DOMAINE CLOS DE TART WINE ANALYSIS - Cult Wines

VALANDRAUD - COMTE VOGUE CHAMBOLLE MUSIGNY - LUNE ARGENT - GRAND PUY LACOSTE - GIACOMO CONTERNO BAROLO CASCINA FRANCIA - RIOJA ALTA RIOJA GRAN RESERVA 904 - DUHART MILON - CECILIA BERETTA VALPOLICELLA CLASSICO SUPERIORE TERRE DI CARIANO - CHAPOUTIER ERMITAGE MEAL - GUIGAL COTE ROTIE TURQUE - JOSEPH FAIVELEY MAZIS CHAMBERTIN - LEOVILLE BARTON - TORBRECK RUN RIG - GUSBOURNE BLANC DE BLANCS - PONSOT CHAPELLE CHAMBERTIN - DRC RICHEBOURG - LYNCH BAGES - BOUTISSE - DUCRU BEAUCAILLOU - MEYNEY - PETIT MOUTON - DOMAINE LEFLAIVE BATARD MONTRACHET - TROTTEVIEILLE - PELICAN ARBOIS SAVAGNIN OUILLE - MIRAVAL COTES DE PROVENCE ROUGE - BEAUSEJOUR DUFFAU - PONSOT CLOS ROCHE VV - SASSICAIA - LAMBRAYS CLOS LAMBRAYS - POUJEAUX - DOMAINE LEFLAIVE BIENVENUES BATARD MONTRACHET - LATOUR - ARMAND ROUSSEAU CHARMES CHAMBERTIN - MOET & CHANDON DOM PERIGNON - DOMAINE LEROY CLOS VOUGEOT - BAHANS HAUT BRION - BENJAMIN LEROUX PULIGNY MONTRACHET CHAMP GAIN - MASSETO - MICHEL OGIER COTE ROTIE - GAJA SORI SAN LORENZO - GAZIN (POMEROL) - TUA RITA REDIGAFFI - LAVILLE HAUT BRION - FARGUES - BIONDI SANTI BRUNELLO MONTALCINO RISERVA - SAINTAYME - PENFOLDS GRANGE - GEORGES NOELLAT NUITS SAINT GEORGES CRAS - HARLAN PROPRIETARY RED - FELTON ROAD RIESLING BLOCK 1 - JOSEPH FAIVELEY CHAMBERTIN CLOS DE BEZE - ARLOT ROMANEE SAINT VIVANT - CLOS ST JEAN CHATEAUNEUF DU PAPE DEUS EX MACHINA - EVANGILE - PONSOT GRIOTTE CHAMBERTIN - CLOS PAPES CHATEAUNEUF DU PAPE - BEYCHEVELLE - CLOS FOURTET - TAITTINGER COMTES CHAMPAGNE - FELTON ROAD PINOT NOIR CORNISH POINT - DOMAINE LEROY CORTON CHARLEMAGNE - FELTON ROAD PINOT NOIR CALVERT - JOSEPH DROUHIN GRIOTTE CHAMBERTIN - KRUG VINTAGE BRUT - MOET & CHANDON DOM PERIGNON ROSE - TIGNANELLO - BASSERMANN JORDAN JESUITENGARTEN GROSSES GEWACHS - PICHON BARON - MALARTIC LAGRAVIERE - DOMAINE LEROY VOSNE ROMANEE BEAUMONTS - ECHO LYNCH BAGES - DRC ROMANEE CONTI - GUIGAL COTE ROTIE LANDONNE - RUINART DOM RUINART - COMTES LAFON MEURSAULT GOUTTE D'OR - LEOVILLE LAS CASES - CANON GAFFELIERE - CANTEMERLE - CHAPELLE AUSONE - DRC ECHEZEAUX - FLEUR PETRUS - GRUAUD LAROSE - BRANE CANTENAC - CHAPELLE MISSION - CLINET - DRAGON QUINTUS - ORMES PEZ - OPUS ONE - DOMAINE LEFLAIVE CHEVALIER MONTRACHET - LASCOMBES - DUJAC CLOS ROCHE - TERTRE ROTEBOEUF - BOLLINGER VV FRANCAISES - PAGODES COS - RONAN BY CLINET - MISSION HAUT BRION - CHENADE - GAJA COSTA RUSSI - FOURRIER GEVREY CHAMBERTIN CLOS ST JACQUES - LOUIS ROEDERER CRISTAL ROSE - DOMINUS - CHAPOUTIER ERMITAGE BLANC OREE - PAUL JABOULET AINE HERMITAGE CHAPELLE - FELTON ROAD RIESLING DRY - CANON (SAINT EMILION) - CLARENCE HAUT BRION - FELTON ROAD PINOT NOIR BLOCK 5 - SMITH HAUT LAFITTE - COS D'ESTOURNEL - LEOVILLE POYFERRE - PINGUS - HENRI JAYER NUITS SAINT GEORGES MURGERS - GEORGES ROUMIER CHAMBOLLE MUSIGNY CRAS - RAUZAN SEGLA - BRUNO GIACOSA BAROLO FALLETTO - DUJAC ECHEZEAUX - DOMAINE JEAN-LOUIS CHAVE HERMITAGE BLANC - CARRUADES LAFITE - VIEUX CHATEAU CERTAN - LAFLEUR - JACQUES FREDERIC MUGNIER CHAMBOLLE MUSIGNY AMOUREUSES - PALMER - CHEVAL BLANC - ARROSEE - JOSEPH DROUHIN BONNES MARES - BOLLINGER