Champagne leads sustained growth in buoyant fine wine market

Champagne leads sustained growth

The fine wine market enjoyed a sustained ninth consecutive month of growth in November 2020 setting another record in terms of the volume and value of trade on Liv-ex, with top market movers all from Champagne. The most widely recognised fine wine exchange with nearly 500 merchant members world-wide, Liv-ex reported increased levels of live bid and offers with a total exposure of over £80million for the first time, reflecting the increasing levels of liquidity in the fine wine market.

The Liv-ex 100 rose 0.84% month on month and recorded its highest point since Autumn 2011. Bordeaux’s share of trade in November sat at 37.6%, a touch more than a third of its share of the market a decade ago when it accounted for 93.2% of Liv-ex trade. This doesn’t reflect the overall trade in Bordeaux rather the broadened state of the market into the top wines of other regions which we refer to frequently. Since August, Bordeaux has seen a gain in interest on Liv-ex and this could be in part due to the value some of the region’s great wines offer and also the underlying fact that the great Bordeaux First Growths and Right Bank wines are fundamentally the most liquid and ‘blue-chip’ fine wine investments.

Bordeaux First Growth, Chateau Mouton Rothschild, grabbed headlines last week with its announcement of China’s Xu Bing as the 2018 vintage label artist, its price has risen 12% since the announcement and en primeur owners will be enjoying the benefit.

Burgundy saw its share of trade rise from its October level of 19.6% to 23.3% of trade on Liv-ex, Italy rose slightly in the month to 15.1%, whilst Champagne remained consistent at 9.3% and its top performers led the market growth in November 2020.

 Liv-ex Top Market Movers November 2020:

Champagne wine Vintage October £ November £ Change %
Salon, Le Mesnil 2007 £5,460 £5,950 9.8%
Moet & Chandon, Dom Perignon Rose 2003 £1,850 £2,000 9.7%
Pol Roger, Sir Winston Churchill 2006 £1,244 £1,330 7.2%
Moet & Chandon, Dom Perignon 2002 £1,500 £1,583 6.7%
Taittinger, Comtes de Champagne 2004 £1,162 £1,225 6.1%

Source: Liv-ex December 2020 Trade Report

Champagne has demonstrated its value over the last few years as important for strengthening and diversifying a fine wine portfolio, talk to a member of our expert team about the Champagnes currently offering best opportunities for growth on 0203 384 2262.