Welcome to the Cru Wine Investment May 2017 Investment update
Fact of the month
Many regions of France including Bordeaux have been hit by some severe frosts over the last week. It is very difficult to precisely estimate the loss at this stage, however estimates vary from 40 to 100%. In Bordeaux this frost looks set to be the most impactful since 1991.
The Liv-ex Fine Wine 100 Index continued its upward trajectory in March, closing +0.7% above February end. The primary indicator of the 100 most traded wines rose for 16 consecutive months, highlighting the positivity surrounding present and future performance. As of March-end, the Fine Wine 100 was +2.3% up for the YTD. Moving on to April, with the minds of the trade firmly focussed upon the upcoming en-primeur campaign, there was a minor blip in the market, with the Fine Wine 100 closing the month -0.53% MOM. Meanwhile, the Liv-ex Fine Wine 50 Index (the 50 most traded wines), reached a 5-year peak; excellent news after the slump years of 2011-2014.
As we touched upon in our previous newsletter, the start of April saw Bordeaux’s annual en-primeur campaign kick-off. With critics pouring praise on the 2016 vintage prior to the trade tastings, it remained to be seen what we – and the trade – had to say. We were not disappointed. All-too-often, the phrase “vintage of the century” pops up in conversation. However, the 2016 vintage firmly fits in that category. It is certainly on par with the greats of 1990, 2000, 2005, 2009, 2010 and 2015. An unquestionably great vintage, characterised by concentration, purity of fruit, freshness and longevity.
We expect a flurry of 2016 Bordeaux releases over the next month, so we will keep you updated with our thoughts. In the meantime, if you are looking to buy anything in particular from the upcoming 2016 Bordeaux vintage, either for drinking or investment purposes, our buying team in Bordeaux are at hand to cater for any and every request. Just drop us an email to [email protected].
Lastly, we would like to say a huge thanks to all of you who came to a thoroughly enjoyable evening hosted by CWI at Monaco’s 39 Monte Carlo Club. More details on a fun-filled and education night can be found here
If you would like to get your cellar valued (free) or sold, do not hesitate to drop us an email. Equally, if you would like to receive our current best opportunities for investment – [email protected]
The Team at CWI
The Cru Wine Investment Team – www.cruwineinvestment.com
Château of the month – Leoville Poyferre
Chateau Leoville Poyferre has been owned by the Cuvelier family since 1921. The Cuveliers successfully brought the property through economic crises and a world war. Since 1979, it has been ably run by Didier Cuvelier, who is fully restoring its reputation.
The 80 hectares of vines are planted on the Médoc’s famous Garonne gravel, and separated into several different vineyard plots, with an unusually high proportion (8%) given to Petit Verdot. Once harvested, grapes are separated plot by plot into 35 stainless-steel vats, before maceration in new oak barrels.
It is an extremely well-balanced wine with a great deal of finesse and excellent aging potential.