Talking Trade – Bordeaux Bounces Back

The week began with the news that Macron and Trump had come to an agreement over the Digitax/French Luxury goods tariffs; a decision on the issue would be delayed to the end of 2020. The question around a potential broadening of last October’s Airbus tariff hike, however, remains unanswered.

The UK employment report on Tuesday combined with an IMF forecast suggesting the UK would outgrow Europe over the next few years pushed Sterling higher, leading to a slight softening in the Liv-ex 50, which closed at 334.79.

Bordeaux (62.6%) bounced back this week, led by a large parcel of Leoville Poyferre 2012 changing hands. Burgundy (20.5%) maintained its share by value, the second week over 20%. Burgundy’s case volume was 10% of Bordeaux’s, but Burgundy’s average case price was 314% higher than Bordeaux – further highlighting the region’s eye-watering prices. Our annual Burgundy report will be released early next week and will explore this topic at some length.

Champagne (2.7%), Italy (8.3%), Rhone (0.7%), and USA (2.0%) all fell.

Robert Parker first tasted Leoville Poyferre, 2012 – the most active wine this week – in 2013, awarding it 89-91. When he revisited it 2 years later, he gave 92+. He stated the wine “from bottle [is] much more impressive than it was from barrel,” and suggested the wine should “evolve well for at least 20-25 years.” The 2013 aside, the 2012 is the cheapest vintage money can buy.

Giacomo Conterno, 2013, spent its second week in the Top 5, and experienced a 0.5% price increase week over week. Receiving 99-points (JS, AG), the 2013 trades £4,540 lower than the 2010 (£12,780) which received 100-points (JS, AG). Is a 1-point difference worth £4,000? The market so far, seems to think so.

Happy Chinese New Year

According to the Chinese zodiac, which moves in a 12-year cycle, 2020 is the year of the rat. If you were to celebrate the year with Champagne, why not choose from the most recent “rat” vintages available, the exceptional 2008 and 1996. The bubbles offer not only a delicious drink but tasty returns, as we discuss in our latest blog.

Liv-ex Analysis: Automating the wine market

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