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Four key market trends from the 2023 Liv-ex Classification

  • The fine wine market is diversifying, with Argentina and Switzerland making new entries in the 2023 Liv-ex Classification.
  • Bordeaux’s influence is waning, now accounting for less than 30% of wines in the classification, while other regions like Champagne rise in prominence.
  • Internal shifts in Burgundy indicate changing buying preferences, driven by the search for value and stock.

The Liv-ex Classification is a ranking of the world’s leading fine wine labels, based solely on their price. The classification takes into account minimum levels of activity and number of vintages traded over one year to present a more accurate picture of the market today. Like the 1855 Bordeaux Classification, the wines are divided into five tiers (price bands).

The 2023 edition featured 296 wines from nine countries. It presented a broad overview of the state of the secondary market – what is trading, and at what price levels. As the market continues to evolve, we break down four key trends from the 2023 Liv-ex classification.

Continued expansion in the world of fine wine

While the number of wines that qualified for inclusion in the 2023 rankings was lower than in the previous 2021 edition (349) due to changes in the methodology, the fine wine investment market has continued to diversify.

Argentina re-entered the rankings with five wines compared to having just one in 2019. Switzerland also joined the classification for the first time with Gantenbein Pinot Noir. Meanwhile, Spain and Chile saw 40% and 100% respective increases in the number of wines entering.

Regional diversity was particularly noticeable in the second-lowest priced 4th tier (£456-£637 per 12×75), which featured wines from France (24), Italy (16), Portugal (3), Australia (2), Spain (1), the USA (1), and Argentina (1).

Bordeaux among global competitors

It is no secret that Bordeaux’s dominance in the fine wine investment market has been fading since its glory days in 2009-2010. The continued broadening of the market has meant that the region has become one of many players, accounting for under 30% of the wines in the 2023 classification.

This has been further aided by its mediocre price performance relative to other regions. The Bordeaux 500 index has risen just 2.9% over the last two years, compared to a 19% move for its parental Liv-ex 1000 index, and a 36.7% increase for Champagne, which has been the best performer. All considered, Liv-ex wrote that ‘this pattern may well continue in future editions’ as new entrants challenge Bordeaux’s monopoly.

While Bordeaux’s influence wanes, other regions like Champagne are capturing the limelight.

The stellar rise of Champagne prices

Champagne has experienced a significant price surge in recent years, which has been reflected in the global rankings.

The majority of Champagnes (10) in the classification entered the first tier – wines priced above £3,641 per 12×75. The remaining 12 were split between tier 2 (£1,002-£3,640) and tier 3 (£638-£1,001). There were no Champagnes in tiers 4 and 5 (wines below £1,000 per case).

The most expensive Champagne was Jacques Selosse Millésime, with an average trade price of £32,516 per case, followed by Krug’s Clos d’Ambonnay (£30,426) and Clos du Mesnil (£17,509). The latter has risen 105% in value over the last five years.

On average, Champagne prices are up 62.8% during this time. They peaked in October 2022, following a year and a half of steady ascent. Since then, the Liv-ex Champagne 50 index has entered a corrective phase – but not significant enough to change the region’s trajectory. Sustained demand has been further buoying its performance.

Internal reshuffling in Burgundy

Burgundy, home to the most expensive wines in the rankings, has been undergoing an internal shift. New entrants have replaced many of the labels in previous editions, signalling changes in buying preferences.

Heightened demand for the region in 2022 led buyers to explore different wines within Burgundy, seeking both value and stock availability. Some of the new entrants in the 2023 classification include Prieuré Roch Ladoix Le Clou Rouge, Domaine Louis Jadot Gevrey-Chambertin Premier Cru Clos Saint-Jacques and Domaine Trapet Père et Fils Latricières-Chambertin Grand Cru.

Interestingly, while these new labels have entered the ranking, they seem to have replaced older, perhaps less active, Burgundy labels. Indeed, the overall proportion of Burgundy wines in the classification has remained steady, even as specific labels fall in and out of favour.

As new players emerge and existing ones adapt, one thing is clear: the fine wine market will continue to diversify and evolve, promising a fascinating future for everyone involved.

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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Joseph Drouhin expands vineyard holdings to meet rising Burgundy demand

Joseph Drouhin
  • Joseph Drouhin has acquired two properties, Château de Chasselas in Saint-Véran and Rapet in Saint-Romain.
  • The expansion comes as both producers and buyers seek to find stock and value in an increasingly competitive market for Burgundy.
  • Drouhin has been a brand on the move, with some of its wines rising near 40% in value in the last year.

