China continues to be a key to the health of the fine wine market

The Liv-ex 100 was up +0.9% and the Claret Chip was also up +1.6%, up 27% and 35% respectively, year to date.  This compares with a fall in the FTSE 100 of 3% YTD.       

The Wine Investment Fund (TWIF) said the July figures were probably a blip, caused by the usually subdued market at that time of year, coupled with sales by major merchants and the falling away of the impetus given to the market by the high 2009 en primeur prices.

TWIF, however, considers it is still too early to be sure, as August has been another quiet month, characterised by lower than usual volumes and higher spreads. Their sense is that those market participants who were active, and many were not, were buying only when they had already sold on the wine, rather than to increase stocks.

‘It is still difficult to be clear about the short term direction of the  market. At the moment we take the bounce back in August to be a positive indicator, and on that basis believe that growth for the remainder of the  year might average around 1.5 to 2% per month.’ added della Casa.

China continues to be a key to the health of the fine wine market. The indications that the Chinese government’s efforts to achieve a controlled slowing down in the rate of growth have so far been successful.  This is seen as positive for the fine wine market, as this reduces the chances of a marked slowdown from China in demand for fine wines and increases the chances of sustained, steady growth.