Robust fine wine market as it nears a decade high

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Fine wine prices remained strong in the third quarter as a combination of rising interest rates, a weaker bond market and inflation fears affected stocks and pushed the market to new highs.

Liv-ex’s latest quarterly report noted some of its biggest gains since the previous record high in June 2011, continuing the recovery from the swing induced by the start of the pandemic in the first half of 2020.

The Liv-ex 100 closed a decade of recovery by falling “a hair’s breadth” from its former September high, hitting 364.44, just below the June 2011 record (364.69).

Meanwhile, the Liv-ex 1000 – the widest metric in the market – gained for the eighth consecutive month, finishing at 395.36.

The report noted that “the September trade [had] came out of the blocks ”, pushing the market to new heights and despite the new releases on La Place from the Old World and New World regions,“ the real activity has been focused on the top-notch names of the main wine regions of the world ” .

The key market indices, the Liv-ex Fine Wine 100 and the Liv-ex Fine Wine 1000 have recovered strongly since the shock of Covid-19 in the first half of 2020 and are now at or near record levels .

The Fine Wine 100, which lists the 100 best wines from the secondary market, rose 5% over the third quarter (+ 3.8% in September alone), with good performances from Italy, Burgundy and of Champagne, as well as a “rally” among the first Growths in recent years have more than made up for the ground lost after the bursting of the Bordeaux bubble driven by China in 2011.

Meanwhile, the Liv-ex 1000 shows how collectors have moved from Burgundy to Champagne and more recently to Italian, Californian and Rhône labels over the past ten years. In this context, Burgundy 150 is the highest sub-index since the start of the year, up 16.8%, the number of Burgundy wines over the year already being higher than the total number. negotiated in 2020.

However, Bordeaux experienced a slight decline in its share of total trade in value (-1.3 percentage point to 42.1%), with Champagne’s market share in value also falling from 9.1% to 7.7 % market share in the third quarter. However, Liv-ex pointed out that the overall picture of champagne was more positive than suggested, being the second best performing sub-index of the Liv-ex 1000 between July and September.

The growth of Bordeaux Premiers Crus (followed by The Fine Wine 50), up 4% compared to the third quarter, is due to strong demand for Château Lafite over several vintages. The 2018 vintage is the most sold wine to date, with the 2017 and 2015 also in demand.

The month of September, he noted, is now “unique” as it is dominated by “an increasingly eclectic mix of en primeur releases via La Place in Bordeaux” – nearly 40 wines last month were released. the Old and New World. These include Penfolds Bin 169, Yjar, Casa Real, Clos des Goisses de Philipponnat, Daou Family Vineyards ‘Soul of a Lion’ and Castel Giocondo.

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