Recent trading activity
Champagne has been particularly active since last Friday, accounting for 25.7% of total trade by value. Louis Roederer Cristal has been waving the flag of the region, with its 2015, 2014, 2012 and 2008 vintages trading over the last five days.
Burgundy lagged slightly behind over the weekend, clocking in at 21.1% of total trade, buoyed by several vintages of Domaine Armand Rousseau, Chambertin Grand Cru trading.
Tuscan wines were relatively active over the same period, boosting the region up to 7.9% of total trade.
What’s happening in the fine wine market?
As we near the end of summer (except in the UK where it has finally decided to make an appearance), trading activity is picking back up as merchants come back from holiday. Ahead of a busy month of Autumn La Place releases, we thought a highlight reel of the first eight months of the year and a recap of the market as it stands was in order.
- The bull isn’t bucking. The market has turned – gone are the soaring prices and index levels seen in summer 2022, bolstered by a boom in demand. All major Liv-ex indices are down year-to-date (see chart below), from –16.7% for the Rhône 100 to –4.3% for the Italy 100. This downturn begs the question: is this simply a corrective phase following a period of soaring prices across the board or is this the end of the bullish trend in the market which prevailed since 2015?
- Buyers are king. It’s not all doom and gloom as buyers can take control of the current market, taking advantage of the opportunities granted by falling prices. Although the summer is usually a period of relative inactivity, the end of August saw a near record-breaking amount of offers live on the exchange. Right now, there are just over £87 million’s worth of LIVE offers on Liv-ex – as such, active bidders are likely to be rewarded.
- Let them drink Champagne… Despite falling prices across the board, Champagne has seen relatively sustained trading levels. In 2022, 5,298 cases of Champagne traded, totaling just shy of £11.3 million of trade. So far in 2023, trade value is down to £5.9 million, but in terms of volume levels are closer (3,135 cases so far in 2023 versus 3,401 this time last year). With Christmas approaching, the pace of trade is likely to increase.
- Specifically, Dom Pérignon. Dom Pérignon 2013 was released in January 2023 at £1,830 per 12×75. This wine perfectly illustrates the state of the Champagne market. Its Market Price is currently 6.0% below its release price, but year-to-date, it is the most traded wine by value and by volume.
- En Primeur 2022 was ‘a missed opportunity’, to quote ourselves. High release prices led to a costly (and for some, disappointing) campaign despite the exceptional quality of the wines. As La Place Autumn Releases begin to trickle in, it will be interesting to see if these price increases are applied Beyond Bordeaux as well. So far, Opus One’s library re-releases of the 2018 and 2019 vintages are in accordance with these wines’ Market Prices (see chart below).
- Bordeaux is back. Since the start of 2023, Bordeaux has seen a considerably uptick in its average trade share compared to other regions, which had been steadily declining since 2013. Other regions, such as Burgundy and the Rhone, have seen their average trade share decline since the start of the year. Bordeaux seems to be regaining its position as the dominant force in terms of trade by value on the secondary market, despite the backdrop of rising prices and a mixed En Primeur campaign.
In case you missed it
Here’s what we’ve been reading:
- Liv-ex: The 2023 Liv-ex Classification
- The drinks business: How climate change is transforming the global wine industry
- Jane Anson Inside Bordeaux: The September Releases 2023*
*Subscribers only. If you are a business subscriber to Inside Bordeaux and are interested in using the Liv-ex/JaneAnson API to receive the scores, please contact your account manager. Inside Bordeaux currently has a 10% discount offer for all signups during the month of the report release – just use the code 10OFFSEPT23 during the checkout process.
Liv-ex analysis is drawn from the world’s most comprehensive database of fine wine prices. The data reflects the real-time activity of Liv-ex’s 620+ merchant members from across the globe. Together they represent the largest pool of liquidity in the world – currently £100m of bids and offers across 16,000 wines.