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by James Bailey
Published: July 11, 2024
The WineCap Q2 2024 report reveals key data on macroeconomic impacts, the Bordeaux 2023 En Primeur campaign, top performing wines, and Q3 forecasts.
In the second quarter, markets built on the success of the first quarter, showing positive returns for risk assets. Global stock markets buoyed by resilient economic growth and rising investor confidence. Investment sentiment in the UK improved after Labour’s landslide election victory.
The premium wine market remained a buyer’s market, with Burgundy and Champagne prices falling significantly. Old Bordeaux vintages saw a surge in demand and prices following the 2023 En Primeur campaign. The standout wine was the 2016 Château Léoville Las Cases which received 100 points. The En Primeur campaign had mixed results with few major successes despite overall price reductions. Key releases included First Growths, their second vintage, Beychevelle and Cheval Blanc.
Sotheby's Burgundy sales broke auction records, and Marchesi Antinori acquired full ownership of the Col Solar winery in Washington State. La Tour 2009 offers a great opportunity to buy with excellent grades at a reasonable price. La Place de Bordeaux is expected to start in the fall after a summer lull.
Global equity markets delivered positive results in the second quarter, supported by resilient economic growth and positive earnings expectations. The same resilience posed risks to fixed income investments. UK investor sentiment improved with the Labour Party’s victory, boosting the pound and the UK-focused FTSE 250 index.
Fine wine prices continued to fall, with the Liv-ex 1000 index hitting the August 2021 level. Trading volumes were higher than last year, suggesting buyers were taking advantage of favorable prices. Prices for some of the best performing wines rose by as much as 20%.
Opportunities emerged during the 2023 Bordeaux En Primeur campaign, with the best new releases offering quality and value. Bordeaux prices fell 1.8% in the second quarter, making old crops more attractive. The Bordeaux Legends 40, which tracks old crops, was the only index to rise as the campaign ended.
Secondary market prices fell in the second quarter, with the Liv-ex 1000 down 2.4%, led by the Burgundy 150 (-3.9%) and Champagne 50 (-3.7%). Italy has shown resilience, with some brands up as much as 15% in the past six months. In June, the Bordeaux Legends 40 rose 0.3%, its first positive move in a year.
Top wines this quarter included Château Léoville Las Cases 2016 (+19.4%) and Château Angélus 2019 (+19.1%). Sales of Domaine Bonneau du Martray Corton-Charlemagne Grand Cru 2020 were up 15.2%, while sales of Dom Pérignon Rosé 2009 were up 9.6%. Prices for Dom Pérignon Rosé 2009 have risen 83% over the past decade.
Sotheby's Burgundy sale on July 5, 2024 broke eight world records, fetching €2 million. Notable sales included Chevalier Montrachet d'Auvenay 2009 (€106,250) and Domaine Armand Rousseau Chambertin Clos de Bèze 1990 (€100,000). Pierre Chene's rare and exquisite champagne collection fetched €1.35 million last month at Sotheby's in Paris.
The market is expected to slow down during the summer lull, according to WineCap. However, there are still plenty of opportunities. The premium wine market will focus on international wines as the La Place de Bordeaux fall campaign kicks off, with prestigious producers unveiling their latest vintages, which will likely drive up secondary market prices.
