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Understanding Burgundy’s regional divisions

Burgundy – a region synonymous with some of the world’s finest wines – is a patchwork of complexity. Its intricate divisions span geography, quality, ownership, and production. Among these, the regional distinctions are perhaps the most foundational, forming the backbone of Burgundy’s identity as the most expensive fine wine region in the world. Today, we explore the five distinct regions of Burgundy, each offering a unique contribution to the region’s storied reputation.

Regional divisions

Burgundy is divided into four contiguous regions and one satellite. Although Beaujolais is geographically sometimes considered part of Burgundy, administratively it forms part of the Rhône region. The total area is around 30,000 hectares under vine, of which more than 80% is subject to some form of AOC classification. From this, Burgundy produces around one quarter of the volume of wine made in Bordeaux’s commensurate with a significantly smaller area under vine.

Chablis (Satellite)

The historic town of Chablis is located a mere two hours from Paris. The town and its historic vineyards live up to their reputation of creating a high calibre of Chardonnay.

Whether it is the limestone soil, the reticence towards oak ageing or the mineral quality that make the wines from the region so unique, the result is the same: the wines of Chablis are like no other. The area lay underneath a vast tropical sea some 200 million years ago that slowly transformed the seabed into limestone soils. Absorbing deposits of fossilised marine life — particularly seashells — those remnants live on in the rich, mineralised soil that is the region’s premier advantage.

Chablis is divided into four categories of excellence. In descending order, they are: Chablis Grand Cru, Chablis Premier Cru, Chablis and Petit Chablis. Grand Cru production is small and elusive; only seven ‘climats’ running parallel to the Serein River are elevated to Grand Cru status. These wines have low production and high price tags. In contrast to Grand Cru’s seven ‘climats’, Premier Cru claims 40 vineyards, including the highly desirable Vaillons, Montmains, Fourchaume and Vaulorent sites. Chablis is the most predominant appellation, with Petit Chablis, while still being praiseworthy, ranking last among the four.

Côte de Nuits

The Côte de Nuits is home to many of the greatest names in Burgundy wine. Situated in the Northern part of the Côte d’Or, it produces largely red wines and is a true paradise for Pinot Noir, accommodating a tremendous number of legendary Grand Crus. The terrain is essentially a narrow strip of hillside, sometimes just 200m wide, and the Grand Crus that adorn it are some of the smallest appellations in France.

The region has a rich history. As far back as the third century AD, viticulture has featured in the Côte de Nuits thanks to the Romans. Though a challenging terroir to manage, the wines of the area were the envy of the Roman Empire. Later on, under the care of the Benedictine and then Cistercian orders, the renown of the wines made famous the concept of unique terroir and its impact on expression. In the 17th century, much of the area came under ownership through the outlandish bidding wars of the bourgeoisie, but the French Revolution saw it sequestered and sold to independent ownership.

Its Grand Cru holdings include such internationally revered appellations as Chambertin, Clos Saint Denis, Clos de Vougeot, Échézeaux, Romanée-Conti and La Tâche to name just a few, and the Premier Cru holdings are also high-quality.

Côte de Beaune

The Côte de Beaune is situated around the town of Beaune and produces both white and red wines. Beaune, the second-largest town in the Côte d’Or, has been so closely associated with Burgundy’s wines that, for a time and well before the 1936 appellation was granted, all wines from this region were simply called ‘Beaune wines’. Because it is also based in the geographical heart of the wine trade industry, the area is one of the diverse few that offers a mix of farming and trade. Most of the activity takes place on the western side of Beaune as this is where the vineyards are located.

The appellation has a high proportion of Premier Cru plots, with over 40 ‘climats’ that stretch from north to south, uninterrupted by commerce or residential development. The wines from Beaune are predominantly red, but the trend towards Chardonnay has sparked a new increase in white wine production.

Côte Chalonnaise

Producing both ruby reds and graceful whites, Côte Chalonnaise lies to the south of the Côte de Beaune. A landscape punctuated by hills with southeast facing slopes, hot summers and generally dry weather sees grapes develop with excellent phenolic ripeness. Sharing similar soils to the Côte de Beaune, it is often considered a natural extension of the region.

Vines planted here are predominantly Chardonnay and Pinot Noir but are also home to the Aligoté grape in select areas. The reds are clean and firm and, though austere in their youth, will handle ageing well. Whites are clear and floral with fleshy and lively bodies.

Côte Chalonnaise is home to such celebrated appellations as Montagny, Givry, Mercurey and Rully. Sporting a good number of Premier Cru ‘climats’ among them, these areas have a number of poignant historical claims, including that Givry’s wines were the favourites of the French King Henri IV. In the early 19th century, négociants with vines in Mercurey and Rully hosted a man from the Champagne region. Shortly after, sparkling white wines were produced and Crémant de Bourgogne was born.

Mâcconais

Mâcconais is the southernmost of the five wine-producing regions of Burgundy. It is a pastoral rolling landscape nestled between two valleys. With the Grosne to the West and the Saône to the East, it is home to stony outcrops of monumental proportions.

Historically speaking, the Mâcconais was shaped by its religious significance, with the Benedictine tradition of prayer and labour encouraging the monks of the Abbey of Cluny to cultivate vineyards in 909. Thanks to the wealth generated by these vineyards, which stretched further north than the Abbey’s southern location, another abbey, the abbey of Cîteaux, was later founded in 1098. 

80% of the vines in the Mâcconais are planted as Chardonnay, with the remainder being largely Gamay and, to a much smaller extent, Pinot Noir. With its southern facing aspects it produces wines of tremendously rich and aromatic character and is home to such renowned appellations as Pouilly-Fuissé, Pouilly-Vinzelles, Saint-Véran and Viré-Clessé. 

