Fine Wine Investment Update December 2012
Here are some of the latest bits of news in the wine market.
If you have been following closely you will know the Bordeaux market has been picking up slight momentum over the last few months and it is good to see we may have confidence slowly coming back into the Bordeaux market.
We have recommended some second growth wines recently that are going very well and that’s going to be our short term focus on the wine recommendation side. The prices of second growths are moving but along with this means supply will become more difficult to source, especially the high rated second growths
There was an interview with Don St Pierre who runs one of the biggest wine companies in China – ASC. He said that the government are cracking down on smuggling of wines into China which may affect prices. Nevertheless the new government that has recently taken over is young and very big on wine. There’s usually a lot of gift giving in China’s government and a large number are gifts in fine wine. We need to monitor any movements in the market closely on the back of this news.
Tesco have started selling blue chip Bordeaux wines, Tesco are the second biggest retailer in the world and if they are successful selling blue chip Bordeaux wines it will mean a rise in consumption for what are already highly sought after wines following this we could see prices increase.
The London and Vintners Exchange produced a report saying that the wine market has levelled out, they were also saying that first growths have become more affordable again for many and this could create more buying of first growth wines especially over the festive season, Christmas and New Year.
Perhaps we need to wait until after Chinese New year to see how the market will react and whether prices will start climbing more aggressively. Although wines in areas other than Bordeaux are moving the Bordeaux market is selling at lower prices than ever. The second growths still look like a decent choice for investment. Champagne and Rhone Valley are on our radar and Burgundy if we can find a decent parcel to recommend.