Fine wine news

Optimism is the overall sentiment among the fine wine industry for 2012, according to a new report.

A survey of wine merchants, auction houses and investment fund managers reveals that many believe there will be strong growth in the fine wine investment market in the coming months.

Almost one-quarter (24 per cent) believed that the price of fine wine will grow by ten per cent in 2012, while 18 per cent predicted a five per cent growth.

Only a small proportion (13 per cent) expected prices to fall as they did at the end of 2011, compared to the 59 per cent who expected growth.

These are the findings of the Fine Wine Market Outlook 2012 by Wealthmonitor and online magazine Wine Yields.

Respondents believed that despite Bordeaux first growths taking a price hit last year, these wines will see the biggest price growth in 2012, although price rises are also expected among right bank wines like Ausone, Petrus and Cheval Blanc.

However, the en primeur market is a contentious issue among the industry, with around half of all respondents believing that the 2010 vintage Bordeaux en primeur campaign damaged consumer sentiment towards the region.

Within Europe, 20 per cent of the industry said the campaign significantly damaged sentiment and 72 per cent of these groups called for price reductions of 10-15 per cent or more for the 2011 vintage.

Almost two-fifths of European respondents (38 per cent) said prices need to come down by more than 20 per cent, while Asian respondents were less concerned with price falls.

Wine Yields publisher Jackson Taylor commented on the findings that after two years of strong growth in 2009 and 2010, and falls at the end of 2011, the report "suggests that sectors of the market have been oversold, providing some of the best buying opportunities wine collectors and investors have seen in several years".

"The survey confirms that the top Bordeaux estates still enjoy strong support," he added. "This is encouraging news after last year’s controversial en primeur campaign. The strong message to Bordeaux is: get this year’s en primeur pricing right."

Posted by Paula Henderson