A Study of the Evolution of High-End Wines in Switzerland

13 Pages Posted: 30 Jun 2012

See all articles by Philippe Masset

Philippe Masset

University of Fribourg - Faculty of Economics and Social Science

Jean-Philippe Weisskopf

EHL Hospitality Business School

Vincent Deboccard

Ecole hôtelière de Lausanne

Date Written: June 29, 2012

Abstract

In this paper, we analyze the evolution of fine wine prices over the period 2000-2010 on the Swiss market. We first estimate a fine wine index with several sub-indices (e.g. Bordeaux index, First growth index) using hand-collected hammer prices from Steinfels – the leading wine auction house in Switzerland. We then study the evolution of these wine indices. Not surprisingly, we find that high-end wines have achieved impressive returns over the last decade, with first growths from the Médoc being the very best performers. They have significantly outperformed Swiss stocks whilst maintaining a weak correlation with traditional asset classes like equities and bonds. These results confirm previous evidence that fine wine can be considered as an appealing alternative investment vehicle.

Keywords: wine, alternative assets, portfolio diversification, risk

JEL Classification: G11, G19, N50, Q14

Suggested Citation

Masset, Philippe and Weisskopf, Jean-Philippe and Deboccard, Vincent, A Study of the Evolution of High-End Wines in Switzerland (June 29, 2012). Available at SSRN: https://ssrn.com/abstract=2096164 or http://dx.doi.org/10.2139/ssrn.2096164

Philippe Masset (Contact Author)

University of Fribourg - Faculty of Economics and Social Science ( email )

Fribourg, CH 1700
Switzerland

Jean-Philippe Weisskopf

EHL Hospitality Business School ( email )

Route de Cojonnex 18
Lausanne, 1000
Switzerland

Vincent Deboccard

Ecole hôtelière de Lausanne ( email )

Route de Cojonnex 18
Lausanne, 1000
Switzerland

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