Ten years on: Sauternes 2007

Over the past few weeks, Liv-ex has examined the price variations – the highest and lowest Market Prices against the current and release prices – of Bordeaux wines from the 2007 vintage. The chart below displays the same data for the highly rated 2007 wines of the Sauternes 50 sub-index of the Bordeaux 500.

In contrast to the other sub-indices of the Bordeaux 500, all five of the wines in the Sauternes 50 index have dropped in value since En Primeur.

Yquem 2007 has fallen the most and is now available for £2,100, a 46.2% decrease on its release price of £3,900. The equally scored Climens 2007 (NM 98) sees the second largest variation in price. At peak, its Market Price was 37.1% above release. Since then, it has nearly halved to £650.

Suduiraut is now trading at £319, 23.1% below release.

Despite modest rises after En Primeur, Rieussec and Coutet have fallen over 23% and are now available at £295 and £225 respectively.

Sauternes07

Previous analysis on 2007 – ten years on:


 

Talking Trade: Bordeaux 2014 active, Petrus climbs higher

FW50

Bordeaux activity has improved this week with the region taking a healthy 80.9% of trade. The most active Bordeaux wines were the 2014s. The vintage took a larger proportion of Bordeaux market share than the ‘great’ vintages of 2010, 2005 and 2009. Interest in the 2014s has been building since the vintage started to become physical. Adding to this, critics have recently started to release their in-bottle scores.

Regional

The Fine Wine 50 dipped lower this week, down 0.3%. However, First Growth trade was higher at 17.7%, but still remains low in historical terms.

After a number of strong weeks for Burgundy, the region dropped back to 6.4% this week, close to its average for last year. Activity for Champagne increased, boosted by Salon Mesnil 2004, Pol Roger Sir Winston Churchill 2002 and Louis Roederer Cristal 2007.

Value

Overall, the top two wines traded by value were 100-point (RP) Cheval Blanc 2005 and 98-point (RP) Lafite Rothschild 2010. The rest of the top five were all Bordeaux 2014s. Mouton Rothschild 2014 has received critical acclaim with James Molesworth (96), James Suckling (99), Antonio Galloni (97) and Neal Martin (94-96) all rating the wine highly.

Likewise, Cheval Blanc 2014 has received high scores. James Molesworth scored it 97 points in-bottle and said it has “notes of Lapsang souchong tea, smoldering cigar and cold charcoal wafting up from the core of dense yet supple currant, fig and blackberry preserves.” Neal Martin said it is “a formidable Cheval Blanc” and awarded it 95-97 points in-barrel.

Volume

Bordeaux 2014 was also prominent among the top wines traded by volume. Ducru Beaucaillou 2014 was awarded 99 points by James Suckling and described as “Complex. Full-bodied, yet agile and complete.” One of the top-scoring wines from Bordeaux 2015 was also active. Canon 2015 (98-100, NM) is now up 86.9% from its release price of £750 per 12×75.

100-point Petrus 2010 traded at an all-time high of £29,450 this week. It is up 33.5% over the last year. Robert Parker said it is an “awesome Petrus”.

Petrus 2010

Looking for weekend reading? This week, Liv-ex published two blogs on Bordeaux 2007- Ten years on: Left Bank 2007 and Ten years on: Second Wines 2007. It also looked at recent in-bottle critic scores for Bordeaux 2014 – Bordeaux 2014: scores in bottle.


 

Ten years on: Second Wines 2007

Second wines

Last week Liv-ex analysed the price variations – the highest and lowest Market Prices against the current and release prices – of the Bordeaux First Growths from the 2007 vintage. The chart above displays the same data for the wines from the Second Wines 50 sub-index of the Bordeaux 500.

All five of the First Growths’ second wines have made staggering gains since En Primeur. Like its first wine, Carruades Lafite 2007 has risen the most – 283.3% since release – and sees the largest variation in price. At peak in August 2011, its Market Price was more than six times higher than its release of £600.

Similarly, like its first wine, Clarence Haut Brion 2007 has gained the least since release, but is still up by 113.8%. The 2007 was the first vintage from the estate to be named Clarence, rather than Bahans Haut Brion.

Petit Mouton and Pavillon Rouge are both around 10% off their peak and command Market Prices of £1,646 and £1,350 per 12×75 respectively.

