Wonderful wine costs have outperformed mainstream equities in 2022, notably led by prime Burgundy and Champagne manufacturers, mentioned Liv-ex, a worldwide market for the commerce.
‘Wonderful wine continues to supply relative stability and act as an inflationary hedge,’ mentioned the group, which is taken into account certainly one of a number of indicators of market efficiency.
Its benchmark Liv-ex 100 index rose by 7.1% in sterling foreign money within the first 11 months of 2022, regardless of dipping in November.
The ten most traded wines by worth on Liv-ex in 2022 have been:
- Louis Roederer, Cristal 2008
- Louis Roederer, Cristal 2014
- Dom Pérignon 2012
- Château Lafite Rothschild 2018
- Château Mouton Rothschild 2000
- Screaming Eagle, Cabernet Sauvignon 2019
- Tenuta San Guido, Sassicaia 2019
- Dom Pérignon 2008
- Domaine Leflaive, Montrachet Grand Cru 2003
- Château Lafite Rothschild, Carruades de Lafite 2019
But its report, entitled ‘a cautionary story’, additionally highlighted ‘extreme headwinds’ dealing with the market and mentioned the outlook for 2023 was far more unsure. In November, 45% of wines throughout the Liv-ex 1000 index fell in worth, whereas 43% rose.
Sentiment amongst Liv-ex commerce members was blended, it mentioned. Some members reported patrons being extra ‘measured’ of their purchases.
‘No market rises for ever,’ mentioned Justin Gibbs, deputy chairman and alternate director at Liv-ex.
‘The high-quality wine market has been on the up since 2015. An rising quantity of indicators are pointing to a pull again within the short-term. However the wine market has by no means been concerning the short-term,’ he mentioned.
Liv-ex’s report concluded, ‘The purple flags have been hoisted. However given high-quality wine’s monitor document in periods of inflation and uncertainty, long-term fanatics will discover it simple to look on the brilliant facet.’
As beforehand reported, high-quality wine costs for top-tier Burgundy and Champagne labels have been the standout performers in the marketplace in 2022.
Liv-ex’s Burgundy 150 and Champagne 50 indices have been up by round 27% and almost 22% respectively for the primary 11 months of 2022. Each dropped in November, nevertheless – the Champagne 50 falling 2.5%. Different indices have risen extra steadily, because the chart beneath reveals.
How the regional sub-indices throughout the Liv-ex 1000 have carried out this yr. Credit score: Liv-ex.
Bordeaux’s market share of trades on Liv-ex fell to a brand new low in 2022, at 34.5% versus 37.7% final yr.
This displays a long-term pattern, as collectors have broadened their tastes. But Bordeaux is extensively thought-about to stay a cornerstone of the high-quality wine market – not least due to the breadth of prime producers and comparatively massive volumes.
Liv-ex famous proof in its report that patrons have been narrowing their focus in the marketplace.
Whereas there’s appreciable uncertainty concerning the market’s future path, some within the commerce have mentioned wine has a popularity for holding worth and have additionally pointed to longer-term drinker and collector developments.
Matthew O’Connell, CEO of Bordeaux Index’s LiveTrade buying and selling platform, has beforehand highlighted the recognition of top-tier manufacturers inside a rising world marketplace for luxurious consumption.
Commenting on Champagne for Decanter journal’s Market Watch final week, he mentioned a number of status cuvées have modified their value context in the marketplace previously 18 months. ‘There’s good momentum, we see very robust buying and selling exercise, [with] parcels transfer in a short time,’ he added.
