It was a steady week for the market in terms of value and volumes. Burgundy specialists continued their focus on the 2019 release (and the not insignificant challenge of apportioning allocations), while others concentrated on physical Burgundy, particularly the 2018 vintage.
Bordeaux 2018 is expected to fall under the spotlight in the weeks ahead as in-bottle scores are released, although Covid restrictions may delay the usual February timetable. Jane Anson of Decanter has already published her scores with Palmer and Mouton both scoring perfect 100s.
The broadening of the market continues apace in January with the number of different wines traded (LWIN7s) having grown 71.4% year over year. The main drivers of that growth have been the United States and Italy, both of which are seeing activity in less famous, and (generally) less expensive brands.
The chart below shows the increase in offers of Italian and USA wines – categorized by those with a Market Price of less than £1000 and those with a Market Price greater than £1000. The number of offers on wines with a market price of less than £1000 has risen 215% over two years compared to 157% for those greater than £1000.
Even with the increased interest in a broader set of wines, Bordeaux is holding its own. The region took 33.6% of regional share by value this week and continues to have the best bid to offer ratio – 65%.
Burgundy held above 20% for the second week. Italy (20.1%), the Rhone (3.4%) and Others (4.8%) all saw small gains. Champagne (7.7%) and the USA (9.0%) both gave up share.
Domaine Ponsot, Clos de Roche Grand Cru Cuvee Vieilles Vignes 2018 was the top traded wine of the week. William Kelley recently released his in-bottle score awarding it 95+. He described it as “opening in the glass with aromas of dark berries, cherries and plums mingle with dark chocolate, preserved citrus peel, woodsmoke and spices” and suggested it was “a more gourmand version of the domaine’s 2005, [which] will demand patience”.
2021 Burgundy Report – A journey of discovery
Our latest regional report, Burgundy: A journey of discovery, has now been published. Containing 15 pages of analysis, the report examines the secondary market for Burgundy in the context of the global pandemic, US tariffs and this year’s En Primeur campaign. The report is available exclusively to Liv-ex members. You can claim your copy here.