Celebration, luxury, and exclusivity are just a few words that may pop into your mind when thinking of champagne. Champagne has been a part of French royal traditions for more than a thousand years. Since then, the demand for champagne has increased exponentially and producers are unable to produce enough.
Investors quickly realized that champagne is an attractive asset to invest in. If you want to know more about why to invest in champagne visit rekolt.io/invest-in-wine/champagne.
We'll be discussing some of the reasons champagne prices have risen and why you might consider investing in champagne.
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Production is Limited and Constrained
Champagne's increasing demand has made it difficult for producers to keep up. There were 20 million bottles of champagne in 1850, and now there are 300 million. Production is heavily restricted as champagne can only be produced in the Champagne region of France. Given today's demand, the current production levels are already at their highest.
It's usually "vintage champagne" that is used to make investment-grade champagne. Vintage champagne is different from non-vintage champagne. It only gets produced in the most prestigious years, and only contains grapes from that year. They are usually of better quality and will be limited in production.
As champagnes get consumed, the supply and availability of vintages of a particular year decrease, and as a result, the price increases. Champagne lovers may choose to drink an older or a different year's champagne because, just like fine wine, champagnes get better with age. Top champagnes can improve and develop in the bottle for up to 20 years or more and can be consumed long after that.