Fine wine remained a haven amid the stormy macroeconomic environment. The Liv-ex 1000 index, the broadest measure of the market, ended Q2 up 3.61%. The index gained in each of the three months, bringing its streak of positive monthly figures to 22. The pace of growth did ease - the Q2 return was the lowest quarterly mark since Q2 last year while June’s monthly rise of 0.8% was the smallest so far in 2022.
The regional breakdown once again favoured Burgundy. Insatiable global demand, a strong 2020 vintage (released earlier this year), and expectations of low supply from the 2021 vintage continue to fuel soaring prices. Similar low supply expectations have been lifting vintage Champagne prices.
After a drop in April, the Rhone 100 emerged with strong gains in May and June. Rhone has long been a source of stability in fine wine markets and could be benefitting from increased interest during the rocky macroeconomic backdrop. Leading regional wines performed well in Q2, including M. Chapoutier Ermitage Le Pavillon 2014 and Chateau de Beaucastel Rouge 2010 and 2018.
The US continued a run of strong performance stretching back to last year. Top Californian names continue to find support, such as Screaming Eagle, Dominus and Opus One.
Big first half led by Burgundy, Champagne and rising Rhone
Liv-ex 1000 and regional indices’ Q2 and YTD 2022 returns
Source: Liv-ex as of 30 June 2022. Past performance does not guarantee future returns.