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Bordeaux Index sees 'green shoots of recovery' in fine wine market

Published:  16 September, 2014

Fine wine merchant Bordeaux Index is seeing a recovery in the market thanks to growing demand for Bordeaux wines from the US and Asian markets.

The groups saw global sales of live trade wines grow 36% in the first half of 2014, compared to the same period last year, with US sales up 305% and Asian sales up 61%. The US bought 34% of all 2009 Bordeaux vintages so far this year.

Vintage BordeauxThe fine wine market is seeing the 'green shoots' of recovery, says Bordeaux IndexSource: Thinkstock.comRevived interest from Asia and the US - the US was responsibvle for buying a third of all 2009 Bordeaux wines last year - is helping the market come back.

Bordeaux Index said the summer was an unusually busy period, with sales of LiveTrade wines up 22% in July and August compared to summer 2013.

Managing director Gary Boom said the trend for top Bordeaux in Asia and the US was "gathering pace".  "We believe we are seeing the green shoots of a recovery. However, prices are likely to take a little time to catch up so we're not calling the very bottom of the market yet. There is a little way to go before returning to the gentle growth of 4-5% per year but with record sales of Bordeaux over the usually quiet summer period we're more positive about the future than we have been for three years."

He added that it was "unsurprising" that mature Bordeaux was "leading the charge" given they have a proven trading history, and ready to drink and at a price buyers are willing to pay.

"The world is clearly still in love with Bordeaux - at the right price. Although Europe is yet to follow suit (H1 2014 -2% on sales value of LiveTrade wines on H1 2013), as the world's most mature fine wine market, and one which carries the most stock, you might expect this to be the final piece of the puzzle before prices begin to rise."

Boom also counselled that now is the "best time in five years" to buy top Bordeaux wines, as the investment threshold is relatively low - Haut Brion 2006 is £2,500 per case.

Bordeaux Index said it is keen to promote "long term steady growth" rather than "boom to bust cycles". With that in mind it is aiming to restore confidence to the market, by using technology which boosts transparency.