Investing in Fine Wines & Rare Spirits

Though we may be well past the 90s and Y2K, perception continues to be a deciding factor in the minds of buyers the world over. Especially when it comes to collecting fine wines and spirits.

"The power of reframing things cannot be overstated." – Rory Sutherland

One of the great mistakes, Sutherland says, of economics, of business, of life, is the failure to understand something as a function of its meaning, as well as its amount. When it comes to human decision-making, too often the psychological, creative, emotionally-driven ideas are totally forgotten about – if at all considered in the first place. That's not to say abstraction trumps concrete ideas, but when market competition is rife – and climbing – what something is tends to matter less than how we perceive it.

With alternative asset investments like fine wines and rare spirits, the financial benefits are manifold and apparent:

• They have a proven track record, fine wines specifically have been one of the best-performing assets for the last three decades, with a 10% CAGR;
• They're an improving asset, where consumption and limited production breed scarcity and a natural supply-demand imbalance drives price.
• Their value is fairly unaffected during times of market turmoil like the 2008 crisis, COVID pandemic or other economic downturns.

On top of being sound investments, rare and limited-edition alcohol investment has an edge that traditional assets don't. An edge being pushed further by clever brands.

Distilling Value: Ingredients To Give Fine Wine & Spirit Brands an Edge Over Competition

Some perceptions are more finite than others, but many are pushed and pulled by fluxing social attitudes. In 2024, vice and virtue are two sides of the same coin. The global turmoil of the last half decade has bred a carpé diem culture, in which people are embracing their inner hedonists or reframing taboos. Simultaneously, vows of sobriety are evolving into indulgent moderation with many taking a 'less but better' approach to alcohol.

These trends, alongside a rise in asset/investment culture – where buyers are increasingly perceiving their possessions as such – and progressively democratised access to these spaces, present possibilities in the category that are impossible to overlook. But, in a sea of sound investments, the question becomes "why them"?

Compelling Brand Narratives

At the heart of a timeless brand is the ability to tell a story — weaving a tale for audiences to invest in, imbued with an intangible spirit that may track all the way back to a brand's founding, in the hope buyers can get behind it as much as internal stakeholders.

When Ziegler, one of Germany's most famous distilleries, settled on the riverbanks in Freudenburg since 1865, tentatively approached the idea of a fresh brand, they did so knowing it must convey their rich heritage just as much as a rich flavour profile. Executed by PARTERRE, a Vienna-based creative consultancy, Ziegler's new identity is largely founded in serif typographic treatment – carefully selected fonts nod to a tradition and product that have written history.

Near each 'Z' on the label is a brand mark inspired by a historic sandstone archway in the distillery, an element retained from the previous identity but newly reimagined. Incorporating the date 1865, the mark has been reconfigured into a versatile grid used throughout the brand system. Whether on letterheads, labels, or within structured layouts, the mark is subtle yet consistently present.

With products that are distilled and aged for years-on-end, wine and spirits brands have unique opportunities to devote narratives to their decade-spanning craft.

Take Glenfiddich. Every interaction with the brand teasingly reveals the tale of their maverick beginnings, raw determination and intense passion. It's clear, however, their history isn't a crutch to lean on but rather a precursor to the brand's innate spirit, translated in a majestic yet refined identity.

Others convey spirit through sprawling brand worlds – real or fictional. A London-based wine brand, Racquet Rosé, operates as a "distinguished but welcoming" members-only tennis club: The Rochambeau Club – a completely fictional setting along the Côte d'Azur that has been crafted almost entirely from a tone of voice and art direction that blends old money pastiche, Wes Anderson eccentricity and tongue-in-cheek sauciness.

More granularly, campaigns can reveal new threads to a brand's creative platform. Chapel Down's brand line "For life's big little moments" is beautiful in and of itself, further distilled in campaigns like "Celebrate The English Way" which simultaneously conveys the brand's position as a distinctly English winemaker.

Though competition may be fierce, there's plenty of space to play in for clever challenger brands. The UK are missing a trick in the absence of its own term for the sparkling wine it produces – an equivalent to Champagne, Prosecco, Asti and so on. Sparkling wine and similar terms feel cheap and carry too much baggage from yesteryear. By crafting an agreed term that feels elevated, the coterie of UK-based producers will be well-poised to benefit from the influx coming their way thanks to changing climates.

Value-Based Innovation

In line with the emerging enlightenment among global audiences, wine and spirit brands worldwide are investing in boosting their eco-credentials without compromising on flavour profiles — many returning to more traditional methods of harvesting & production to do so.