Joseph Drouhin expands its vineyard holdings 

Rising demand for Burgundy has fueled winery purchases and new investments. One of the most prominent producers, Maison Joseph Drouhin, has expanded its vineyard holdings with the recent acquisition of Château de Chasselas in Saint-Véran and Rapet in Saint-Romain.

Frédéric Drouhin, president of the Maison, explained that this decision was driven by increased competition and challenges in acquiring vineyards and purchasing grapes. The purchase focuses on high-quality yet more affordable areas in Burgundy – outside the main Côte d’Or villages, as both producers and buyers seek to find value in a region that has experienced significant price increases in recent years.

Just in the last five years, Burgundy fine wine prices have risen 75.7% – more than seven times the prices of the Bordeaux First Growths.

Burgundy vs Bordeaux prices

The insatiable demand and investment interest in the region have also impacted the cost of land, creating something of a vicious circle. 

The price of the latest Drouhin purchase was not disclosed.

The estates

Château de Chasselas encompasses 17.3 acres and is already a major supplier of Drouhin’s Saint-Véran wine. The property also includes small parcels in Chasselas and Beaujolais. The Rapet estate spans 19.8 acres and includes both Pinot Noir and Chardonnay vineyards in Saint-Romain, as well as small parcels in Auxey-Duresses, Pommard, and Meursault.

The debut vintage of Drouhin’s Saint-Romain wine is the 2022, while the first bottling of Saint-Véran Château de Chasselas will be the 2023 vintage, which will be released in 2024. All the newly acquired vineyards are being transitioned to organic farming practices.

With these acquisitions, Maison Joseph Drouhin owns close to 250 acres of vineyards, spanning from Chablis to Mâcon and encompassing 60 appellations. Their portfolio includes 14 Grands Crus and 20 Premier Crus. 

Drouhin’s place in Burgundy’s secondary market

Joseph Drouhin has been a Burgundy brand on the move. The brand jumped 142 places in the 2022 Power 100 rankings, thanks to its price performance. 

Four wines from the estate also ranked in the first tier of the 2021 Liv-ex Classification, which ranks the wines of the world solely by price: Montrachet Grand Cru Marquis de Laguiche, Musigny Grand Cru, Chambertin-Clos de Bèze Grand Cru, and Chambolle-Musigny Premier Cru Les Amoureuses.

The best performing Drouhin wines

In the last year alone, the best performing Joseph Drouhin wines have risen between 13% and 39%, outperforming the Burgundy 150 index. 

The biggest riser has been their Beaune Premier Cru Le Clos des Mouches Rouge, which has an average price of £1,403 per case.

You can now explore the historic performance of these wines on Wine Track. Our tool provides a clear overview of a fine wine’s track record, including critic scores, average price and investment returns. 

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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Chablis Commission Pleased with 2022 Harvest

Chablis grand cru vineyard

While Chablis declared 2021 to be a ‘complicated’ year, 2022 has proven to be a real contrast, with the Chablis Commission having declared this year’s harvest to be a healthier and overall higher-yielding one.

Paul Espitalié – president of the Chablis Commission – commented that 2022 was a much more dynamic vintage when compared to 2021, as the years before it had ushered in ‘challenges for winemakers in Chablis with the changing and unpredictable climate’.

Many winegrowers in Chablis rejoiced after the harvest this year as yields were plentiful and almost up to the maximum amount permitted. Because of this, the commission is hopeful that the region will be able to make up some lost ground with regards to volumes for export markets, where the UK still holds the top spot.

Espitalié commented that: ‘The UK continues to be our most important export market and we believe a key element to the continuing success of Chablis wines’. He also added that one of the commission’s main focuses is to increase consumer awareness of both Petit Chablis and Chablis wines.

‘These appellations have just as much to offer the market, particularly in the current financial climate in terms of offering great value wines,’ he said.

The 2022 harvest’s wines will be available in the UK shortly. Over the course of a year, a total of 3.8 million bottles were sold in the UK in 2021 – 2022.

Looking ahead, 17% of all Chablis vineyards are currently 100% organic and the subregion is also on track to hit the Burgundy-wide target of becoming carbon neutral by 2035. The aim of these initiatives is to improve the vineyards’ health and protect the local industry for the years to come.

Read more about the potential of Burgundy’s 2022 harvest here.

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The DRC Ransom Plot

One of Burgundy’s most sought-out producers is Domaine de la Romanée-Conti (DRC). It was the Benedictine monks who were the first to recognise the Côte d’Or’s potential as a winegrowing area. They divided up and organised the parcels of land that produced the finest grapes. 

