Bordeaux Index predicts ‘resurgence’ for Bordeaux following record Q4 trading

By Andrew Catchpole

Published: 08 February, 2021

Bordeaux Index has reported record volume trading volumes for Q4 2020, with Bordeaux and Burgundy to the fore, in what the fine wine trading platform described as “step change gains” compared with Q4 2019.

The company also noted “meaningful upticks” so far in 2021, with Asia’s markets leading a resurgence in growing global demand, leading to a scarcity of stock rather than price gains for Bordeaux, while Burgundy prices for ‘blue chip’ wines continued to rise.

The insights into the global fine wine market headlined Bordeaux Index’s 2020 Market Review and 2021 Outlook Report, released on 8 February, which also predicted that a “strong demand dynamic” for Bordeaux would continue into 2021, with “little reason for Burgundy not to continue to see very healthy levels of activity” on the back of its 2019 campaign.

Elsewhere, the report suggested that 2021 may surprise with “significant price movements” for Champagne, but that it was “difficult to make a clear call on this”, while the year ahead may be one of “price and volume consolidation” for Italian regions such as Tuscany.

“We saw very strong levels of trading activity towards the end of 2020, and are positive on the potential performance of the market in 2021. The pandemic saw wine in 2020 again exhibit its low correlation with other assets and strong capital preserving characteristics, but we are now seeing the market move into a different gear,” said Matthew O’Connell, head of investment at Bordeaux Index.

“We expect Bordeaux and Burgundy to see the most interesting price movements this year, with trading volumes in Q4 particularly encouraging in this context; Champagne may also surprise, particularly the vintages which have been in the market for a few years.”

Upward price movements for Bordeaux and Burgundy were generally driven by rarity, with both younger and older vintages of Burgundy both on the up while Bordeaux and Italy trades leaned more heavily towards more nature vintages.

The report also predicted that opportunities for Bordeaux’s ‘super seconds’ and Right Bank wines were now “more balanced”.

The Bordeaux Index 2020 Market Review and 2021 Outlook Report draws on data from its trading platform, which it describes as the largest and most active in the world. The company recorded over $125m in total sales in 2020.

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