Looking for more? Read our Burgundy Regional Report, which delves into the fundamentals of this fascinating region and the development of its investment market. 

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Burgundy En Primeur 2023 and the current market

  • The 2023 Burgundy vintage is bountiful but heterogeneous in quality.
  • Careful selection of reputable domains and top producers is necessary when making purchasing decisions.
  • In the secondary market, Burgundy prices have fallen 15.2% in the last year.

The Burgundy En Primeur 2023 campaign brings a vintage full of potential and expectations: potential due to the quality but mostly quantity of the vintage in a region defined by scarcity, and expectations for reduced pricing given producers’ desire to sell.

This article provides an overview of the 2023 Burgundy vintage and the market environment that surrounds its launch. 

A heterogeneous but plentiful vintage

The 2023 Burgundy vintage first made news for its volume, which surpassed the region’s average production levels by 30%. Despite heat, drought and flooding challenges, the overall perception is of success – large quantities and above-average quality. Sarah Marsh MW summed it up: ‘The 2023 Burgundy was a bounteous but heterogenous vintage in which the white wines outshone the reds’. 

2023 saw a late-season heat spike that concentrated the fruit. Chardonnay benefited from earlier harvests before extreme heat, while Pinot Noir avoided dilution concerns and achieved natural alcohol levels of 13 – 13.5%. 

The vintage’s overall quality depended heavily on producer management, such as controlling yields for reds and maintaining freshness and acidity in whites. In comparison to the richer, more consistent 2022 vintage, the 2023s demonstrate greater precision, transparency and approachability. Growers and critics have suggested that the 2022/23 might mirror the 2015/16 or 2009/10 pairs.  

The highlights include Bonnes Mares, which stood out for its opulence and structure, with the best examples from Domaine de la Vougeraie and Domaine Dujac. For whites, cooler and mineral-driven sites like Puligny Caillerets and Meursault Perrières were particularly compelling, showcasing precision and vibrancy. Producers like Comte de Vogue, Jean Chartron, and Violot-Guillemard have garnered critical praise. 

Market context

The Burgundy En Primeur 2023 campaign unfolds against a backdrop of shifting market dynamics. Following a robust 2022 vintage and a successful campaign, producers are navigating a softened market. Burgundy prices have fallen 15.2% in the past year, more than any other fine wine region.

Burgundy 150 index

Additionally, seven Burgundies dropped from the list of the most 100 most powerful brands in the world in 2024. Still, Burgundy continues to dominate the list, cementing its place as a powerhouse in the global fine wine market. The region’s market share also remains strong, hovering around 25% and sometimes reaching 30%.

Pricing strategies

As producers seek to gather momentum with the 2023 vintage, some are keeping stable pricing levels or even lowering prices. The sizable 2023 yields stand in contrast to the tiny harvests anticipated in 2024, further amplifying the value proposition of the current release.

The 2023 vintage can thus represent a strategic opportunity. Careful selection – looking both at quality and value compared to older vintages – will be necessary, especially as the downward market trend offers a window to secure high-quality Burgundy wines at more accessible price points. More and better priced stock from older vintages has become available, creating competition for the new releases. 

The current market dynamics, characterised by adjusted pricing and evolving consumer trends, create an intriguing context for the campaign. As Burgundy continues to adapt to market shifts and climatic challenges, its enduring prestige remains as compelling as ever.

WineCap’s independent market analysis showcases the value of portfolio diversification and the stability offered by investing in wine. Speak to one of our wine investment experts and start building your portfolio. Schedule your free consultation today

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The best wine investment regions in 2024

  • Italy’s market performance has been the most resilient across all fine wine regions.
  • Burgundy prices have fallen the most in the last year. 
  • Champagne is showing consistent signs of recovery.  

The market downturn has affected all fine wine regions, arguably making it a great time to invest while prices are low. Today we take a deep dive into the performance of individual regions – identifying the most resilient markets, the best opportunities, and the regions offering the greatest value.

Italy: the most resilient market

Prices for Italian wine have fallen 4.1% in the past year – less than all other fine wine regions. By comparison, fine wine prices have fallen 11.6% on average, according to the Liv-ex 1000 index. 

Italy’s secondary market has been stimulated by high-scoring releases, like Sassicaia and Ornellaia 2021. Beyond the Super Tuscans, which are some of the most liquid wines, the country continues to offer diversity, stable performance and relative value. 

Some of the best-performing wine brands in the last year are Italian – all with an average price under £1,300 per 12×75, like Antinori Brunello di Montalcino Vigna Ferrovia Riserva (£1,267, +38%).

Other examples under £1,000 per case include Le Chiuse Brunello di Montalcino (+28%), Gaja Rossj-Bass (+27%), and Speri Amarone della Valpolicella Classico Monte Sant Urbano (+25%).

Regional wine indices chart

Burgundy takes a hit

Burgundy’s meteoric rise over the past two decades made it a beacon for collectors, but its steep growth left it vulnerable to corrections. In the past year, Burgundy prices have fallen 14.7%, making it the hardest-hit region. This downturn has released more stock into the market, creating opportunities for investors to access wines in a region often defined by scarcity and exclusivity.

Wines experiencing the largest declines include include Domaine Jacques Prieur Meursault Santenots Premier Cru (-41%), Domaine Arnoux-Lachaux Nuits-Saint-Georges (-35%), and Domaine Rene Engel Clos de Vougeot Grand Cru (-28%). For new entrants, these price drops offer a rare chance to acquire prestigious labels at relatively lower costs.

Champagne: on the road to recovery

Champagne has changed its trajectory over the last year: from a fast faller like Burgundy to more consistency and stability. While prices are down 10.6% on average, the dips over the last few months have been smaller than 0.6%. The index also rose in February and August this year, driven by steady demand. 

