The fine wine market is in robust health at the start of 2021 despite Brexit ‘teething issues’ and Covid-19. Liv-ex has reported that trade in the first month of the year built on the upward trend of 2020 with the Liv-ex 100 now at 6.3% growth over the last 12 months and the broader measure Liv-ex 1000 up 1.8% in January and year on year at 4.86%.
Numbers of wines traded on the exchange has also grown in January 2021 and the volume of individual labels is up 78.8% over the last 12 months. The top performing wines in the first month of the year reflect the broader market share:
Top Fine Wine Performers on Liv-ex January 2021:
|Barolo Mascarello Barolo 2014||Piedmont, Italy||8.7%|
|Domaine Leflaive Chevalier Montrachet 2016||Burgundy||6.7%|
|Mouton Rothschild 2000||Bordeaux||5.7%|
|Opus One 2015||USA||5.3%|
Source: Liv-ex.com, Data 31.01.21
Regional Liv-ex indices, tracking trend, recorded the Burgundy 150 as the top performing region of January 2021 and this is consistent with trade focus on Burgundy at this time of year. The latest Burgundy vintage release of the 2019 en primeurs had critics, press and merchants appraising back vintages as well
The exceptional quality and trademark low production levels for Burgundy Grand Crus shapes demand and the high values they can achieve. Investors will have noted a drift in prices in certain wines from the region since the peak Burgundy prices were driven to in early 2019. This demand also drove an increasing interest in other brands from the region and a broadening offer.
Burgundy’s Leroy attained the top spot again in Liv-ex’s Power 100 2020 ranking and the premier Burgundies will continue to be important holdings for fine wine investors. The Liv-ex Burgundy 150’s one year and five-year trend leads the regional measure with an impressive average cumulative growth performance of 85.41%.
Regional Fine Wine Market Price Trend
|Regional Index||January 2021||1 Year||5 Years|
|Bordeaux Legends 40||0.53%||3.64%||36.41%|
|Rest of the World||0.19%||-0.41%||29.48%|
Source: Liv-ex.com, Data at 31.01.21
The Rhone region has attracted more trade in January 2021 and this is reflected in the performance of the Liv-ex Rhone 100 which grew 7.37% over the last 12 months, pitching it alongside Italy. This could suggest an emerging interest in the key wines of the Rhone and we will monitor this closely. Champagne and Italian wines have further established their importance to investors during 2020 and even though the figures would suggest a quiet January 2021 for Italy, Piedmont’s Barolo Mascarello Barolo 2014 was the top performing wine traded on Liv-ex in the month, seeing an increase in price of 8.7%.
With positive numbers pretty much across the board fine wine looks set to continue the strong performance shown in 2020 with similar economic conditions still influencing factors in 2021. For more information on investing in fine wine and which wines to include in your portfolio planning this year, contact our team on 0203 3842262.