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US trading trends in Q3

By November 7, 2023Uncategorized

In our Q3 report, we reported that the US Dollar displayed a strong performance during the quarter, outperforming major currencies like the British Pound (GBP), Japanese Yen (JPY), and Australian Dollar (AUD).   

Looking at the Fine Wine 50 (which tracks the daily price movements of the Bordeaux First Growths) in Sterling and alternative currencies, buyers using US Dollars have benefited from being able to purchase wines in the Liv-ex 50 at more favorable prices compared to those trading in British Pounds.  

This is reflected in the fact that in Q3, there was an equal proportion of buyers from the United States and the UK on Liv-ex, accounting for 32.3% each – a significant increase in US buyers compared to the first two quarters of 2023.   

What were US merchants buying?

In Q3, US buyers mainly bought French wines (38.8% Bordeaux, 20.4% Champagne, 16.6% Burgundy, 4.3% from the Rhône) and Italian wines (8.8% Tuscany and 3.5% Piedmont).  

The most popular labels by value were Château Latour, followed by Château Margaux, Dom Pérignon and Louis Roederer Cristal. By volume, Château Pontet-Canet, Taittinger Comtes de Champagne Blanc de Blancs and Dom Pérignon were US buyers’ top choices. 

What were US merchants selling? 

Looking at selling, it’s no surprise that the percentage of US wines increases to 14.6%. The most sold labels by value include Domaine de la Romanée-Conti, Harlan Estate and Château Cheval Blanc. By volume sold, the most popular were Dunn, Howell Mountain Cabernet Sauvignon, Taittinger Comtes de Champagne Blanc de Blancs, and Château Pontet-Canet.

Who was buying US wines? 

As for those who bought US wines in Q3, half of all buyers (49.6%) were from the UK, 23.3% from Europe, 17.9% from Asia and 9.7% from the US. The most bought labels by value included Opus One, Screaming Eagle and Promontory. By volume, the most traded were Opus One, Kisler Sonoma Coast Les Noisetiers and Dunn Howell Mountain Cabernet Sauvignon.  

By LWIN11 (an individual wine and vintage), Opus One and Screaming Eagle once again dominate the most bought US wines by value. 

What prices were US buyers purchasing at? 

US buyers were able to secure wines at an average of 2.73% below their Market Price in Q3, with 23.7% of cases purchased 5% below Market Price, 18.2% of cases 10% below and 17.4% of trades 15 to 20% below Market Price. 

The US Dollar’s strong performance thus played a pivotal role in Q3 2023, enabling favorable pricing for those using the currency. US wines also recorded a growing market presence, marked by increased trading both by value and volume, along with a rise in the number of LWIN11s traded on Liv-ex. 

Price, buy and sell wine smarter on the global market place for the wine…