Some of the region’s most popular labels have become more accessible for buyers like Dom Perignon Rose (-14%), Philipponnat Clos des Goisses (-13%) and Krug Clos du Mesnil (-12%).

Meanwhile, the best performers have been Taittinger Brut Millesime (+29%) and Ruinart Dom Ruinart Blanc de Blancs (+28%), which has largely been driven by older vintages such as the 1995, 1996 and 1998.

The fine wine market in 2024 reflects a unique moment of transition. Italy’s resilience, Burgundy’s price corrections, and Champagne’s recovery illustrate a diverse set of opportunities for investors. With prices across the board at lower levels, this could be an ideal time to diversify portfolios with high-quality wines from these regions, anticipating long-term growth as the market stabilises.

WineCap’s independent market analysis showcases the value of portfolio diversification and the stability offered by investing in wine. Speak to one of our wine investment experts and start building your portfolio. Schedule your free consultation today.

 

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Q3 2024 Fine Wine Report

The fine wine market continued its downward trend throughout Q3 2024, but there are reasons for cautious optimism. Our Q3 2024 Fine Wine Report highlights the main themes that shaped the market, from regional performance to specific brand successes, and provides an outlook for the remainder of the year.

Executive summary

  • Since October 2022, fine wine prices have been in consistent decline, with a 4% drop on average in Q3 2024.
  • Bordeaux experienced the steepest fall at 4.4%, while Champagne defied the trend with a modest 0.4% increase last quarter.
  • Steady demand for fine wine continues to suggest a price recovery on the horizon.
  • Certain brands have outperformed the market, including Ruinart, Taittinger, and Château de Beaucastel.
  • Krug Vintage Brut 2004 has been the best-performing wine year-to-date, up 21.6%.
  • This year has already seen several broken auction records, including for high-profile Burgundy, which points to continued interest in fine wine.
  • Nine wines received perfect 100-point scores by Jane Anson in her recent Bordeaux 2009 and 2010 vintage retrospective.
  • France’s 2024 harvest is projected to be down 22% compared to last year, and 15% below the five-year average.
  • Looking ahead to Q4 2024, the market continues to present attractive buying opportunities, especially for investors with a long-term vision.

The trends that shaped the fine wine market

Global market recovery driven by rate cuts

In Q3 2024, global markets showed signs of recovery, bolstered by central banks pivoting towards interest rate cuts as inflation began to ease. Following turbulence in early August, stock markets rebounded, setting new records by the end of the quarter. Central banks, including the US Federal Reserve, the European Central Bank (ECB), and the Bank of England, all shifted their focus from inflation control to stimulating economic growth. The Fed’s September rate cut – the first since 2020 – catalysed a surge in US stocks, and similar moves from other central banks supported this global rebound. Despite lingering concerns about a potential US recession and Japanese market volatility, the overall global outlook improved, with lower rates and better economic conditions presenting growth opportunities.

Fine wine prices fall 4% in Q3

In contrast to the broader economic recovery, the fine wine market remained bearish, with a 4% average drop in prices in Q3. The Liv-ex 100 index saw its steepest fall of the year, down 1.7% in October. Bordeaux led the decline, with a 4.4% drop, although there was a slight uptick in Sauternes prices. Champagne offered a bright spot, rising 0.4% last quarter, with brands like Dom Ruinart Blanc de Blancs and Taittinger posting strong returns (over 30% in the last six months). This mixed performance underscores the complexity of the fine wine market, where price movements can vary widely by region and brand.

New fine wine releases beyond Bordeaux

As always, autumn brought the highly anticipated La Place de Bordeaux campaign, with major New World brands such as Almaviva, Seña, and Penfolds Grange releasing their latest vintages. However, this year’s campaign fell flat, with many new releases priced similarly to last year, despite older vintages showing better value and investment potential due to price corrections. Investors may find more favourable opportunities in back vintages that boast higher critic scores at lower prices.

Regional fine wine performance in Q3

The fine wine market has now returned to its 2021 levels, with prices declining across most regions in Q3 2024, except for Champagne, which recorded a modest 0.4% increase.

Bordeaux experienced the most significant drop, falling 4.4%, driven down primarily by the Second Wine 50 index, which plunged 6.6%, and the Right Bank 50 index, down 4.6%. Many wines from the 2019 vintage, which had previously appreciated in value, have now returned to their original release prices.

Despite this trend, Bordeaux is enjoying steady market demand, taking over a third of the market by value. Moreover, Jane Anson recently revisited the 2009 and 2010 vintages, awarding nine wines 100 points – a move likely to stimulate demand and prices.

When it comes to other regions, Italy and Burgundy also saw a 2% drop in Q3. The Rhône was somewhat more resilient, experiencing a smaller decrease of 0.8%.

The best-performing wines

While the broader market continues to face challenges, certain wines buck the trend, reinforcing the importance of strategic, brand-specific investment decisions.

In Q3 2024, some brands have delivered exceptional returns. The table below showcases the best-performing wines year-to-date, with regions like Tuscany and the Rhône dominating the list.

Leading the pack is Krug 2004, which saw an impressive rise of 21.6%, reflecting the continued strength of Champagne in the investment market. Earlier this year, Antonio Galloni (Vinous) rescored the wine, giving it 98 points. He described it as a ‘gorgeous Champagne that is just beginning to enter its first plateau of maturity’.

Close behind is Domaine du Pégau’s Châteauneuf-du-Pape Cuvée Réservée 2012, which appreciated by 21.2%. Sassicaia 2011 follows with a 21% increase, while its 2015 vintage takes the tenth spot, with a 12.1% rise.

