Stability for fine wine prices?

13th January, 2016 by Rupert Millar

The bid-to-offer ratio on Liv-ex has risen above 100% for the first time since 2010, while the value of bids has risen by £1 million.

stability-in-lifeFor the first time since July 2010 the bid:offer ratio on Liv-ex (the total value of bids on the Liv-ex exchange divided by the total value of offers) has risen past 100%, a positive sign for fine wine prices as, historically, a bid:offer ratio of over 50% indicates an uptrend in the market – and price stability.

The last time the 100% ratio was seen was when the China-led bull run pushed Bordeaux prices to such terrifying heights.

But with the ‘Chinese-factor’ now largely removed from the market, what’s causing the current movement?

There are a number of factors helping the fine wine market at present. Liv-ex noted: “Recent currency movements have definitely been a driver behind trade on the exchange with the euro strengthening against sterling from November, helping to push the Liv-ex 50 index higher.

“The average bid:offer spread is also at a wide 20%. Historically a level below 15% has been an indicator of sustained price rises. In addition, anecdotal evidence suggests the majority of sellers still remain on the sidelines, having just returned from the seasonal holiday.”

Positive signs at the start of a new year are hardly new as Amphora Portfolio Management’s Philip Staveley points out here and this year’s en primeur campaign may yet wipe out these early gains if ill-received.

It’s still early days after all.

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to our newsletters

Job vacancies

Experienced On Trade Sales Person

Borough Wine Imports
London, GB

3 x Business Development Executive

The Lakes Distillery Company Limited
Newcastle head office and nationwide, UK

Editor

Master of Malt Ltd
Tunbridge Wells(Kent)

Brand Manager

Hallgarten Druitt
Luton, UK

Experienced On-Trade Salespeople Required

Portal Wines and Spirits
London, UK

Purchasing and Sales (Wine Trader)

JF Tobias
London, UK

Sales Account Manager - On-Trade

Berkmann Wine Cellars
Cambridge / Peterborough / Bedfordshire, UK

Brand Marketing Manager

ATOM Supplies Ltd
Tunbridge Wells, UK

Senior On-Trade Sales Manager, London

Nyetimber
Central London, UK

Trade Marketing Manager - On Trade & Events

Lanson International UK
London, UK

Maverick Drinks Portfolio Ambassador to the North

Maverick Drinks
North West England, UK

Key Account Manager – Wine – On Trade – Dubai

Vantage Hospitality - Dubai
Dubai, UAE

Brand Ambassador European Markets

Bodegas Torres
Spain

Customer Service Executive

Speciality Brands Ltd
London, UK

The Global Merlot Masters 2017

Deadline : 31st March 2017

db Awards 2017

Deadline : 28th April 2017

The Global Organic Masters 2017

Deadline : 14th April 2017

The Global Sparkling Masters 2017

Deadline : 12th May 2017

Click to view more

Global Chardonnay Masters 2016

Now in its fourth year, the competition will identify the best Chardonnay from all around the world in every price range.

Rioja Masters 2016

Now in its fifth year, the competition will recognise and reward the finest Riojas on the world stage.

Fortified Masters 2016

Now in its third year, The Fortified Masters will reward the best fortified wines on offer.

The Global Malbec Masters 2016

the drinks business is proud to announce the inaugural Global Malbec Masters 2016.

Click to view more