+18.7% YTD: Invest in 100 Points Hundred Acre from Nearly Untouchable Napa Valley

Napa Needs No Introduction

In the northern part of California, a small valley is tucked between two mountain ranges. It benefits from sunshine, volcanic soils and minerals. With 18,000 acres, the valley is home to 475 wineries, which together produce about 1,000 different wines each year.   

Although the valley is small, everyone in the wine world knows its name. The name is Napa Valley, and here some of America's best winemakers grow quality wine of the highest character.     

In 1980, Napa Valley became the first official AVA (American Viticultural Areas) in the US, and this is the designation used to classify wine regions in the US. In Napa Valley, there are 13 different AVAs, each located near a small town. In fact, several grape varieties are grown in the valley, due to the variety of soil types.   

Get an in-depth look at Napa Valley right now.  

100 Acres Of Masterly Cabernet Sauvignon

50 % of all grapes planted in Napa Valley are Cabernet Sauvignon, and one winery that has particularly mastered this grape is Hundred Acre - named after the fictional 100-acre forest in Winnie the Pooh    

Hundred Acre Winery was founded by Canadian Jayson Woodbridge, who has been described as flamboyant, brilliant, arrogant, elusive, and visionary. Woodbridge is a determined man who is not afraid to fight in his quest to make the best Cabernet Sauvignon.   

Hundred Acre Kayli Morgan - The Picky Vineyard

At the foot of Howell Mountain in eastern Napa Valley lies the nine-acre Kayli Morgan vineyard. Since 2000, it has been the foundation of Hundred Acre, and here there is no room for error. The wines are harvested grape by grape and sorted by hand, and anything not considered perfect is discarded.    

Perhaps the uncompromising approach of the charismatic owner is why Hundred Acre is garnering great acclaim from the world's top wine critics.   

A Rain Of Fabulous Ratings: 100 Points For Hundred Acre. Again.

There is a reason the world's wine lovers are keeping a close eye on Napa Valley and Hundred Acre. In fact, in 2018, Lisa Perrotti-Brown of The Wine Advocate published the results of a vertical tasting of Hundred Acre's portfolio, and the results were triple digits.   

In fact, she awarded 100 points to 19 different wines from Hundred Acre. Including 100 points to the 2002, 2005, 2007, 2013 and 2015 vintages of Kayli Morgan.     

2013 Kayli Morgan Up 18.7% In Less Than A Year

We have Napa Valley. We have 100 points for 2013 Kayli Morgan. And we actually have price increases for fine wine in general. According to Liv-ex, the Rest of The World 60 sub-index is the best performing regional index year-to-date. And that is largely driven by rising prices of the best American wines.   

We see that increase at RareWine Invest as well. Since January this year, the 2013 Kayli Morgan vintage has gained a whopping 18.7%, while the 2014, 2015, and 2016 vintages have also seen steady price gains of 6.7%. This gives an average increase of 10% YTD among the Kayli Morgan wines under management by RareWine Invest. 

What About The Investment Potential?

Prices are up for Napa Valley wines, and there is not much to indicate that trend is stopping.   

Looking at the price trend of past vintages from Hundred Acre, it looks positive. According to wine-searcher.com, the lowest price for a case of 2002 Kayli Morgan is currently € 729. For the 2005 vintage, the lowest price is € 625 and for the 2007 vintage, it is € 526 - all three vintages with 100 points from Wine Advocate.  

These prices should be put in context of the fact that the price was significantly lower when they first came on the market, hence the percentage increases are much higher than just that between the price today of the 2013 vintage and the three previous 100 point vintages.   

Furthermore, there are price adjustments from the producers who increase the price every year. For example, on the last vintage, Hundred Acre itself increased the price by more than 10% - a development that creates even more room for price increases on mature vintages.   

Rarewine Invest's Opinion

Both Napa Valley and Hundred Acre have cemented their place at the top of the hierarchy when it comes to American wine. They establish this with 100-point scores almost time after time. Here we are dealing with a wine that also reaps 100 points, and that makes it attractive for investment.     

However, it only becomes really interesting when the price is in a reasonable range, and it is here. We have seen both solid and big price increases in wines from Hundred Acre, and we have not reached the top yet. This is further underlined by the growing interest in American wine. This has resulted in strong price rises, making Liv-ex's Rest of the World index the best performing sub-index YTD.   

Therefore, we have no doubt that the 2013 Hundred Acre Kayli Morgan vintage has everything a good investment wine should. Quantity is limited and with usual high interest in the 100-point wines, we recommend acting quickly.