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News
Grange Gains
Renewed market confidence boosts exchange turnover, while Penfolds Grange ‘98 achieves significant premium
Biggest movers this month
The table below shows the key movers this month on the fine wine exchange run by Liv-ex, including the much anticipated release of Penfolds Grange ’98, which is well bid at a significant premium to its opening price of around £110/bottle.
Robert Parker (RP) awarded the wine 99 points declaring the wine "an all-time classic". Font Michelle, CNDP Etienne Gonnet 2001 was awarded 95 points by Wine Spectator in its recent "Hot Wines" publication and was another of the month’s best performers, while Latour and Margaux 2002 continued to see strong demand in the secondary market. Of the fallers there was no pattern.
Stock liquidation was the most likely explanation with the UK’s top 10 stockholders reducing inventory by 12% on the month. Turnover on the exchange increased 33.4% month-on-month.
The combination of renewed market confidence, the 2002 Bordeaux en primeur campaign and increased trade in Champagne contributed to the rise. Trade in Champagne was dominated by the "gangster rapper’s favourite", Louis Roederer Cristal. Vintages 1990 (£1250), 1995 (£780) and 1996 (£780) remain very much in demand.
Chart of the month
Our chart of the month tracks the price movement of the Bordeaux First Growths from the 2000 vintage against the same wines from 1996 (the price for the 2000 has been divided by that of 1996 at each point to give a single above or below par performance indicator).
The chart shows that the 2000s have out-performed the 1996s by nearly 30% since the end of 2001, thanks to strong support from the major critics, but also indicates the hit they took post 9/11 as they bore the brunt of an uncertain market.
Indeed, on a relative basis, the 1996 would appear to offer good value. On average, prices for the First Growth 2000s are 81% higher than the 1996, despite the fact that taken together Latour, Lafite and Margaux score the same points from Parker in both vintages.