Spotlight on Burgundy developing

Market interest is spreading beyond the big Burgundy names, but approach with caution

Awider range of Burgundy wines are being traded on the secondary market, according to recent figures, but collectors should also be aware of trade concerns on pricing.

Given lofty price tags and tight allocations for renowned producers’ top wines, it isn’t hugely surprising to see increased demand for a wider variety of Burgundy names. Yet a recent report from Liv-ex suggests this trend has developed strongly on the secondary market in the past year.

‘Demand for Burgundy is broadening at pace as merchants and their clients seek out better value offerings,’ said Liv-ex, who act as a global marketplace for the trade.

‘More wines from more Burgundy appellations are seeing more secondary market trade than ever before,’ it said.

While top-tier producers such as Domaine de la Romanée-Conti, Rousseau and Leroy led Burgundy trade by value on Liv-ex in 2020, the following wines were the five most traded by volume:

• Etienne Sauzet, Bourgogne Blanc 2015 (market price £300 for 12x75cl)

• Domaine Henri Boillot, PulignyMontrachet 1er Cru Clos de la Mouchère 2018 (£920 per 12)

• Maison Roche de Bellene, Vieilles Vignes, Vosne-Romanée 2018 (£449 per 12)

• Domaine Leflaive, PulignyMontrachet 1er Cru Clavoillon 2017 (£1,440 per 12)

• Etienne Sauzet, Bourgogne Blanc 2016 (£300 per 12)

This list also points to interest in white Burgundy. Miles Davis, head of professional portfolio management at Wine Owners, also highlighted interest in white Burgundy on the market. ‘Sensibly priced [Domaine] Leflaive stock sells fast on the Wine Owners platform,’ he said in a recent market report. More generally, he told Decanter that the top-tier Burgundy wines may continue to go up in price, but were also potentially fully valued.

For anyone lucky enough to own them and be interested in selling, Davis said one option might be to reinvest that value ‘somewhere lower down the league table’. He referenced Domaines Anne Gros or ArnouxLachaux as among estates to consider. ‘Burgundy is all about searching around,’ he added.

As for Leflaive, it recently ranked second in the Liv-ex Power 100 for 2020 (behind Leroy in first place), up from 41st place in the 2019 edition. The list provides a hierarchy of the world’s fine wines calculated using several factors, including trading volumes and price changes. Another strong riser was grower and négoçiant house Bouchard Père et Fils, which ranked 30th, up from 74th in 2019.

However, there are also reasons to tread carefully from an investment perspective. ‘You can still buy top

quality wines from lesser-known producers,’ said Chloe Ashton, chief operating officer at analyst group Wine Lister. ‘Depending on how they’re picked up in the next few years there’s the possibility for investment,’ she said. But she highlighted that wines without a proven secondary market track record carry more risk.

There are also concerns that some more high-profile producers might run out of steam after several years of price rises. While Ashton said global demand dynamics looked strong for the very top-tier names, such as DRC or Leroy, a Wine Lister survey of 53 international merchants and retailers in November 2020 revealed reticence about prices below this elite level.

Bordeaux Index said in its 2021 outlook that it preferred to focus on the ‘blue chip’ Burgundy at the very top of the hierarchy. It said demand has been healthy. ‘Our view is that there is a ceiling for premiers crus from non blue chip producers, and we see little upside in that segment.’

■ Further reading: find Charles Curtis MW’s full Burgundy 2019 report, notes and scores on Decanter.com/Premium ➢