RD - JACQUES FREDERIC MUGNIER MUSIGNY - VOUGERAIE BONNES MARES - LOUIS ROEDERER CRISTAL - TALBOT - PETIT VILLAGE - GUIGAL COTE ROTIE MOULINE - JOSEPH DROUHIN MUSIGNY - HAUT BATAILLEY - ARMAND ROUSSEAU CHAMBERTIN - CHAPOUTIER ERMITAGE PAVILLON - AUSONE - ROCHE BELLENE CLOS ROCHE - PICHON LALANDE - FRATELLI ALESSANDRIA BAROLO GRAMOLERE - PEDESCLAUX - BRANCAIA BLU - BRUNO GIACOSA BARBARESCO ASILI - CROIX BEAUCAILLOU - DOME - COMTE VOGUE CHAMBOLLE MUSIGNY 1ER CRU - HAUT BRION - SCREAMING EAGLE - TAITTINGER COMTES CHAMPAGNE ROSE - DOMAINE LEROY NUITS SAINT GEORGES BOUDOTS - DOMAINE JEAN-LOUIS CHAVE HERMITAGE - CLOS MARQUIS - FREDERIC MAGNIEN GEVREY CHAMBERTIN CAZETIERS - POL ROGER SIR WINSTON CHURCHILL - PAVIE MACQUIN - LAFITE ROTHSCHILD - SOLAIA - BEAUCASTEL CHATEAUNEUF DU PAPE - QUINAULT L'ENCLOS - MOUTON ROTHSCHILD - SUDUIRAUT - MALARTIC LAGRAVIERE BLANC - GAJA BARBARESCO - PHILIPPONNAT CLOS GOISSES BRUT - ANGELUS - DOMAINE CHEVALIER - MONTLANDRIE - COMTES LAFON MEURSAULT CHARMES - SALON MESNIL - PETRUS - CONSEILLANTE - HENSCHKE HILL OF GRACE SHIRAZ - SAN GIUSTO PERCARLO - PONTET CANET - FELTON ROAD PINOT NOIR BANNOCKBURN - MONTROSE - PIN - BRUNO GIACOSA BAROLO ROCCHE FALLETTO - GIACOMO CONTERNO BAROLO RISERVA MONFORTINO - PEBY FAUGERES - CHAPOUTIER ERMITAGE BLANC ERMITE - PAVIE - CLARENDON HILLS ASTRALIS SHIRAZ - CASANOVA DI NERI BRUNELLO MONTALCINO TENUTA NUOVA - SAINT PIERRE - VEGA SICILIA UNICO - MARGAUX - TORTOCHOT CHAMBERTIN - BOLLINGER GRANDE ANNEE - COUTET (BARSAC) - ARMAND ROUSSEAU GEVREY CHAMBERTIN CLOS ST JACQUES - CLERC MILON - CHAPOUTIER ERMITAGE ERMITE - HOSANNA - HAUT BAILLY - COLGIN IX PROPIETARY RED - GAJA SPERSS - DRC TACHE - COMTE VOGUE CHAMBOLLE MUSIGNY AMOUREUSES - TRAPET PERE ET FILS LATRICIERES CHAMBERTIN - BEAUCASTEL CHATEAUNEUF DU PAPE HOMMAGE J PERRIN - JOSEPH PHELPS INSIGNIA - PONSOT CLOS VOUGEOT - BIONDI SANTI BRUNELLO MONTALCINO - EMMANUEL ROUGET VOSNE ROMANEE CROS PARANTOUX - PETIT CHEVAL - PONSOT CLOS VOUGEOT VV - EGLISE CLINET - FORTS LATOUR - RIEUSSEC - CALON SEGUR - GEORGES ROUMIER BONNES MARES - DUJAC CLOS SAINT DENIS - FIGEAC - YQUEM - HENRI JAYER VOSNE ROMANEE - RESERVE COMTESSE - TRAPET PERE ET FILS CHAMBERTIN - SCARECROW CABERNET SAUVIGNON - CRUZELLES - MONDOTTE - BRANAIRE DUCRU - ROTHSCHILD & CONCHA Y TORO ALMAVIVA - COMTE VOGUE BONNES MARES - TROTANOY - GAY - JANASSE CHATEAUNEUF DU PAPE VV - PEGAU CHATEAUNEUF DU PAPE LAURENCE - JEAN-JACQUES CONFURON ROMANEE SAINT VIVANT - CLIMENS - ORNELLAIA - DOMAINE LEROY NUITS SAINT GEORGES LAVIERES - PAPE CLEMENT - BERNARD DUGAT-PY CHAMBERTIN - FOURRIER GRIOTTE CHAMBERTIN VV - BONNEAU MARTRAY CORTON CHARLEMAGNE - COMTE VOGUE MUSIGNY VV - PETER SISSECK (ALNARDO) PSI - DOMAINE LEROY VOLNAY SANTENOTS - GIACOMO CONTERNO BAROLO CERRETA - PAVILLON ROUGE - TROPLONG MONDOT - JEAN NOEL GAGNARD CHASSAGNE MONTRACHET BOUDRIOTTE ROUGEVALANDRAUD - COMTE VOGUE CHAMBOLLE MUSIGNY - LUNE ARGENT - GRAND PUY LACOSTE - GIACOMO CONTERNO BAROLO CASCINA FRANCIA - RIOJA ALTA RIOJA GRAN RESERVA 904 - DUHART MILON - CECILIA BERETTA VALPOLICELLA CLASSICO SUPERIORE TERRE DI CARIANO - CHAPOUTIER ERMITAGE

