Penfolds Australian wine continues overseas success on home soil

Penfolds has proved itself as an attractive opportunity for those investors looking away from the world's leading crus, after topping the list of the top 25 Australian wines traded at auction in 2012.

Penfolds wine
The report shows investors looking towards the secondary wine market

The list, which tracks the movements of wines in Australia's top five auction houses, shows that the Penfolds 1998 Cabernet Shiraz has grown in value by 3.9% over the past 12 months, and is the most popular Australian wine at auction.

Penfolds' 1996 Cabernet Shiraz - the third most popular wine - has shown the biggest increase in value, rising 8.9% since the start of the year. Overall, the top five wine auction houses have posted a combined total of $17.5m in sales for 2012.

Paul Fraser Collectibles has previously reported on the increasing popularity of Penfolds in Asia, with values for the 1998 Penfolds Grange rising by 30% between 2010 and 2012, according to the Drinks Business. This can be attributed to Asian buyers looking for alternative prestige bottles, following a 24.2% decrease in value for the Lix-ex 50's Bordeaux first growths over the same period.

However, Burgundy remains a robust area for investors, with the Liv-ex DRC Index - which tracks the brand's leading crus - showing an increase of 34.5% in the last two years.

It will be a long time before Australian wines can compete at the forefront of auctions, yet these recent results suggest a diversification away from the primary market.

See our wine market 2012 auction review for more of the top sellers in 2012.

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