangey-Echezeaux lies the famous Grand Cru vineyard of Echezeaux, which extends over 40 hectares. On a small parcel of just 1.4 hectares, Domaine Emmanuel Rouget cultivates the fruit for their Echezeaux, and it is in this very parcel that we can find particularly strong potential right now.
The 2019 vintage has received its first barrel scores, but it is in the 2018 vintage that the focus should lie:
By Vinous, the best-rated Rouget Echezeaux ever scored 93-95 points (2017). The 2018 vintage has scored 92-94.
From Wine Advocate, the best ratings ever given are 94-96 points (2012 + 2013), while the 2018 vintage has scored 93-96 points.
At Burghound, the vintages of 1988, 1990 and 1999 all scored 94 points, as the top scorers. The 2018 vintage has scored 93-95.
Taking the average of the three critics' ratings, the 2018 Rouget Echezeaux scored 93.8 points. Only the 2016 vintage has scored similarly, while the only vintage to top this is the 2015 with 94.3 points. There is just one small catch to this: Vinous did not review either the 2015 or 2016 vintage, so the average is based only on Burghound and Wine Advocates ratings. However, Vinous has historically given Rouget Echezeaux lower ratings than the other two critics, and even with a rating of 93 points for both vintages, which is at the very high end for Vinous, the average is pulled down below the 2018 vintage's rating of 93.8 points.
It is also worth mentioning that Rougets Echezeaux rivals both Domaine de la Romanéee-Conti and Liger-Belair.
In short, the 2018 Rouget Echezeaux is among the best from the domain ever, while it can be in the absolute world elite when comparing 2018 Echezeaux:
PRODUCER | BURGHOUND | VINOUS | WINE ADVOCATE |
---|---|---|---|
Domaine Emmanuel Rouget | 93-95 | 92-94 | 93-96 |
Domaine de la Romanée-Conti | 94 | 92-94 | - |
Domaine Comtes Liger-Belair | 93-95 | 93-95 | 94-96 |
Timing And Returns...
Given the quality of the 2018 vintage, the case simply seems obvious, but it is in combination with timing and historical returns that we must find the reason why the 2018 Rouget Echezeaux looks as strong as it does.
At RareWine Invest, we have several older vintages of Rougets Echezeaux under management, and looking at them validates the case even further:
The 2013 vintage (average score: 93*) cost €525** in April 2020, but today costs in the region of €650**, which corresponds to a return of 23.8%.
The 2014 vintage (average score: 93.3*) cost €420** in March 2018, but now costs around €600, equivalent to a return of 42.9%.
The 2018 vintage, which you have the opportunity to invest in here, has increased since March from €600** to €675**, or the equivalent of 12.5%.
The interesting thing here is that all three vintages have already outperformed the general wine market. But even more exciting is the fact that when looking at the price increases of the 2013 and 2014 vintages versus the preliminary price increases of the 2018 vintage, and the significant quality difference between the 2018 vintage and the other two, everything suggests that the 2018 vintage has much more to offer.
This suggests that the timing is right for investment in the 2018 vintage.
* Across Burgound, Wine Advocate and Vinous - 2014 vintage not rated by Vinous
** Per bottle, excluding duty, tax, and VAT, in perfect condition and whole cases
Rouget In Jayer's Name
In March, we published an investment tip that is in many ways almost identical to this one. This was also about Emmanuel Rouget, Echezeaux and vintage 2018. The only twist was that the wines then had the name Georges Jayer on the bottle label.
Georges Jayer is the brother of the now deceased Henri Jayer, and although Emmanuel Rouget manages the production on Henri Jayer's old parcels, Rouget bottles Echezeaux with two different names, as Georges Jayer actually inherited some of the land.
Despite the different labels, it is the same wine, which due to Rouget's much stronger brand is traded slightly more expensive than Georges Jayer's bottles.
In March, investors acquired these 2018 Georges Jayer Echezeaux at €525 per bottle. These are now valued at €600, giving a return of 14.3% if sold today.
Read the investment tip from back then: Jayer - Legend Of Legends: Here You Get The Potential Of A Trinity Of Jayer, Rouget And Echezeaux
Rarewine Invest's Opinion
Rarely does so much point to a solid and safe investment as it does right now with the 2018 Rouget Echezeaux.
The 2018 vintage of Rougets Echezeaux is simply sublime, and among the best ever, if not actually so (uncertainty due to Vinous' missing rating). At the same time, the 2018 Rougets Echezeaux easily bears comparison with Liger-Belair and Domaine de la Romanée-Contis Echezeaux, which otherwise easily cost triple.
At the same time, previous vintages of Rouget's Echezeaux have seen nice average price increases of 11.5-20% per year, but while the price of the 2018 vintage has already increased 12.5% since March, all indications are that there is much more to be gained here, as the 2018 vintage is superior in quality, and quite possibly the greatest from Rouget ever.
Add to this the fact that Rouget only produces an estimated 7,000 bottles of Echezeaux a year, which are shared between the Rouget and Jayer labels, and as a result, it's not easy to come by whole cases in perfect condition - and if we look at mature vintages, it gets extremely rare - and expensive...
Invest In 2018 Echezeaux Grand Cru From Domaine Emmanuel Rouget
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.
VINTAGE | WINE | VOL | PACKING | PRICE/BTL.* |
---|---|---|---|---|
2018 | Emmanuel Rouget – Echezeaux | 750 | OC12 | €675 |