Bordeaux market share rises as prices hold at start of key releases

Liv-ex has reported a break in trend as the stronger Bordeaux performance for the first quarter of 2015 boosted the Liv-ex 1000, which tracks one thousand wines from across the world using the Liv-ex Mid Price. In comparison, Bordeaux prices fell in the previous three years during the month of April as the 2011, ‘12 and ’13 vintages were released and the market was repeatedly disappointed by chateaux’ pricing strategies.

With relatively jaded expectations for the 2014 vintage on the pricing front, not quality, this has without doubt been one of the most publicly debated in recent years and now, finally, we are starting to see the lay of the land.

The key investment-grade wines who have showed their hands so far, including Mouton Rothschild, Haut Brion and Lynch-Bages, have demonstrated that those who have been most sensitive to market sentiment are seeing stock move fastest. Prices are fluctuating slightly as negociants and merchants find their mark.

The current upward movement of the Liv-ex 100 and Liv-ex 50 indices does appear to suggest that positive sentiment in the physical market is holding. Notably Bordeaux’s market share has grown in the last month, and is now standing at 82%. The late April land-grab has hit the Rest of the World 50 index hardest followed by the Champagne 50 and the Rhone 100.  See the chart below for a month on month comparison:

Liv-ex: Regional share of trade by value

Region Share (24-30 April) March’s share
Bordeaux 82.9% 72.9%
Burgundy 6.7% 6.0%
Champagne 2.5% 9.6%
Italy 1.7% 3.5%
Rhone 1.9% 5.6%
Others 4.3% 2.5%

Source: Liv-ex 1st May, 2015

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