- Louis Roederer’s Cristal 2013 is currently offered at a big discount (-20%) in the Hong Kong market (due to seasonal factors). This represents a significant arbitrage opportunity.
- Collectors / traders should acquire and hold Cristal 2013 in Hong Kong to benefit as the price rises to the international benchmark through the Autumn.
- Cru’s storage and re-sale platform means this opportunity open to all investors / collectors, wherever they are in the world.
- Any client – regardless of location - can buy, store and re-sell Cristal 2013 in Hong Kong.
- Cristal 2013 is an excellent long-term hold even without a discount: one of only three Cristal vintages to have scored 98 points or more from Wine Advocate.
- Cristal remains one of our top long-term collection recommendations due to its global demand profile.
Cristal 2013: Offered at a -20% Discount in Hong Kong
Cristal 2013 is currently offered in Hong Kong at a -20% discount to the international benchmark price (HK$ 12,750 versus HK$ 15,280):
Traders / collectors can take advantage of this arbitrage buy acquiring and holding inventory in Hong Kong and waiting for the price to correct upwards to the international benchmark over the next 5 to 6 months. Clients in Singapore can also have it shipped there to take advantage of higher prices in that market.
Why is this Arbitrage Available?
It shouldn’t be.
Hong Kong is one of the biggest markets for Cristal, receiving large allocations in the primary market. Demand is especially strong around Christmas, New Year and Chinese New Year, but it can dip in July / August as buyers are travelling. Plus, on-going virus restrictions have limited on-trade demand temporarily.
New supply from Louis Roederer is also declining quickly in all markets in Cristal 2013. Once this tap is turned off, on-going demand will have to be satisfied from the secondary market alone. Traders can position themselves now to take advantage of this future demand / supply imbalance by buying and holding Cristal 2013 in Hong Kong today.
We have also seen a pickup recently in trading in Cristal across all vintages, testifying to the on-going strength of demand globally for this Champagne.
Cristal 2013 is one of Top 3 Vintages Ever
Louis Roederer’s Cristal was first released commercially in 1945. Wine Advocate has rated it since 1985.
Since 1985, 17 vintages of Cristal have been released (not counting the Rosé and Vinothèque). Of these, only 3 have been awarded 98 points or more by the most influential ratings service Wine Advocate:
Wine Advocate’s William Kelley calls the 2013 a “perfect combination” of the 2008 and 2012 vintage “from a purist’s perspective”. Interestingly, Cristal 2013 is more highly rated by Wine Advocate than the 1996 or 2002 vintages.
With a drinking window to 2060, Cristal 2013 is clearly going to be a fixture in the fine wine pantheon for many decades to come.
Cristal Champagne is a Key Long-Term Investment Holding
Cristal Champagne is one of the most sought-after brands in fine wine. The best vintages of Cristal have been amongst the best performing in the whole market. We see no signs of slowing demand for Cristal (quite the contrary) and hence we see any chance to buy the very top vintages at a discount as a golden opportunity.
This report has been issued or approved for issue by an entity forming part of Cru (as defined below) and has been forwarded to you solely for your information and should not be considered as an offer or solicitation of an offer to sell, buy, or subscribe to any securities or any derivative instrument or any other rights pertaining thereto (“financial instruments"). This report is intended for use by professional or business investors only. This report may not be reproduced without the consent of Cru.
The information and opinions expressed in this report have been compiled from sources believed to be reliable, but, neither Cru, nor any of its directors, officers, or employees accepts liability from any loss arising from the use hereof or makes any representations as to its accuracy and completeness. Any opinions, forecasts or estimates herein constitute a judgement as at the date of this report. There can be no assurance that future results or events will be consistent with any such opinions, forecasts, or estimates. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied is made regarding future performance. This information is subject to change without notice, its accuracy is not guaranteed, it may be incomplete or condensed and it may not contain all material information concerning the product or products mentioned. Cru is not agreeing to, nor is it required to update the opinions, forecasts or estimates contained herein.
The value of any products mentioned in this report can fall as well as rise. Foreign currency denominated products are subject to fluctuations in exchange rates that may have a positive or adverse effect on the value, price or income of such products.
This report does not have regard to the specific instrument objectives, financial situation and the particular needs of any specific person who may receive this report. Investors should seek financial advice regarding the appropriateness of investing in any products or investment strategies discussed in this report.
Cru (or its directors, officers or employees) may, to the extent permitted by law, own or have a position in the products of any company or related company or products referred to herein and may add to or dispose of any such position or may make a market or act as a principal in any transaction in such products. Directors of Cru may also be directors of any of the companies mentioned in this report. Cru (or its directors, officers or employees) may, to the extent permitted by law, act upon or use the information or opinions presented herein, or research or analysis on which they are based prior to the material being published. Cru may have issued other reports that are inconsistent with, and reach different conclusions from, the information presented in this report. Those reports reflect the different assumptions, views and analytical methods of the analysts who prepared them.
For the purposes of this disclaimer, “Cru” shall mean: (i) Cru London Limited; (ii) Cru Asia Limited and (iii) from time to time, in relation to Cru London Limited and/or Cru Asia Limited, the ultimate holding company of that entity, a subsidiary (or a subsidiary of a subsidiary) of that entity, a holding company of that entity or any other subsidiary of that holding company, and any affiliated entity of any such entities.
This publication is confidential for the information of the addressee only and may not be reproduced in whole or in part, copies circulated, or disclosed to another party, without the prior written consent of an entity within Cru. Products referred to in this research report may not be eligible for sale in those jurisdictions where an entity within Cru is not authorised or permitted by local law to do so. In particular, Cru does not allow the redistribution of this report to non-professional investors or persons outside the jurisdictions referred to above and Cru cannot be held responsible in any way for third parties who effect such redistribution or recipients thereof. © 2022.