The Fine Wine Market
On the back of fluctuations in the financial markets, there has been a general softening of wine prices at the top end of the phenomenal period of growth witnessed earlier this year. It is worth bearing in mind that the Liv-ex Top
100, an index of the most traded wines, registered growth of in excess of 40% in the first six months of this year. Many have viewed this massive figure of growth as unsustainable, and certainly the market seems set to cool.
However the fine wine market continues to witness interest from emerging markets such as Asia, and the current month's activity seems to be a question of re-distribution, with certain clients keen to sell, but equally other clients
in the mood to buy. A few jitters in the financial markets may cause individuals to re-assess their alternative investments, but the particular circumstance of the market for fine wines, which continues to expand, continues to draw new business. If the softer market is to be short-lived, it is currently looking like an interesting time to
buy and certainly the opportunity is there.
So where does the interest lie? In terms of Bordeaux, we are seeing trade return to the selective leading wines of 2006, which, in recent tastings, have surprised us with their quality. Again, the 2002s and 2004s continue to
draw attention, with Château Lafite-Rothschild, witnessing consistent demand, as well as Château Margaux. Right bank vintages like 2001 remain in demand for the clutch of leading properties. As far as Burgundy is concerned, requests for Domaine de la Romanée-Conti continue, and justifiably so given recent auction room results.
Simon Larkin MW
Principal Consultant