The Regeneration Project, the first-ever Islay Rye Whisky, by Bruichladdich Distillery is a limited-edition exclusive proving incredible whisky can still make a real difference. It encapsulates the company's 'farmer first' philosophy using rye – a beneficial crop which replaces essential nutrients in the soil – instead of barley.

"The Regeneration Project is the start of something bigger than whisky. This is innovation which keeps value in the community while pursuing flavour and reducing impact – showcasing the true power and potential of reconnecting land and dram." And if you're still unconvinced, have a look at the bottle.

As climate chaos destabilises a slew of much-loved ingredients (rising temps mean a milder taste for coffee and more sugar acquired in wine grapes), the future of flavour will undoubtedly be earth-kind.

Scientists in Edinburgh are on a six-year mission to restore centuries-old whiskey flavours as the spirit becomes one of luxury’s highest-performing investment classes, demonstrating 428% growth in the past decade (outperforming cars, wine and watches).

Planning to test eight heritage barley varieties, including Britain’s most popular Chavallier and McCallan’s Golden Promise, the hope is they will reintroduce favourable aroma characteristics as well as resilience to changing climate stresses.

"It's using innovation to bring back characteristics that have been lost by switching to newer varieties of barley... flavours and aromas that haven't been present in whisky for decades, if not longer.”
Marc Watson, Head of Spirit Operations, Holyrood Distillery

Environmental pursuits aren't the only cause collectors care about. With a new cohort gaining wealth, a far more democratised future is ahead of us. Luckily, products which were once exclusive to auction houses and private transactions are more accessible than ever before thanks to marketplaces like BlockBar.

Striking Designs & Showpieces

Much of the appeal of collecting lies in owning (and usually displaying) beautiful things. We are innately drawn to exquisite items, wanting our lived experiences to be punctuated by the extraordinary. Psychologically the accumulation of unique things stimulates the brain in areas linked to the pleasure centre; emotionally we’re finding a connection to either ownership or to the items themselves.

Whether it's Jaywalk Rye's defiant brand identity, Ossa Wine's beautiful digital experience or the intricate craft of Clase Azul Reposado, there's something about beautiful things we want to gather and keep.

Whilst what inside is arguably what counts, there’s no doubt that the vessel a drink comes in is what drives major value and prestige. Grey Goose being a primary example.

In line with growing consciousness around the environmental impact around purchases, global spirits giant Diageo produced its first Johnnie Walker whisky bottle made entirely from paper-based products in 2021. Pulpex, which utilises sustainably sourced wood pulp to create the bottles, is part of Diageo's partnership with venture management company Pilot Lite to scale the production. The pairing are clearly seeing success – in May 2024, the group launched a trial for a paper-based bottle of Bailey's while the Johnnie Walker version is being developed further currently. Perhaps not immediately what we think of when collectables come to mind, but with a growing need for sustainable choices, Diageo are taking the much-needed steps – moves that mean something to multiple generations.

For the time being, collectors – both established and newcomer – are happy to invest in assets that double as showpieces.

Designed by renowned fashion photographer Mert Alas, the bottle of Seventy One gin (marketed as an 'elixir of the night') was conceived as a pillar of cut glass, inspired by his lifelong obsession with collecting crystal decanters. Anchored in the codes of haute perfumery, the octagonal geometric design leads up to a black metal cap set in bevelled shoulders, stamped with the brand's seal – the mythical god Krotos, creator of applause.

With sound in mind, last year, champagne house Piper-Heidsieck sought to amplify picnic season with a new product to complement the house's Essentiel Extra-Brut. Made of oak, the sleek coffret is part bottle holder, part smartphone holder and part 'natural sound amplifier' (it's a speaker); leveraging acoustic resonance to enhance "moments of conviviality" around their vintage.

Even more magnificent but still with an element of function, Hennessy X.O. fused cognac with couture back in March when the brand partnered with world-renowned designer Kim Jones for a limited-edition collection. Jones, who's worked with the likes of Mulberry, Dior, Louis Vuitton, Fendi, et al., was tapped by the liquor brand to explore Hennessy X.O.'s rich legacy through haute couture. The three-piece collection comprises a golden, molten sculpture in the shape of the bottle, a ‘wearable’ version of that sculpture (like a sexy tea cosy) and, of course, a pair of trainers – because no luxury collab can go without a trainer launch. Or can they?

