Fine Wine Market touches support levels on main indices.

Could now be the time to BUY?

Please see the chart below, it displays the bid-to-offer ratio over the past 10 years. The ratio hit a low in May 2024 of circa 0.15, this now seems to be on the rise again indicating that more bids are being registered and less stock is being offered for sale, this is a bullish sign and thus would suggest positive price momentum.

The Fine Wine market has experienced a strong correction over the last 18 months with leading benchmarks being down nearly 20%. It's rare to see a tangible asset class offer such a discount.

Technical analysis indicates the market to be in well oversold territory and we believe we are beginning to see the start of a trend reversal. We have seen the first gains on Bordeaux indices along with the bid-offer ratio tick-up over the last 2 months indicating more buyers coming back into the market. The last time the market saw a similar correction was in 2015 & 2019, each time a 3-year bull trend followed.

This opportunity is for seasoned and new Fine Wine investors, Veblen Wines has been operating in this market for 15 years so it's fair to say we have seen our fair share of peaks and troughs.

It is our job to find and analyse new opportunities for our customers, we firmly believe now presents a brilliant buying opportunity.

Please see the opportunities below:

Opportunity 1

Wine: Chateau Pavie 2011 12x75

Price: £1,915.00

Score – 95/100

Average market offer price: £2,111.00

Reasons for getting involved:

The 2011 is very undervalued compared to similar scoring vintage and fair value sits at £2,400 +.
Pavie 2001 – 96/100 - £2,750.00
Pavie 2002 – 93/100 - £2,600.00
Pavie 2006 – 95/100 - £2,440.00
Pavie 2008 – 96/100 - £2,530.00
Pavie 2012 – 94/100 - £2,650.00
Pavie 2018 – 95/100 - £2,790.00
Pavie 2021 – 95/100 - £2,390.00

The most recent 2023 vintage was also a 95-pointer and has come to market at £2780.

Chateau Pavie was upgraded to the top classification within St Emilion in 2012 and since has been growing its brand loyalty and reputation. It is now considered one of the greats of the right bank, as such the owners want to continue increasing their release prices to match that of their peers, notably, Ausone, Cheval Blanc, and Angelus.

Opportunity 2

Champagne: Louis Roederer, Cristal 2007 6x75

Buy Price: £1,135.00

Average market offer price: £1,238.00

Trading High £1,412.00 (-24%) 2022.

Max 5 half cases per person (£5,675) due to limited quantity.

Reasons for BUYING:

Champagne as a market region has a higher beta than Bordeaux and therefore fall faster when the market suffers but climbs quicker during a recovery.
Limited supply, only 180,000 bottles are made each vintage, and they don’t make a wine each vintage.
Comparing the relative value of the 2007 Cristal to other vintages it does look considerably undervalued. Please see the table below.
Trading High £1,412.00 (-24%) 2022.

Vantage comparison: