In a dynamic week for the global fine wine market, Bordeaux continued to dominate, with Burgundy and Champagne making significant strides in market share. Two vintages of Château Lafite Rothschild were among the top-traded wines, showcasing Bordeaux’s enduring appeal.
However, Bordeaux's share of the trade by value declined from 39.0% to 30.5%. Despite this, Château Lafite Rothschild remained the most actively traded wine in the region, accounting for 25.8% of Bordeaux's traded value.
Burgundy’s Ascendancy
Burgundy saw its trade share rise from 20.1% to 25.4%, driven by high-value trades from prestigious producers such as Domaine de la Romanée-Conti, Domaine Bonneau du Martray, and Domaine Leroy. These iconic names continue to captivate collectors and investors, solidifying Burgundy's strong position in the fine wine market.
Champagne’s Sparkling Performance
Champagne also had a strong week, with its trade share increasing from 11.7% to 14.2%. The region’s performance was led by Krug, Louis Roederer’s Cristal, and Dom Perignon, which collectively dominated the region’s traded value. This surge follows the Champagne 50 index's 0.9% rise in July, reflecting the growing demand for luxury sparkling wines.
Mixed Results for Tuscany and Piedmont
While Bordeaux, Burgundy, and Champagne saw gains, Tuscany and Piedmont experienced slight dips in their trade shares. However, notable wines such as Tenuta San Guido’s Sassicaia, Giacomo Conterno’s Barolo Monfortino Riserva, and Masseto continued to see regular trading activity, highlighting the enduring interest in these Italian regions.
Shifts in Global Market Dynamics
The USA's share of trade dropped significantly from 6.3% to 2.9%, with Spain overtaking it at 4.4%. This shift reflects the growing popularity of Spanish wines, as highlighted in the August Market Report, prompting Spain to be reported separately from the ‘Others’ category in future trade updates.
Spotlight on Spirits and Wine Packaging Trends
In the spirits sector, three 70cl bottles of Remy Martin, Grande Champagne Louis XIII, traded for GBP 2,000 (EUR 2,320) each, underscoring the high value of luxury cognac. Additionally, Domaine de la Romanée-Conti saw more volume in original packaging trade this year than last, despite falling prices. Notably, 3×75 and 6×75 cases, typically more valuable than individual bottles, saw prices fall to similar levels. The 2020 vintage of Domaine de la Romanée-Conti's flagship label was the top-traded wine by value this week, with a case of three trading at GBP 42,000 (EUR 48,720)—a 6.7% discount compared to the price per bottle sold in April.
Bordeaux’s Continued Relevance
Domaine Bonneau du Martray’s Charlemagne Grand Cru 2020 emerged as the second top-traded wine by both value and volume, trading at GBP 3,550 (EUR 4,120), the lowest price recorded for this wine on the market. Magnums of this wine have also been trading regularly, commanding a significant premium. Both the 2019 and 2021 vintages of Château Lafite Rothschild were among the top five wines by traded value this week. The 2021 vintage, which was recently physically released, has been trading steadily since June 2024, albeit at a 9.7% discount to the 2019 vintage due to a lower score from Neal Martin of Vinous.
Market Insights and Trends
This week’s trading activity highlighted other notable trends. Leeuwin Estate’s Art Series Chardonnay 2020 emerged as the top-traded wine by volume, a rare feat for Australian wines outside of Penfolds. Domaine Tempier’s Bandol Rosé also featured among the top-traded wines by volume, demonstrating the consistent demand for well-produced rosé, especially during the summer.
In summary, while Bordeaux continues to lead the market, Burgundy and Champagne are gaining ground, driven by high-value trades and growing demand for luxury wines. The market remains dynamic, with shifting trends and evolving consumer preferences shaping the fine wine trading landscape.
Source: Liv-ex