Fine wine prices slide for third year in a row as tariffs and stocks

Fine wine prices slide for third year in a row as tariffs and stocks

Fine wine prices slid for the third straight year as Trump-era tariffs chilled US demand and traders chased hotter returns in stocks and gold.

Wine prices fell 2.8% this year via the end of November, according to Liv-ex’s Fine Wine 100 index.

Bordeaux was down 6.6%, Burgundy down 4.4%, and classic Champagne down 4.3%, the data cited by the Financial Times confirmed.

The worth of classic Champagnes have fallen 4.3% this year via the end of November. Getty Images

Recent Bordeaux releases have been among the weak spots, the FT reported, pointing to the 2021 classic — considered by critics as “decent but unspectacular.”

Château Mouton Rothschild 2021 was down 5.2% this year to round $4,471.20 for a case of 12 bottles. Château Haut Brion fell 11.4% to $3,645 per case, the report said.

Château Ausone’s 2021 classic fell 34% to $4,193.10, the Financial Times reported.

“It’s been brutal,” Justin Gibbs, deputy chair and alternate director at Liv-ex, told the outlet.

“In previous [market] declines there have been bright spots. But in this particular bear market, it’s been everything.”

Recent Bordeaux releases have been among the weak spots, the FT reported, pointing to the 2021 classic — considered by critics as “decent but unspectacular.” Getty Images

The pullback has dragged advantageous wine prices again to roughly the place they stood at the end of 2020, erasing most of the pandemic-era surge that peaked in late 2022.

The droop has coincided with a booming inventory market as technology shares and gold have drawn traders away from various bets such as wine.

President Donald Trump’s tariffs on imports have also proved to be a major headwind.

His 15% levy on EU imports hit the market exhausting, with the worth of advantageous wine purchases by American consumers down about 44% this year, according to Liv-ex.

Bordeaux’s spring “en primeur” campaigns — when new wines are scored by critics and offered before bottling — have fallen flat, the FT reported, describing the futures market as a bellwether for demand.

The market is still coping with a inventory overhang after producers priced new releases too aggressively in current years, according to the FT.

The droop has coincided with a booming inventory market as technology shares and gold have drawn traders away from various bets such as wine. Europa Press through Getty Images

As those wines later fell in the secondary market, consumers pulled again while wholesalers and retailers sat on stock they still need to transfer, the report said.

Still, the FT report cited prices “ticking up” over the three months via the end of November, suggesting the market’s slide could also be slowing.

Merchants in Hong Kong and Singapore told the outlet they’re seeing tentative indicators of recovery in Asian demand after the area was hit by a slowdown in the Chinese financial system.

“I can see more customers taking advantage of [depressed] fine wine prices,” Paulo Pong, founding father of Altaya Wines in Hong Kong, was quoted as saying.

“I would attribute that to the rebound of the Hong Kong stock exchange. There’s a bit more discretionary income from the finance and legal professionals.”

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