Fine Wine Market Outlook, says market good for buyers

Published: 15 February, 2012

An overcorrection in the fine wine market in the second half of 2011 presents strong value buying opportunities, according to Fine Wine Market Outlook 2012.

The 40 page report shows survey results from 120 major industry participants in the global fine wine sector, regarding the outlook for the US$4 billion a year fine wine market in the year ahead.

Globally, 59% of survey respondents said they expected the fine wine market to increase in value over the year, with a majority of those expecting gains of 10%.

Only 12% of respondents expected the market to fall further.

The majority of respondents agreed that the 2011 Bordeaux campaign had damaged consumer sentiment to the sector.

The consensus is that price reductions of 10-15% for this year's Bordeaux 2011 en primeur would be required to restore consumer favour to Bordeaux.

Asian respondents answered that a 10% decline would suffice to restore consumer favour, however in Europe, the consensus of opinion called for price reductions of 20% or more.

Despite this, respondents saw only limited shifts away from Bordeaux in favour of Bordeaux substitutes, and overwhelmingly selected Bordeaux to lead the market gains this year.

Wine Yields publisher and editor, Jackson Taylor, said: "After two years of strong growth in 2009 and 2010, indices for investment grade wine closed 2011 down 10-20% for the year, with some wines recording a fall of 45%.

"The report today suggests that sectors of the market have been oversold, providing some of the best buying opportunities wine collectors and investors have seen in several years."

"The survey confirms that the top Bordeaux estates still enjoy strong support, and respondents picked this sector to outperform the market this year.

" The strong message to Bordeaux contained in the report is: get this year's en primeur pricing right."

The Fine Wine Market Outlook 2012, released today in English and Chinese editions, is a joint report by Wealthmonitor and the online fine wine market commentary magazine Wine Yields.

The full report is available free for readers to download at www.wineyields.com.

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