Lesser vintages enjoy the fastest price rises

Lafite 2006 is the fastest appreciating fine wine of 2010 according to merchant and trader Bordeaux Index.

With a rise of 71% over the last 12 months to the end of August, the famed first growth from this lesser vintage has smashed an average price increase of 23% for the merchant’s most traded wines.

Following the 2006 vintage’s market-leading performance is Lafite 2003, showing a price jump of 56% over the same period. Margaux 2001 and Latour 2003 have both enjoyed a 53% rise, while Mouton Rothschild 2002 is up 50%.

Such increases support an ongoing trend towards price appreciation for less famous vintages among the most-sought after fine wine labels – a result of Far Eastern demand for first growth brands, whatever the year or commentator’s score.

Further, Bordeaux Index recorded sustained sales during the quiet month of August. Turnover was up 26% compared to last year’s summertime sales, although prices rose only 0.3%.

However the merchant pointed out that this was in contrast to shares which fell 3% in August.

Considering whether fine wine price appreciation would be sustained during September and beyond, Gary Boom, managing director of Bordeaux Index said, “The hangover from the excess of the 2009 en primeur appears to have finally cleared and with it there is every prospect of a strong autumn ahead.”

“The orders from Asia ahead of the mid-Autumn festival are the best ever. Given the limited stock availability, I wouldn’t be at all surprised to see prices nudge up accordingly.”

He also said, “Despite the high prices, Lafite remains the belle of the ball.”

Meanwhile the merchant noted that Mouton 2000, 2004, and 2006 are in high demand in Hong Kong and China, while it is currently fulfilling an order for Latour and Margaux in “off vintages”.

The Bordeaux Index five top performing wines were*:
 
Lafite 2006: 71%

Lafite 2003: 56%

Margaux 2001: 53%

Latour 2004: 53%

Mouton Rothschild 2002: 50%

Key performance figures:

The Bordeaux Index**
August 2010:      + 0.3%
Year to date:    + 22.8%
Year on year:   + 30.3%
 
FTSE 100
August 2010:      – 3.0%
Year to date:     – 5.0%

Gold
August 2010:      + 5.0%
Year to date:     + 15.0%
 
*percentage price increase over 12 month period to end of August from Bordeaux Index.

**Bordeaux Index tracks live changes in the prices of 80-100 of the most liquidly traded wines on the merchant’s LiveTrade market-making screen, launched in May last year.

Patrick Schmitt, 08.09.10