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After seven years of almost uninterrupted gains and records, the secondary market for fine wines may be heading for a downturn. The Fine Wine 100 index of the global fine wine trading platform Liv-ex (London International Vintners Exchange) recorded its first decline in 18 months in November. The mood for Burgundy and Champagne, which have been so popular so far, is starting to deteriorate and Bordeaux fell to a new low with a value share of only 34.5 percent of the trade, Liv-ex writes in its annual report "The Fine Wine Market 2022".
At the time of going to press, all important indices were still up, but there are increasing signs of a downturn: the Burgundy 150 index, for example, fell by 0.9 per cent in November after several weaker months. Many high-quality Burgundies are becoming increasingly difficult to sell. The Champagne 50 index, the best performing sub-index in the previous five months, fell 2.5 per cent in November, wiping out the gains of the previous two months.
"The warning signs in the various Liv-ex indices suggest that the premium wine market is set to flounder in the short term," said a summary of the report. Justin Gibbs, vice-chairman of Liv-ex says: "No market goes up forever. The top wine market has been on the up since 2015. More and more indicators are pointing to a short-term pullback. But the wine market has never been about short-termism."
(al / source: drinkbsuiness, Liv-ex; photo: 123rf)