In a dynamic week for the secondary market, Bordeaux reclaimed its dominance in wine trade, yet it was a bottle of Macallan 81YO whisky that stole the show as the most expensive single bottle ever traded on Liv-ex.
The weekly trade was characterized by notable activity in Bordeaux, Burgundy, and the ‘Others’ category, underscoring a varied and competitive market.
Bordeaux Reclaims Top Spot
Bordeaux saw a resurgence this week, rising from 26.7% to 38.0% of trade by value. This bounce-back reaffirms Bordeaux’s continued prominence in the secondary market, particularly after accounting for 38.8% of trade in May. Key wines contributing to this surge included recent vintages of First Growths, such as Château Mouton Rothschild 2017 and Château Lafite Rothschild 2019. Both wines demonstrated varied performance, with Mouton Rothschild trading around its July 2021 levels at GBP 3,850 (EUR 4,576) per case, below its release price of GBP 4,320 (EUR 5,134) per case. Lafite Rothschild, on the other hand, managed to stay above its initial price point, last traded at GBP 5,433 (EUR 6,457) per 12x75 (packed as 1x300), above its release price of GBP 5,112 (EUR 6,076) per case.
Burgundy and Champagne Face Declines
Despite its usual strong performance, Burgundy experienced a significant dip, falling from 29.2% to 18.5% of trade by value. Champagne also saw its share decrease from 17.2% to 8.0%. These declines are notable, given that both regions have historically held strong positions in the market. However, Burgundy managed to place one of its wines among the most-traded by value, indicating continued, albeit reduced, interest. For instance, Echezeaux Grand Cru 2020 traded at GBP 22,000 (EUR 26,147) per case.
The Rise of 'Others' and Macallan’s Historic Trade
The ‘Others’ category surged to third place with 17.8% of trade, largely driven by the historic trade of a Macallan 81YO whisky bottle for GBP 115,000 (EUR 136, 676). This bottle set a new record as the most expensive single bottle ever traded on Liv-ex, overshadowing even the prestigious Domaine de la Romanée-Conti’s wines.
Italy and the USA: Mixed Performance
Italian wines had a mixed week, with Tuscany’s trade share dipping to 8.5% despite the appearance of a Super Tuscan among the most-traded wines by volume. In contrast, Piedmont saw an increase in its trade share to 4.7%. The USA’s trade share halved to 2.5%, continuing its recent downward trend. Similarly, the Rhône region saw a decline, dropping to 2.0% of trade.
Most-Traded Wines by Value and Volume
Among the most-traded wines by value, aside from the aforementioned Château Mouton Rothschild 2017 and Château Lafite Rothschild 2019, another significant trade was Champagne’s Krug Clos du Mesnil 2008. Despite high scores from Antonio Galloni (Vinous) and William Kelley (The Wine Advocate), the wine has seen its trade price tumble since its debut on the secondary market, changing hands at GBP 17,424 (EUR 20,708) per case compared to GBP 27,480 (EUR 32,660) back in January 2023. Bordeaux wines, including Château Pontet-Canet 2020 and Château Pichon Baron 2021, dominated the most-traded list by volume, despite trading below their release prices: Château Pontet-Canet 2020 last traded 28.5% below its release price at GBP 636 (EUR 756) per 12x75, while Château Pichon Baron 2021 last traded 35.6% below its release price at GBP 1,320 (EUR 1,569) per case.
Impact on the Wine Industry
The sudden shifts in trade shares and the record-setting whisky trade highlight the volatile nature of the secondary market. Bordeaux’s resurgence demonstrates its resilience, while the declines in Burgundy and Champagne suggest a potential reevaluation of market strategies. The Macallan 81YO whisky trade exemplifies the increasing integration of premium spirits into the wine-dominated secondary market, opening new avenues for investors and collectors alike.
Provence and En Primeur Campaign
Provence’s Domaine Tempier Bandol Rosé 2023 continued its popularity, featuring prominently in the trade lists. The 2023 En Primeur campaign also saw releases from notable estates, including Château Figeac and Château La Conseillante, with prices reflecting the high expectations of the market. For example, Château Figeac 2023 was released at GBP 1,788 (EUR 2,125) per 12x75, and Château La Conseillante 2023 at the same price.
Conclusion
This week’s trade activity on Liv-ex underscores the dynamic and ever-evolving nature of the secondary market. While Bordeaux reaffirmed its dominance, the historic trade of Macallan 81YO whisky and shifts in Burgundy and Champagne’s market shares indicate broader trends and emerging opportunities. As the market continues to adapt, stakeholders must stay attuned to these developments to navigate the complexities of wine and spirits trading effectively.
Source: Liv-ex