Were this year’s La Place autumn releases a case of ‘too much, too late’?
The autumn 2023 releases on La Place sought – but mostly failed – to breathe new life into a troubled market, says Liv-ex.
Reinvigorating the fine wine market and restoring faith in the La Place distribution system. If that sounds like a tall order, that’s because it is – yet that was the challenge that was resting on the 2023 Autumn Releases. The results were decidedly mixed, with many merchants deploring the high volume of releases of relatively unknown wines at unrealistic prices.
The releases began as the market recorded its 11th month of consecutive declines; all of the major Liv-ex indices fell in August, albeit at a slower rate than in previous months. Buyer sentiment was decidedly cautious, undermined by ongoing interest rate hikes and global economic uncertainty.
The mixed reception given to En Primeur 2022 releases should have been a good indicator of the challenging market conditions: in many cases, the promise of an exceptional vintage was not enough to withstand the hefty price increases implemented by many estates. There was hope, then, that ‘Beyond Bordeaux’, the story would be different.
Hermitage La Chapelle 2021 kicked off the show, making its debut on La Place at £2,268 per 12×75, up 56.2% on the previous vintage’s opening price. The following week saw release price increases across the board, from a modest 0.6% year-on-year rise for Almaviva 2021 to 29.6% and 30.5% rises for Solaia 2020 and Seña 2021 respectively, as shown in the table (facing page, top) summarising 20 major La Place releases covered by Liv-ex.
Those bold price hikes were not there to stay, however. Interestingly, close to halfway through the campaign, pricing started trending downwards. Bibi Graetz’s Testamatta and Colore 2021 were released 13.2% and 19.1% below their previous vintages’ opening prices respectively. Argentinian wines Nicolás Catena Zapata 2020 and Cheval des Andes 2020 were also released at marginal discounts to their 2019 vintages.
Can this change of direction be explained by producers looking to their neighbours and reading the market’s mood? Maybe. However, it’s worth noting that year-on-year price changes aren’t the only factor at play when it comes to these wines’ reception.
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Despite opening at an 8.8% premium to the 2019 vintage, Masseto 2020 is offered at fair value. The wine has enjoyed relative success so far, according to members of the trade. On the other hand, a lower release price does not necessarily lead to a successful release. As mentioned above, Bibi Graetz Colore 2021 was released below the 2020 vintage’s opening price, but, according to Liv-ex’s Fair Value methodology, it came in above the fair value line, meaning other vintages might offer better opportunities for buyers.
Overall, the feedback from the trade is one of disillusionment – the returns made did not justify the time and effort (and for some, the reputational damage) required by the intensity of the campaign’s pace and the prices demanded. Private collectors were not only mostly uninterested, but many also simply unsubscribed from the stream of email offers.
As with the spring campaign, few doubted the quality of the wines on offer (for some, the best ever made), but the release prices simply ignored the reality of today’s market. In the words of one négociant: “It felt like Bordeaux 2022 all over again – wrong prices, in the wrong order, into the wrong market.”
About Liv-Ex
Liv-ex is the global marketplace for the wine trade. Along with a comprehensive database of real-time transaction prices, Livex offers the wine trade smarter ways to do business. It offers access to £81m-worth of wine and the ability to trade with 500 other wine businesses worldwide. It also organises payment and delivery through its storage, transportation and support services. Wine businesses can find out how to price, buy and sell wine smarter at: www.liv-ex.com
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