Fine Wine Recovery Builds: August Data Strengthens the Case

Fine Wine Recovery Builds: August Data Strengthens the Case.

In our recent article, “Fine Wine Back at 2015 Levels: Where We See Opportunity,” we argued that the market had reached one of its most compelling entry points in more than a decade.

August’s Liv-ex data adds further weight to that view.

The Liv-ex Fine Wine 1000 is Liv-ex’s broadest measure of the market, tracking 1,000 wines from across the world. It comprises seven sub-indices covering the most traded wines from the major regions: the Bordeaux 500, Bordeaux Legends 40, Burgundy 150, Champagne 50, Rhone 100, Italy 100 and Rest of the World 60.

Against that broad backdrop, the Fine Wine 1000 rose 0.5% in August, while the more selective Liv-ex Fine Wine 100 gained 0.7% and is now up 4.4% over the past 12 months.

For us, that distinction is important. We do not invest indiscriminately across the fine wine market; we focus on a relatively small number of established, liquid and globally recognised wines. The fact that the Liv-ex 100 is already showing stronger momentum is therefore particularly relevant.

Mature Bordeaux (Legends) rose 0.8%, while Champagne was the strongest-performing segment, up 1.4% in August. All but one of the Liv-ex 1000’s major sub-indices finished the month higher,

What is particularly encouraging is not one positive month in isolation, but the direction of travel. Liv-ex notes that the Fine Wine 100 has now moved above its 20-month moving average, while other technical indicators have also improved. The current pattern bears similarities to late 2015, a period that preceded a much stronger phase for the market.

This fits closely with what we highlighted previously. After a correction of almost three years, prices have already reset substantially. What we are now beginning to see is evidence that demand is returning, selling pressure is easing and selected parts of the market are starting to move higher.

There are also encouraging signals beneath the headline numbers. Mature Bordeaux continues to strengthen, Champagne has now been the best-performing Liv-ex 1000 sub-index for two consecutive months, and Burgundy is showing signs of selective recovery. None of this means the market will move in a straight line from here. Fine wine remains a medium-to-long-term asset class, and selection remains critical.

But the combination is becoming increasingly compelling: prices at historically attractive levels, improving demand, tighter supply in key areas and now positive momentum across the more investable parts of the market.For investors who have been waiting for evidence that the market is beginning to turn, August provides another important piece of that picture.

If you’d like to learn more about where we currently see the strongest opportunities, please get in touch.


Written by Martin Docherty, Senior Advisor at Cellar Advisor.