ECHO LYNCH BAGES - DRC ROMANEE CONTI - GUIGAL COTE ROTIE LANDONNE - RUINART DOM RUINART - COMTES LAFON MEURSAULT GOUTTE D'OR - LEOVILLE LAS CASES - CANON GAFFELIERE CANTEMERLE CHAPELLE AUSONE - DRC ECHEZEAUX - FLEUR PETRUS GRUAUD LAROSE - BRANE CANTENAC - CHAPELLE MISSION - CLINET - DRAGON QUINTUS - ORMES PEZ - OPUS ONE - DOMAINE LEFLAIVE CHEVALIER MONTRACHET - LASCOMBES - DUJAC CLOS ROCHE - TERTRE ROTEBOEUF - BOLLINGER VV FRANCAISES - PAGODES COS - RONAN BY CLINET - MISSION HAUT BRION - CHENADE - GAJA COSTA RUSSI - FOURRIER GEVREY CHAMBERTIN CLOS ST JACQUES - LOUIS ROEDERER CRISTAL ROSE -

DOMINUS - CHAPOUTIER ERMITAGE BLANC OREE - PAUL JABOULET AINE HERMITAGE CHAPELLE - FELTON ROAD RIESLING DRY - CANON (SAINT EMILION) - CLARENCE HAUT BRION - FELTON ROAD

PINOT NOIR BLOCK 5 - SMITH HAUT LAFITTE - COS D'ESTOURNEL - LEOVILLE POYFERRE - PINGUS HENRI JAYER NUITS SAINT GEORGES MURGERS - GEORGES ROUMIER CHAMBOLLE MUSIGNY

CRAS - RAUZAN SEGLA - BRUNO GIACOSA BAROLO FALLETTO - DUJAC ECHEZEAUX - DOMAINE JEAN-LOUIS CHAVE HERMITAGE BLANC - CARRUADES LAFITE - VIEUX CHATEAU

CERTAN - LAFLEUR - JACQUES FREDERIC MUGNIER CHAMBOLLE MUSIGNY AMOUREUSES - PALMER - CHEVAL BLANC - ARROSEE - JOSEPH DROUHIN BONNES

MARES - BOLLINGER RD - JACQUES FREDERIC MUGNIER MUSIGNY - VOUGERAIE BONNES MARES - LOUIS ROEDERER CRISTAL - TALBOT - PETIT VILLAGE - GUIGAL

COTE ROTIE MOULINE - JOSEPH DROUHIN MUSIGNY - HAUT BATAILLEY - ARMAND ROUSSEAU CHAMBERTIN - CHAPOUTIER ERMITAGE PAVILLON -

