WineCap reveals USD purchasing power against the pound

By James Bayley

Published: 13 October, 2022

WineCap has released its Q3 report, which examines the trends that have shaped the fine wine market over the past three months.

Following a turbulent time for the British pound, the report highlights, among other things, how currency affected fine wine’s performance, the expansion of the autumn La Place de Bordeaux campaign, the top-performing regions and the most in-demand wines.

A perfect storm of high inflation, supply chain problems and tighter financial market conditions led many European countries to struggle economically in the third quarter of the year.

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Most notably, The British pound fell to its lowest level against the US dollar since 1985 as UK and US stocks plummeted.

However, contrary to the dim outlook for mainstream markets, the WineCap report states that alternative assets like fine wine and luxury goods performed well.

The leading fine wine indices made gains this quarter, primarily driven by the pound falling.

The Fine Wine 100 index rose 3.2%, while the broader Fine Wine 1000 index went up 2.3% over the past three months.

Champagne was the main force behind the increases, with its regional index up 5.4% this quarter. The closest to ‘a luxury good’ in the fine wine market, Champagne has been in consistently high demand.

Overall, fine wine prices continued to rise this quarter. The Fine Wine 100 index, measured in Sterling, went up 3.2% over the past three months.

Historic Sterling weakness boosted the index, which declined when seen in Euro and Dollar terms. As a result, the US Dollar hit historic highs against the pound, increasing the purchasing power of USD buyers who took advantage of the newly created opportunities.

Another highlight was the revenue generated by the autumn La Place de Bordeaux campaign. La Place has expanded to see the release of over 100 wines from 32 regions across 11 countries in 2022.

Ahead of their new releases, back vintages of Masseto and Opus One – two of the most established La Place stars – traded at all-time highs. The ex-cellar stock of Château Latour 2010 and Château Palmer 2012 were also offered this autumn.

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