Why invest in fine wines from Tuscany, the most famous Italian wine region

by Apr 29, 2020News, Wine Trading Academy0 comments

Sergey Glekov

Senior financial advisor

The bucolic view of Montalcino, Tuscany (photo by Breno Salvador, July 2016)The bucolic view of Montalcino, Tuscany (photo by Breno Salvador, July 2016)

The bucolic view of Montalcino, Tuscany (photo by Breno Salvador, July 2016)

Tuscany is the most famous Italian wine region – and probably one of the most notable wine regions in Europe.

Located in central Italy, along the Tyrrhenian coast, Tuscany has a strong reputation created on iconic wines such as ChiantiBrunello di Montalcino and Nobile di Montepulciano.

With a long wine history and a favorable climate, Tuscany has earned its name as a prolific wine region.

The history of viticulture in Tuscany can be traced back as far as the fifth century BC. The Tyrrhenian Sea gives the area a warm Mediterranean climate and hilled inland areas where increased diurnal temperature variation helps to maintain the grapes’ balance of sugars, acidity, and aromatics.

tuscany.jpgtuscany.jpg

 

One grape variety that particularly thrives on these hillside vineyards is Sangiovese, the Tuscany’s most prominent grape. High-quality Sangiovese wines are valued for its high acid, firm tannins and balanced nature.

Many different clonal varieties of Sangiovese have presence in Tuscany, as many local towns have their own version of Sangiovese (for instance, in Montalcino – Brunello di Montalcino, in Montepulciano – Prugnolo Gentile).

Cabernet Sauvignon has been planted in Tuscany for over 250 years, but due to the rise of the Super Tuscans it has only recently become associated with the region. Among other international varieties planted in Tuscany are Cabernet Franc, Chardonnay, and Merlot.

Three Tuscan wines are already available on Alti Wine Exchange.

Click on each of them to know more details for investment: 

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As retail price dynamics are not available for the abovementioned wines, we created a peer group of fine, high-quality Tuscan wines to examine returns in these wines over two years holding period.

The peer group of Tuscan wines includes the following constituents:

  • 2013 Marchesi Antinori Solaia Toscana, Tuscany (the same wine producer as #1 listed above)

  • 2013 Masseto Toscana, Tuscany (the same wine producer as #2 listed above)

  • 2010 Donatella Cinelli Colombini Casato Prime Donne Riserva, Brunello di Montalcino (the same wine producer as #3 listed above)

  • 2013 Tua Rita Redigaffi Toscana, Tuscany

  • 2013 Il Marroneto Madonna delle Grazie, Brunello di Montalcino

  • 2013 Tenuta San Guido Sassicaia Bolgheri, Tuscany

  • 2010 Valdicava Madonna del Piano, Brunello di Montalcino Riserva

  • 2013 Fontodi Flaccianello della Pieve Colli della Toscana Centrale, Tuscany

  • 2010 Biondi Santi Tenuta Greppo Annata, Brunello di Montalcino

  • 2010 Casanova di Neri Cerretalto, Brunello di Montalcino

Exhibit #1

Price dynamics of Tuscan wines peer group over last two years

tuscany indexes.jpgtuscany indexes.jpg

 

All Tuscan wines from our peer group deliver positive returns in euro over the last two years. The average price growth between April 2018 and March 2020 among the peer group wines amounted to a robust 23%.

2010 Donatella Cinelli Colombini Casato Prime Donne Riserva, Brunello di Montalcino has demonstrated the outstanding performance: retail prices increased from €83 to €119 or 43.6%. The price performance of 2013 Marchesi Antinori Solaia Toscana, Tuscany is almost in line with the Tuscan Wine Index that makes wines produced by Marchesi Antinori are a wise, low volatile investment.

Prices of 2013 Masseto Toscana, Tuscany has increased slightly lower than the average, but 2013 Masseto Toscana, Tuscany is the most expensive wine in the peer group and even the most expensive Tuscan wines.

We can consider the wines and vintages mentioned above as reference points – as only later vintages of the same producers are available on Alti Wine Exchange. However, they have a similar price growth potential due to the extremely high quality and critic scores.


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