Never mind fine wines, it is the bubbly stuff that has given its investors reasons for popping corks to celebrate a run of strong returns since the turn of the year, new figures show.

Liv-ex, the London-based trading exchange for wines, said that its Liv-ex Champagne 25 Index of the world’s top vintages rose by 27 per cent in the 12 months to the end of June. The index has outperformed equity indices such as the FTSE 100, S&P 500 and the Nikkei.

The market for treating wine as an investment as well as for consumption has grown rapidly in recent years, part of the trend for alternative investments such as antiques, art and classic cars. As vintages wines from regions such as the French Medoc are limited in quantity, they have been quickly pushed up in price by demand from rising numbers of high net worth individuals. A number of funds that invest in wine have been launched to tap into the trend.

“The market has shown us that it is not just fine Bordeaux red wines that can generate strong returns. The performance of the Liv-ex Champagne 25 Index suggests that investors should take Champagne just as seriously when considering an investment in fine wine,” James Miles, founding director of Liv-ex, said.

The best performing champagnes such as Krug, Cristal and Dom Perignon from the acclaimed 1996 vintage are up by as much as 56 per cent since last June.

Liv-ex, the London International Vintners Exchange, is an electronic market place for fine wine. It runs a trading and settlement platform for a global network of professional traders and merchants. It was founded in 1999 by two former stockbrokers, James Miles and Justin Gibbs.

The Liv-ex 100 index represents the price movement of 100 of the most sought-after fine wines for which there is a strong secondary market and is calculated monthly.  The majority of the index consists of red Bordeaux wines – reflecting the overall market – although wines from Burgundy, Champagne and Italy are also included.