Fine wine market declines for third year says Liv-ex

By Richard Siddle

Published: 20 December, 2013

The fine wine market has declined for an unprecedented third year in a row, according to the 2013 fine wine report from Liv-ex, the global marketplace for fine wine.

But whilst the overall market is down 2013 has been a good year for Champagne, right bank Bordeaux, Tuscany and DRC.

The report find that "2013 has followed a similar trajectory to the previous two years: early optimism in the first quarter was dashed by a mispriced en primeur campaign".

It added: "Fine wine merchants were optimistic entering the second half of 2013. In January they anticipated an 11.3% improvement in prices; halfway through the year they still expected a rise of 9.1%. At the end of November the Liv-ex 100 level was 258.46, 10% below expectations."

Bordeaux still dominates the Liv-ex Top 100 wines, accounting for 84% of wines traded but whilst in 2010, Bordeaux accounted for 95.2% of market trade by value this share has fallen to 82.6% in 2013 reflecting a broadening of the fine wine marketplace.

Market shares for Burgundy and Italy have risen from 1.2% and 0.9% in 2010 to 6.8% and 3.3% in 2013, respectively and shows less reliance on left bank Bordeaux and First Growths in particular.

Prices for wines from other regions are also rising, says Liv-ex. Its Super Tuscan index has climbed 18.6% in 2013, and the DRC index has risen by 6.9%. There have been price increases for Masseto and Sassicaia and Romanee Conti has seen substantial price rises for its 2000 and 2007 vintages.

The Liv-ex Champagne index was up 10.7% in 2013. The top performer being Cristal 2004, which climbed 16.7%.

Looking ahead to 2014 Liv-ex reports market expectations for Bordeaux 2013 are low. It says: "With yields at 20 year lows, there is a suspicion that, given recent history, the chateaux will be disinclined to drop prices to levels that match expectations. En Primeur 2013 is therefore unlikely to provide a first quarter bounce."

Harpers subscribers can can access the full 2013 report here.

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