Considered Collaborations

Collaborations in the space aren't as rare as the assets on offer, but they are often just as exceptional. By collaborating with fellow brands (or figures) who share a penchant for excellence, luxury labels are able to enter new realms, tap into new or even niche audiences and delight loyal fans with opportunities to invest in one-of-a-kind launches.

Combining common threads of creativity, craftsmanship and innovation, The Macallan recently partnered with Bentley Motors in a shared pursuit of achieving excellence. Done so through The Macallan Horizon – a limited-edition single malt whisky with a unique horizontal design. The idea was to repurpose materials artistically in order to produce something exceptional, never seen before even.

Crafted from six key materials, The Macallan Horizon is made from recycled copper from spirit stills, aluminium from Bentley's manufacturing process, recycled wood, recyclable glass and the world's lowest CO2 leather – all of which create a hand-crafted bottle with a remarkable 180-degree twist.

For a cool 25,000 euros, collectors can own a limited edition bottle of Moët & Chandon's Collection Impériale, designed by visionary Daniel Arsham. The masterpiece seeks a convergence of art and the artistry of winemaking, transcending "utilitarian purpose as collectables that will endure long after the champagne they hold is savoured."

Arsham selected a white cast resin as his medium, recalling the chalky soils of the Champagne region that line the cellars of Moët & Chandon. The vessel has subtle signs of erosion across its surface, evoking a sense of time passing while distinctive touches give it a mysterious and timeless feel.

In early December, Blockbar released 'Act One' of The Macbeth Collection in their partnership with Livingstone & Elixir Distillers. 42 Scotch whiskies from the length and breadth of Scotland, each representing a character from Shakespeare's best tragedy. What makes it even better? Each bottle's label has been illustrated by the legendary Sir Quentin Blake – the artist behind many children's books including Dr. Seuss' and Roald Dahl's. A collector's piece through and through.

Experiential Strategies

Away from the physicality of products, plenty who play in the fine wine and spirits sector do so in person.

The Dorchester's Vesper Bar explores the relationship between scent and memory through its Essentia menu for discerning drinkers. Unveiled in April, the innovative concept has been described as a "symphony". Each of the 11 serves is inspired by a memory from each of the bar’s mixologists. Examples include Sunkissed Summers (Mediterranean gin, rhubarb and aloe vera), evoking a boat trip to Capri, and Turning Pages (whisky, cognac, white port, paper syrup and smoke), which conjures the smell of uncovering an ancient book. To be the whisky in that particular mix could be the deciding factor to a potential buyer.

In a more sober-curious vein, La Dame de Pic – a French fine dining restaurant in London's Four Seasons – offers Imprégnation Absolue, an alcohol-free pairing menu for the more moderate among us. The name refers to the process of steeping, heating, smoking or marinating premium ingredients to produce novel and unexpected flavour combinations. At the table, patrons watch as various teas, sauces, and drinks are created, providing them with a fragrant preview of what's to come before they dive into the four-, six-, or eight-course menu.

Elsewhere, Veuve Clicquot have given a unique commission to a team of world-class photographers: to capture what it is to be inspired by the sun. An ode to the house's focus on Solaire culture, the collection began as an immersive installation in Milan, now in NYC's Soho, where guests can sip on vintage and bask in 'Emotions of The Sun'.

Whatever it may manifest as, experiential offerings can be as valuable as the investment itself – an added layer to meaning and memory for collectors who want to connect with the label as much as the liquor.

What’s Next for Imbibers & Investors

We're seeing a general paradigm shift towards longevity, with populations casting off throwaway culture in favour of items with emotional durability as well as financial. Of course, accumulating zeros isn’t exactly off-putting.

Numbers are being placed on the back burner in favour of more abstract meanings, making the phrase ‘quality over quantity’ even more cliché than it already was. It’s a potent movement to be in, a sink-or-swim dynamic for luxury brands.

The forward-thinking among them will find the balance between conversion and building a brand with connection and value. How they go about it will be guided by founding spirit and maybe a dram for some dutch courage.

Whether it’s through storytelling, expert craftsmanship, bold branding choices, collaborations or immersive experiences, our advice is this: be as much a psychological success as an economic one.

Placing brands front of mind is a speciality of our practitioners. With a deep understanding of cultures, behaviours and tastes and well-aged barrels of creative vision, we know what it means to connect with the high-net-worth – some of the most discerning people on the planet, who want to invest in emotional links and expressive purchasing decisions. Chat to one of our consultants via [email protected] and let’s build bonds with your clientele that go beyond “financially sound” to enduring value across every dimension.

Find out more about our branding, digital innovation and design services here**.