Mild Downturn Amid Market Correction: Regional Performance Varies as Buyers Show Sensitivity to Price
LONDON (JUNE 6, 2023) – Cult Wines, the company actively redefining the fine wine market, have reported a slight downturn in the global fine wine market this May. This 0.47% decrease, measured by the Cult Wines Global Index, marks an ongoing corrective phase after a sustained rally from mid-2020 to 2022-end.
Taking a Closer Look at the Fine Wine Market Snapshot
The primary cause of the downturn appears to be a temporary correction period, which follows a sustained rally in prices from mid-2020 through the end of 2022. The uncertain economic backdrop likely remains a contributing factor. Month-on-month swings between positive and negative figures across many individual regions signal that while demand remains, buyers are price sensitive.
Cult Wines Global Index Performance Figures – Returns as of 31 May 2023
|
|
May |
YTD |
1yr |
3yr |
5yr |
|
Cult Wines Global Index |
-0.47% |
-1.31% |
4.85% |
36.95% |
44.99% |
|
Cult Wines Bordeaux Index |
-0.11% |
-0.85% |
0.66% |
17.23% |
11.47% |
|
Cult Wines Burgundy Index |
-0.67% |
-1.77% |
6.62% |
66.67% |
89.09% |
|
Cult Wines Champagne Index |
-0.26% |
-2.30% |
6.95% |
48.68% |
61.86% |
|
Cult Wines Rhone Index |
-0.45% |
-1.38% |
3.39% |
25.42% |
27.14% |
|
Cult Wines Italy Index |
0.44% |
-0.23% |
4.87% |
22.53% |
37.98% |
|
Cult Wines USA Index |
-1.18% |
-0.69% |
7.19% |
22.77% |
36.18% |
|
Cult Wines Rest of World Index |
-0.26% |
-0.97% |
3.41% |
20.30% |
30.40% |
Source: Pricing data as of 31 May 2023. Cult Wines Indices are an objective measure of the global fine wine market based on Wine-Searcher pricing data and rebalanced annually based on strict liquidity criteria. Prices calculated in GBP and results may vary in other currencies. Past performance is not a guarantee of future results.
Regional Market Fluctuations Highlight Price Sensitivity: USA and Burgundy Indices Decline while Italy Sees Modest Gain
In a reversal from April’s outperformance, the Cult Wines USA Index experienced the biggest decline in May. This back-and-forth trend is exemplary of the wine market so far in 2023 – declines are often followed by gains and vice-versa, indicating buyers are increasingly sensitive to price.
The Cult Wines Burgundy Index suffered the second biggest drop as the regional market continues to settle following the 2021-2022 rally. The Champagne Index, meanwhile, only moved slightly lower in May, helped by some strong performance from Egly-Ouriet wines in the Wine Performance League Table.
Affirming the region’s reputation for stability, Bordeaux prices remained steady in May, with the Index seeing a marginal 0.11% decline. The 2022 En Primeur campaign started up mid-May with a handful of notable releases from Cheval Blanc, Angelus, and Carruades de Lafite. However, the majority of releases from the high-quality 2022 vintage will come in June, which could potentially shake-up the regional market. Signalling potential among producers outside the First Growth category, the 2009 Chateau Calon Segur saw the biggest price jump in May with a 15.3% increase
With a 0.46% gain, the Cult Wines Italy Index was the only region to emerge in positive territory in May. With the market showing increased sensitivity to relative value, many well-priced wines are on offer in Italy. Leading the way in May were some of Italy’s biggest names, including two Gaja-owned wines: Ca’Marcanda Bolgheri 2015, with a 17.7% increase, and Gaia & Rey Langhe Chardonnay 2012, which gained 13.7%.
2023 Wine Performance League Table – YTD Return % Across Vintages
|
Wine Name |
Region |
YTD performance |
Previous month’s rank |
|
1. Artadi, Pagos Viejos, Rioja |
Rioja |
29.98% |
1 |
|
2. Guidalberto, Tenuta San Guido, Toscana |
Tuscany |
28.77% |
2 |
|
3. Egly-Ouriet, Ambonnay Rouge Cuvee des Grands Cotes, Coteaux Champenois |
Champagne |
27.38% |
NA |
|
4. Remirez de Ganuza, Reserva Tinto, Rioja |
Rioja |
26.61% |
5 |
|
5. Donnhoff, Niederhauser Hermannshohle Riesling Spatlese, Nahe |
Nahe |
24.08% |
6 |
|
6. Laurent Perrier, Brut Millesime |
Champagne |
21.98% |
4 |
|
7. Francois Cotat, Sancerre, Monts Damnes |
Loire |
19.04% |
NA |
|
8. Hyde de Villaine, Carneros Chardonnay, Los Carneros |
California |
18.97% |
8 |
|
9. Egly-Ouriet, Brut Millesime Grand Cru |
Champagne |
18.38% |
NA |
|
10. Trimbach, Riesling Clos St Hune |
Alsace |
18.02% |
NA |
Source: Pricing data from Wine-Searcher as of 31 May 2023. Based on average across all vintages of wines contained in Cult Wines Indices, which are rebalanced regularly based on strict, objective liquidity criteria. Prices calculated in GBP and results may vary in other currencies. Past performance is not a guarantee of future results.
Year-to-Date Wine Performance: Artadi Pagos Viejos Leads as Guidalberto and Egly-Ouriet Show Strong Gains
Artadi Pagos Viejos has maintained its position as the best performing wine of the year to date. Produced from old vines from three of Artadi’s top vineyards, Pagos Viejos is a wine built to last and remains excellent value even after the recent climb.
For the second month running, Guidalberto, a Tuscan Merlot-based wine from Tenuta San Guido, held its position in second place. Bolstered by the recent release of the high-quality 2021 vintage, Guidalberto is gaining recognition as a serious, age-worthy wine, rather than merely a second label to Sassicaia.
In May, Egly-Ouriet made a significant entrance onto the leaderboard, with two of its wines joining the top 10, including Ambonnay Rouge Cuvee des Grands Cotes, Coteaux Champenois, which soared to third place year-to-date. Egly-Ouriet is best known as a top Grower Champagne producer, but this rare still Pinot Noir provides a reminder that the village of Ambonnay is a source of some high-quality reds.
Remirez de Ganuza Reserva, a great quality Rioja, moved up one spot in May to fourth after sitting seventh two months ago.
The Loire Valley AOC Sancerre appeared in the standings this month in the form of Domaine Francis Cotat’s Les Monts Damnes’s complex, well-structured Sauvignon Blanc. The excellent German Riesling Donnhoff, Niederhauser Hermannshohle Riesling Spatlese moved up one spot to fifth.
The Cult Wines Global Index can be viewed on CultX.com, the next generation digital trading platform at CultX.com/indices.
ABOUT THE CULT WINES GLOBAL INDEX
The Cult Wines Global Index forms a benchmark measurement of the global fine wine market performance. Powered by Wine-Searcher, the world’s most extensive source of powerful wine pricing data, the Index is comprised of a dynamic set of wines that represents the most sought-after, tradeable fine wines in the market based on strict liquidity criteria. The Global Index is comprised of the following regions – Bordeaux, Burgundy, Champagne, Rhone, Italy, USA and Rest of World, providing a comprehensive world view of the tradeable fine wine market.
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 endeavours 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, Dubai and the US. For more information, please visit www.cultwines.com/ or find us on LinkedIn, Twitter, Facebook, or Instagram.
