Liv-ex 1000 shows that interest in wines from Burgundy, Champagne, the Rhône, Italy, and US has grown rapidly and unexpectedly

New categories of wine are entering the secondary wine market for the first time, with trading up by 70% from 2019.

Bordeaux, which once dominated the secondary market, now has a share of trade less than half of what it was a decade ago. But it hasn’t fallen out of favour – rather, its share has shrunk as the overall market has surged and interest in wines from Burgundy, Champagne, the Rhône, Italy and the US has grown rapidly.

“Last year was a positive year for the wine market, with all major Liv-ex indices showing gains,” said Liv-ex Director and Co-Founder, Justin Gibbs.

Liv-ex (the London International Vintners Exchange) is the London-based global marketplace for the wine trade, where fine wine merchants from around the world buy and sell wine. What happens on the exchange is a reliable indicator of the health of the secondary wine market.

And what it shows is that the secondary wine market is not just booming, it’s broadening.

Fast Market Growth

The number of distinct wine brands traded on Liv-ex last year was up 70%, from 996 in 2019 to 1,420. The total number of wines – including different vintages of the same wine brands – was 8,735, up 72% from the 2019’s 6,367.

The surge has continued into 2021, with March 2021 closing on the biggest month of trade in Liv-ex’s 21-year history – 1,250 distinct wine brands were traded, of which 130 were newcomers to the secondary market. More than £80 million ($109 million) of live bids and offers, are currently available on the market.

The Liv-ex 1000 index was established in 2014 to capture this broadening. As with all Liv-ex indices, it reflects the activity of e Liv-ex membership – a pool of over 500 of the world’s leading wine merchants, who between them represent the biggest and deepest pool of liquidity anywhere in the world.

Most importantly, as a trading and data resource, it is completely independent. And it shows stark changes in the fine wine market, as new wines enter the secondary market.

One Index Alone Is Up 87%

The most striking example of the changing dynamics of the market is the Burgundy 150. It has risen 87% over the last five years, the beneficiary of collectors putting their capital into a new category.

The Champagne 50 has risen 58% over the last five years, driven by the brand power and prestige of the grandes marques Champagnes, widely available stock, global distribution and accessible price points.

The Italy 100 has risen 45% over the past five years, as merchants and collectors discover the relative value to be found in the great wines of Piedmont and Tuscany.

The Rest of the World 60 – which includes the top wines of California, as well as Australian, Spanish and Portuguese wines – has risen 31% over five years. US wines, in particular, are attracting attention; in 2019, US wines represented just 2% of trade by value on the market. That shot up to 7% of total trade last year.

What’s Driving the Trading?

As elsewhere in the economy, technological innovations have swept through the wine industry, transforming the behaviour of both wine businesses and buyers. This past year has seen the launch of new wine tech start-ups, digital wine apps, soaring online sales and virtual tastings, ensuring that people are no longer anxious about buying or trading online.

“These innovations in technology have had a significant impact on buying patterns,” said Gibbs. “As more of the wine trade go digital – with many enabling their customers to access the market using our Automation services – we are seeing increasing diversity in what is traded as collectors are put in the driving seat.”

As a result, the wines brought through Liv-ex in 2020 not only came from the more traditional fine wine regions like Bordeaux and Burgundy, but also from China, Hungary, Switzerland, Austria, Germany, Chile, Argentina and more. Prices per bottle also ranged from £4 to £21,000. As the wine world becomes increasingly digital, this broadening trend is likely continue.

The Market Set to Expand Further

Since 2019, US collectors and merchants have been constrained by the US government’s tariffs on the wines of France, including Bordeaux and Burgundy.

“The tariffs have had a singular effect on the fine wine market over the last 18 months, not least for Italy and Champagne whose wines were excluded from the extra 25% levy,” said Gibbs.

But the recent lifting of the tariffs has had a marked effect on activity – leading to a strong kick in demand for wines of all regions.

There are also other reasons to believe the fine wine market will both grow and diversify further.

“The combination of low interest rates and massive fiscal spending suggests that asset inflation will not be confined to equity, commodity and property markets,” said Gibbs. “The fundamentals of fine wine will also be an attractive option to those with cash to spare.”

#livex1000 #livex #finewine #burgundy #champagne #bordeaux #Rhone #USwine #winenews #instawine #winelovers #winecollectors #wineinvestment #digitalmarketing #finewineregions

 

 

 

The Bollinger Family to Acquire Oregon’s Famed Ponzi Vineyards

The Bollinger family, owners of iconic Champagne Bollinger in addition to four other historic estates in France, announce the upcoming acquisition of their first winery in the United States, with the purchase of Oregon’s famed Ponzi Vineyards. The transaction will unite the Bollinger family with the Ponzi family, building on the legacy the Ponzis have established as one of Oregon’s original wineries, leading the success and growth of the region’s Pinot Noir over the last 50 years.

