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Burgundy trading hits new heights and Barolo on roll as Bordeaux and Rhone fall

Published:  15 December, 2017

Burgundy has had its best trading year in a decade and is at an all-time high for 2017, according to Liv-ex, the global fine wine trading marketplace.

Its overview of the 2017 market revealed that The Fine Wine 1000 – the broadest measure of the fine wine market – was the best performing index, rising 11.3%.

The Burgundy 150 had its best year in a decade, climbing 23.9%. A large percentage of this price growth occurred in the second half of the year when demand increased after news of a small 2016 harvest was confirmed.

According to Liv-ex the fluctuating exchange rate has altered the level of demand for certain regions, with Bordeaux being particularly affected.

Bordeaux’s market share, which has been steadily falling since 2010, dropped to 68.5%. At the same time Burgundy’s yearly share of trade by value climbed above 10% for the first time. It reached 12.5% year-to-date, up from 7.7% in 2016.

The top price risers from the Liv-ex 1000 were split across three regions. There was increased interest in Barolo’s top producers with three wines made by Giacomo Conterno making it into the top 10. The largest riser, the 2004 Barolo Cascina Francia, leaped 156.5% in price.

The Rhone 100 was the worst performing sub-index but certain older vintages, including Guigal Cote Rotie Mouline 2000 increased in price.

The fine wine market has also continued to broaden with an increasing number of wines trading in the secondary market.

Over the last year more than 4,500 different wines traded from 769 different brands, said Liv-ex. This is up from the previous year where just over 4,000 different wines traded from 670 brands.

Liv-ex said there were three issues that would affect the market and the setting of prices during 2018.

It questioned how the market would adapt to the changes taking place in wine criticism, with Neal Martin leaving the Wine Advocate to join Vinous media. Also sterling volatility is expected to continue and the impact of the Bordeaux En Primeur campaign in the spring.

“There is the issue with what is going on with the wine critics world and this is going to be really interesting in how this plays out,” said research analyst Ed Jackson at Liv-ex.

“In terms of Brexit we are looking at the effect it has had on the pound. In the current market the pound is moving based on what has come out of Brussels and what has come out of the Government.

“We expect the market to keep broadening. Levels of demand for Burgundy are still really high. Italy is coming into the market than evermore than before and three of the top four top performing wines are Barolos.”