Date£º
2014-10-14 11:24 Source£º
thedrinksbusiness Author:
Tom Bruce Gardyne Translator:
Despite all the buzz around Burgundy, it plays a limited role at Liv-ex
Burgundy may be hot in the auction market following Sotheby's record-breaking sale of Domaine de la Romanee Conti on October 4th, and news that it has overtaken Bordeaux at Acker Merral & Condit, but its role within Liv-ex is limited. "Burgundy's share of trade this year has been exactly the same as last year -around 6% by value,"said Liv-ex director, Justin Gibbs. By contrast, Bordeaux has ranged from a low of 71% last month to 95% at its peak in 2011, with last week at 75%.
While other regions like Italy and California have been growing as part of a general broadening out of the fine wine market, Gibbs said he would be surprised if Burgundy's share grew significantly in future. He pointed out that Liv-ex accounts for around 90% of the secondary market compared to 10% for the auction houses.
He also noted the: "Spread between bids and offers is being stretched quite hard with Burgundy,"which he felt reflected the high prices charged and the risks of not being able to trade the wines on. "if you look at the best of the best from each region, DRC was ¡ê8,750 a bottle at Sotheby's, where Petrus would be ¡ê2000 and a First Growth, maybe ¡ê500.
Since the Live-ex market turned in August, Gibbs described trading as: 'reasonably steady' adding: "The longer it holds, the greater the confidence in the market that Bordeaux's long-term decline might be coming to an end."