Investment Tips - Burgundy - 28. November 2023

The Treasure Of The Future? 2018 Bouchard Chevalier-Montrachet

Luxury giant has recognised the growth potential in Bouchard. Understandably so. Because white Burgundy Grand Cru is both coveted and scarcely produced.

This article was updated on 16 April 2024. Updates will be marked with * in the sections where updates have been relevant.

The home of the world's best white wines is undoubtedly Burgundy, and when the suffix says, " Grand Cru", there is even more demand for the white, rich drops. Moreover, it is no big news that the reds have seen significant price increases in recent years - the same applies for the whites, but in a broader perspective, we have yet to see the great white wine success story. And there are still treasures out there.

Such a treasure would be the 2018 Bouchard Pére Et Fils Chevalier-Montrachet, which, in addition to having the amazing " Grand Cru" suffix, also bears the name "Montrachet" as another stamp of quality. Bouchard has gained prominent ownership. And They have a permanent place on the Liv-ex power-100 list.

2018 Bouchard Pére et Fils looks like a treasure of the future - if you leave it aside and let consumption do its job. Read much more here.

Bouchard Pére et Fils - Burgundy Dynasty With Prominent Ownership

In 1731, Michel Bouchard built the foundation for the domain that today resonates both powerfully and respectfully around the world: Bouchard Pére et Fils. Their quality-heavy reputation is built on continuous quality - whatever the wine and whatever the vintage.

For nearly 270 years, Bouchard Pére et Fils remained in the hands of the family, but in 1995 the Henriot family acquired the domain. And with that, Bouchard became part of the Maisons & Domaines Henriot group, which also includes reputable names such as Champagne Henriot and Beaux Freres (an American wine producer located in Oregon, USA).

In 2022, French private equity fund and luxury giant Artémis secured a significant stake in Maisons & Domaines. Henriot and Bouchard joined an enviable portfolio with names like Chateau Latour and Clos de Tart.

A luxury giant like Artemis is constantly scouting for businesses with growth potential for a profit motive. And naturally, it is only to be expected that Artemis will bring in the resources needed to grow a brand like Bouchard. Because when you are unable to sell more by simply increasing production, there is only one thing to do to increase earnings - and that is to increase prices through branding and marketing activities. As an investor, this is good for you for two reasons: From the centre, there will be an attempt to increase interest and demand for Bouchard and at the same time put pressure on the price development by raising the release prices of new vintages.

Chevalier-Montrachet: Montrachet Alike - Just Significantly Cheaper

Fabulous Chevalier-Montrachet measures approximately 7.3 hectares, of which Bouchard has 2.54 hectares. In 2018, Bouchard had a yield of between 48 and 60 hectolitres per hectare. This has resulted in a production of between only 16,256 and 20,300 bottles. A production that has obviously decreased since release due to ongoing consumption - and even at a price of €330, this is accessible to a very broad segment of the world's wine lovers.

The 2018 Bouchard Chevalier-Montrachet receives 92 points from Burghound, 94-96 points from Vinous and 94 points from Wine Advocate. Since the 2010 vintage, it has only been beaten by four vintages, although very little separates them*.

When it comes to white Burgundy, one of the most prestigious parcels is Montrachet, although Chevalier-Montrachet follows closely behind. The style is of course different, but many believe that the level of quality here can reach the same high quality as Montrachet. The price is just not the same.

For example, the 2018 Bouchard Montrachet scores 94.3 points across scores from Burghound, Vinous and Wine Advocate. 2018 Bouchard Chevalier-Montrachet scores 93.7 points across the same critics. 2018 Montrachet costs €600, while the price of 2018 Bouchard Chavlier-Montrachet is €330.

*Since this article was written, Wine Advocate as the only one of the above critics has awarded 94-95 points to the 2022 vintage, which is the latest release from the house. It is not considered relevant to the case here.

*Some or all scores within this vintage is barrelscores. *Some or all scores within this vintage is barrelscores.

Bouchard Chavalier-Montrachet: Power 100 And Spicy Performance

Bouchard Pére et Fils has been represented on Liv-ex's famous Power 100 list 9 out of 10 times over the past decade. The list is published annually and represents the 100 strongest brands in the wine market over the past year. The ranking on the list is numerical and various criteria determine the final ranking, including most traded wines in terms of value and volume. In 2022, Bouchard was ranked number 20, which emphasises just how coveted the Burgundy dynasty really is**.

Furthermore: According to Liv-ex, the last 10 vintages* of Bouchard Chevalier-Montrachet that have been on the market for five years have returned an average of 70.5% in five years, which equates to an average annual return of 11.3%***.

Add to this the fact that we were first able to offer 2018 Bouchard Chevalier-Montrachet widely for investment on 3 December 2021. If you invested then, you would have achieved a 20% return today. According to Vinous, the drinking window is 2023-2050 on this one, and it is usually only when the volumes disappear from the market that the first price increases start to appear. So there is plenty of opportunity to put aside and let consumption do its work.

*Vintage 2007-2016.

**Since this article was written, Liv-ex's 2023 power 100 list has been released. And here Bouchard has been ranked number 14 - which is better than their 2022 ranking.

***Since this article was written, the 10 most recent vintages are 2008-2017. The average annual return on these 10 is 11.2% and therefore almost identical to the return commented on in November.

2018 Bouchard Chevalier-Montrachet

2021 Burgundy: Rarity Is A Given

Although white Burgundy is a rarity in itself, there is another fact that can prove very important when it comes to investing in this particular category. With the 2021 vintage in Burgundy, rarity is a given, and there are reports of up to 80% losses, especially for Chardonnay, due to an unexpected spring frost that destroyed a large part of the vines.

"According to Liv-ex, the UK's equivalent of a wine exchange, low yields are forcing producers to push up prices to cover their costs. This results in release prices approaching +25% on average. While Burgundy's best wines are rare in themselves, the 2021 vintage remains a privilege for only a few."

The above quote comes from the article: 2021 Burgundy - Rarity Is A Given

Because the quantities of white Burgundy in 2021 are particularly sparse, there will be a natural search for older vintages where there may still be quantities to be found - in other words, it is important to get your hands on the quantities that actually exist.

RareWine Invest's Opinion

The world's best white wine comes from Burgundy. Period. And when it says Grand Cru on the label, it gets even more interesting. Here we are dealing with a top-shelf Burgundy producer that has long since established itself as one of the best producers of white Burgundy - if there was no growth potential, Artemis would not be interested in the domain.

According to Decanter, there has not been enough white Burgundy from the 2021 vintage to satisfy demand. There are already far fewer quantities of white Burgundy produced than the red counterparts, so what is available is extremely coveted. This 2018 Bouchard Chevalier-Montrachet is still available in the market, so this is a unique opportunity to secure investment-grade quantities for the great treasure of the future.

Predecessors have delivered great returns and led the way, and the 2018 Bouchard Chevalier-Montrachet has already satisfied investors in a short time.

Invest in 2018 Bouchard Chevalier-Montrachet

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.

VINTAGEWINEVOLPACKINGPRICE/BTL.*
2018Bouchard Chevalier-Montrachet750OC6€ 330
*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. Reservations are made for errors.

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