• Veblen Wines Ltd

Fine wine holds up amid global turmoil

Rupert Millar - Source: thedrinksbusiness.com


Fine wine is, for the moment, holding up against other equities as the world markets plunge into turmoil as the Covid-19 pandemic spreads.

Although the wine industry has been severely disrupted with the outbreak with numerous trade shows cancelled or postponed, this spring's en primeur tastings called off and now with wineries closing their cellar doors and visitor centres, the secondary market for fine wine is continuing to hold up at present.


Liv-ex reported at the end of last week that: "Global equities have taken a severe hit this past week as Covid-19 has continued to spread globally. With every small piece of fresh news adding to the uncertainty, finding calm waters has been challenging. But as you can see in the chart above, fine wine has been almost boringly stable.


"With a low correlation to equity markets, fine wine moves at a glacial pace and is generally influenced by two long term economic fundamentals - namely supply and demand."


Although prices have drifted over the first three months of the year due to the coronavirus outbreak and tariffs in the US, a trend carried over from the end of last year, there has, so far, been no evidence of panic selling by collectors.


Indeed, long term buyers actually seem to be popping up to take advantage of lower prices on certain wines, said Liv-ex. It certainly beats stock piling loo roll.


Bordeaux even saw its share of trade by value grow last week, back to 57.3%, after hitting some historic lows of late; with buyers out for the 2010, 2009 and 2005 vintages.


Read the full article at: https://www.thedrinksbusiness.com/2020/03/fine-wine-holds-up-amid-global-turmoil/

Veblen Wines Ltd, Holly Bank Chambers, The Oasts, Red Hill, Wateringbury Maidstone ME18 5NN, United Kingdom

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