Krug Champagne's standing in the Champagne region is comparable to that of Chateau Petrus in Bordeaux and Domaine de La Romanee-Conti in Burgundy. Krug's adherence to traditional craftsmanship, legacy of unmatched precision, and meticulous production methods are all indicative of the family's unwavering commitment to excellence. Due to its sophistication, nobility, and scarcity, Krug Champagne is a highly coveted rare gem.
The Origins of Prestige Krug Champagne
Krug Champagne was established in 1843 by Johann-Joseph Krug, a German aspirational winemaker with a steadfast commitment to crafting a unique Champagne. Joseph began his professional career at Champagne Jacquesson, a famous Champagne house, where he earned the trust of the owner at the time, Adolphe Jacquesson, in order to secure a partnership. Once Joseph came to the realization that the fundamental nature of Champagne was to be enjoyed, he abandoned his initial lavish approach in favor of establishing his own winery, Krug Champagne, which specialized in Champagne with an original aesthetic.
Although it is currently owned by the LVMH Group, the Krug family continues to manage and construct the residence. At the helm of the establishment at present is Olivier Krug, a member of the Krug family's sixth generation, currently leads the establishment.
A Wine Cellar at the Library Level Symbolizes Krug's Dedication to Quality
In order to maintain a harmonious and diversified palate and to guarantee consistent flavor, Krug, a palace-level Champagne house, retains an exceptional resource among its holdings: reserve wines. In the past, it was not customary to retain base wines; however, the Krug family has developed the practice of setting aside a portion of the annual output as reserve wines. The reserve wines are a valuable basic material that encapsulates the knowledge and labors of the producers' predecessors and have undergone meticulous selection. The most valuable asset of Krug is its wine cellar, which contains over one million bottles of reserve wines and more than 150 varietals. In batches, the cellar personally selects the finest wines from each vintage and vineyard, allowing many houses to compete at a fraction of the level.
An Extraordinarily Potent Champagne that Defies the Limits of Vintage
Krug has regularly released the new Grande Cuvee, the most significant Champagne, since 1843. Grand Cuvee Champagne is crafted over a period of ten to twenty years from the time it is bottled (for example, Grande Cuvee 171 is a blend of 131 wines from twelve different years, with the youngest wine being from 2015 and the oldest from 2000; this necessitates more than twenty years of meticulous craftsmanship). The guiding principle of Joseph Krug, the founder of Grande Cuvee, is that this composition should be modified annually in order to reproduce the most opulent expression of Champagne. Blending Grande Cuvee commences each occasion anew; there is no predetermined formula for this process. Tasting it is the only viable option. In the winery, the cellar master and the sampling committee will individually evaluate over two hundred cellar reserve wines, including Chardonay, Pinot Noir, and Pinot Meunier from Grand Cru or ordinary village wines from the 1980s, 1990s, and twenty-first century. The blending process is predicated on the team's consensus regarding which wines will be combined to produce a Grande Cuvee that satisfies the criteria.
In addition to the standard Grande Cuvee, Vintage, and Rose, Krug produces two premier wines from a single vineyard. Clos du Mesnil Blanc de Blancs (100% Chardonnay) is the initial one. The grapes used are Grand Cru Mesnil Sur Oger. It covers an area of 1.84 hectares and produces around 12,000 liters annually. The second is Clos d'Ambonnay Blanc de Noirs (100% Pinot Noir), which is also a Grand Cru. However, this region spans only 0.685 hectares and produces between 3000 and 5000 bottles annually. It has been manufactured exclusively since 1995, 1996, 1998, 2000, 2002, and 2006. The average price on the market exceeds HKD $20,000 due to its extreme rarity, making it one of the finest and most expensive champagnes in the world.
Champagne: One of the Most Potentially Appreciating Investment Products
As of March 2024, data from Liv-ex (the London International Vintners Exchange) indicates that exquisite Champagne has exhibited a 45% increase in return on investment over the previous five years. In contrast to the comparatively higher-priced Bordeaux and Burgundy wines, Champagne offers wine investors a more accessible entry point. Additionally, the current wine market price adjustment presents an opportunity. In recent years, the Champagne market has presented the most advantageous opportunity for investors to enter, as the prices of certain Champagnes have declined from their peak levels. Although short-term market volatility will persist, Champagne continues to offer favorable long-term investment prospects.
Krug has historically been a darling among investors. Krug's historical investment return performance has been remarkably exceptional on account of its robust brand power, consistent quality assurance, and influential marketing efforts. Using the Krug Vintage Champagne series as an illustration, Liv-ex data as of March 2024 indicates that the five-year average return for Krug Vintage Champagne is 56%. Notably, Krug Vintage 1998 exhibits the highest five-year return at 79.6%. Krug can be incorporated into the portfolios of investors in the current market price correction, given that the cost of champagne tends to increase over time.
In Summary
Krug has a long legacy spanning over 180 years, during which it has guided its vision towards meticulous quality and origin. This concept is still being pursued by six generations of the Krug family, who are continually expanding the brand's vision and refining its craftsmanship, thereby establishing Krug as one of the world's most distinctive leading Champagne houses. In the present day, wine investors have come to recognize Champagne's investment potential and capacity for maturation. Krug, being one of the most frequently traded champagnes on the market, is unquestionably an asset for any collection.
