What’s happening in the market?
Bordeaux led trade over the weekend, accounting for 42.9% of trade by value, with wines from Pétrus and Château Lafite Rothschild trading since Friday.
Champagne followed Bordeaux, securing the second position with 22.3% of regional trade, buoyed by Krug and Dom Pérignon wines trading on the exchange. Burgundy lagged behind Champagne with 16.1% of the regional trade share since Friday. Leading the way for the region were wines from Domaine Leroy and Domaine de la Romanée-Conti.
Tuscany has also seen an uptick in trading activity, currently holding 8.5% of regional trade share by value. The overall most traded wine since last Friday, both in terms of value and volume, was Sassicaia Tenuta San Guido Bolgheri 2019.
Today’s deep-dive: The Bordeaux 2019s trading below their ex-négociant price
The polarising 2022 En Primeur campaign was characterised by price increases across the board, continuing on from the previous year. Fair value analysis shows the return on investment for collectors is gradually diminishing, as many wines’ more recent vintages become significantly more expensive than older ones that are entering their drinking windows.
Combine this with the fact that there is also more stock of recent wines, and that the market is on a downward trend, and you’ve got tough selling conditions for young Bordeaux, no matter how exceptional the wines are. So much so that some wines are seeing their prices revert back to the levels they were released at – and some even lower.
We’ll be taking a look at the 2019 wines within the Bordeaux 500 and highlighting which of them are currently trading close to or below not only their release price, but also their ex-négociant price.
Amid significant financial uncertainty and a global pandemic, the Bordeaux 2019 campaign grabbed the market’s attention with prices below the previous vintage’s, revitalising demand and restoring confidence in the market.
While there are a number of 2019 wines that have seen an increase in their value, trading well above their ex-négociant price, such as Château Clinet (+66%) and Château Beychevelle (+60%), there are also six wines that last traded below their ex-négociant prices and a few more trading near that point, providing opportunities to secure these wines at favourable prices.
Of all the 2019s, Château Pavie is currently trading the furthest below its ex-négociant price of €240 per bottle. With a last trade price of £1,930 per case (roughly equivalent to €185 per bottle) the wine is even trading lower than its ex-château price of €200 per bottle.
When Château Pavie 2022 was released earlier this year, the 2019 vintage emerged as a beacon of value. Despite sharing the same 94-point Neal Martin score, the 2019 was available at a significantly lower price point. This remains true, as the 2019 has a current Market Price of £2,150 per case in comparison to the 2022’s £3,127.
Château Pavie 2019 trades on Liv-ex
Similarly, Château Pape Clément 2019 is currently trading 19% below its ex-négociant price of €57.60 per bottle. With a last trade price of £490 per case (roughly equivalent to €46.81 per bottle) the wine is also trading just below its ex-château price of €48 per bottle.
Château Pape Clément 2019 trades on Liv-ex
While Château d’Yquem 2019 last traded at £2,800 per case (packed as 6×37.5), 5.2% above its ex-négociant price of €255 per bottle, the graph below shows that last month, it was trading at an average price of £2,469 per case, 7.3% below its ex-négociant price.
Château d’Yquem 2019 trades on Liv-ex
On the whole, the 2019 vintage presented wines of exceptional quality at compelling prices. These wines were introduced with an average discount of 21% compared to the 2018 vintage, with some châteaux offering wines up to 31% below the previous year’s prices.
The current market conditions and relatively large volumes available mean that some wines are trading at prices either close to or lower than their release price, providing an opportunity for buyers.
There are currently 520 LIVE bids and offers for Bordeaux 2019 wines on Liv-ex. Log in to the exchange to view them and trade. Additionally, you can use the new ‘Save to List Studio‘ function to add these wines to a custom list (e.g. a ‘wish list’ or ‘watch list’) which you can return to at any time.
In case you missed it:
Here’s what we’ve been reading:
- Liv-ex: November Market Report
- the drinks business: What does Q4 hold for fine wine?
- Decanter: UK wine trade calls for duty freeze to prevent ‘budget busting price rises’
Liv-ex analysis is drawn from the world’s most comprehensive database of fine wine prices. The data reflects the real time activity of Liv-ex’s 620+ merchant members from across the globe. Together they represent the largest pool of liquidity in the world – currently £100m of bids and offers across 20,000 wines.