This piece of land was originally called ‘Le Cloux des Cinq Journaux’, then ‘Le Cros de Cloux’. After changing ownership many times after the monks tended the vines there, the plot was renamed as ‘La Romanée’ by the Croonembourg family. However, it wasn’t until 1760 that this legendary site was given its name that remains to this day. Louis-François of Bourbon – the Prince Le Conti – named it ‘Romanée-Conti’ when he purchased the 4.46 acre plot.

It is rumoured that the prince acquired the land as he discovered that his rival – Madame de Pompadour – who was also vying for the affection of the king, Louis XV, planned on buying the vineyard. The prince hired an agent to carry out his wishes and hoarded all the domaine’s wines for himself, throwing elaborate parties for his distinguished guests.

Domaine de la Romanée-Conti’s wines are some of the most eye-wateringly expensive in the world. Even having the means to purchase them doesn’t necessarily translate into being able to buy them as production levels are so low that only approximately 500 cases of La Romanée-Conti are made each year.

One villain – having discovered just how much the wines were retailing for – hatched a plan in 2010 to hold DRC’s co-owner and head winemaker, Aubert de Villaine, to ransom.

Having made detailed drawings of the vineyard and, shockingly, having poisoned two of DRC’s vines with herbicide already, the crook sent a ransom letter, addressed to Villaine. In it, they demanded €1.3 million from the estate, otherwise they would poison the remainder of the historic vines. 

It transpired that the culprit wasn’t as cunning as you’d have thought. Villaine enlisted the help of private investigators who delivered the ransom money to the specified location and a certain Jacques Soltys retrieved a parcel full of false notes and was met by police who were lying in wait.

After such an ordeal, things returned to normal at the estate. The grapes were picked, fermented and transformed into the 2010 vintage that, unsurprisingly, was proclaimed to be one of the all-time greatest years. 

Search for all of DRC’s wines and find out their performance on Wine Track. 

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The 2022 Burgundy Wines’ Real Potential

Report Cover

The Burgundy Wine Board (BIVB) announced that the wines from the 2022 Burgundy harvest have real ‘potential’. This vintage will be dedicated to Louis Fabrice Latour, the former president of the trade association, who passed away earlier this month.

Commenting on the recent harvest, the BIVB said that it had been ‘a pleasant surprise’ and that it was ‘a vintage of the kind we were all hoping for.’ Despite cold temperatures and frosts, the board is happy with both the quantity of grapes that will go into this year’s wines as well as their quality.

The 2022 Burgundy Vintage

The growing season began at the start of April having experienced a milder winter with less rain than usual. Temperatures dropped mid-April and two snaps of frost followed. Fortunately, budburst hadn’t taken place completely and buds were not fully exposed to the frosts, although some areas did experience small amounts of damage. 

Spring arrived and brought excellent conditions with it. Flowering took place two weeks earlier than usual which led to many commentators suggesting that the 2022 vintage could be one of the earliest ever. Thunderstorms in late June refreshed the vines but also brought some hailstorms which caused ‘significant damage’ in some areas.

Contrary to the belief that the harvest would start earlier than normal, pickers started harvesting Chardonnay on the 20th of August which is in line with previous years. It was a prolonged harvest due to the good weather which helped produce optimally-ripe grapes. 

The board agreed that this year’s grapes are ‘balanced with controlled degrees of alcohol and good acidity.’ It found that the compounds in the red grapes were ‘excellent’ which are needed for long-term ageing. The BIVB also commented that the musts of the whites and reds were ‘highly aromatic’ which is another positive sign. 

This year’s harvest is what the Burgundians had hoped for, as the 2021 vintage suffered very low yields and in turn triggered higher prices. However, 2022’s yields were still down on average.

Find out more about our initial thoughts on the Burgundy 2022 vintage in this article.

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Why the 2022 Burgundy Vintage is Looking Promising

Burgundy vineyard with rustic house

Frosts descended on some of France’s key fine wine regions in April for the second year in a row. Producers in Burgundy, Bordeaux and Champagne braced themselves for the coldest temperatures the country had experienced since April 1947. Burgundian winemakers were perhaps the most hypervigilant out of all the country’s producers who were taking measures in the vineyard to prevent the frost from settling. Burgundy’s vignerons were poised to battle the elements each night in the hope of escaping the same losses that impacted the 2021 vintage.       

Fortunately, the Bureau Interprofessionnel des Vins de Bourgogne (BIVB) – Burgundy’s wine board – has just announced that this year’s frost damage isn’t as bad as first thought. While ‘everyone had feared the worst’, due to a mild winter and two snaps of frost in April, it commented that ‘this event is different’ to last year’s. ‘The vines are less advanced in the growth cycle and in general terms, the frost was shorter and less intense.’ The areas which came under the most pressure from frost were ‘certain sectors in the northern part of the region.’

