Rhône wines traded on Liv-ex up 40%

By Lisa Riley

Published: 12 November, 2020

Rhône wines traded on Liv-ex rose 40% year on year, according to the fine wine platform’s newly released The Rhône – Solid as a rock report.

Examining the secondary market for Rhône wines over recent years and seeking to identify “possible areas of growth”, the report also noted a 660% hike over the past decade.

Chateauneuf-du-Pape continues to lead the region’s trade by value (55.4%) on Liv-ex, accounting for nine of the 10 top traded wines by value this year, with Janasse VV 2017 being the most active.

Trading, however, came from an “ever-broadening number of appellations”, the report stated.

Part of the growth of Rhône wines traded on Liv-ex had been driven by ‘trading automation’, which enables consumers to purchase wines from the secondary market via their wine merchant, said Liv-ex.

The Rhône had so far this year seen two times the amount of automated trades compared to three years ago [but at a lower average case price], the report noted.

Since Liv-ex’s records began, Rhône’s price performance had been “slow and steady”, said Justin Gibbs, Liv-ex director and co-founder.

“In a turbulent year for the fine wine market – and the world – this no longer looks like a weakness. Long term, it has proven itself to be a very stable investment, showing no signs of volatility in global crises. With lower prices, consistent excellence in quality, a broadening market and a shelter from any financial storm, few fine wine regions deliver on quite so many fronts,” he said.

Commanding a 50% premium over white wines (average case), red wine accounted for the majority of the Rhône secondary market trade in 2020 (89.6%), while the secondary market for Rhône rosé was “yet to develop”.

On average, wines from the Northern Rhône cost 2.2 times more than those from the South. However, this year, the Southern Rhône has taken a larger portion of secondary market trade.

Four of the top 10 price performers were from the Southern Rhône. However, the North’s Guigal Cote Rotie Landonne 2008 recorded the biggest price rise year-to-date (38.8%).

In terms of bying nations, American buyers accounted for 55% of Rhône sales in 2020, followed by the UK (30%), Asia (10%) and Europe (5%).

Earlier this week, Liv-ex revealed that American wines accounted for a record share of trade on the platform so far this year, up from 2.3% in 2019 to 6.8% in 2020.

Along with a database of real-time transaction prices, Liv-ex offers access to £70m worth of wine and the ability to trade with 475 plus other wine businesses worldwide. It also organises payment and delivery through its storage, transportation and support services.