AUSONE - ROCHE BELLENE CLOS ROCHE - PICHON LALANDE - FRATELLI ALESSANDRIA BAROLO GRAMOLERE - PEDESCLAUX - BRANCAIA BLU - BRUNO GIACOSA BARBARESCO ASILI - CROIX BEAUCAILLOU - DOME - COMTE VOGUE CHAMBOLLE MUSIGNY 1ER CRU - HAUT BRION - SCREAMING EAGLE - TAITTINGER COMTES CHAMPAGNE ROSE - DOMAINE LEROY NUITS SAINT GEORGES BOUDOTS - DOMAINE JEAN-LOUIS CHAVE HERMITAGE - CLOS MARQUIS - FREDERIC MAGNIEN GEVREY CHAMBERTIN CAZETIERS - POL ROGER SIR WINSTON CHURCHILL - PAVIE MACQUIN - LAFITE ROTHSCHILD - SOLAIA - BEAUCASTEL CHATEAUNEUF DU PAPE - QUINAULT L'ENCLOS - MOUTON ROTHSCHILD - SUDUIRAUT - MALARTIC LAGRAVIERE BLANC - GAJA BARBARESCO - PHILIPPONNAT CLOS GOISSES BRUT - ANGELUS - DOMAINE CHEVALIER - MONTLANDRIE - COMTES LAFON MEURSAULT CHARMES - SALON MESNIL - PETRUS - CONSEILLANTE - HENSCHKE HILL OF GRACE SHIRAZ - SAN GIUSTO PERCARLO - PONTET CANET - FELTON ROAD PINOT NOIR BANNOCKBURN - MONTROSE - PIN - BRUNO GIACOSA BAROLO ROCCHE FALLETTO - GIACOMO CONTERNO BAROLO RISERVA MONFORTINO - PEBY FAUGERES - CHAPOUTIER ERMITAGE BLANC ERMITE - PAVIE - CLARENDON HILLS ASTRALIS SHIRAZ - CASANOVA DI NERI BRUNELLO MONTALCINO TENUTA NUOVA SAINT PIERRE - VEGA SICILIA UNICO - MARGAUX - TORTOCHOT CHAMBERTIN - BOLLINGER GRANDE ANNEE - COUTET (BARSAC) - ARMAND ROUSSEAU GEVREY CHAMBERTIN CLOS ST JACQUES - CLERC MILON - CHAPOUTIER ERMITAGE ERMITE - HOSANNA - HAUT BAILLY - COLGIN IX PROPIETARY RED - GAJA SPERSS - DRC TACHE - COMTE VOGUE CHAMBOLLE MUSIGNY AMOUREUSES - TRAPET PERE ET FILS LATRICIERES CHAMBERTIN - BEAUCASTEL CHATEAUNEUF DU PAPE HOMMAGE J PERRIN - JOSEPH PHELPS INSIGNIA - PONSOT CLOS VOUGEOT - BIONDI SANTI BRUNELLO MONTALCINO - EMMANUEL ROUGET VOSNE ROMANEE CROS PARANTOUX - PETIT CHEVAL - PONSOT CLOS VOUGEOT VV - EGLISE CLINET - FORTS LATOUR - RIEUSSEC - CALON SEGUR - GEORGES ROUMIER BONNES MARES - DUJAC CLOS SAINT DENIS - FIGEAC - YQUEM - HENRI JAYER VOSNE ROMANEE - RESERVE COMTESSE - TRAPET PERE ET FILS CHAMBERTIN - SCARECROW CABERNET SAUVIGNON - CRUZELLES - MONDOTTE - BRANAIRE DUCRU ROTHSCHILD & CONCHA Y TORO ALMAVIVA - COMTE VOGUE BONNES MARES - TROTANOY - GAY - JANASSE CHATEAUNEUF DU PAPE VV - PEGAU CHATEAUNEUF DU PAPE LAURENCE - JEAN-JACQUES CONFURON ROMANEE SAINT VIVANT - CLIMENS - ORNELLAIA - DOMAINE LEROY NUITS SAINT GEORGES LAVIERES - PAPE CLEMENT - BERNARD DUGAT-PY CHAMBERTIN - FOURRIER GRIOTTE CHAMBERTIN VV - BONNEAU