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Liv-Ex Market Report
by Liv-ex.com, April 2013
After a good start to the year the market turned its attention to Bordeaux 2012. Although release prices have come down on the levels of 2011, it seems that for many they
have not dropped far enough. With all eyes on the new vintage, trade was muted and the Liv-ex indices strayed downwards. In April the 2012s accounted for 16% of Bordeaux trade by
value, just behind the perennially popular 2009s, which accounted for 19%. But 2012 trade was buoyed by three wines: Margaux, Lafite and Mouton, which accounted for 84% by value. The First Growths’ astute
pricing meant that the new wine was the cheapest vintage available — and buyers took advantage of this. Bordeaux’s share of turnover edged up in April, but at 85%
it is still six percentage points below its share for April last year. Champagne took its lowest share of trade year to date, while Burgundy and the Rhone also slightly dropped
back. Broadening demand for Italian wines saw the country reach a six-month high of 1.9%.
(more analysis in the full report)
When it released at €180 per bottle ex negociant, Angelus 2012 bucked the En Primeur trend — the new wine is 30% more expensive than its 2011. It is currently being offered in
London for around £1,850 per 12x75. In a ripple effect, prices for back vintages have risen to meet the level. Liquidity may be low, but those who have Angelus are
unwilling to sell it for anything less than the current price for the 2012, pushing the brand’s prices up and up.
(analysed in detail in full report)
Chart of the Month
Although Bordeaux dominated the market’s thoughts in April, Italian wines took their highest share of trade by value in six months. Their appeal is growing, as evidenced by
their average share of exchange turnover: in 2010 this was 0.9%, in 2011 it was 1.5%, and in 2012 it was 2.3%. The chart above shows the rising performance of top Italian
wines. While the Liv-ex 50 has fluctuated over the last six years, the Super Tuscan index has steadily climbed, even avoiding the post-Lehman Brothers dip in September
2008 and the market decline in mid-2011. It is currently posting a five-year gain of 92%— just six percentage points shy of the Liv-ex 50’s peak in June 2011.
In recent months the trajectories of the two indices have become more similar, suggesting that demand for both regions is occurring in tandem rather than independently
of each other.
Right Bank 2012s on top
Liv-ex has taken the Bordeaux 2012 scores from a host of critics and critic panels to produce an average score
for each wine. Scores out of 20 were converted to reflect the 100-point scoring system. Petrus emerges as the wine of the vintage—it was also
the favourite wine of merchants who completed the Liv-ex En Primeur survey. Four Right Bank wines feature in the top five, including Robert Parker’s potential 100 point
wine, L’Eglise Clinet. Lafite is the only First Growth to miss out on the top 10 (it came 11th), while Haut Brion is the highest scorer of the Left Bank.
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