The BIVB’s technicians found in their analysis of vineyard plots that early May’s warmth and rainfall had helped accelerate the growing season and that flowering had begun mid May.  

While the climatic challenges experienced this year hadn’t resulted in as much damage in Burgundy’s vineyards as previously feared, the BIVB warned last month that there are still potential difficulties that lie ahead. This stems from a combination of increased global demand from consumers and reduced yields in 2021. Another factor the wine board highlighted was the financial pressure winemakers were under, having had to pay for additional vineyard equipment, such as candles, to ward off the frost. 

With frosts becoming more and more of a yearly occurrence and with producers’ margins becoming even tighter, could we see already high Burgundy prices rise even more? WineCap will be keeping a close eye on the 2022 Burgundy vintage and its progress. 

October 2022 update: Now that the harvest is in, discover the BIVB’s initial thoughts on the quality of the vintage and yields in our article.

Want to learn more about Burgundy, its producers and appellations? Download our Region Report to find out more.

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Rare Burgundy Auction at Christie’s

christies auction

Rare Burgundy wines are set to feature in Christie’s upcoming ‘Luxury Week’ in May and also in its Finest and Rarest Wines and Spirits sale in June. Spring heralds warmer weather, new growth and for one of the world’s most famous auction houses, a series of auctions that include some of the finest wines, watches, jewellery and handbags ever produced.

Christie’s Auction House 

Last year’s sales of luxury items at Christie’s was incredibly successful, topping just over $980m and the highest since 2015. Interestingly, 35% of buyers across all categories were new to the business and 32% of them were millennials, according to Christie’s CEO Guillaume Cerutti. It’s these new buyers that are driving the current buoyancy at the top end of the luxury auction market and that continue to push prices up on rare, collectible wines. What’s more, Christie’s has heavily invested in technology, a move brought about by the pandemic, in order to livestream auctions.  

All eyes will no doubt be focused on the upcoming rare Burgundy auction in June. It’s sure to be a real highlight as all of the 45 lots have been brought above ground from the deep, vaulted cellars of King’s College Cambridge. King’s College is said to have one of the most well respected cellars out of all of the university colleges and a real heritage when it comes to wine as its University Wine Society was founded in 1792. The college bought all of the wines on release from UK importer Richards-Walford and the cases were then moved to the university’s cellars, where they have remained since then. Only four wine stewards have been appointed in the past two centuries and their enviable role is to act as the cellar’s guardians and curate its collection.

A Wine Investor’s Dream

The 45 lots are set to feature rare Burgundies from such highly sought-after producers as Henri Jayer and his nephew Emmanuel Rouget, who is now the proprietor of some of Jayer’s most famous vineyards. Wines from these producers are expected to hail from such revered appellations as Echézeaux and Vosne-Romanée Cros Parantoux. Bids are sure to reach eye-wateringly high amounts for stand-out wines from a region that has tiny production levels.

Speaking about the upcoming auction, Adam Bilbey, Christie’s Global Head of the Wine and Spirits Department commented: “The hallowed cellars of King’s College, Cambridge are steeped in such history and tradition that this sale will garner the imagination and attention of wine lovers around the world. This small glimpse into the King’s College cellar will most certainly be a highlight of Christie’s wine sales this season”.

Want to find out more about rare Burgundy wine? Download our Burgundy report and discover why the region and its producers’ wines command some of the world’s highest prices.

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Burgundy | Regional Report

Burgundy Region

There is a maxim in the wine trade: no matter where a wine lover starts, they end up in Burgundy.

A key part of the attraction is in its contradictions: it is the most romantic wine region but also the most expensive; quality tends to be high but quantities are low; intuition is key but it is also one of the most researched regions.

With only two primary grape varieties and three classification ranks, Burgundy may appear simple, but with dozens of controlled places of origin (AOCs), hundreds of producers and thousands of wine labels, it can be incredibly complicated.

Our Burgundy Report delves into the fundamentals of this fascinating region, including the development of its investment market, historic performance, recent expansion and key players.

Discover more about:

  • Burgundy’s price performance
  • The expansion of Burgundy’s investment market
  • History of the Burgundy wine region
  • Burgundy’s structure and fragmentation
  • Key Burgundy producers
  • How we choose Burgundy for investment

Do not hesitate to get in touch and speak to one of our wine investment advisors for further information and to reserve your allocations.