Vin-X July Market report: spotlight on fine wine market performance

Vin-X has released its July Market report today providing an update on fine wine performance and special focus on how the sector performs against property, regional market share and our pick of the month. Vin-X sponsored the Chateau Impney Hill Climb 2017, we touch briefly on that and our pick of the month.

Vin-X Market Report July 2017Bernard Magrez’s Chateau Pape Clement and First Growth Latour have also been in the news with the former’s positive 2016 news and a more disconcerting retrospective from Latour.

Augustin Deschamps, Director of Development of Grands Crus Classes for the Bernard Magrez group informed the market this week that Pape Clement sold out its EP 2016 position in half a day. “We maintained our En Primeur release price since 2011 around the same price point, whatever the quality of the vintage. That is what the market is waiting for. Bordeaux Grand Crus are open-market wines, so if we want Bordeaux wines to be still in the merchants’ (and negociatns’) portfolios tomorrow we have to give them fresh air and margins“ explained Deschamps.

Chateau Pape Clement

Chateau Pape Clemente

Meanwhile, First Growth Latour is experiencing a different market response and one has to question whether the Chateau’s decision to exit the en primeur process. The response to their recent strategy to release wines ex-cellar in-bottle twice a year has resulted has been relatively luke-warm. There is a view that the pricing strategy on these releases has been out of line with the market. Even the prime vintage 2005 released this Spring was a slow sell.

Trade in Latour on the secondary market has also seen a sharp decline, down from 8.9% of trade by value down from 8.9 in 2012 to 2.8% 2017 year to date. Liv-ex reports that the ratio  of trades in Lafite to Latour had been 2:1 five years ago, and is currently sat at 4:1. The Latour index has increased by only 2% since 2012, in comparison the other four First Growths have seen growth between 10-25%.

Chateau Latour

Chateau Latour

Has Latour’s exit from from the annual Bordeaux jamboree resulted in a decline in trade interest in Latour or is it simply a rejection of the pricing strategy the chateau has adopted – time will tell and we will keep you posted.

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