Talking Trade – Fine Wine 50 rises 1% intraweek

Regional share of trade by value (8th May - 14th May)

The Liv-ex Fine Wine 50 rebounded 1% this week, now up 2% since a yearly low in early April. Although prices for the First Growths increased, the effect on Bordeaux’s market share was not felt. The region fell from 43.8% to just above 40% of weekly trade.

A relatively large week for Burgundy (13.6%) and Champagne (11.7%) took some thunder away from other regions. The Rhone (2.8%), USA (4.2%) and Others (6.9%) all saw their share fall from the week prior. Italy continued its impressive run in 2020, consistently making up 20% of trade by value per week.

This week, James Suckling released his first set of En Primeur scores from tastings done at his Hong Kong wine bar. He explained that many of the winemakers and merchants he spoke to in Bordeaux said “they will release prices for wines in June and all agreed that prices have to come down […] from about 10 percent to 40 percent”. With June just a few short weeks away, eyes may begin to shift back to Bordeaux – particularly if the price discounts come to fruition.

Top 5: share of trade by value (8th May - 14th May)

Krug, Grand Cuvee Edition 167 led share of trade by value for the week. The non-vintage Champagne is a blend of over 150 wines from over 10 vintages. This is the 167th rendition of this wine. Beginning in 2011 Krug started adding differentiating numbers to the back label. Edition 163 was the first to feature the edition number on the front label and it has continued since then.

Today saw the UK release of Krug, Grand Cuvee Edition 168. It is one of the highest scored bottles by Jancis Robinson, receiving 19 points, almost unheard of for a NV Champagne. The combined score and release price highlight the 168’s relative value compared to many of its predecessors, seen below.

Fine wine market broadens

Current trends in the fine wine market point towards a continuation of its broadening. The number of different wines traded continues to increase along with a greater diversity of regions accounting for trade. “Italy is the star” but smaller regions from the Rest of the World have begun to take up significant share.

Selling wine

Covid-19 has greatly disrupted wine trade, affecting aspects up and down the supply chain. Liv-ex prepared a guide, that aims to help merchants navigate this rapidly evolving landscape. You can download your complimentary copy here.