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Fine Wine Market: Bordeaux Leads the Way, Tuscany Rises, and Burgundy Holds Strong

This week saw significant movements in the global wine trade, with Bordeaux increasing its share of traded value to 38.5%, up from 29.6% last week. Leading the charge were Château Pavie, Cheval Blanc, and Le Pin.

Interestingly, while Bordeaux’s famed First Growths traditionally top the trade charts, this week they appeared further down the list. Nonetheless, Bordeaux remains a dominant force in the market.

Bordeaux: Increased Trade and High-Value Wines

Bordeaux’s trade surge is largely due to high-value transactions involving Château Pavie, which saw substantial activity in its 2021 vintage. At GBP 1,958 (EUR 2,280) per 12x75 case, Pavie is still trading well below its UK release price of GBP 2,784 (EUR 3,240). This represents a price equivalent to EUR 193 per bottle, slightly under the ex-Château price of EUR 195. Notably, prices for Château Pavie 2021 have been trending upward since May, when they ranged between GBP 1,400 and GBP 1,700 (EUR 1,630 to EUR 1,980). With strong trading volumes this week, Pavie was the top-traded wine by value.

While Pavie led the Bordeaux trades, the region also saw a significant volume of 'off-vintage' wines, such as the 2014, 2017, and 2021 vintages, which are often available at a discount compared to blockbuster vintages like 2016 or 2019. For example, Château Clerc Milon 2021, trading at GBP 605 (EUR 705) per 12x75, offers a 25.8% discount compared to its 2016 counterpart at GBP 761 (EUR 886), despite a marginal difference in scores from critics. This pricing strategy reflects the value-conscious approach of many traders and collectors this week.

Burgundy: Domaine de la Romanée-Conti Takes the Top Spot

Though Burgundy's overall trade share declined slightly compared to the previous week, Domaine de la Romanée-Conti (DRC) emerged as the market's top-traded producer by value. Several high-value cuvées from this prestigious estate changed hands, underlining the enduring allure of Burgundy's elite wines. DRC's prominence in the trade landscape is a testament to the region’s ability to command attention and value, even when overall volumes dip.

Tuscany: A Rising Star

Tuscany’s trade share saw a notable increase, propelling the region into third place ahead of Champagne. Unsurprisingly, the Super Tuscans—Tentuta San Guido’s Sassicaia, Ornellaia, and Masseto—dominated the region’s activity. Sassicaia 2021 was one of the top five traded wines of the week, further solidifying Tuscany’s growing appeal in the secondary market. Initially released at GBP 2,500 (EUR 2,910) per 12x75 in February 2023, Sassicaia 2021 quickly saw its price rise to GBP 2,880 (EUR 3,350) upon entering the secondary market. After peaking in March at GBP 3,156 (EUR 3,670), prices have since fallen to a more accessible GBP 2,494 (EUR 2,900), indicating that buyers are now seeing greater value in this iconic wine.

Champagne: A Strong Bounce Back

Champagne's trade share rose from 9.4% last week to 11.1% this week, reflecting renewed interest in the region. Bollinger's La Grande Année 2014 led the charge, trading actively—particularly in magnum format. Magnums of the 2014 vintage traded at GBP 940 (EUR 1,094) per 6x150, in line with the market price for 75cl bottles at GBP 940 (EUR 1,094) per 12x75. The flat trading price across formats is notable, as magnums typically command a premium, but this parity highlights the strong demand for this particular vintage.

USA: Trade Share Declines

While regions like Bordeaux and Tuscany saw increases, the USA’s trade share experienced a sharp drop, falling from 10.9% last week to just 3.6%. Despite this decline, Dominus, Opus One, and Joseph Phelps’s Insignia remained the most traded wines from the region. Various vintages of these wines saw action in the market, but overall, the American wine trade lagged behind the week’s more active European regions.

Spain: Modest Gains

Spain’s trade share inched up slightly, closing at 3.0% compared to 2.3% last week. Vega Sicilia’s Unico accounted for over half of Spain's total trade, with the 2006, 2004, and 2012 vintages leading the charge. Vega Sicilia continues to be a strong performer in Spain’s luxury wine segment, attracting collectors and investors alike.

Spirits: A High-End Week for Hibiki

In the realm of spirits, two standout trades took place: two 70cl bottles of Hibiki (Suntory)—a 21-year-old and a 30-year-old—traded for GBP 8,006 (EUR 9,315) and GBP 7,692 (EUR 8,950), respectively. These high-value trades underscore the growing interest in rare and collectible spirits, which continue to command significant sums in the secondary market.

Conclusion: A Diverse Week for Wine Trade

This week’s wine trade activity reflects a dynamic market with notable movements across regions. Bordeaux reinforced its dominance with Château Pavie leading in both value and volume, while Burgundy’s DRC held its position as a top-traded producer by value. Tuscany's Super Tuscans, led by Sassicaia, demonstrated continued appeal, and Champagne bounced back with Bollinger’s La Grande Année 2014 driving interest. Despite a significant drop in the USA’s trade share, iconic wines like Dominus and Opus One kept the region relevant. Meanwhile, Spain and spirits also enjoyed their moment in the spotlight, with Vega Sicilia and Hibiki making impressive trades.

As market trends continue to evolve, the growing demand for value-driven and alternative-format wines, along with the rising interest in rare spirits, hints at a broader diversification of interests among wine collectors and investors alike.

Source: Liv-ex

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