Surging demand for luxurious Champagnes prior to now two years seems to have modified the area’s profile on the secondary market, mentioned Liv-ex, a world market for the commerce.
‘As soon as a comparatively modest value performer, Champagne has change into one of the best performer over the previous one and two years,’ mentioned Liv-ex in a brand new report revealed this week for members.
Its Champagne 50 index, that includes Krug, Cristal, Dom Pérignon, Salon and Taittinger Comtes de Champagne amongst others, has risen in worth by practically 73% over two years, and by 52% within the final 12 months.
That beats different regional indices, in addition to the FTSE100 and S&P500, Liv-ex mentioned. A number of retailers have additionally beforehand reported robust demand for status Champagnes.
Chart credit score: Liv-ex report, ‘Champagne: the rising secondary marketplace for luxurious’.
‘The Champagne on the forefront of the market’s two-year bull-run has been Salon Le Mesnil, which has risen 99.5% on common throughout this time,’ Liv-ex mentioned in its report.
Taittinger Comtes was up greater than 90%, with Cristal and Krug up greater than 80%.
Liv-ex high traded Champagnes in 2022 to date
Liv-ex mentioned the ten most traded Champagnes by worth on its market in 2022, to this point, had been:
- Louis Roederer Cristal 2008 | Liv-ex quoted a market value of £3,900 (12x75cl in bond), up 105.3% since launch
- Louis Roederer Cristal 2014 | Market value £2,460, up 2.5% on launch (in 2022)
- Dom Pérignon 2012 | Market value £1,900, up 43.9%
- Louis Roederer Cristal 2013 | £3,440, up 102.4%
- Dom Pérignon 2008 | £2,400, up 93.5%
- Salon Le Mesnil 2012 | £12,600, up 231.6%
- Salon Le Mesnil 2002 | £13,061, up 392.9%
- Louis Roederer Cristal 2012 | £2,920, up 79.1%
- Taittinger Comtes de Champagne Blanc de Blancs 2011 | £1,179, up 10.2%
- Louis Roederer Cristal Rosé 2008 | £4,568, up 8.8%
But Liv-ex additionally questioned whether or not latest secondary market value momentum can proceed.
Justin Gibbs, Liv-ex’s deputy chairman and trade director, mentioned. ‘A sequence of robust vintages and market-leading returns has put Champagne in sharp focus lately, drawing curiosity from an ever-growing viewers of consumers – each drinkers and buyers.
‘However as costs rise and the core dynamics driving the market proceed to evolve there are indicators that returns might quickly start to sluggish.’
Greater costs imply that Champagne doesn’t all the time have the identical worth proposition because it used to, mentioned Liv-ex, though its report did spotlight that newer vintages nonetheless supply relative worth to savvy consumers in some circumstances.
Typically, it mentioned, ‘The calling card of grande marque Champagne was once that you possibly can have a nice wine with all of the pedigree of a Bordeaux First Development however for a fraction of the value. That’s now not the case.’
Amid more and more stormy financial waters, Liv-ex famous model energy and world distribution as Champagne’s core strengths.
‘The query is whether or not these two parts alone will likely be sufficient to maintain the present run, because the previous guidelines of engagement evolve, and the world loses its enthusiasm for celebration.’
