“However, our results suggest that diversification across other wine-producing countries is likely to be much more efficient in reducing overall investment portfolio risk. “This is probably due to the fact that fine wine prices are sensitive to climate variations at a geographical level.”

 

The fine wine market, which is now valued at approximately $4bn (£2.6bn), has experienced fast-growing demand from Asian and Far Eastern markets, according to the University of East Anglia’s experts. It has had a tough time of late, however, suffering falls in 2011 which have only in the past few months began to stabilise. Andrew della Casa, director of The Wine Investment Fund, says: “2012 has seen falls in the prices of the biggest names in the wine market, the so-called ‘first growths’ of Bordeaux. Château Lafite has been the weakest of these.

 

“Anyone expecting the market to be boosted by the 2011 en primeurs looks likely to be disappointed. Early prices have been over-ambitious for what is an average vintage at best. “Château Latour’s announcement that it will not offer en primeur from 2013 has interesting longer-term implications: it might drift out of the spotlight, although, on the other hand, the brand might gain greater cachet from being less accessible.

 

“On balance we believe the move is probably positive for prices of back vintages of Latour.”