MARTRAY CORTON CHARLEMAGNE - COMTE VOGUE MUSIGNY VV - PETER SISSECK (ALNARDO) PSI - DOMAINE LEROY VOLNAY SANTENOTS - GIACOMO CONTERNO BAROLO CERRETA - PAVILLON ROUGE - TROPLONG MONDOT - JEAN NOEL GAGNARD CHASSAGNE MONTRACHET BOUDRIOTTE ROUGEVALANDRAUD - COMTE VOGUE CHAMBOLLE MUSIGNY - LUNE ARGENT - GRAND PUY LACOSTE - GIACOMO CONTERNO BAROLO CASCINA FRANCIA - RIOJA ALTA RIOJA GRAN RESERVA 904 - DUHART MILON - CECILIA BERETTA VALPOLICELLA CLASSICO SUPERIORE TERRE DI CARIANO - CHAPOUTIER ERMITAGE MEAL - GUIGAL COTE ROTIE TURQUE - JOSEPH FAIVELEY MAZIS CHAMBERTIN - LEOVILLE BARTON - TORBRECK RUN RIG - GUSBOURNE BLANC DE BLANCS - PONSOT CHAPELLE CHAMBERTIN - DRC RICHEBOURG - LYNCH BAGES - BOUTISSE - DUCRU BEAUCAILLOU - MEYNEY - PETIT MOUTON - DOMAINE LEFLAIVE BATARD MONTRACHET - TROTTEVIEILLE - PELICAN ARBOIS SAVAGNIN OUILLE - MIRAVAL COTES DE PROVENCE ROUGE - BEAUSEJOUR DUFFAU - PONSOT CLOS ROCHE VV - SASSICAIA - LAMBRAYS CLOS LAMBRAYS - POUJEAUX - DOMAINE LEFLAIVE BIENVENUES BATARD MONTRACHET - LATOUR - ARMAND ROUSSEAU CHARMES CHAMBERTIN - MOET & CHANDON DOM PERIGNON - DOMAINE LEROY CLOS VOUGEOT - BAHANS HAUT BRION - BENJAMIN LEROUX PULIGNY MONTRACHET CHAMP GAIN - MASSETO - MICHEL OGIER COTE ROTIE - GAJA SORI SAN LORENZO - GAZIN (POMEROL) - TUA RITA REDIGAFFI - LAVILLE HAUT BRION - FARGUES - BIONDI SANTI BRUNELLO MONTALCINO RISERVA - SAINTAYME - PENFOLDS GRANGE - GEORGES NOELLAT NUITS SAINT GEORGES CRAS - HARLAN PROPRIETARY RED - FELTON ROAD RIESLING BLOCK 1 - JOSEPH FAIVELEY CHAMBERTIN CLOS DE BEZE - ARLOT ROMANEE SAINT VIVANT - CLOS ST JEAN CHATEAUNEUF DU PAPE DEUS EX MACHINA - EVANGILE - PONSOT GRIOTTE CHAMBERTIN - CLOS PAPES CHATEAUNEUF DU PAPE - BEYCHEVELLE - CLOS FOURTET - TAITTINGER COMTES CHAMPAGNE - FELTON ROAD PINOT NOIR CORNISH POINT - DOMAINE LEROY CORTON CHARLEMAGNE - FELTON ROAD PINOT NOIR CALVERT - JOSEPH DROUHIN GRIOTTE CHAMBERTIN - KRUG VINTAGE BRUT - MOET & CHANDON DOM PERIGNON ROSE - TIGNANELLO - BASSERMANN JORDAN JESUITENGARTEN GROSSES GEWACHS - PICHON BARON - MALARTIC LAGRAVIERE - DOMAINE LEROY VOSNE ROMANEE BEAUMONTS - ECHO LYNCH BAGES - DRC ROMANEE CONTI - GUIGAL COTE ROTIE LANDONNE - RUINART DOM RUINART - COMTES LAFON MEURSAULT GOUTTE D'OR - LEOVILLE LAS CASES - CANON GAFFELIERE CANTEMERLE - CHAPELLE AUSONE - DRC ECHEZEAUX - FLEUR PETRUS - GRUAUD LAROSE - BRANE CANTENAC - CHAPELLE MISSION - CLINET -

