The Liv-ex Power 100 offers a snapshot of the fine wine market's top-performing brands, reflecting global trade trends over the past year.
The ranking considers key factors such as price performance, volume and value traded, and brand consistency. In 2024, this analysis holds greater significance amidst challenging market conditions, with most brands facing declining prices.
Market Context and Performance Trends
The past year has been tumultuous for the fine wine market. All major Liv-ex indices, including the Liv-ex 100, Liv-ex 1000, and Fine Wine 50, have posted significant declines, driven by oversupply and price corrections. Notably, 83.7% of the 410 qualifying brands for the 2024 rankings recorded a drop in market value. Despite this, activity levels remained consistent, highlighting persistent demand even in a bearish market.
In terms of trade dynamics:
- The number of wines traded increased by 7.9%.
- Trade volumes declined by 6.5%, reflecting a focus on liquidity and marketable labels.
Italy's Rise and Key Players
Italian wines surged in the rankings, with 22 brands securing spots on the list—nine more than in 2023. Tuscany led the charge, propelled by brands like San Guido (Sassicaia) and Gaja, which exemplify the diversity of Italian wine production.
- San Guido climbed 54 spots, showcasing its appeal as a high-volume, approachable brand in a down market. Its Sassicaia 2020 vintage was among the most traded by value and volume.
- Gaja continued its rise, moving from 7th to 2nd place, with strong market trust and diverse vintages traded.
Vega-Sicilia Tops the Rankings
Spain's Vega-Sicilia claimed the top spot, a historic first for a Spanish brand. Its flagship Unico wine experienced explosive growth, with trade counts, volumes, and value increasing by 193%, 324%, and 310%, respectively. The brand's longevity, heritage, and value-driven positioning cement its success.
Regional Highlights
Bordeaux and Burgundy:
- Bordeaux retained its position as a dominant region but faced challenges due to high release prices and oversupply. Notable brands like Lafite saw declining values, though the region remains highly liquid.
- Burgundy, with its terroir-driven appeal, suffered declines but maintained the largest representation in the Power 100.
Champagne:
- Champagne brands faced a dip in performance, with trade share dropping to 11.4%. The Grandes Marques, however, remained resilient, thanks to their consistency and accessibility.
California:
- Californian wines gained traction, with brands like Joseph Phelps and Promontory climbing the ranks due to price stability and increased trade activity.
Broader Insights and Future Outlook
The 2024 Liv-ex Power 100 highlights shifts in buyer preferences:
- Liquidity and Accessibility: Buyers prioritized high-volume, affordable brands that could be traded and consumed easily.
- Regional Shifts: Italy's rise and Spain's emergence signal diversification in fine wine markets.
- Sustainability of Pricing: The market correction underscores the need for balanced pricing strategies, particularly in Bordeaux.
While the downturn continues, the Power 100 remains a crucial guide for collectors and investors, spotlighting resilience and adaptability in a rapidly evolving market.
Source: Liv-ex