In our previous blog, a fine wine area profile of Bordeaux, we reported on Bordeaux’s regional share of trade by value claiming nearly 70% of the global fine wine market near the end of July.
At the start of August, it was calculated by Liv-ex that Bordeaux’s total regional share of trade by value for July accounted for over three quarters of the market. That was 70% higher than the next region, Burgundy.
One month on, and Bordeaux’s regional share of trade by value for August fell to 66.9%. Bordeaux’s June share was 65.5%, and the gradual build throughout July may have convinced some that it would continue into August.
Here, our team of experts at The London Wine Cellar break down these latest fine wine investment developments.
Bordeaux’s regional share of trade dipped in August
In the middle of August, statistics from Liv-ex showed that Bordeaux’s share of the fine wine market had suddenly dropped to a new weekly low for its performance in 2015.
Bordeaux started the month in a strong position following a 75.2% market share average for July. But the region was claiming nearly 10% less in the first week of August, and by the second the region was accounting for only 52.3% of all trade.
Which regions were taking over?
Having witnessed a record high 10.5% share of trade in June, and a July share that was far above its 2014 average of 5%, Italy came into August with a market share of 15.2%.
According to Liv-ex, the region performed well with lots of positive activity around the Super Tuscan Sassicaia 2011. This vintage, trading at less than £1,000 per 12×75, is one of the cheapest Super Tuscans available and has achieved critical acclaim with a soaring score of 94 from wine critic James Suckling.
Later on in the month, internationally recognised Italian Super Tuscans continued to do well thanks to the performances from Tignanello 2009 (score of 94 from the wine critic Antonio Galloni) and Rampolla Alceo 2007 (score of 97 from James Suckling).
At the same time, Champagne increased from a 4.2% regional share at the start of August to 21.1% during the middle, when Bordeaux’s regional share started to dip.
The future of Bordeaux, Italy and Champagne
While August was certainly a slow month for Bordeaux, it’s back on track without a doubt.
The Bordeaux region has returned to its usual standard of market domination once again, coming into September with 75.8% of the weekly regional share of trade by value. This is largely due to high levels of interest in its First Growth wines which accounted for four of the five top traded wines by value between 28 Aug – 3rd Sept.
Among Bordeaux wines, Italy and Champagne both have bottles on the top 5 traded by volume table for this same time period.
Italy’s recent big successes have finally slowed to a 6.4% regional share of trade by value which is still up on its 2014 average. Champagne, meanwhile, is still enjoying an elevated 11.6% regional share of trade with the Salon, Mesnil 1999 claiming 6.9% of the total share of traded wines and boasting a hefty trade price of £2,080.
As you can probably tell from the information above, in the world of fine wine investment months and weeks can take on far more significance than you may have first thought.
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