Trends

We have identified three main trends to consider when buying valuable wine portfolios for eventual resale:

1/ The world’s growth economies are increasing demand for wine
Take India, with a population of 1.2bn: it is believed that consumption levels of premium wine up to 2017 will show a compound annual growth of 25%; today’s consumption of 1.5million cases will be growing to 10 million cases in the premium wine sector

2/ Traditional markets are very influential growth markets
The example of the USA is telling: a more mature wine market but is also a growing force. In 2011 35% of Americans confirmed they ‘regularly drink wine’ as opposed to 23% in 1992. This is down to a trend in wine choice as a beverage. Unlike previous generations, which generally did not drink wine regularly until they reached their 40s, younger consumers are discovering wine in their 20s and 30s. The proportion of consumers who drink wine at least once a week has risen dramatically, reaching 55%.

In the ten-year period between 2004 and 2013 Asian wine consumption grew by 86m cases. Though Asia’s fast growth has took all headline news, in the same period, the market for the North American continent will have grown by an incredibly similar 85m cases

The growth in consumption does not necessarily mean fine wine pricing will always rise. Since 2011 there have been many fluctuations and the very expensive wines from Burgundy and Bordeaux have seen less demand and a price drop, leaving some collectors feeling that now is a good time to start buying again.

In 2012, the US has become the world’s leading market for the consumption of still light wines.

3/ Supply chain improvements
Tastes and cultural habits are impacting demand and wine consumption rates but other practical factors, such as distribution networks, logistics and import taxation, could also be contributory to future growth in global exports of wine from France to the rest of the world. Vinexpo’s CEO Robert Beynat has sited the situation in Japan as an example: “the current distribution chain is not very good in Japan,” he said, “we hope that this will change – in particular we will be keeping an eye on the enormous strength of [major distributor] Suntory ASC.”

Outlook

Certainly for the very low production Chateaux, and those that carry the biggest weight in terms of brand prestige, there can be large competition in the marketplace for a handful of labels so these are often the first to target for collections.

The international consumption rate is growing, but the buyer demand within the trade can fluctuate so in short periods demand and values can fall. The longer term picture of increased consumer numbers buying fine wine is likely to continue to stimulate the collector market.

News

5th June 15
Italian wine gaining more share of fine wine market; Sassicaia 2009 with 4.4% share alone.

18th May 15
Mr Vine, the free UK wine app for buying classy everyday wine for door delivery, is now live on the app store - its getting an amazing reaction across the wine trade!

7th May 15
Election day. Will we end up with a 7 Party coalition?!

29th Apr 15
Bordeaux En Primeur release well underway for the 2014 vintage; some reasonable start-pricing by the French sellers but a further cut of circa 5% to 10% was what the trade wished for.. C'est pas formidable!

4th Feb 15
Wine prices struggle but hints of an upturn in demand as buying for Chinese NY influences market

10th Dec 14
Low fine wine demand and the growth in more discerning international buyers has seen a year of price falls

6th Sept 13
Warwick Ross & David Roach’s entertaining Film/documentary ‘Red Obsession’ opens in New York today: covering Chinese Billionaires’ insatiable demand for the world’s most expensive wines

12th Jul 13
A six-litre Methuselah of Romanee-Conti 1989 DRC will go into Sotheby's Hong Kong auction this September with an upper estimate of HK$800,000!

30th May 13
2013 late BDX crop development could point to delayed harvest.. another tricky vintage? Far too early to call..

19th May 13
After a softer 2012, wine prices recover with 5.9 pc this year as gold bullion slid 17 pc

15th May 13
Q1 buying spree halted by 2012 release, June set for gains on cased stocks

11th Dec 12
Robert Parker sells significant stake in Wine Advocate and steps down as Editor, with new editorial focus for Far East

6th Dec 12
Hong Kong's King Power Group buys Bordeaux property Chateau Bernadotte from Champagne heavyweight Louis Roederer

24th Nov 12
Good luck to Aymeric de Gironde, former AXA Millesimes commercial director who takes over from Monsieur Prats at Cos today

16th Nov 12
Touch Invest (New York) appoints First Growth Bordeaux as commentator on wine portfolio trading; visit www.touchinvest.com

11th Sept 12
Wine market firms up: Christies Hong Kong - auction season starts with 100% of reserve prices hit

7th Sept 12
New St Emilion Classification: Pavie and Angelus are portfolio tips as they join Ausone and Cheval Blanc as Premier Cru 'A' Chateaux

21st June 12
Pichon Baron one to watch having outperfomed the Left Bank average Jun11-Jun12 (liv-ex)

25th May 12
London International Wine Fair's star stand: "Wines of Chile"

18th May 12
Pontet Canet demand most popular for BDX 2011 releases

26th April 12
2011 En Primeurs all release above 2008 prices

23rd April 12
Lafite's 2011 marked down, UK average price £5400

20th April 12
Buying activity on cased Latours increases

19th April 12
Latour's 2012 vintage will be last sold En Primeur!

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