Market steady despite headwinds
The fine wine market has entered 2021 on a sea of relative calm, according to several trade voices, despite wider economic uncertainty. Many Liv-ex indices showed modest gains in 2020, led by the Champagne 50 and Italy 100 – both up between 6%-7% versus 2019.
Against a volatile backdrop, ‘the wine market has held its nerve,’ said Miles Davis, head of professional portfolio management at Wine Owners, in a report in December. ‘Even Bordeaux prices feel like they are firming up,’ he wrote.
He told Decanter in January 2021 that the market has shown a steady performance. ‘Following the global financial crisis [in 2008] merchants marked down prices quite drastically, but that hasn’t happened in 2020.’ Davis also highlighted Champagne as an area attracting more investors.
Yet there is caution, too. Liv-ex said in January: ‘As the new year begins with many of the 2020 headwinds still in play (Brexit, US tariffs, Covid-19), the robustness of the fine wine market may well be tested.
‘But with trade by both value and volume setting new records for December 2020 [on the Liv-ex platform], there is little suggestion just yet that the mood music has changed.’
Auction buyers, and particularly the younger generation, have embraced an accelerated transition to online sales, said a report by Sotheby’s. Its total wine and spirits auction sales hit US$92m (£67.6m) in 2020, with strong demand from Asia-based buyers.
Spirits is a category to watch, including rare Scotch and Japanese whiskies. ‘2020 saw phenomenal growth for spirits, which made up 20% of Sotheby’s Wine’s annual business globally,’ said Jonny Fowle, Sotheby’s spirits specialist. The group said it would auction a set of rare Black Bowmore whiskies in Hong Kong in spring 2021, with proceeds going to charity.