Fine Wine Market Update: August Liv-ex Data

Fine Wine Market Update: August Liv-ex Data.

In our recent article, “Liv-ex Fine Wine 1000 Back at 2015 Levels: What It Means,” we looked at the three-year correction in the fine wine market.

Here is what August’s Liv-ex data shows.

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. Past performance is not a guide to future performance.

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. That is why the Liv-ex 100 is particularly relevant to us.

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. Past performance is not a guide to future performance.

One positive month proves little on its own. Liv-ex notes that the Fine Wine 100 has now moved above its 20-month moving average, while other technical indicators have also improved. This does not mean prices will rise from here.

After a correction of almost three years, prices have fallen substantially. What we are now beginning to see is evidence that demand is returning, selling pressure is easing and selected parts of the market have risen in recent months.

There is more detail beneath the headline numbers. Mature Bordeaux rose again, 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 prices will continue to rise. Fine wine remains a medium-to-long-term asset class, and selection remains critical.

To summarise the August picture: prices well below their 2022 peak, improving demand, tighter supply in key areas and recent rises in the most traded parts of the market. One month’s data does not make a trend, and prices can fall as well as rise.

If you’d like to discuss what the latest data means for your portfolio, please get in touch.


Written by Martin Docherty, Senior Advisor at Cellar Advisor.