Wine as an investment in the wake of globalization. Kym Anderson School of Economics, University of Adelaide, Australia [email protected] Institute for Quantitative Investment Research Conference Chateau la Couspaude, Bordeaux, 9 October 2008. Investment by whom?. Wine producers
Growth of Aust. wine exports, 1970-06 since the late 1980s
Sources: AWBC Export Approval Database, ABS Catalogue No 8504.0
Source: Rabobank, 2006
Big changes in Aust varietal mix since 1980 MJT rises beyond 19
Source: ABS Vineyard Survey
Vim = fim/fm
where fim is the fraction of variety m in region i’s crush and fm is the fraction of that variety in the national crush
Ri = Pi/P
where Pi is the average price for region i and P is the national average winegrape price
=> Dearer to buy high-scoring wines, but are they more enjoyable? And do high-scoring wines offer a higher return if stored?
=> considerable under-investment in this asset class?