The Bordeaux 500 index has risen 7.1% over the past year. Compared to indices for other regions, this is a solid, though not exhilarating, performance. It has fared better than the Rhone 100 (+4.3%), but the Champagne 50 (+7.9%), Italy 100 (+11%), Rest of the World 50 (+11.3) and the Burgundy 150 (+20.6%) have all posted stronger gains, positioning Bordeaux among one of the weaker regions over this time period.
Looking at the sub-indices within the Bordeaux 500 reveals a divided picture. The Sauternes 50, the slowest mover for some time, continues to lag. Interestingly, the Fine Wine 50 – tracking the prices of the First Growths – is the second slowest after nearly flat lining for the past three months.
The stars of the show, however, continue to be the second wines of the First Growths: The Second Wines 50 has soared 21.8% over one year, outperforming even Burgundy.
This is a trend that we first identified in January 2016, when the market began to pick up after several slow years. In December of last year, we showed that the price ratio between the First Growths and their second wines was at its lowest ever point. As the prices of the seconds continue to appreciate at a faster rate than the Firsts, this has now dropped further. This is a theme that we will explore in more detail in our upcoming Bordeaux report, due for publication next week.
Among the second wines, there is another divided picture. The popularity of this group of wines has historically been attributed to their ability to grant access to a power brand at a lower price point. The three main beneficiaries of this over one year have been Carruades Lafite, Petit Mouton and Pavillon Rouge. Each are up over 20%.
Forts Latour and Clarence Haut Brion have both outperformed the Bordeaux 500 but have not kept up with their peers.
In 2017, we included the second wines in the Liv-ex reclassification of Bordeaux for the first time. On the basis of price alone, they were each considered to be Second Growth equivalents. Even the most expensive, Carruades Lafite, has some way to go before hitting the First Growth price bracket, but if it continues in the current direction it might not be far off.
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