This past week, the wine market saw Bordeaux leading in weekly trade, followed closely by Champagne and Burgundy. Notably, two Champagnes were among the top five traded wines by value, highlighting a shift in market preferences.
Bordeaux: Dominant but Declining
Bordeaux continued to dominate the market, accounting for 39.8% of the traded value. However, this marks the second consecutive week of decline in its trade share. Despite this, Bordeaux wines maintained a strong presence, with three of the top five traded wines by value hailing from the region. The standout performer was Château Latour 2011, which claimed the top spot in terms of traded value. This wine saw significant auction activity earlier in the year, with cases of 12×75 fetching between GBP 4,268 and GBP 4,519 (approximately EUR 4,950 and EUR 5,240), a notable premium over the last traded price on Liv-ex.
Champagne: A Rising Star
Champagne's trade share rose from 15.3% to 16.9%, overtaking Burgundy to claim second place. Bollinger R.D. 2008 and Salon Le Mesnil 2012 were key contributors, both featuring among the top five traded wines by value. Despite trading below their Market Prices—at discounts of 3.0% and 21.4%, respectively—these Champagnes underscored the growing interest in this category. The Salon 2012, in particular, marked its lowest transaction price since entering the secondary market but has appreciated in value since its release in late 2021 at GBP 5,800 (approximately EUR 6,730).
Burgundy: Continued Decline
Burgundy's share of trade continued to fall, capturing only 13.6% of the market. This decline highlights the shifting dynamics as Champagne gains traction. Burgundy's lower performance contrasts sharply with previous years when it was a dominant force in the market.
Italian Wines: Mixed Performance
In Italy, Piedmont remained flat, while Tuscany experienced increased demand following a weak close last week. Recent vintages of Tenuta San Guido’s Sassicaia, particularly from 2018 to 2021, were popular among traders. This renewed interest in Tuscan wines indicates a potential rebound for the region.
US Wines: Falling Trade Share
The trade share of US wines fell to 4.8%, despite trades in the 2019 and 2018 vintages of Silver Oak Cabernet Sauvignon. This decline suggests a waning interest in American wines within the broader market context.
Emerging Markets: 'Others' Category Gains
The 'others' category saw an increase in trade share, reaching 7.9%. Spain led this segment, with notable interest in wines from producers such as Vega Sicilia, La Rioja Alta, and Dominio de Pingus. This growth indicates a diversifying market as traders explore beyond traditional strongholds.
Key Highlights and Notable Trades
- Château Latour 2011: Topped the list with significant auction sales, including a double magnum for GBP 1,607 (approximately EUR 1,865) and a case of six magnums for GBP 4,017 (approximately EUR 4,660).
- Château Lafite Rothschild 2019: Re-entered the top five, trading between GBP 4,918 and GBP 5,324 (approximately EUR 5,710 and EUR 6,185).
- Petrus 2021: Entered the secondary market and secured the fifth spot with a Market Price of GBP 36,061 (approximately EUR 41,875).
- Clos des Papes 2022: The most traded wine by volume, boosted by a 96+ score from Vinous critic Nicolas Greinacher.
- Errazuriz’s Las Pizarras Chardonnay 2020: Achieved third place in traded value due to a high-volume transaction, despite its rarity on Liv-ex.
Conclusion
The wine market is experiencing dynamic shifts, with Bordeaux maintaining its lead despite a declining trade share, Champagne rising in prominence, and Burgundy continuing to fall. The increased interest in Tuscan wines and the growth of the 'others' category, particularly Spanish wines, highlight the market's evolving nature. As traders navigate these changes, the continued monitoring of these trends will be crucial for future market insights.
Source: Liv-ex