Vega Sicilia Único also features twice with its 2010 and 2011 vintages, demonstrating the increased demand for Spanish wines.

Wines from Bordeaux and the Rhône also make the list, showcasing the diversity of the wine investment market.

The most expensive wines in 2024

The world’s most expensive wines in 2024 are overwhelmingly dominated by Burgundy. At the top of the list is Domaine de la Romanée-Conti’s Romanée-Conti Grand Cru, with an average price of £221,233 per case. Following closely is Domaine d’Auvenay Chevalier-Montrachet Grand Cru, priced at £204,328.

Other notable entries include:

  • Domaine d’Auvenay, Criots-Bâtard-Montrachet Grand Cru at £141,979.
  • Liber Pater, from Bordeaux, priced at £140,009, stands out as the only non-Burgundy wine in the list.
  • Domaine Leroy, Richebourg Grand Cru, valued at £120,007, further establishes Burgundy’s dominance as a highly collectible wine region.

Burgundy producers such as Domaine Leroy and Domaine d’Auvenay appear multiple times on the list. The trend reflects how scarcity, reputation, and critical acclaim are key drivers of value, especially as the market for fine wine becomes increasingly selective in uncertain economic times.

Further entries include:

  • Domaine Leroy, Romanée-Saint-Vivant Grand Cru at £103,844.
  • Domaine d’Auvenay, Mazis-Chambertin Grand Cru at £93,818.
  • Domaine de la Romanée-Conti, Montrachet Grand Cru at £89,529.
  • Domaine Leroy, Corton-Charlemagne Grand Cru at £81,827.
  • Domaine d’Auvenay, Meursault Premier Cru, Les Gouttes d’Or at £80,715.

This dominance by Burgundy reflects its unmatched status in the global wine market, where scarcity and consistent quality continue to command premium prices.

For more information, visit Wine Track.

Fine wine news

The autumn La Place de Bordeaux release campaign

The 2024 La Place de Bordeaux campaign saw the latest releases from Masseto, Solaia, Seña, Penfolds Grange and many more. However, many of these new vintages were released at the same or slightly higher price levels as last year, despite a general market decline, making them less attractive from an investment perspective.

For instance, Masseto 2021 received a perfect 100-point score from Antonio Galloni but was priced at the same level as last year, with back vintages such as 2017, 2018 and 2019 offering better value. Meanwhile, the 100-point Solaia 2021 was released at a 15.7% premium on the 2020 vintage.

From Chile, the 2022 Seña and Viñedo Chadwick were offered at last year’s prices, but older, higher-scoring vintages such as Seña 2019 and Viñedo Chadwick 2021 remain more affordable. Penfolds Grange 2020 saw a small price increase, yet back vintages like the 100-point 2013 offer greater investment potential. Overall, back vintages, with comparable or higher critic scores, often provide better value for investors looking to capitalise on the current market dip.

Historically low yields in France

The 2024 French wine harvest is projected to be one of the smallest in recent history, with regions like Burgundy and Bordeaux experiencing significant declines due to adverse weather conditions.

Burgundy’s output is projected to be down by 25% compared to 2023, while Bordeaux is facing a 10% drop, resulting in the region’s lowest production volume since 2017.

Historically, such scarcity in Burgundy has driven secondary market price increases, as collectors rush to secure rare wines. However, the economic downturn may temper this trend, making selectivity key for investors. In Bordeaux, while smaller harvests often support price stability for premium wines, the broader market conditions may limit price recoveries, especially for mid-tier labels.

Q4 2024 market outlook

The consistent decline in fine wine prices leaves many wondering when the market will stabilise. Despite this downward trend, several factors point toward potential recovery and attractive buying opportunities in Q4.

Firstly, strong demand for select wines persists, particularly for brands that continue to outperform the market. This year has already seen several broken auction records, including for high-profile Burgundy, which points to continued interest in fine wine.

While the market as a whole is facing challenges, strategic investment in the right wines can still yield impressive returns. Investors looking to capitalise on market lows should consider brands which have consistently shown growth despite broader regional declines.

The global economic backdrop also provides reasons for optimism. Central banks, led by the US Federal Reserve, have shifted towards interest rate cuts which could stimulate further investment in alternative assets like fine wine.

In terms of regional performance, the ongoing declines in key regions may start to stabilise, as already seen in Champagne. Despite a 4.4% drop in Q3, Bordeaux remains a dominant player with one-third of the market share by value. With critics such as Jane Anson awarding nine perfect 100-point scores to Bordeaux wines from the 2009 and 2010 vintages, we may see renewed interest in classic vintages.

In summary, Q4 2024 offers a unique window of opportunity for long-term investors. With the current decline, strategic investments in high-performing brands and undervalued vintages could offer substantial returns on the road to recovery.

WineCap’s independent market analysis showcases the value of portfolio diversification and the stability offered by investing in wine. Speak to one of our wine investment experts and start building your portfolio. Schedule your free consultation today.

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Q2 2024 Fine Wine Report

Our Q2 2024 report has now been released. The report examines the macroeconomic factors affecting fine wine prices, the Bordeaux 2023 En Primeur campaign, the best-performing wines, industry news and an outlook for Q3.

Executive summary

  • The second quarter built on the successes of the first, with risk assets delivering another set of positive returns to investors.
  • Global equity markets were buoyed by resilient economic growth and rising investor confidence.
  • UK investment sentiment also improved after a landslide election win for the new Labour government.
  • The fine wine market remains a buyers’ market, with Burgundy and Champagne priced down the most in Q2. 
  • Bordeaux back vintages enjoyed rising demand and prices, following the 2023 En Primeur campaign.
  • The best-performing wine in Q2 was the 100-point Château Léoville Las Cases 2016.
  • This year’s En Primeur yielded mixed results with few great successes despite the general price cuts. 
  • Some of the best releases included the First Growths and their second wines, Beychevelle, and Cheval Blanc.
  • In other news, Sotheby’s Burgundy sale smashed wine auction records and Marchesi Antinori took full ownership of the Washington State winery Col Solare.
  • In buying opportunities, Latour 2009 offers perfect scores at the best possible price on the market.
  • Looking ahead, we anticipate the autumn La Place de Bordeaux campaign following a short summer lull.