Second_wines_2007


Talking Trade: Burgundy solid, Haut Brion rising

FW50

Activity for Bordeaux was higher at 69.7%, up from a low level last week of 42.6%. However, Bordeaux’s share of the market remains weak in historical terms. The Fine Wine 50 was up, closing Thursday at 341.11 (+0.6%) below the five-year high of 347.08.

Regional

First Growth trade was also low at 15.3%. Lafite Rothschild was the most active, taking a 33% share of the Bordeaux Premier Crus. The most active Bordeaux wines were from the “great” years – 2009 ,2005 and 2010. The 2014 remained active and Lagrange St Julien 2014 was among the top five wines traded by volume. Neal Martin awarded it 87-89 points and said it “needs to pull its socks up by the time of bottling.”

Trade for Burgundy was lower compared to last week, but remains solid against its average of 7.9% for last year. The region has recently received a boost from hype surrounding the 2015 En Primeur campaign.

Value

All of the top five wines traded by value this week were from Bordeaux. 100-point Montrose 2010 was top and traded at £1,985 per 12×75, below its all-time high of £2,049 it hit in January. It is now available at a 14.2% discount to its 100-point 2009 sibling.

Volume

The top wines traded by volume were from Italy, Bordeaux and the Rhone. Guigal Condrieu 2015 was described by Jeb Dunnuck of The Wine Advocate as “a blockbuster” and “a rich, unctuous, thrillingly textured beauty.” He awarded it 95 points.

95-point Haut Brion 2003 traded at an all-time high of £3,550 this week. It is up 42% over the last year. Robert Parker said it is a wine of “both power and finesse.”

HB 03


 

 

Cellar Watch February 2017 Market Report released

Fine wine market report - January 2016The Cellar Watch February Market Report has been released.

Containing all the latest Liv-ex research and analysis, the full issue includes:

  • Market on the move
  • Neal Martin on Bordeaux 1986
  • Mixed monthly movers
  • Fine wine risk vs. return
  • Final thought: Bordeaux 2014

To access the full report, please log in or subscribe to Cellar Watch.

You can download page one – with charts and data – here, or read the text below:

Market on the move

Trade by both value and volume was up this month. A number of wines traded at all-time highs, including 100-point Pavie 2009 and 95-point Pichon Baron 2008. As the trade continue to show high levels of engagement, the number of active markets—wines with both a bid and offer on the Exchange— increased to 6,232 from 5,597. Most of the Liv-ex indices were firmer this month.

Bordeaux slows

Bordeaux got off to a slow start this year with the region accounting for just 61.6% of trade by value compared to its 74.7% average in 2016. Instead, the spotlight this month was on Burgundy which took a solid 18.4%, well above its 7.9% average in 2016. Italy accounted for 6.0%, the Rhone 2.5% and the USA 2.6% with Screaming Eagle and Dominus taking the lion’s share.

Lafite leads

Bordeaux 2014 saw good activity in January: it was the second most traded Bordeaux year after the great 2009 and ahead of 2010. Overall, Lafite Rothschild (10.8%) was the most traded wine by value. Mouton Rothschild (5.4%) and Burgundy’s Ponsot Clos Roche Vv (4.2%) also saw high levels of activity last month.

Indices push higher

The Liv-ex 1000 gained 0.5% in January with all of the sub-indices rising apart from the Bordeaux Legends 50 (-0.9%). The strongest performers among the sub-indices were the Italy 100 and Champagne 50 which saw renewed strength after posting small declines the previous month.

For current and historic issues of the full report, please subscribe at www.cellar-watch.com


Lafite: highs and lows

Lafite 2012

Two Lafite Rothschild vintages have recently traded at all-time highs. Last week the 2012 traded a record £4,390 per 12×75. This is an increase of 40.3% on its trade price of £3,128 one year ago.

The 2014 vintage also traded at an all-time high this month, at £4,134.

However, several other Lafite vintages remain far off their highest levels, achieved at the peak of the Bordeaux market in 2011.

As shown in the chart below, the ‘05, ‘08, ‘09 and ‘10 vintages all traded above £12,200 during the China-led boom in 2011 but are now offered well below this.

The 2008 vintage has seen the largest variation in price. During En Primeur, it traded at a low £1,800 per 12×75. In 2010, it jumped to £10,160 the day after it was announced that the bottle would carry the Chinese symbol for the number eight.

