“Where is the value?”: A look inside Bordeaux 2016

On Tuesday, we noted that Bordeaux 2016 offers better value for money than other recent vintages available in the market. According to our fair value methodology, about two thirds of the 2016 wines in the Bordeaux 500 fall below the trend line.

Today’s blog post looks at these individual wines, which represent the most or least value relative to other vintages from the same chateau.

As the chart above shows, Clinet appears to represent the best value for money. It lies furthest below the trend line (-37%), with a score of 96+ (NM) and a current Market Price of £746 per 12×75.  A “formidable First Growth”, Margaux (NM 98) also comes at a ‘big discount’ as is positioned 32% below the trend line.

Three of Neal Martin’s 100-point wines look very attractive, not least for he “cannot imagine [them] being improved in any way, shape or form”. Mouton Rothschild, which Martin described as the best “over the last 20 years”, is undervalued by 6% and commands a price of £5,050 per 12×75. Critics reached a consensus about its perfection as the wine received a 100 points from Lisa Perotti-Brown MW, Antonio Galloni and James Suckling. James Molesworth also awarded it his ultimate 98 points and said its “impressive core of fruit steams along like a cruise ship with enough stores in reserve to go around the world twice without stopping”.

The “extravagant” and “magical” Cos d’Estornel (100 NM, JS, LPM), which was the most active Bordeaux wine in January, falls 5% under the trend line. It last traded yesterday at £1,706 per 12×75, up 22% on its release price of £1,400. Figeac (NM 100), with its “stunning 24-carat bouquet”, also appears 4% underpriced at £1,846.

100-point wines – by definition, perfection in a bottle – more often than not command a premium to fair value. Martin’s five are yet to reflect this norm.

Most of the other wines he praised (“How can you not marvel at the brilliance of Haut Brion, La Mission Haut Brion, Leoville Las Cases, Petrus or Cheval Blanc?”) also represent great value for money. Among his 99-point wines Cheval Blanc falls 20% below the fair value line, Mission Haut Brion – 17%, and Haut Brion – 16%.

Leoville Las Cases (NM 98), the only non-First Growth to rank in James Molesworth’s top five and Antonio Galloni’s ‘Wine of the Vintage’, is 7% undervalued and is available at 4% discount on its release price.

For followers of Neal Martin, Bordeaux 2016 – “the high point of this decade” – offers value for money across a broad range of wines. Interesting for collectors and investors alike.