The trends that shaped the fine wine market

Economic resilience boasts global markets

The second quarter delivered positive results for global equity markets which were buoyed by resilient economic growth, and supportive earnings and sales expectations. This strong economic foundation has allowed equities to advance, even as stubborn inflation poses potential challenges. Bond markets also appeared attractive; however, the same economic resilience that benefitted equities introduced near-term risks for fixed-income investments.

UK investment sentiment also improved following a landslide election victory for the new Labour government. The British pound, which has been the strongest major currency against the dollar this year, nudged higher when the scale of Labour’s victory became clear. The UK-focused FTSE 250 share index, which has outperformed the more global FTSE 100 year-to-date, rose to its highest level since April 2022, reflecting renewed investor confidence in the country’s economic prospects.

Fine wine – a buyer’s market

Meanwhile, fine wine prices continued to decline. The Liv-ex 1000 index, the broadest measure of the market, is currently at the level it was in August 2021 (388.28). Despite falling prices, trade volumes are higher than this time last year, suggesting that buyers are seizing opportunities to acquire wines at more favourable prices. Moreover, some of the best-performing wines this quarter rose as much as 20% in value. There are opportunities to be had if one follows closely.

En Primeur and Bordeaux’s falling prices

Some of these opportunities arose during the 2023 Bordeaux En Primeur campaign. The best new releases offered a compelling mix of quality and value, with a significant potential for future price appreciation. These included Beychevelle, Cheval Blanc, and the First Growths’ Grand vins and second wines – still, few and far between given the scale of the campaign. In the secondary market, Bordeaux prices fell 1.8% in the second quarter, making back vintages even more attractive. The only index that rose in value as the campaign concluded was the Bordeaux Legends 40 – exceptional older vintages that enjoyed rising demand. 

Regional fine wine performance

Liv-ex regional indices performance chart

As the market’s focus shifted to new releases, prices in the secondary market fell in Q2. The broadest measure, the Liv-ex 1000 index, dipped 2.4%. It was led lower by the Burgundy 150 (-3.9%) and the Champagne 50 (-3.7%). The Rest of the World 60 and the Italy 100 indices experienced the smallest declines of 1.1% and 1.2% respectively.

As the chart above shows, Italy has shown relative resilience in the current bearish market. Despite broader market uncertainties, some Italian brands have even recorded positive movement in the last six months as high as 15%.

In June, the Bordeaux Legends 40 index recorded its first positive movement in almost a year, rising 0.3%. The index tracks the performance of a selection of 40 Bordeaux wines from exceptional older vintages (from 1989 onwards). As we have previously highlighted, older vintages can often be a lucrative investment prospect, offering a combination of quality, value and bottle age. 

The best-performing wines in Q2

Best performing wines Q2 2024

The best-performing wines this quarter were a diverse mix from Bordeaux, Burgundy, Piedmont, the Rhone and Champagne. Leading the charge was the 100-point (WA) Château Léoville Las Cases 2016, with an impressive 19.4% increase. William Kelley described it as ‘one of the high points of this great vintage’. Close behind was Château Angélus 2019, which saw a 19.1% rise.

From Burgundy, Domaine Bonneau du Martray Corton-Charlemagne Grand Cru 2020 came third, up 15.2%. Other wines from the region that rose in value included Domaine de la Romanée-Conti La Tache Grand Cru 2017 and Coche-Dury Meursault 2018

Dom Pérignon Rosé 2009 also made the rankings, with a 9.6% rise this past quarter. On average, prices for the wine have risen 83% in the last decade.

Fine wine news

Sotheby’s Burgundy sale smashes records

On July 5, 2024, Sotheby’s conducted its first exclusive single-owner Burgundy sale, breaking eight world records and achieving €2 million ($2.1 million). Held in the historic Caves du Couvent des Cordeliers in Beaune, the auction featured over 175 lots from Taiwanese entrepreneur Pierre Chen’s cellar.

Top highlights included six bottles of Chevalier Montrachet d’Auvenay 2009, which fetched €106,250 (£89,915), and 12 bottles of Domaine Armand Rousseau Chambertin Clos de Bèze 1990, sold for €100,000 (£84,630). Among the record-setting sales were three bottles of 2005 DRC Échezeaux at €10,000 per bottle and a magnum of 2005 DRC La Tâche at €35,000.

Last month, Chen’s collection of fine and rare Champagne achieved €1.35 million (£1.14 million) at Sotheby’s in Paris, with notable sales including three magnums of Salon Le Mesnil Blanc de Blancs 1990 for €25,000 (£19,600) and a magnum of Dom Pérignon P3 1966 for €23,750 (£20,100), both setting new records.

Sotheby’s expects Chen’s collection to fetch a record $50 million (£39.2 million) by the series’ end, with upcoming auctions in New York and Hong Kong.

Antinori expands into Washington

Marchesi Antinori, one of Italy’s oldest family-owned fine wine producers, has taken full ownership of the Washington State winery Col Solare, which was established as a joint venture in 1995 with Ste. Michelle Wine Estate (SMWE). The acquisition includes the winery, the estate vineyard spanning 12 hectares planted primarily with Cabernet Sauvignon, and the brand, which produces around 5,000 bottles annually. Piero Antinori, president of Marchesi Antinori, expressed admiration for Red Mountain AVA’s unique terroir, emphasising the challenge and excitement of producing high-quality Washington red wines.