Bollinger family holding group Chairman & CEO Etienne Bizot comments, “The United States is such an important market for luxury Champagne, Burgundy, Sancerre, Cognac, and other regions in which our family owns wineries. If there was anywhere outside of France where we felt it was critical to invest, it is in the U.S. We have quietly considered opportunities for a number of years, but it is finally with the Ponzi family that we feel we have found the ideal fit. Their bold vision to come to Oregon, the subsequent decades of recognition for continually innovating and improving – we have so much respect for what the Ponzis have achieved, and look forward to building on it together, and connecting all our brands more closely with the U.S. market.”

“We have dedicated our lives to demonstrating Oregon’s Willamette Valley as one of the greatest places on the planet for producing cool climate, high quality Pinot Noir and Chardonnay,” remarks Luisa Ponzi, the winery’s recognized leading winemaker who trained in Burgundy. “This transaction makes sense for our respective families because of our well-aligned values and shared commitment to producing wines of the very highest quality.”

“It gives us immense satisfaction to have the opportunity to pass our legacy winery on to the Bollinger family, who will continue to elevate the brand on a global scale,” Winery president Anna Maria Ponzi shares. “This is the natural next step for our brand and winery.”

The purchase includes the winery and hospitality facilities 40 minutes from Portland, Oregon in addition to 35 acres of vineyard land in the newly established Laurelwood District AVA. The winery has been an introduction to the region for countless numbers of people through not only visits but major events that the Ponzi family has been instrumental in creating and supporting, such as the International Pinot Noir Celebration, Oregon Pinot Camp and the Salud Pinot Noir Barrel Auction.

Under the leadership of a new CEO, whose recruitment is ongoing, Anna Maria will continue to lead the sales & marketing over the transition period and Luisa will remain as the Director of Viticulture and Winemaking. The Ponzi family will retain 100 acres of vineyard land and will grow and sell the grapes to Ponzi Vineyards under a long-term contract.

VINTUS, current Ponzi Vineyards national sales and marketing agent, and importer of Champagne Bollinger, Champagne Ayala, Domaine Chanson and Langlois-Chateau, will continue to represent Ponzi’s trade distribution in the United States.

#winenews #industrynews #champagne #bollinger #bollingerchampagne #Ponzivineyards#wineindustry #oregon #wine #oregonwine #willamettevalleywine #instawine #winewednesday @ponzivineyards @champagne_bollinger

 

Just in time for summer – Kendall-Jackson launches a low-calorie chardonnay

Kendall-Jackson is launching a lower calorie variant to tap into the ‘lighter wines’ category in the US.

Starting in May this new offer will be under the Kendall-Jackson brand.  Did you know that Kendall-Jackson Vintner’s Reserve Chardonnay has been the most popular Chardonnay in the US for over 26 years?

This low-calorie chardonnay will be called “Avant” is only 85 calories, has no sugar, and has 3 grams of carbs per serving” according to the producer.

This new low-cal wine contains 23% fewer calories than the standard Kendall-Jackson Chardonnay, based on a 150ml serving of wine at 14% abv, which contains 111 calories.

Kendall-Jackson winemaker Randy Ullom explains, “An initial harvest of grapes picked on the earlier side ensures lower sugar. A secondary harvest later in the season offers more complexity and concentration, which complements the wine, producing a full-bodied blend that’s structurally balanced and delicious, yet lower in alcohol and calories.”

Like the Vintner’s Reserve, the Avant Chardonnay is aged in oak barrels to bring a touch of vanilla to the wine, which is described as tasting of “grapefruit, pineapple, creamy lemon meringue and delicate white flowers”.

The 9% Chardonnay is also vegan-friendly and comes with an RRP in the US of $17.

Jackson Family Wines highlighted the commercial potential for this new wine by noting that the ‘lighter wines’ category had grown by 90% in the US in 2020.

IWSR announces acquisition of Wine Intelligence

IWSR Drinks Market Analysis, the leading authority on the worldwide beverage alcohol industry, today announced the acquisition of London-based Wine Intelligence, the top global experts on wine consumer research and insights. The combined offering provides the industry with robust insight into consumption trends, consumer behavior and growth opportunities for the global beverage alcohol sector.