DOMAINECLOS DE TART

WINE ANALYSIS

W W W.W I N E I N V E S T M E N T.C O M

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Wine as a ‘Passion Asset’


Introduction

Domaine Clos de Tart

Key Information• Owner: Artémis Group

• Previous Owner: Mommesin Family

• Grand Vin: Clos de Tart Grand Cru

• Other wines: La Forge de Tart Premier Cru

• AOC: Clos de Tart

• Total Annual Production: 2,300-2,500 cases

• Classification: Grand Cru since 1939

• Vineyard Area: 7.5 Hectares

• Main grape variety: Pinot Noir

• Other four Grand Crus in Morey-Saint-Denis AOC: Bonnes Mares, Clos de la Roche, Clos Saint-Denis,

Clos des Lambrays

• Other Grand Cru Monopoles in Burgundy: Comte Liger Belair Romanee; La Tache, Romanée-Conti (DRC);

La Grande Rue Lamarche

• Iconic Vintages: 2016, 2015, 2010, 2009, 2005, 2002, 1989, 1985, 1978, 1962, 1945

HistoryFounded in 1411, Clos de Tart had only three owners over nine centuries. As the largest Grand Cru classified property

covering 7.53 hectares of vines in Burgundy, the Clos de Tart has never been parcelled out, a highlight that would be

greatly appreciated by wine lovers and investors who seek for quality consistency and highly-controlled distribution

strategy.

