The Liv-ex Fine Wine 50 benchmark is lagging the wider Bordeaux 500 index of wines from the region so far this year after posting its second consecutive quarterly decline amid lack of demand for the 2012 vintage.
The Liv-ex Fine Wine 50, which tracks the 10 most recent available vintages of the five Bordeaux first-growth wines, is a benchmark for the London-based Liv-ex online exchange and broader international trading in investment-grade wines while the Bordeaux 500 tracks wines from 50 growers across the region.
Frederique de Lamothe, director of the Alliance des Crus Bourgeois du Medoc, discusses France’s Medoc wines, demand and pricing. She spoke Sept. 19 in London with Bloomberg’s Guy Collins.
The Liv-ex 50 has declined since mid-March, after price gains in the first 10 weeks of this year and in late August lost momentum, leaving it 2 percent up since the end of December, according to data on Liv-ex’s Cellar Watch website. The Bordeaux 500 is up 4 percent since the start of this year, as investors facing price declines on some top wines seek more diversity.
The Liv-ex Fine Wine 100, while still Bordeaux-dominated, also tracks wines from Burgundy, the Rhone, Champagne and Italy, and at the end of September was showing an advance of almost 3 percent since the end of 2012.
The broader Bordeaux market also includes wines outside of these indexes, such as the Cru Bourgeois producers whose wines can be bought for less than $50 a bottle, more cheaply than the classed growths, and are seeking to build on export markets in the U.K., U.S. and China.
The 256 wine estates listed in the 2011 classification of the Crus Bourgeois du Medoc produced 28 million bottles of wine from the vintage, about 30 percent of the entire production from the Medoc region north of the city of Bordeaux, according to data from the Alliance.