Juan Muñoz-Oca, COO of Antinori USA, highlighted the significance of this acquisition, reflecting Washington’s growing reputation for luxury wines. This move follows Antinori’s 2022 acquisition of Napa’s Stag’s Leap Wine Cellars, transitioning from a 15% to 100% stake after SMWE was sold to Sycamore Partners for $1.2 billion in 2021. Besides Stag’s Leap, Antinori owns Antica, a 200-hectare estate in Napa Valley, as part of their expansion in the states.

Buying opportunities: Latour 2009

Chateau Latour 2009 wine prices

Château Latour 2009 currently represents a combination of perfect scores and perfect timing. The highest-scoring wine ever at the annual Southwold tasting, Latour 2009 is now at the best price it has been in almost a decade. 

The recipient of no less than five perfect scores from Robert Parker, Lisa Perrotti-Brown MW, Jeff Leve, James Suckling, and Falstaff, Latour 2009 is a stand-out wine among critics. Hailed by Robert Parker as the greatest vintage he’d ever tasted, more recently Neal Martin described it as ‘outstanding’ and a ‘Latour firing on all cylinders’.

Latour is also the highest-scoring 2009 Bordeaux on Cellar Tracker, where it’s also the second-highest-scoring wine of the entire decade, beaten only by Petrus 2000 at more than six times the price.

In terms of price performance, Latour has outperformed all the other First Growths over one, two and five years. 

The 2009 vintage, which is currently available at one of the lowest price points ever, offers value among other prime vintages. Its scores match the 1982 and 1961, both of which come at a significant premium.

It is more affordable than the 2010 as well as the 2000 and 1990 vintages but with superior scores than all of them. The 2009 Latour is a hidden gem that seems particularly good to seek out now.

Outlook for Q3

With the onset of the summer lull, the market is expected to experience a temporary slowdown as usual. Despite this seasonal dip, numerous opportunities remain available. The market for collectibles, including fine wine, is gaining popularity among new investors looking for diversity and uncorrelated market returns.  

Over the next two months, the fine wine market will shift its focus to wines from around the globe as the autumn La Place de Bordeaux campaign takes centre stage. Esteemed producers such as Almaviva, Opus One, Vérité, Seña, Catena Zapata, Masseto, and Solaia will unveil their latest vintages on the international stage, accompanied by numerous other exciting releases.

As the campaign expands to include New World wines, the category is expected to see a surge in secondary market demand, potentially driving up prices. We will continue to spotlight the best investment opportunities where exceptional quality and brand prestige meet attractive pricing.

WineCap’s independent market analysis showcases the value of portfolio diversification and the stability offered by investing in wine. Speak to one of our wine investment experts and start building your portfolio. Schedule your free consultation today.

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Report

Q1 2024 Fine Wine Report

Our Q1 2024 Fine Wine Report has now been released. The report offers a comprehensive overview of the fine wine market in the last quarter, including the impact of interest rates and geopolitical risks, the best-performing wines and regions, and analysis on the rising popularity of non-vintage Champagne as an investment.

Report highlights:

  • Mainstream markets rallied in Q1 2024, driven by resilient economic growth and expectations for future interest rate cuts by central banks.
  • The first green shoots started to appear in the fine wine market towards the end of Q1.
  • Fine wine prices (Liv-ex 100 index) experienced a smaller decline of 1% in Q1, compared to a fall of 4.2% in Q4 2023.
  • Italian wine enjoyed rising demand amid a flurry of new releases, including the 100-point Sassicaia 2021.
  • A number of Champagne labels that experienced consistent declines last year have started to recover, including Dom Pérignon, Salon Le Mesnil, and Pol Roger.
  • The Burgundy 2022 En Primeur campaign delivered high quality and quantity, with about 10% of producers reducing pricing year-on-year due to the challenging market environment.
  • China lifted tariffs on Australian wine after more than three years.
  • Critics and trade are now preparing for the 2023 Bordeaux En Primeur campaign, which will dominate the news in Q2 2024.

Click below to download your free copy of our quarterly investment report.

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Learn

History of Burgundy’s price performance

The following article is an extract from our Burgundy regional wine investment report.

  • Burgundy is the region with the highest average bottle prices.
  • It is the best-performing fine wine region, considerably outperforming industry benchmarks.
  • This article analyses its historic performance, the drivers behind its success, and what this might meant for the future of the region.

Burgundy has earned an impressive reputation in the fine wine investment landscape. The region is the outright leader when it comes to average bottle prices and the long-term performance of its wines.

The Burgundy 150 index, which tracks the prices of the last ten vintages across 15 Burgundy brands, is the leading Liv-ex regional index, continually outperforming Bordeaux, Italy and Champagne. It is up over 650% since its inception.

Although the index only comprises a narrow pool of highly traded wines, it provides an indication of the direction of Burgundy prices. During its impressive rise, the index experienced only one significant drop of 15%, giving investors confidence that its punctuated equilibrium will continue.

Historic performance of Burgundy prices

The Liv-ex Burgundy 150 index doubled from early 2006 to mid/late 2008 — the first awakening of the Burgundy market as a new generation of wealthy consumers started to dominate the collectors’ market. This was at least in part driven by the volume of information available to them online from reviewers like Robert Parker and Allen Meadows and a greater focus on fine wine from the major auction houses.

After the 2008 financial crisis, Burgundy was somewhat left in the shadow. With the opening of the Chinese market, Bordeaux grew massively between 2008 and 2011. When Bordeaux fell from its 2011 peak, a new generation of investors flocked to Burgundy, seeking growth and breadth to their holdings.