• 1141 - Cisterician nuns from the Tart Abbey acquired the vineyards (later became the Clos de Tart)

• 15th Century – The reconstruction of the walls around the vineyard was completed

• 1791 - The Clos de Tart was acquired by Nicolas-Joseph Marey, the sole owner of Romanee-Saint-Vivant at

the time.

• 1932 - The Mommessin family purchased the Clos de Tart during the Great Depression

• 2017 - Artemis Group, a family-run investment firm founded by Francois Pinault, has acquired Clos de Tart

from the Mommesin family

The Clos de Tart vineyard is wholly owned by Domaine Clos de Tart and therefore classified as a Monopole – a rare

occurrence in Burgundy. Clos de Tart is the only Grand Cru Monopole that can be found in Morey-Saint-Denis AOC,

Cote d’ Nuits. Other iconic Monopoles include Romanee-Conti and La Tache from Domaine de la Romanee-Conti and

La Romanee from Domaine du Comte Liger-Belair.

These benchmark wines enjoy a world class reputation and are amongst the most revered red Burgundies produced.

Clos de Tart sits firmly along side them in terms of quality and heritage. Typically, bottles are labelled with the

“monopole” for easy recognition.

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Analysis

Market & Vintage PerformanceThe cumulative returns for older vintages (2002 - 2006) of Clos de Tart have been very strong over the last few years.

For example, outstanding 2002 and 2005 vintages have delivered absolute returns of 232.8% and 189.7% respectively

over the past 10-years (Exhibit 1). This performance is indicative of the wider market and compared to Bordeaux,

Burgundy has seen its overall performance soar to a record high levels. The Burgundy 150 (Liv-Ex’s benchmark index)

has consistently outperformed other markets for the past few years.

In the current market environment, it is prudent to adopt a targetted approach when selecting stocks.

Vineyards that can take advantage of higher classification, such as Grand Cru, and operational structure of monopoles

have the potential to rise further in value. More importantly, it is not only the older vintages that are improving, modern

vintages are gaining momentum as well and the growth is broad-based across the most recent vintages of Clos de

Tart.


Analysis

Development of BrandFrancois Pinault, the owner of Chateau Latour, acquired Clos de Tart through the Artemis Groupe which is his family-

held investment company. The deal confirmation was announced in July 2017, however, the acquisition price

remained unknown to the public. As the holding company of the world’s largest luxury and retail giant, Artemis

Groupe is the controlling shareholder of many leading luxury brands including Gucci, Yves Saint Laurent, Bottega

Veneta, Balenciaga and Alexander McQueen. Artemis Group also owns Christies auction. With respect to its wine

portfolio, Artemis Group has successfully acquired Chateau Latour, Eisele Vineyard, Domain Eugenie, and Chateau

Grillet.

Price Expectation/CatalystsBurgundy has convincingly outperformed Bordeaux and the rest of the world wine regions since 2016. (Exhibit 3) In

a world where consistent return is still hard to come by; top-quality Burgundy wines offer a very impressive capital

appreciation relative to other regions. Importantly, top-level Burgundy producers attract a certain calibre of wine

consumer; the wine thinkers and deep-pocketed romantics. Exhibit 3 demonstrates the performance of two other

prodigious Grand Cru monopoles; DRC’s La-Tache and Comte Liger-Belair’s La Romanée, which have been amongst

the best performing wines from the region. Although, the Clos de Tart Index has performed well, we expect a positive

uplift in light of the track record of the new owners.

