July saw a continuation of fluctuating trends in the fine wine market, with the Liv-ex Fine Wine 100 index falling by 1.1%, marking a sharper decline than in previous months. Concurrently, the broader Liv-ex Fine Wine 1000 index experienced a milder fall of 0.7%, closing at 383.96.
Despite these overall downturns, specific segments like the Champagne 50 showed resilience, recording a modest rise.
Detailed Performance Analysis
Liv-ex Fine Wine 100 Index
The Liv-ex Fine Wine 100, an industry-leading benchmark tracking 100 of the most sought-after fine wines globally, declined by 1.1% in July. This drop was more pronounced than in June (-0.4%) and May (-0.6%). Year-to-date, the index has decreased by 4.4%, although it remains up 11.1% over a five-year period. In July, out of the 100 component wines, 30 appreciated, 6 remained flat, and 64 depreciated. Notably, Harlan 2018 emerged as the top riser, with its Mid Price increasing by 16.0%.
Liv-ex Fine Wine 1000 Index
The Liv-ex Fine Wine 1000, which encompasses 1,000 wines from across the world, saw a 0.7% decline in July, less steep than in June. Sub-indices within this broader measure displayed varied performances:
- Champagne 50: Rose by 0.4%, rebounding from a 2.6% decline in June. Noteworthy performers included Dom Pérignon 2006, with a 9.5% price increase, and Dom Pérignon 2008, which traded 50.3% above its initial release price.
- Bordeaux Legends 40: Increased by 0.2%, following a 0.3% rise in June.
- Burgundy 150: Fell by 0.8%, an improvement compared to June's 2.4% drop.
- Rest of the World 60: Declined by 0.7%, better than the 1.1% fall in June.
- California 50: Fell by 0.7%, slightly improving from June's 0.8% decline.
- Rhône 100: Experienced the sharpest decline, dropping by 1.6%.
- Bordeaux 500: Fell by 1.2%, a larger drop compared to June's 0.5% decline.
Liv-ex Fine Wine 50 Index
The Liv-ex Fine Wine 50, tracking the daily movements of the First Growths, fell by 1.6% in July, marginally worse than the previous month's decline of 1.5%.
Market Observations and Trends
Despite the overall declines in the Liv-ex 100 and 1000 indices, certain wines and regions demonstrated resilience. The Champagne 50's positive performance was driven by rising prices for older vintages of Grand Marques, offering opportunities for market participants to trade at favorable prices due to less frequent trading activities.
Notable individual wine performances in July included:
- Clos des Papes’ Châteauneuf du Pape Rouge 2020: Increased by 8.7%.
- Pol Roger’s Sir Winston Churchill: Rose by 6.7%.
Understanding Liv-ex Indices
The Liv-ex indices provide a comprehensive measure of the fine wine market, reflecting real-time trading activities rather than list prices, making them reliable indicators of market trends. The Liv-ex Fine Wine 100 is a benchmark for the top 100 fine wines globally, while the Liv-ex Fine Wine 1000 is the broadest measure, covering 1,000 wines and subdivided into seven regional indices. These indices offer valuable insights into the performance and trends within the fine wine market.
Conclusion
July's performance in the fine wine market highlighted both declines and areas of resilience. While the Liv-ex Fine Wine 100 and 1000 indices saw overall drops, segments like the Champagne 50 and specific high-performing wines demonstrated notable strength. These trends underscore the dynamic nature of the fine wine market, influenced by a combination of economic factors, seasonal trends, and individual wine performances. As the market continues to evolve, these indices remain essential tools for gauging the health and direction of the fine wine industry.
Source: Liv-ex