2019 was a mixed year for the fine wine market: the first half was marked by well-received Burgundy
2017 and Bordeaux 2018 En Primeur campaigns and steady secondary market prices. But in the second
half, the market was hit by intensifying headwinds: added to the persistent Brexit uncertainty were the
US-China trade war, political and economic strife in Hong Kong, and most recently, the introduction of
US tariffs on European wines.
As a result, the Liv-ex indices, denominated in sterling, dipped: the Liv-ex 50, which tracks the
performance of the First Growths, suffered the most (-3.6%), while the industry benchmark, the Liv-ex
100, fell 2.5%.
...
In our summary of the year 2018, we suggested that “the relentless rise of Burgundy might soon be
curtailed”. As discussed in our January report Burgundy – in the spotlight, prices for the region had
begun “to show increased volatility – often a sign of a turn”. Year to date, the Burgundy 150, which hit
an all-time high last December, outperforming global equities and Gold, has been the worst performing
index, falling 7.3%. Its parent index, the Liv-ex 1000, fell 3.5%. The Bordeaux 500 has dipped by a more
modest 2.5%.
The Champagne 50 and the Italy 100 were the only regional indices to make gains, rising by 2.2% and
4.6% respectively.