• Privacy policy
  • T&C’s
  • About Us
    • FAQ
  • Contact us
  • Guest Content
  • TLE
  • News
  • Politics
  • Opinion
    • Elevenses
  • Business
  • Food
  • Travel
  • Property
  • JOBS
  • All
    • All Entertainment
    • Film
    • Sport
    • Tech/Auto
    • Lifestyle
    • Lottery Results
      • Lotto
      • Set For Life
      • Thunderball
      • EuroMillions
No Result
View All Result
The London Economic
SUPPORT THE LONDON ECONOMIC
NEWSLETTER
The London Economic
No Result
View All Result
Home Food and Drink Wine

Fine wine braces up to Brexit says BWC Management

The word Brexit is heard so frequently that it now feels like that annoying fly buzzing around your ear, refusing to go away. This interminable political hoi polloi has, inevitably affected public confidence, leaving traditional investment markets wheeling from uncertainty like a run-away thorough bred horse. 2018 was a record setting year for stocks, one […]

Jess Young by Jess Young
2019-05-14 08:31
in Wine
FacebookTwitterLinkedinEmailWhatsapp

The word Brexit is heard so frequently that it now feels like that annoying fly buzzing around your ear, refusing to go away. This interminable political hoi polloi has, inevitably affected public confidence, leaving traditional investment markets wheeling from uncertainty like a run-away thorough bred horse.

2018 was a record setting year for stocks, one that many investors would rather forget. The Dow Jones fell 8.7% the S&P 500 was down 9% and the Nasdaq fell 4% and the FTSE fell 12.5%. It was the worst year for stocks since 2008, and only the second year the Dow and S&P 500 fell in the past decade. However, the fine wine market, riding this unruly tempest is proving to be more stable and robust, showing investors positive returns.

The Live-ex annual summary of 2018 was viewed as a ‘record breaking year’. The fine wine market had witnessed two years of very strong gains. The Liv-ex 1000 rose 10.02% over 2018, while Burgundy pushed on to an impressive 35.5% gain. Coming out as star performer was a bottle of Domain Romanee-Conti 1945, which sold at auction for a whopping US$ 558,000. Bordeaux market share fell from 68% in 2017 to 59% in 2018 as investors broadened their scope, encompassing smaller estates. Though, having said that, Bordeaux is still doing better than gold offering steady returns and low volatility.

We should remember that the UK remains the most single important foreign market for Bordeaux futures. The US is a little more active than before, but China and the rest of Asia pacific has not been a key buyer of en-primeur since the 2010s were released. It is a market that prefers vintage ready to drink, hence another reason for estates to hold back on stocks to release later down the line at a higher price to navigate these uncertain times.

Anthony Grant, MD of BWC Management a firm of Fine Wine Brokers based in London says: “The fine wine market is looking very buoyant and showing signs of heading towards a bull market. Either way Brexit can be a good omen. Investors are, and rightly so, quite nervous about the mainstream markets and they are looking for ways of protecting their capital while getting returns better than the banks can offer. They are taking defensive investment positions and gravitating towards tangible assets, like gold and alternative investments like art, classic cars and wine.”

The 2018 Vintage

As is well known, Bordeaux 2018 will be remembered as an exceptional year, with no shortage of outstanding wines from this extraordinary vintage. The weather too had been exceptional, with a glorious summer extending long into September and early October harvest. But the vintage had started with a bizarrely challenging first half of the growing season. This was due to a very wet spring, bringing on the potential for mildew. Also, hailstorm in May and July caused damage in some unlucky areas. It’s neither left or right bank this time. It seems there is great quality fruit across the board. Where 2015 was clearly a merlot vintage, and 2016 pretty clearly lurking in cabernet sauvignon territory in terms of density and structure, there seems to be a certain geo-democracy of quality imbedded on both sides. Word through the grape vine is that the 2018 vintage could exceed that of the 2015 and 2016 and match that of the 2009 and 2010.We all wait with baited breath and time will tell.

“I think with the pound falling in value this will stimulate and act as a catalyst for international buyers to take advantage, simply because their currency will stretch a lot further. It’s an opportunity in waiting, the Brexit effect so to speak”, concludes Grant.

RelatedPosts

Beyond Champagne: Exploring the Best Sparkling Wines to Try in 2025

13 of the best English wines according to international experts

We tried the World’s first wine ageing device – here’s our verdict

New English wine brand, The Heretics, awarded Gold Medal for barrel fermented rosé

Subscribe to our Newsletter

View our  Privacy Policy and Terms & Conditions

About Us

TheLondonEconomic.com – Open, accessible and accountable news, sport, culture and lifestyle.

Read more

SUPPORT

We do not charge or put articles behind a paywall. If you can, please show your appreciation for our free content by donating whatever you think is fair to help keep TLE growing and support real, independent, investigative journalism.

DONATE & SUPPORT

Contact

Editorial enquiries, please contact: [email protected]

Commercial enquiries, please contact: [email protected]

Address

The London Economic Newspaper Limited t/a TLE
Company number 09221879
International House,
24 Holborn Viaduct,
London EC1A 2BN,
United Kingdom

© The London Economic Newspaper Limited t/a TLE thelondoneconomic.com - All Rights Reserved. Privacy

No Result
View All Result
  • Home
  • News
  • Politics
  • Lottery Results
    • Lotto
    • Set For Life
    • Thunderball
    • EuroMillions
  • Business
  • Sport
  • Entertainment
  • Lifestyle
  • Food
  • Travel
  • JOBS
  • More…
    • Elevenses
    • Opinion
    • Property
    • Tech & Auto
  • About Us
    • Privacy policy
  • Contact us

© The London Economic Newspaper Limited t/a TLE thelondoneconomic.com - All Rights Reserved. Privacy

← Cannes preview ← Re-invented Galvin HOP Bistrot & Bar launches new menu
No Result
View All Result
  • Home
  • News
  • Politics
  • Lottery Results
    • Lotto
    • Set For Life
    • Thunderball
    • EuroMillions
  • Business
  • Sport
  • Entertainment
  • Lifestyle
  • Food
  • Travel
  • JOBS
  • More…
    • Elevenses
    • Opinion
    • Property
    • Tech & Auto
  • About Us
    • Privacy policy
  • Contact us

© The London Economic Newspaper Limited t/a TLE thelondoneconomic.com - All Rights Reserved. Privacy

-->