The Champagne market – before the festivities

Christmas holidays might still be more than two months away but wine merchants’ preparations for the festive season are due to begin. Champagne is the obvious choice.

The region’s share by value on Liv-ex has traditionally climbed in the months leading to Christmas, accounting for about 10% of the total trade. Annually, it has also been on the rise – indeed, Champagne is one of the fastest growing secondary markets.

An increasing number of market participants have shown commitment to this corner of the fine wine world, whether for drinking or investment purposes, as we highlighted in last year’s report Champagne: a market without bubbles.

So far in 2019, Champagne’s share by value stands at 8.3%, compared to 3% in 2014. The number of brands (LWIN7) trading has increased 160% over the same period, showing that the Champagne market extends well beyond the most popular labels. The chart below further highlights its development over the past decade.

When it comes to price performance, Champagne has stayed strong. The wine indices in the chart below, which track the price movements of selected Champagne labels, have all posted gains in the last ten years. Salon has led the way, up 182%. It has outperformed the broader Champagne 50 index, which has gained 92%. At the same time, Taittinger, which is not part of the Champagne 50, has risen 115%. It has been followed by Krug, up 109%.

Cristal has been the worst performer, partially due to increased vintage declarations and a fall-out with previously loyal rap icons. Still, its index has managed gains of 48%, most of which have occurred in the last three years.

For Liv-ex members, there are currently a number of live Champagne offers including the very sought-after 2008 vintage, as well as single bottle, rarer vintages from the 60s, 70s and 80s.

If you are interested in the region, please do take a look at www.liv-ex.com, or email your Account Manager who would be pleased to send you the list in Excel format.