From 2016 to late-2018, the value of the Burgundy 150 index doubled again. This can be attributed to growing liquidity in the sector and its recognition as a viable high-return investment. The region experienced a period of decline in 2019/2020, after a 15-year period without any significant downward movements. Some of this retreat has been related to profit taking and, later on, to the Covid-19 pandemic. Burgundy quickly made up for lost time in 2021 and 2022, with factors such as increased at-home consumption of fine wine, growing online trade, and rising liquidity contributing to its success. The index hit an all-time high in October 2022 at 909.4.

The market at large experienced another period of contraction in 2023, due to a combination of macroeconomic factors such as geopolitical conflicts, the lasting effects of the pandemic, high inflation and rising interest rates. Burgundy was the hardest hit region.

However, the overall direction of prices remains upwards as the trendline in the chart below shows. Such periods are advantageous times for Burgundy buyers who are usually able to find more stock at lower prices.

Burgundy 150 and price trendlines

To find out more about the investment market for Burgundy wines, read the full report here.

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News

Assessing the Burgundy 2022 En Primeur campaign

  • Burgundy prices continued to spiral downwards in January, falling 3.7%.
  • This created a challenging backdrop for the unfolding Burgundy 2022 campaign, which saw about 10% of producers reduce pricing year-on-year.
  • The current market dynamics offer investors a unique window to enrich their collections with both new gems and proven performers.

Burgundy took the spotlight at the beginning of the year with the unfolding 2022 En Primeur campaign. Already in our Q4 2023 report, we questioned the potential of the new releases to stimulate an otherwise dormant market. On the one hand, there was the excitement of the new mixed with high quality and quantity playing to the campaign’s advantage; on the other, much depended on pricing.

Market conditions and pricing challenges

Burgundy prices continued to spiral downwards in January, with the Liv-ex Burgundy 150 index starting the year with a 3.7% decrease. To say that this created a challenging backdrop for the new releases would be an understatement. Prices at release had to come down.

And partially they did. According to Liv-ex, about 10% of the top producers ‘lowered their prices year-on-year’. However, ‘about 40% raised their prices, even if only modestly’. Thanks to greater quantities, allocations were mostly restored.

Burgundy 2022 – ‘a treasure trove’

As the first releases landed, Burgundy 2022 enjoyed a positive reception from critics and trade. Neal Martin (Vinous) advised that ‘if your favourite growers’ price tags seem fair, then I would not hesitate diving in’. He described the 2022 vintage as ‘Burgundy’s latest trick: a treasure trove of bright ‘n bushy-tailed whites and reds in a season that implied such wines would be impossible, wines predestined to give immense drinking pleasure’.

Investment perspective and older vintages

However, prices for older vintages remain under pressure, creating buying opportunities for already physical and readily available wines. For instance, three of Burgundy’s outstanding long-term wine performers have all seen dips between 15% and 10% in the last year. Over the last decade, however, DRC Vosne-Romanée Cuvée Duvault Blochet is up 388%; Georges Roumier Bonnes Mares – 339%, and Armand Rousseau Chambertin – 279% on average.

Burgundy wines performance

Meanwhile, the Burgundy 150 index has decreased 16% in the last year. Still, the overall long-term index trajectory remains upwards, as the chart below shows.

Burgundy index

Searching for value

The current market dynamics offer investors a unique window to enrich their collections with both new gems and proven performers across older physically available vintages.

When it comes to the latest, the Burgundy 2022 En Primeur campaign presents a complex tapestry of quality, quantity, and pricing amidst challenging market conditions. Despite initial price pressures, the adjustments made by producers and the positive critical reception underscore the potential of the new releases. Neal Martin’s endorsement further elevates the vintage, suggesting that for the discerning buyer, Burgundy 2022 provides not just immediate drinking pleasure but also long-term investment opportunities.

WineCap’s independent market analysis showcases the value of portfolio diversification and the stability offered by investing in wine. Speak to one of our wine investment experts and start building your portfolio. Schedule your free consultation today.

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News

Burgundy 2022: a promising vintage in a challenging market

  • The 2022 vintage boasts high quality and quantity – ‘the largest crop in 23 years’.
  • It is being launched in a downward market, following ten months of consistent price declines.
  • As demand has tempered and stock has (re-)entered the market, the success of the upcoming releases will largely depend on pricing.

Burgundy’s 2022 vintage is being launched in a downward market, following ten months of consistent price declines. The success of the upcoming releases will largely depend on pricing, but will its quality and quantity have the potential to turn the tables?

Critical opinions on Burgundy 2022

Critic reports thus far have been overwhelmingly positive, applauding both the quality and the quantity of the vintage. 2022 marks the largest crop in 23 years, with some producers seeing double the yields of the previous year. According to Matthew Hayes (JancisRobinson.com), ‘across the whole of Burgundy, 2022 offered a whopping 75.4% more wine (red, white and crémant) compared with 2021’.

Contrary to expectations, the vintage produced wines with typicity, purity, and freshness despite the extreme weather. Hayes commented that ‘2022 was the second-hottest year that the Côte d’Or has endured this century and should logically have followed in the footsteps of the equally stifling solaire years of 2019 and 2020, producing wines with rich, deep fruit profiles and vibrant acidities to ensure long life but […] the wines show a generally impeccable balance of tidy, ripe fruit, discreet acidity and equally (and mostly) refined tannins’.

Hayes revealed that ‘the best-sited and best-rooted vines appeared to have coped well with the heat and in the Côte d’Or the excellence of the top premiers and grands crus shines clearly’.

The prevailing opinion is that 2022 is an excellent year for white wines, reminiscent of 2017 and 2020. Meanwhile, tasting notes from the Côte de Beaune and Côte de Nuits highlighted dense red wines with well-integrated tannins, simultaneously offering elegance and concentration. The wines are expected to be approachable in youth but with significant ageing potential.

