Although this has significantly affected wine producers, Amphora Portfolio Management director David Jackson notes that this impact has yet to manifest in the investment sphere. He explains that improvements in technological advances in wineries’ better understanding of how grapes are grown and how wine is made have lessened the impacts of climate change, with wineries taking advanced proactive measures to ensure quality production.
This year, Europe experienced its hottest summer on record. In France, a key winemaking country, the average nationwide temperature soared to 27.8°C on Aug 24, marking the highest heat recorded since 1947.
Given the vulnerability of wine grapes to temperature shifts, this has sparked concern among investors and collectors about the potential impact of climate change and global warming on their future investment portfolios. This is because the quality of wine can be affected by extreme temperatures and precipitation — warm temperatures, for instance, can increase grapes’ sugar content, leading to sweeter wines.
