What’s happening in the market?
So far this week, Bordeaux’s has taken 42.5% of traded value, up slightly from its close last week at 39.8%. Cos d’Estournel has proved the most popular producer of the region, with seven vintages, including the 2010 and 2012, changing hands.
Burgundy and Champagne are tied for second place, each taking 17.2% of trade share. Of the two regions, Burgundy took the larger share of traded volume. Champagne, on the other hand, was buoyed by trades of high-value older vintages, such as Dom Pérignon P2 1998 and 1988 Krug Collection.
Today’s deep dive: rare Burgundy: exchange vs. auction
While the market has been falling since October 2022, rare Burgundy continues to fetch high prices at auction. Earlier this month, eight price records were broken during a Sotheby’s auction of Pierre Chen’s Burgundy collection. As reported by Decanter, these record prices included Domaine Romanée-Conti’s Echezeaux 2005 and Montrachet 2007 for £10,000 and £15,800 per bottle respectively. Both sale prices exceeded the previous record by over 50%. During a time when market participants appear reluctant to spend, why are we seeing such high sale prices?
Whether these sales were made to the final owners of these bottles, or they re-enter the market, it is likely that their scarcity pushed up their price tags. Burgundy serves as the choice region for buyers seeking both low production numbers and brand strength. Buyers need not wait, however, for auctions to secure rare wines. Today, we look into exposure of Burgundy on Liv-ex.
Offer exposure on the exchange
As shown in the chart above, since December 2021, offer exposure for Burgundy in both price ranges has increased considerably. While the sharp increase in offers of cases over £7,500, can be partially attributed to prices rising during that time, offers have remained high throughout the market’s downturn. Prices may finally fall low enough to encourage transactions at the offered price.
The bid:offer ratio for more expensive Burgundy (£7,500+ per 12×75), calculated by volume, currently sits at 0.07 — an indicator that the market for these wines is firmly in bearish territory. While this may not be an indicator of positive sentiment, for the buyer looking for liquidity amongst rare wines, this is good news. There are currently 684 live offers on Liv-ex of Burgundy over £7,500. Of these, 317 packed as either 6 or 12 – since high-value wines are often split up over time, complete cases fetch premiums.
Rare bottles are available on the secondary market, and at lower prices. For example, in December 2021 a case of 3 Armand Rousseau Clos-de-Bèze 2018 traded on Liv-ex for £7,500 (£30,000 per 12×75). While the wine sold regularly at auction over the following few years, it did not trade again on Liv-ex until last week, when a case of 6 sold for £10,500 (£21,000 per 12×75). In May, a case of 6 sold at a Sotheby’s auction for £10,959, not including the 20% buyers premium.
LIVE opportunities
The following bottles of mature Domaine Romanée-Conti are currently available on Liv-ex under their last auction prices:
| Wine | Vintage | Offer price (12×75) | Pack size | Last auction price (12×75) | Auction date |
|---|---|---|---|---|---|
| Domaine de la Romanée-Conti, La Tache Grand Cru | 2005 | £56,976 | 1×75 | £63,761 | 04/05/2024 |
| Domaine de la Romanée-Conti, La Tache Grand Cru | 1999 | £69,504 | 1×75 | £75,717 | 04/05/2024 |
| Domaine de la Romanée-Conti, Richebourg Grand Cru | 2003 | £31,688 | 3×75 | £35,513 | 23/02/2024 |
| Domaine de la Romanée-Conti, Echezeaux Grand Cru | 2001 | £24,530 | 5×75 | £28,580 | 11/04/2024 |
| Domaine de la Romanée-Conti, Romanée-Conti Grand Cru | 1994 | £135,948 | 1×75 | £144,214 | 02/02/2024 |
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.
