Big name, good wine? Why celebrities are discovering the wine business for themselves

Fine wine is “in”

Wine and champagne are in fashion. They are regarded as chic, as cultural assets, and — in contrast to spirits or beer — have a positive image. As a result, the worldwide wine consumption over the past twenty years by over five percent — in Asia, the increase was as high as 44%. Even the global market for premium wine records high growth rates: It was estimated at 343.83 million dollars in 2021 and could reach 531.69 million dollars by 2029, with a CAGR of 5.60% expected in the forecast period 2022-2029.

There are many reasons for wine as a “trendy drink”. On the one hand, it is assumed that a social lifestyle and a high, disposable income — particularly in Asian and African countries — will offer potential opportunities for the growth of the premium wine market in the coming years. Factors such as an increasing number of wine bars and specialized e-commerce shops could also contribute to this.

With these celebrities, you can toast

However, business interest is not the only reason for most celebrities to enter the wine business. Many stars appreciate, for example, the predestined vineyards - especially in France - which, including the château, serve as a luxurious retreat with a prominent neighborhood. Image transfer also plays a role. Beautifully designed labels and bottles with appropriate, elegant contents also make the wine producer appear in a brilliant light. And: make stars “tangible” for fans in a certain way.

As a pioneer in the celebrity wine segment, Francis Ford Coppola. As early as 1975, “The Godfather” acquired part of formerly world-famous Inglenook Estate in Napa Valley. Within a few years, the director led the stately residence to new fame and, in collaboration with his outstanding oenologist and wine strategist Corey Beck, produced a series of very successful wines. These include, for example, the high-priced “Inglenook Rubicon”.

Wine celebrities from the very beginning also include Gerard Depardieu. He bought his winery on the Loire back in 1989 and the actor is now said to own several wineries in France, North Africa and Latin America. Depardieus wines with fancy names such as “Ma Verité” or “Ma Référence” range in the price range between 15 euros and 55 euros.

vocalist Sting invested with wife Trudie in 1999 in the rundown Il Paligio Winery in Tuscany, production switched completely to organic wines and brought it back to its former size. Sting even refines particularly successful wines with song names: Varieties such as “Roxanne”, “Message in a Bottle” or “When we dance” are available in stores starting at around twelve euros.

Purchased in 2011 Brad Pitt Together with his former wife Angelina Jolie, the Miraval estate around 60 kilometers east of Aix-en-Provence. As early as 2013, a Miraval by Jolie Pitt & Perrin from the renowned “Wine Spectator” as “world's best rosé” excellent. Miraval now produces a rosé that was deliberately designed as a wine for every day at a price of around twelve euros. Miraval's latest product, however, is an expensive, limited edition rosé champagne for over 300 euros a bottle. Brad Pitt could have hit the mark once again: Rosé exports in the USA, the most important export destination for wine, rose by a whopping 118 percent between 2015 and 2020. In view of this, it is hardly surprising that the value of Pitt's estate in Provence is now said to have more than doubled to around 140 million euros.

rapper Jay-Z Is not satisfied with wine - for him it must be champagne. In 2014, he bought the largely unknown champagne brand Armand de Brignac and created the cult champagne “Ace of Spades” in gold-plated bottles, which became a cult object in certain circles. The bottle price is currently over 300 euros. At the beginning of 2021, Jay-Z sold around 50 percent of the company shares in the luxury group LVMH - However, the purchase price was kept confidential.

Investment option celebrity wines?

Celebrity wines have long been much more than fun products from show stars. But why should you buy or drink wine just because it comes from a person who plays, sings or acts well in soccer? Don't you just pay for the name? Not only. Prominent winemakers naturally receive plenty of support from wine experts in growing and producing their wines. That's why Brad Pitts or Gérard Depardieus drops are relatively cheap, but still very good to drink. True fine wine lovers and investors will - perhaps apart from the Inglenook Rubicon - have little interest in celebrity wines. Because they are particularly impressive due to clever marketing.

Features of Fine wine, which can also be interesting as an investment, on the other hand, include a unique history, complex aromas, exquisite individual vintages, special vintages or good reviews from wine professionals such as Robert Parker. In addition, fine wine must be stored expertly in order to reach perfect drinking maturity. While cheap wines mostly deteriorate when stored for a long time, first-class red or white wines can be enjoyed for a long time and often only reach optimal drinking maturity after two decades.

Celebrity wines are therefore particularly suitable as gifts or accompaniment to a good dinner. Fine wine as an investment, on the other hand, is a very complex issue. Collectors of fine wines can achieve very attractive returns on their investments in the long term, but they should have the necessary expertise and storage space. Find out how newcomers can also benefit from Fine Wine as an attractive portfolio component on the FINEXITY marketplace.