Keen pricing in new releases from Yquem, Latour, and Bollinger are indicators of a new, “market liquidity prioritisation”, according to the latest report from WineCap, hinting that there is “a concerted effort from major estates to meet the market where it is, rather than where they wish it to be”.
The Wine Cap Q1 reports the first quarter as one in which “a surge of renewed market optimism… quickly collided with a transformative geopolitical crisis”. The renewed instability and conflict in the Middle East has driven markets on a “flight to safety”, it said, with fine wine “keenly poised” to benefit.
“Unlike traditional equities, which remain sensitive to fluctuating interest rates and energy-driven volatility, fine wine’s historical low correlation to mainstream markets is expected to remain its greatest strength throughout the spring.”
Signs of optimism
One of the most encouraging sign of optimism was the “disciplined approach to pricing” of recent releases, as vintages that offer clear relative value compared to back-catalogue stock can “reinvigorate buyer appetite and restore long-term trust”, it said.
It pointed to the Spring releases from Bollinger, Yquem, and Latour, following the “precedent” set by Taittinger Comtes de Champagne Rosé 2012 last summer at potentially the low point of the recent market cycle. “It was the first major release priced with enough sensitivity to reinvigorate trade,” WineCap said.
The much-lauded 2023 vintage of Château d’Yquem was released on 11 March, a “dream vintage”, according to Yquem’s CEO Lorenzo Pasquini, which garnered 100 points from James Suckling and Jane Anson. However, despite this, it was released at roughly 50% of the price of the “legendary” 2001 that it is being compared to –a “sensible entry point” that offers “a clear value proposition in a volatile world”, WineCap noted.
Similarly, the Château Latour 2019 was released last month at £1,395 per three bottles ex-cellar, a price 15% lower than the 2016 vintage, despite garnering a clutch of 100 points from . Meanwhile Bollinger also displayed “an aggressive pricing strategy”, with the 2018 La Grande Année Brut and Rosé released into the market last month at approximately 15% lower “than the most recent 2015 release”.
“The competitive price point of the house echoes the strategy seen with Latour and Yquem, proving that producers across the board understand the importance of liquidity and building buyer trust,” WineCap noted. This all sets “a constructive tone” for the upcoming Bordeaux En Primeur campaign, it continued, which is likely to be “a critical barometer for the market’s direction in the months ahead”.
“It suggests that that the market has not just stabilised, but is actively preparing for its next growth phase.”
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