Indices offer an in-depth view of the wine market unlike anything else in the world
LONDON (DECEMBER 15, 2022) – Cult Wines, the company actively redefining the fine wine market, today announced the launch of the Cult Wines Global Index powered by Wine-Searcher, delivering the most comprehensive view of the global fine wine market to ever exist. The Cult Wines Indices has been created to offer a representative view of the most in-demand investment grade wines, based on strict liquidity criteria. The newly launched indices will shine a light on the entire fine wine market to create greater transparency so that traders, collectors and investors can make the most informed buying decisions from a trusted voice in the industry.
Through a partnership with Wine-Searcher, the world’s most extensive source of wine pricing data, the Cult Wines Global Index processes 200k global prices every month to provide an aggregated view of the market. Applying a Dynamic Monthly Calculation ensures the Index provides the most accurate representation of the fine wine market in the world. The Cult Wines Indices consists of the Global Index and the Regional Indices, which are comprised of the following regions – Bordeaux, Burgundy, Champagne, Rhone, Italy, USA and Rest of World.
Unlike equities, that benefit from universal standards of measurement that reflect latent interest and demand – like the S&P500 or FTSE100 – the wine market is much more fragmented and lacking a centralised retail marketplace. Many trades happen between parties privately, and no singular merchant represents a significant share of the overall market.
“Working closely with Wine-Searcher presented a unique opportunity to provide real time insights and a transparency not seen before in the marketplace. Leveraging our access to extensive data with our sophisticated analysis and pricing models, we’re able to look beyond finite trading data and static representation of regions to shine a light on actual consumer and merchant behaviour, demand for wines and pricing across the marketplace,” noted Tom Gearing, CEO and Co-Founder of Cult Wines. “The depth, analysis and accuracy of our Indices will redefine how the market measures the performance of the fine wine industry, providing a previously unseen level of accuracy, enabling consumers to make more informed trading decisions.”
The wines included in the Cult Wines Global Index are determined by a framework that impartially selects the wines based on strict criteria, including value and liquidity, across each region. Similar to the stocks included in the FTSE100, no one person decides which wines to include, but rather thousands of actively traded wines are analysed and filtered down according to the predetermined criteria. Finally, applying dynamic weighting gives a live and true indication of the market fluctuations, month to month.
The Cult Wines Global Index leverages Wine-Searcher data, maintaining the integrity of the indices by using the best possible data while relying on a credible, independent third-party source. The Cult Wines Index is unique in that the data analysed includes thousands of retail data points, giving a truly representative sample of the market. Leveraging access to historical and current market data from Wine-Searcher fuels the Cult Wines Indices with the best global data on the market, giving consumers, traders and wine enthusiasts the most accurate information, enabling them to make the informed buying and selling decisions.
Cult Wines Global Index Performance Figures
|
|
November |
YTD |
1yr |
3yr |
5yr |
|
Cult Wines Global Index |
0.05% |
19.40% |
20.39% |
43.97% |
53.53% |
|
Cult Wines Bordeaux Index |
0.23% |
5.64% |
5.92% |
14.45% |
15.83% |
|
Cult Wines Burgundy Index |
0.32% |
30.32% |
33.70% |
71.31% |
97.02% |
|
Cult Wines Champagne Index |
1.55% |
18.61% |
21.39% |
56.90% |
65.85% |
|
Cult Wines Rhone Index |
0.00% |
9.52% |
10.85% |
24.71% |
28.40% |
|
Cult Wines Italy Index |
0.42% |
8.20% |
9.08% |
28.34% |
38.13% |
|
Cult Wines USA Index |
-0.84% |
13.03% |
14.80% |
32.60% |
35.84% |
|
Cult Wines Rest of World Index |
0.61% |
9.42% |
9.82% |
26.00% |
33.58% |
Source: Pricing data from Wine-Searcher as of 30 Nov 2022. Past performance is not a guarantee of future results
Fine Wine Market Insights
- The global fine wine market remains in good health in 2022, according to the Cult Wines Indices. Despite heightened volatility in the wider financial markets in 2022, the Cult Wines Global Index is up 19.40% year-to-date (as of 12 Nov 2022).
- The Cult Wines Burgundy Index and Cult Wines Champagne Index have led the way once again in 2022 with 30.32% and 18.61% YTD gains, respectively. A pronounced supply-demand imbalance among the finest Burgundy names and back vintage Champagne has helped sustain a long rally in both regions going back to early 2021. Consequently, their respective 3-year and 5-year returns also tower above other regions.
- The Cult Wines Champagne Index posted the top monthly figure in November, indicating it hadn’t yet succumbed to any slowdown.
- Performance is more even across the other regional indices. Cult Wines USA Index has a healthy 13.03% YTD mark despite a slight drop in November.
- Cult Wines Italy’s 8.20% slightly lagged the regional pace in previous years, as indicated by the 28.33% three-year mark.
The Cult Wines Global Index can be viewed on CultX.com, the next generation digital trading platform.
ABOUT CULT WINES
Founded in 2007, Cult Wines is forging the future foundations of the fine wine market by creating products and experiences that unlock opportunities for producers and consumers. Empowering people through technology, data and access to a global community, Cult Wines endeavors to re-define the fine wine market – making it accessible, secure and rewarding. Headquartered in the UK, Cult Wines has offices in Canada, China, Hong Kong, Singapore, and the US. For more information, please visit www.cultwines.com or find us on LinkedIn, Twitter, Facebook, or Instagram.
ABOUT WINE-SEARCHER
Enabling huge, market leading volumes of high-quality data transactions over 20 years has established Wine-Searcher (WS) as the pre-eminent global source of data for ‘online, off-trade’ wine & spirits pricing and availability. The innovative combination of technology and expert resources is fundamental to WS’ reputation for the long-term accuracy, reliability and quality of its data. Headquartered in New Zealand with a regional office in London, WS aggregates approximately 16 million wine, beer and spirit listings from around 32,000 active stores and businesses, across at least 130 countries. The full data set for all products involves billions of data points. The website and its associated apps attract 5 to 8 million active users each month depending on seasonality, and 240 million user product Searches are made around the world each year. Visit www.wine-searcher.com or find us on LinkedIn, Twitter, Facebook, or Instagram.
