What’s happening in the market?
So far this week, Bordeaux has led the market, followed by Burgundy. Burgundy has seen high volume trades of Domaine Coquard Louison Fleurot’s Clos de la Roche Grand Cru 2022, alongside higher-value wines such as Domaine Leflaive’s Montrachet Grand Cru 2017 and Domaine Leroy’s Corton-Charlemagne Grand Cru 2004.
Tuscany took a 12.2% share of traded value, overtaking Champagne. Masseto and Tenuta San Guido’s Sassicaia are amongst the wines driving trade in the region.
Today’s deep dive: California legends – Screaming Eagle and Opus One
In Friday’s Talking Trade (Liv-ex’s weekly trading overview), we reported that Californian wine represented over 10% of traded value on the exchange last week. While the USA’s share of trade is down from its peak at 7.6% in 2021, the region’s popularity on the market has been trending upward over the past decade. In 2014, US wines accounted for only 1.1% of traded value. So far this year, they have accounted for 6.2%.
California has remained the most popular region, accounting for 99.5% of the country’s trade year-to-date. While Californian wines have always been popular within the US, a small but increasing number have succeeded in gaining recognition on the international stage. Today, we take a closer look at the pricing and trading activity of two components of the California 50 – Screaming Eagle’s Oakville Cabernet Sauvignon and Opus One.
Screaming Eagle
Californian producers such as Screaming Eagle are well known for their small production numbers and tight allocations – potential buyers often spend years on waiting lists. While highly rated, it is their scarcity that commands their high prices. Screaming Eagle, coming in at over £20,000 per 12×75, is in some ways reminiscent of Burgundy’s top wines. Just as a relatively low-scoring Domaine de la Romanée-Conti La Tâche still commands a high price as an investment-grade wine, so too do less impressive vintages of Screaming Eagle. Still, we should note that scores of Screaming Eagle are invariably high. Even the 2017 and 2020, two vintages marked by wildfires in California, received scores of 96 points from Galloni.
While, according to the Liv-ex Fair Value Methodology, Market Prices of Screaming Eagle’s Oakville Cabernet Sauvignon are uncorrelated with scores from either Jeb Dunnuck or Antonio Galloni (Vinous), buyers are not apathetic to them. Screaming Eagle’s Oakville Cabernet Sauvignon 2021 recently featured as one of the top-traded wines of H1 2024 by value. The wine saw a significant increase in trading activity immediately following Galloni’s rescoring of the vintage from 98-100 to a confirmed 100 in July 2024. Since then, all trades have taken place above Market Price. Given that Screaming Eagle’s prices tend to appreciate with age, it is likely that buyers are betting on profitable future returns, even when transacting above the market.
Opus One
Opus One, another component of the California 50, is priced closer to the lower end of the Bordeaux First Growths and is more actively traded than the likes of Screaming Eagle. With larger production numbers, Opus has opted for a more traditional distribution system. In September, the 2021 vintage will be released via La Place de Bordeaux. Like Screaming Eagle, Market Prices of Opus One are more strongly correlated with age than with scores (91.3%). The 2011 vintage, while receiving the lowest score of the past 10 physical vintages from Antonio Galloni (93 points), currently has the second highest Market Price. By contrast, the 2019 vintage was awarded Galloni’s joint-highest score of the past decade (97 points), and, at a Market Price of £2,893, is currently the least expensive.
Though the number of Californian brands traded on Liv-ex has increased substantially over the past decade, many still fall short of achieving the same recognition internationally as domestically. For the keen investor, California is a region worth watching – there may yet be lucrative entrants onto the world stage. Those who bought Promontory early on, for example, have seen good monetary returns.
Typical buyers of Bordeaux wines may also find opportunity here – Opus One, Dominus and Ridge’s Montebello Cabernet Sauvignon are available as highly-rated alternatives at similar prices. Notably, hailing from a warmer climate and riper in style than their Bordeaux Cabernet counterparts, Californian reds tend to have shorter drinking windows and are ready to drink sooner.
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.
