Bloomberg, one of the world’s foremost media commentators and news providers for investors, has flagged the investment opportunity the fine wine world’s biggest brand now presents and asks “Should you scoop up a case—or three—now?”
In an article this week, Bloomberg puts the magnifying glass over what has happened to the fine wine market’s trail-blazer, Lafite-Rothschild, and its key 2010 vintage. Released in 2011 en primur at £12,000 per case (12 x 75), Liv-ex reported last week that a case of Lafite 2010 traded for £5,390 ($8,350), a shocking 55 percent less than it cost four years ago. The Bloomberg author is right to ask how much should you be buying now?
Lafite it is still Bordeaux’s most famous property, with its share of market in value and volume topping all of Bordeaux and the global fine wine market. Liv-ex reported that in the ten year period from August 2000 to 2010, the famed 1982 vintage increased 1,137 percent in price, and that most Lafite vintages were trading at 130 percent more than any other First Growth.
At a Sotheby’s auction in Hong Kong in October 2010 promoting wines direct from Château Lafite’s own cellars, a buyer bid four times the retail price of futures for the 2009 and bidders fought over three bottles of the 1869, which each sold for $232,692. It was, without doubt, out-of-control demand – but this is the lure of fine wine. There is only a finite supply. Lafite produces on average 13,000 cases per vintage to supply the whole global market and unlike a company, cannot issue more shares. When the stock is gone, it is gone.
This has been the power of brand Lafite – the sleeping giant of Bordeaux. The Bloomberg article quite rightly asks – should you buy the 2010 vintage now? The answer, of course, is yes and the author sets out their rationale straight from our own mindset. The price has steadied over the past few months at its lowest in the last five years – the time is now.
Don’t miss the moment. To read the full article click here and for more information on Lafite Rothschild vintages currently available in the market and further information on other Bordeaux opportunities call us on 0203 384 2262