Lafite highs


Talking Trade: A big week for Burgundy

FW50

The Fine Wine 50 gained 0.6% over the last week, closing Thursday at 339.10. However, Bordeaux activity slowed with the region taking just 42.6% of trade by value, well below January’s average share. All of the key Liv-ex indices were firmer in January. The Liv-ex 100 – the industry leading benchmark – closed the month 1.25% higher, while the Liv-ex 1000 – the broadest measure of the market – was up 0.5%.

regional

It was a solid week for Burgundy. Maison Leroy Bourgogne Rouge 2015 and Maison Leroy Bourgogne Blanc 2015 were the top wines traded by value and volume. 2014 was the most traded Burgundy vintage, followed by 2015 and 2010. Champagne, Italy and the Rhone also saw an increase in trade.

value

First Growth trade was lower, but there was continued activity for Lafite Rothschild 2014. The wine was in the top wines traded by value and traded at a fresh high of £4,134 per 12×75. A number of other Bordeaux 2014s traded this week. They included Margaux, Pichon Baron, Calon Segur and Clerc Milon.

volume

94-point Calon Segur 2009 traded at an all-time high of £800 this week. It is up 30% over the last year and has been described by Neal Martin as an “excellent Saint Estephe.”

Calon Segur 2009

Looking for weekend reading? This week, Liv-ex published blogs on the monthly close of the Liv-ex 1000 and Liv-ex 100 indices.. You can also read a spotlight on Italian Super Tuscan producer Tignanello.


 

Liv-ex 1000 continues to climb

Liv-ex 1000

The Liv-ex 1000 Index – the broadest measure of the fine wine market – closed January 2017 at another all-time high of 301.24. This is an increase of 0.5% on December’s close of 299.80. The index has now reached record highs for six consecutive months and is up 21.5% year-on-year.

Sub-indices

Among the Liv-ex 1000 sub-indices, the Burgundy 150 (+25.4%) and the Champagne 50 (+22.2%) have increased the most over one year. The Italy 100 (+2.8%) made the strongest gains this month as buyers broadened their focus.

However, in January the Bordeaux Legends 50 (-0.9%) recorded small declines on the previous month.

monthly close


Liv-ex 100 gains 1.25% in January

five years

The Liv-ex Fine Wine 100 Index closed January at 301.88, up 1.25% on the previous month. The index has now risen for an unprecedented fourteen consecutive months and is up 25.3% year-on-year. It is now at its highest point since October 2011, when it closed at 308.03.

The biggest movers last month came from a number of regions. The top two were Guigal, Cote Rotie 2012 (average price, production combined of the La Las) and 100-point (WA) Smith Haut Lafitte 2009. They increased by 11.0% and 7.3% respectively. Guigal, Landonne 2012 was upgraded to 100-points at the end of December 2016 by Wine Advocate.

Pavie 2009 (WA 100) also gained 5.4%. Earlier in the month it traded at an all-time high of £3,100 per 12×75.

Overall, momentum increased in January: the index rose 1.25%, compared to just 0.4% in December. However, not all wines moved in a positive direction: Leoville Las Cases 2009 (WA 98+) and Haut Bailly 2009 (WA 100) pulled back slightly after making significant gains in previous months.

Movers


Opportunities at Liv-ex

Graduate Administrator – fine wine

Liv-ex is recruiting a Graduate Administrator. This is an exciting vacancy in Vine, our Logistics arm. It would suit a hard-working team player with the enthusiasm and dynamism to thrive in an entrepreneurial company.

This is a role for an ambitious graduate at the beginning of their career. You will be assisting our team of Client Executives with daily admin tasks: arranging wine collections, uploading stock lists, and providing clients with PODs (Proof of Deliveries), delivery schedules and answers to general stock queries.

For a talented individual, the role will develop into a Client Executive position, a trusted first point of contact for our clients worldwide. Client Executives deal with daily questions, troubleshoot, and work closely with Sales Account Managers to promote Liv-ex services to our varied client base.

Research Analyst

This is a unique opportunity for an intellectually curious, commercially minded and articulate individual with ambitions to be a pre-eminent expert on the fine wine market.

A fascination with and a good understanding of the fine wine market will be an advantage, but not a prerequisite. The role will require you to contribute, develop and build upon Liv-ex’s existing insights as well as more comprehensive reports on the fine wine market, such as the Liv-ex Power 100 and the Liv-ex 1855 Re-Classification.

 

To find out more about these roles and how to apply, visit the Liv-ex Careers page.