From Popularity to Prestige

We explored last week the birth of wine, and its development into global and widespread consumption up to the 19th century. By the Renaissance, certain wines had already begun to symbolise prestige thanks to their growing appeal among European elites and royal courts.  Below we discover how fine wine blossomed into a symbol of luxury.

Bordeaux classification of 1855

In the 19th century, the emergence of “Premiers Crus” launched the concept of hierarchy in wine. The Bordeaux Médoc Classification of 1855 established tiers of quality, recognising that certain estates produced exceptional wines worthy of higher value. This formalised the idea that not all wines were created equal, differentiating everyday consumption from luxury, exclusivity, and a marker of social standing.

The Parker effect

For many years, wine prices rose steadily in line with inflation. A turning point came in the 1980s, driven in large part by the influence of renowned wine critic, Robert Parker. His glowing reviews of Bordeaux’s 1982 vintage drew unprecedented attention, and new demand (particularly from the United States) to the fine wine market. From this point, prices of top Bordeaux wines rose with increasing pace, passing the $100 per bottle mark by the millennium.

By the year 2000, the spread in wine pricing from Bordeaux First Growths, down to everyday drinking wines presented a natural division both in their respective consumers, and their perception. Wine’s recent value appreciation quickly became a subject of intrigue for wine trade and collectors alike, who recognised the potential investment opportunity.

Next week, our third installment will be exploring wine’s evolution into a prised, long term real asset.