Burgundy hitting bullish benchmarks in Spring 2021

Trade levels and price growth in Burgundy investment wines are at the highest level since the 2018 bull run – are wine investors positioning for another? Burgundy is currently recording trade levels not seen since the bull-run peaks of November 2018. Certainly, the US Tariff suspension has put additional energy into the market as North America buyers re-enter the arena, building on the rising demand for top Burgundy and Bordeaux over recent months.

The fine wines of Burgundy accounted for 23.6% of trade on Liv-ex in March 2021 and the regional benchmark, the Liv-ex Burgundy 150, is recording strong growth.

Liv-ex Burgundy 150:

  • Approaching all-time high levels set in November 2018
  • Has recorded 12 months of consecutive growth
  • Has risen 8.6% in 12 months

Source: Liv-ex.com 21st April 2021

There is breadth and depth to the market with over 500 of the region’s wines traded on the exchange in March 2021. Individual wines are seeing above trend performance and in particular the ‘power-brands’ are leading the market. The prices of some DRC (Domaine de la Romanee-Conti) wines are now above the November 2018 peak.

The 2020 Liv-ex Power 100 Report awarded Domaine Leroy the accolade of the most powerful fine wine brand and is the big bull in the ring. Nearly all of the Domaine Leroy Musigny Grand Cru wines have surpassed the previous record prices of 2018. The average price increase for its wines is in the region of 40% and the 2015 vintage has been the stand-out performer seeing 100% growth since the market height of November 2018.

Trade levels are currently significant with more transactions in Burgundy wines on Liv-ex in 2021 YTD than the whole of 2018. Indicators suggest that there is market momentum and fine wine investors should look for the opportunity to be positioned for another potential bull run.

For more information on investing in Burgundy and the current opportunities call our expert team on 0203 384 2262.