However, the market onto which they are released is just as important as the releases themselves.

The current market for Burgundy

In October 2022, the Liv-ex Burgundy 150 index reached an unprecedented peak, marking a staggering 809.4% increase since its inception in December 2003. Twenty years later, Burgundy remains the best-performing fine wine region.

However, since its peak, prices have tumbled 17.4%. This decline has been attributed to various macroeconomic factors that led to a shift in investor sentiment. As the economic landscape became more uncertain, fine wine buyers have grown increasingly risk-averse, causing a contraction in demand for more volatile investments.

This trend was particularly pronounced in Burgundy, which had soared too high across the whole spectrum. At these stratospheric prices, the market saw more sellers than buyers, with investors keen to liquidate their stock. Top-tier Burgundy (re-)entered the market as sellers were looking to make gains.

This perception of increased risk and a preference for stability among investors led to a decrease in Burgundy’s trade share by value. The falling prices further exacerbated this trend.

Burgundy fine wine prices

The market conditions present a challenging backdrop for the high-quality high-quantity Burgundy 2022 En Primeur campaign. Will the excitement of the new be enough to stimulate demand?

WineCap’s independent market analysis showcases the value of portfolio diversification and the stability offered by investing in wine. Speak to one of our wine investment experts and start building your portfolio. Schedule your free consultation today.

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Navigating the 2023 fine wine market: the rise of Bordeaux amid global risk aversion

  • 2023 marks a notable slowdown in the fine wine market, with price corrections shadowing the bullish trends of previous years.
  • Burgundy and Champagne which led the market to its peak in 2022 are suffering the most.
  • Bordeaux has become a beacon for investors, gaining renewed interest due to its stability and reliability.

As the 2023 Liv-ex Power 100 unveils, a significant shift is evident in the fine wine market. This year marks a notable slowdown, with price corrections shadowing the bullish trends of previous years. Amidst this changing landscape, Bordeaux emerges as a beacon for investors, gaining renewed interest due to its stability and reliability. This article delves into the dynamics of the 2023 fine wine market, highlighting the rise of Bordeaux against a backdrop of global risk aversion.

Understanding the 2023 market slowdown

The fine wine market in 2023 has departed from the spirited activity of past years. After prices across many regions reached stellar levels in 2022, 2023 was a year of corrections. Trade by value and volume also fell, according to the 2023 Liv-ex Power 100 report. Despite more wine labels being traded, the overall number of individual wines traded (on a vintage level) has seen a decrease. This trend points towards a strategic shift towards higher quality wine investments, reflecting a more discerning market behaviour.

The softening of the fine wine market in 2023 can be attributed to a range of factors. Economic uncertainties and global financial market fluctuations have instilled a sense of risk aversion among investors. Inflationary pressures and rising interest rates have also played a role, impacting disposable incomes and investment capabilities. This economic climate has prompted a more cautious approach in luxury investments like fine wine. Additionally, changing consumer behaviours and preferences, along with geopolitical tensions and trade disputes, have further contributed to the market’s softening.

Regional patterns in 2023

In 2023, regional patterns in the wine market have become more pronounced. Burgundy and Champagne, which previously led the market to its peak, are now facing significant corrections. Burgundy has seen a reduction in its presence in the Power 100, while the Burgundy 150 index has fallen 15.4% year-on-year. Similarly, Champagne’s market has also softened, with the Champagne 50 index dipping 19.4%.

The rankings reveal a trend towards stability, liquidity, and relative value, which are prominently found in Bordeaux. This region has emerged as a beacon of resilience in the fine wine market, adding five wines to the Power 100 and benefiting from its reputation for consistent quality and reliable investment.

Conversely, California, while losing five wines in the ranking, managed to maintain its trade share, indicating a selective but sustained interest in its wines. This shift reflects a broader market inclination towards established regions and brands, suggesting a cautious approach by collectors and investors in a turbulent market.

As market dynamics evolve, regions like Italy and Spain are gaining traction, with brands like Vietti and Dominio de Pingus showing positive growth, further diversifying the landscape of investment-worthy wines. These regions are increasingly seen as offering valuable investment-worthy wines, attracting attention for their unique qualities and potential for growth.

The most powerful brands of 2023

In the realm of individual brands, certain names have demonstrated remarkable resilience and adaptability amidst the market downturn. Bordeaux’s Château Climens, for instance, has made an impressive leap in the rankings, rising from 353rd place in 2022 to 98th this year. This is a testament to its successful brand repositioning under new ownership.

Similarly, in California, brands like Opus One and Screaming Eagle continue to hold strong positions. Opus One, in particular, has risen dramatically, from 82nd in 2022 to 4th this year, signifying continued interest in top-tier wines from this region despite broader market challenges.

Despite facing a pullback Burgundy still has powerful players like Kei Shiogai, which took the top spot in terms of price performance, with its Market Price rising 185.7% year-on-year.

The strength of these brands lies not just in their historical significance or quality but also in their ability to retain high liquidity and trading volumes, essential in a market that is increasingly focusing on safer investments. This trend suggests that while the market is retracting in some areas, there remains a robust demand for wines that represent the pinnacle of their respective regions.

Adapting to the evolving wine market dynamics

As we navigate through the evolving dynamics of the fine wine market, it is clear that understanding and adapting to these changes is crucial for future investing. The trends of 2023, from the renewed interest in Bordeaux and the resilience of powerful brands, provide valuable insights into the market’s direction.

WineCap’s independent market analysis showcases the value of portfolio diversification and the stability offered by investing in wine. Speak to one of our wine investment experts and start building your portfolio. Schedule your free consultation today.