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Analysis

Acquisition of a Grand Cru as a competitive advantage?Acquisition of a vineyard sometimes can be complex, and it isn’t the answer for every company who wish to gain

access to the exceptional terroir of Burgundy, especially of its highly coveted Grand Cru vineyards. But those that

can manage the complexity of acquisition by establishing the capabilities and have successful acquisition experience

required to explore its full potential for growth can enjoy an enduring competitive advantage.

The Artemis Group, the holding company of Chateau Latour, is safely qualified as such companies with a great

reputation as an experienced acquirer and perceived as capable of providing distinctive capabilities for its target

vineyards, including Chateau Latour in Bordeaux, Eisele Vineyard in Napa Valley, Chateau Grillet in Rhone Valley and

Domaine d’ Eugenie in Burgundy. The decision to add the 18.5-acre Grand Cru Clos de Tart to their roster of world

class wineries must have been an easy one…


Case Studies

Case Study No. 1Successful acquisition of Chateau Grillet

We studied the impact on value and brand power of one of the group’s previous acquisitions; Chateau Grillet, situated

in the Rhone Valley, was purchased by Artemis in 2011. With François Pinault’s vision and the support of Latour’s

managing director Frederic Engerer installed as wine maker, Chateau Grillet has undertaken substantial works

including operating buildings and equipment renovations at the vineyard to help bring out the best out of the unique

terroir, whilst maintaining the winemaking customs of Rhone.

Since its acquisition announcement made in 2011, Chateau Grillet has witnessed significant price increase across

most vintages. For example, vintages 2014 and 2012 delivered a return of 71.3% and 56.7% respectively within only

one year from 2017. (Exhibit 4) Eisles Vineyard in Napa Valley is another good example which demonstrates the know-

how of the group and how they have improved the perception of already well-established wine properties around the

world.

Case Study No. 2Clos Des Lambrays – How has the competition faired?

Key Information

• Owner: LVMH (since April 2014)

• Vineyard area: Clos 8.84 hectares (8.66 hectares of which is Clos des Lambrays grand cru)

• Main Grape Variety: Pinot Noir

• Grand Vin: Clos des Lambrays, Grand Cru

• AOC: Morey-Saint-Denis, Cote de Nuits, Burgundy

• Annual production: 30,000 bottles

Interestingly enough, Clos des Lambrays, situated next to Clos de Tart in Morey St Denis AOC, was acquired by

another French luxury group LVMH in April 2014. As one of the oldest and most prestigious Grand Cru vineyards in

Burgundy, the name Clos des Lambrays can be traced back to the year of 1365. Further refined its strategic vision,

LVMH added this old Burgundy vineyard to its wine portfolio, which includes many world-famous wineries such

as Krug, Dom Perignon, Cheval Blanc and Chateau d’Yquem, to better explore the potential of Clos des Lambrays.

Exhibit 5 shows that the post-acquisition performance of Clos des Lambrays has steadily improved, and the average

return of these 10 vintages* being evaluated is around 80% since acquisition in 2014.


Case Studies

In conclusion, we believe that potential benefits that Artemis Group could provide for its target vineyards may

include:

1. Accelerate market access for the target vineyards

2. Access to Group’s professional global network reaching numerous industry segments

3. Synergies among acquired Artemis Domaines and obtain new growth opportunity

About the author Yijun(Lena) LuResearch AnalystLena joined Cult Wines in early 2018 having previously completed several internships

in the finance industry, including in a venture capital fund and the Investment Banking

arm of China Securities, as well as passing her CFA level II Qualifications. The experience

in the investment industry combined with her passion for fine wine enables her to view

this market with a fresh and unique perspective. In turn, this positions her unequivocally

capable of identifying opportunities and risks in this complex market, using quantitative

and scientific economic methods.

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DOMAINE CLOS DE TART WINE ANALYSIS - Cult Wines