Will the Burgundy bubble burst?
Domaine de la Romanée-Conti may have hit new heights recently, but a mixed 2017 en primeur campaign has fuelled talk of fallibility for Burgundy
ANOTHER YEAR, ANOTHER ceiling shattered by the seemingly inexorable rise of Domaine de la Romanée-Conti. It hit a new high in terms of trading on the Liv-ex platform in 2018, with a rise of 28.6% (see right).
More generally, Burgundy’s meteoric ascent on the fine wine market has been a hallmark of the last decade. But can it last? That’s the question merchants and analysts have been pondering. This year, some believe there are warning signs worth noting.
BI Fine Wine & Spirits said its Burgundy 2017 primeur sales were down 10% versus 2016 at the time of Decanter going to press – albeit several of the big names had not yet been released. A spokesperson for the company put this down to more muted enthusiasm for the 2017 reds. Demand has been strong for the whites and BI saw white Burgundy 2017 sales rise by 75% versus the 2016 vintage.
Shaun Bishop, CEO of California-based merchant JJ Buckley, said: ‘We’re seeing an interest in 2017, though at a lower level than 2016.’ He added: ‘Some Burgundy drinkers are starting to balk at the new and higher prices. Instead, they are looking to Rhône as an alternative, at least for the reds.’
In a major new report, Liv-ex commented: ‘While demand and scarcity continue to drive Burgundy prices, expect to see more volatility if they continue to spiral upwards.’ The report added that the value of bids for Burgundy wines had dipped slightly since 2017.
Miles Davis, of London-based Wine Owners, noted in a recent blog that prices for some top names look unjustified when compared to other Burgundy estates and also to Bordeaux first growths.
Is this collective nitpicking? Perhaps, but then forewarned is forearmed.