August 15, 2024
Sentiment remains strong for Bordeaux
The only region whose trade share has increased so far in December is Bordeaux. As Christmas draws near, trade from the region has increased from 32% to 42% of all secondary market activity this month.
In the second week of the month, Burgundy’s trade did decline, but it has since recovered. The Rhône has a similar situation. The US, the Italian regions, and Champagne trade has dwindled in comparison.
Bordeaux, on the other hand, is one region where sentiment is still strong. Its bid-to-offer (total value of bids to buy vs offers to sell) ratio has decreased since the market highs in 2021, but it is still at 0.7, which is just over the 0.5 line that is regarded as a sign of confidence.
Once again, the appetite for fine wine remains positive, in spite of tough trading & economic conditions.
Weekly trade breakdown
Trade in champagne increased this week, making up 17.4% of the total. One of the most traded wines this week, Dom Pérignon 2012, drove demand for the region. The wine was one of the most traded wines in 2022, both in terms of value and volume on the secondary market this year.
Bordeaux also had a little rise to 36.3%. The region’s trade share has been increasing in December and is now higher than its average for November.
Burgundy’s trade share dipped slightly this week, however, DRC, La Tache 2019 took the top spot as the most traded wines of the week.
This week’s top traded wines
Domaine de la Romanée-Conti La Tâche was the most traded wine this week. The most recent traded price per 6×75 was £40,000.
Second place went to Château Margaux 2005. At £7,200 per 1275, its most recent trading price reflects a 60% rise over the price at when it was released at en primeur in 2006 (£4,500 per 12×75).
Le Pin 2005, another Bordeaux wine from the 2005 vintage, was also among the most traded this week. Prior to this week, the wine was last traded in November 2021 for £32,000 per 12×75. This week’s trade at £34,400 marks a 1 year gain of 7.5%, contrary to the -3.95% decline of the wine market value during the same period.
What we’re reading
Fine Wine Market Tested by Economic Recession - Sommelier Times
UK billionaire numbers rise by 20% since pandemic as cost of living crisis deepens - The Independent
“The Equality Trust found that the number of billionaires increased from 147 in 2020 to 177 this year despite the ongoing cost of living crisis, with the average billionaire having around £2bn in wealth.”
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