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

 

 

 

Aranda de Duero has been named “European City of Wine” for 2022

Aranda de Duero has just been named European Wine City by the European Wine Cities Network (RECEVIN).

Aranda de Duero, one of the cities that make up the Spanish Association of Wine Cities (ACEVIN), has been ratified as the next European Wine City, an initiative created by the European Network of Wine Cities (RECEVIN) and in which each year a city related to wine production and culture is selected, located in an area protected by a Denomination of Origin.

Aranda de Duero is located in the heart of the Spanish wine region of Ribeira del Duero. The vineyards are located at high altitudes, between 720 and 1100 meters above sea level. The hot and dry summers that cool down significantly at night, give the red wines the concentration and structure for which they have become famous.

The decision was made at the meeting held a few weeks ago in which Rosa Melchor, president of ACEVIN, and Raquel González, mayor of Aranda de Duero, proposed the postponement of the initiative until next year due to the unstable global situation caused by the health crisis of covid-19.

The European City of Wine initiative is on a rotating basis and countries that are part of RECEVIN can participate in it. Applications must always have a European dimension and demonstrate creativity, following criteria such as reinforcing awareness-raising activities in wine culture.

 

 

More Bordeaux Vineyards Converting to Organic

Increasing numbers of vineyards in Bordeaux are switching to organic methods of production, after lagging behind other French winemaking regions.

According to Patrick Vasseur, vice president of the Gironde Chamber of Agriculture, there are up to date figures available, but anecdotal evidence indicates that around 300 vineyards a year are converting to organic.

 

“It’s quite simple, everyone is switching over” winegrower Philippe Carrille told Vitisphere. His 23-hectare Château Poupille in Castillon Côte de Bordeaux has been certified since 2008.   This surge of new converts, “can only be cause for rejoicing”, added Gwénaëlle le Guillou, director of the New Aquitaine organic wine producers’ organisation (SVBNA). She pointed out that until recently, Bordeaux had trailed well behind other regions, with only 11% of vineyards committed to organic, compared to a national average of 14%.

 

“There are currently significant price differences between organic and conventional, but this will not last,” said Phillipe Cazaux, director of the co-operative group Bordeaux Families.  “Well-deserved added value will remain, though, due to the technical commitments and the risk incurred by the supply side. This year the group has 105 hectares certified organic and 551 hectares in the conversion phase. “Initially, small areas entered the process, but then gradually the larger areas followed suit”, said Cazaux, who plans to convert a fifth of acreage to organic within five years, with a longer-term goal of 1,000 hectares by 2027.

 

Éric Hénaux, director of the Tutiac co-operative group, is adopting a more cautious approach and waiting for the current 620 hectares to be converted by 2022 before making any further plans. “We will see how the market stabilizes,” he said. “A lot of organic wines came on-stream, and prices fell. We have to be careful not to produce more volumes than we have the capacity to sell. The objective is not to sell on the spot market, but to focus on bottles and three-year contracts”.

 

#Bordeaux #Bordeauxvineyards #organicwine #vineyards #frenchwine
#wine #redwine #whitewine #bordeauxwinelovers #winelovers #instawine

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

 

Lady Gaga Collaborates with Dom Pérignon

Singer-songwriter Lady Gaga will be featured in an advertising campaign for Dom Pérignon Champagne starting April 6th.

The campaign is to be shot by British fashion photographer Nick Knight, although no further details are available at this stage.

She captioned the post on Instagram: “I am very excited to announce my collaboration with @domperignonofficial! Dom Pérignon and I are both driven by the need for creative freedom, and we’re excited to share the Queendom with you, an artistic universe we created with my dear friend @nick_knight! (sic)”

Lady Gaga and the Champagne house will also be embarking on a wider collaboration that will see the release of limited-edition Dom Pérignon bottles along with a sculpture designed by Lady Gaga.

Dom Pérignon will also be supporting Lady Gaga’s “Born This Way Foundation.”