Founded in 2002, Wine Intelligence conducts projects on behalf of wine businesses in more than 35 wine markets. This acquisition enables the IWSR and Wine Intelligence teams to build a world-class consumer behavior division focused exclusively on the global beverage alcohol industry.

“As Covid-19 reshapes consumer behavior and beverage alcohol drinking occasions, industry stakeholders are looking for a deeper understanding of the consumer attitudes driving the market,” remarks Mark Meek, CEO of IWSR. “Our vision is shaped by our clients, and this acquisition is a tremendous opportunity for us to expand on our existing offerings and work with the Wine Intelligence team to provide the industry with access to comprehensive consumer insight across all categories of the drinks industry, including beer, wine, spirits and the ready-to-drink sector.”

This acquisition follows a successful decade-long relationship between IWSR and Wine Intelligence. Recent collaborations include the IWSR Covid-19 Consumer Tracker, an in-depth consumer sentiment research report series tracking the on-going impact of Covid-19 on the consumption of and attitude to beverage alcohol over an 18-month period.

“We are delighted to join the IWSR family after nearly 10 years of our organizations partnering on behalf of our client base,” says Lulie Halstead, CEO of Wine Intelligence. “I share Mark’s vision of us building a world-class and comprehensive offering of data and consumer insights to support the global beverage alcohol sectors, which we are uniquely positioned to do.”

About the IWSR

The IWSR is the leading source of data and intelligence on the alcoholic beverage market. The IWSR’s database, essential to the industry, quantifies the global market of wine, spirits, beer, cider, and RTDs (ready-to-drink) by volume and value in 160 countries, and provides insight into short- and long-term trends, including five-year volume and value forecasts. The IWSR tracks overall consumption and trends at brand, price segment and category level. Our data is used by the major international wine, spirits and beer companies, as well as financial and alcoholic beverage market suppliers. The IWSR’s unique methodology allows us to get closer to what is actually consumed and better understand how markets work. The IWSR boasts a team of global analysts, each of whom is equipped with local market expertise and an expansive network of on-the-ground industry contacts. Our analysts meet and speak with their industry contacts throughout the year in order to capture local insight, key market trends, and the ‘why’ behind the numbers. For more information about the IWSR, please visit www.theiwsr.com

About Wine Intelligence

Wine Intelligence is the global leader in wine consumer research and insights. Founded in 2002, we now conduct projects on behalf of wine businesses in more than 35 wine markets. With a team made up of wine industry and research specialists, we offer a broad range of research, insights and strategy services to help wine businesses make better and more profitable business decisions.

Silicon Valley Bank: The US wine industry will bound back in 2021

The US wine industry is poised to bounce back in 2021, according to a report by Rob McMillan, Founder, Silicon Valley Bank, with a consumer desire to celebrate set to help drive wine sales this year.

Silicon Valley Bank’s 20th annual review of wine industry prospects predicts that temporary gains will yield to long-term declines. The report raises doubts that this year’s expected sales momentum will carry very far into 2022.

Wineries that have established strong direct-to-consumer sales during the Covid-19 pandemic, as well as online retailers, can expect more gains in 2021, the report says, while bricks-and-mortar retailers, urban-based grocers and restaurants will take years to recover.

Restaurants will drastically need new investment to survive or to re-appear. Yet, the report predicts a quick recovery for the industry as a whole, although the relative importance of individual sales channels will shift dramatically.

Online wine retailers had major growth in sales during 2020, and that is expected to continue into 2021. This channel, and wineries’ own online efforts, “will represent 20% of an average winery’s sales within five years,” the report predicts.

McMillan stressed that wineries, in spite of the loss of tasting room sales, are not in the same financial straits as restaurants. “Wineries seldom go bankrupt,” he said, “even if they are over-leveraged. If they have financial problems, there’s always a willing buyer.”

One problem that was lurking in the US at this time last year, according to the report, was an over-supply of wine. But damage to crops from last year’s fires and smoke, as well as diminished tasting room sales, resulted in supply now being back in balance with demand.

However, one problem that has not gone away is the changing ages of wine drinkers. As Baby Boomers continue to retire, they are being replaced by younger drinkers with different agendas.

While the decrease in demand by Boomers for wine purchases at all price levels has not been as precipitous as once predicted, the decline is not being offset by younger drinkers, who often see better value in craft beers and in spirits.

“The digital world parallels the real world,” McMillan said, “and the new consumer is not one who wants to rely on advice from most current sommeliers. We need to consider the values of younger drinkers, and they value things in the wine world differently.”

Download the full report

https://www.svb.com/trends-insights/reports/wine-report