The Liv-ex Fine Wine 100 index showed resilience amidst broader declines, highlighting mixed fortunes for key segments and regions in the fine wine market.
Liv-ex Fine Wine 100 and Liv-ex Fine Wine 1000 Performance
In January, the Liv-ex Fine Wine 100 experienced a marginal decline of 0.3%, closing at 359.25. This marks the 10th consecutive month of decline for the index, although the rate of decrease moderated compared to previous months. Notably, the Liv-ex 100 outperformed other major Liv-ex indices in January.
Conversely, the Liv-ex Fine Wine 1000, tracking a broader spectrum of 1,000 wines globally, faced a more pronounced decline of 2.2%, settling at 405.48 for the month. Within this index, sub-indices like the Rhône 100 saw significant downturns, dropping by 4.3%, while Bordeaux Legends 40 and Italy 100 declined more modestly by 0.7%.
Segment Performance
The Liv-ex Fine Wine 50, focusing on First Growths and updated daily, declined by 1.2% month-on-month, reflecting ongoing market adjustments. Similarly, the Bordeaux 500, tracking 500 leading Bordeaux wines, fell by 1.4%, indicating a broader softening within the Bordeaux segment.
Market Dynamics
January saw increased activity in the secondary market, with rises in both trade value and volume. However, the exposure index, reflecting the value of bids and offers on the exchange, showed a slight dip.
Top Performers
Among notable performers in the Liv-ex 100, Château Margaux 2015 stood out, trading at GBP 10,280 (EUR 12,085) per case, marking a substantial increase of 137.1% since its release.
Champagne Market Highlights
Champagne demonstrated resilience with several wines posting positive movements in the Liv-ex indices. Bollinger R.D. 2008, Pol Roger Sir Winston Churchill 2015, Louis Roederer Cristal 2008, Dom Pérignon 2008, and Dom Pérignon Rosé 2008 all recorded gains, underlining strong consumer interest in premium Champagne offerings.
However, the Champagne 50 index declined by 1.8% month-on-month, driven by specific components such as Louis Roederer Cristal Rosé 2008, Dom Pérignon Rosé 2009, and Salon Le Mesnil Grand Cru 2012, which experienced double-digit declines.
Regional Insights
All sub-indices of the Liv-ex 1000 reported declines, with varying degrees of severity. The Rhône 100 and Burgundy 150 notably fell by 4.3% and 3.7%, respectively, despite initial optimism from the 2022 En Primeur campaign. The Italy 100 and Bordeaux Legends 40 showed more modest declines at 0.7% each, with standout performances from specific vintages of Masseto and Solaia in the Italy 100 segment.
Conclusion
January 2024 revealed a nuanced picture of the fine wine market, with the Liv-ex Fine Wine 100 showing resilience amid broader declines in other indices. As market dynamics continue to evolve, particularly within segments like Bordeaux and Champagne, investor attention remains focused on quality, performance trends, and broader economic indicators shaping consumer behavior in the fine wine sector.
Source: Liv-ex