Latour 2005 and Forts Latour 2011 released ex-Chateau

Latour 2005

Today, Latour 2005 and Forts Latour 2011 have been released ex-Chateau. 3,000 cases of Latour 2005 are being offered at €670 per bottle ex-negociant, and at around £7,800 per 12×75 by merchants. As the chart above shows, this represents a premium of 14.7% on cases of the wine available in the secondary market.

This price also positions the release above the ‘fair value’ trend line, shown below, and places it above the 100-point Latour 2003.

Unlike many other First Growths, prices for Latour 2005 have stagnated over the past 12 months. It has increased by 4.2% compared to gains of 25% for the Fine Wine 50 index.

Still, anecdotal evidence suggests that merchants are confident the wines will sell through, despite the premium.

Latour 2005 release

Forts Latour 2011 has been released at €140 per bottle ex-negociant, and is being offered by merchants at around £1,650 per 12×75. This represents a premium of 17.9% on the wine’s Market Price of £1,400.

Like many of the second wines, prices for Forts Latour 2011 have risen rapidly over the last year. It is up 29.6% since March 2016.

Forts Latour 2011

Last March, Latour 2000 and Forts Latour 2009 were released at premiums of 12.5% and 20.9% to their Market Prices respectively. In September, 3,000 cases of Latour 2007 were released at Market Price. Merchants reported strong demand for the release of the 2000, and some interest in – though lower sales for – the 2007.


 

Bordeaux 2007: performance of the First Growths

In his Bordeaux 2007 En Primeur report, Robert Parker predicted that “most consumers will probably love the style of the vintage’s top wines because they are so flattering, seductive, and fruit-forward”, adding that they “should age surprisingly well for 10-15 years”.

As we enter the tenth year since the vintage, there is some interest in how the wines have progressed. In a series of short blog posts, Liv-ex will examine how the prices of the wines have moved since release.

These posts will examine price variations – the highest and lowest Market Prices against the current and release prices – for wines within the Bordeaux 500 Index, starting with the First Growths.

At a glance

On average, the wines of Bordeaux 2007 are up 69% since release. Their performance has outpaced the broader market: since Spring 2008, the Bordeaux 500 index has increased by 41.9%.

The wines are 15.6% off their peak levels on average. Seven of the 50 examined are currently at their highest ever Market Price. These are Angelus, Cos d’Estournel, Grand Puy Lacoste, Le Pin, Palmer, Pavie and Vieux Chateau Certan.

Just one wine, Climens, is at a record low.

First Growths

Bordeaux 2007

The chart above shows how prices for the 2007 First Growths have varied since release. Lafite’s Market Price has varied the most over time. In April 2009 it hit a low of £1,900 per 12×75, but by July 2011 it had climbed to £8,200. Its current Market Price of £6,100 – still the highest of these wines – represents a 25.6% drop from peak.

Both Mouton Rothschild and Margaux are within 6% of their record Market Prices.

Bordeaux 2007 First Growths

For analysis on the remaining wines of the Bordeaux 500 index, check back over the next week.


Latour ex-Chateau releases announced

The anticipated ex-Chateau releases of Latour 2000 and Forts Latour 2009 were announced this morning (GMT). Latour 2000 was released ex-negociant at €770 per bottle (equivalent £7,250 per 12×75). It is being offered by merchants for £8,100 per 12×75. This represents an 12.5% premium on its Market Price – the level at which it is currently available on the secondary market – of £7,200.

Latour_2000

Forts Latour 2009 was released ex-negociant at €150 per bottle (£1,410 per 12×75) and is being offered by merchants for £1,560. This is a 20.9% premium on its current Market Price of £1,290.

Forts Latour 2009

You can view historic price information for Latour 2000 and Forts Latour 2009 on Cellar Watch by following the links.


Latour 2000 and Forts Latour 2009 ex-Chateau releases expected

On March 21, Latour is expected to release the total remaining stock of its 2000 vintage and the 2009 vintage of its second wine, Forts Latour.

The high-scoring Latour 2000 last traded on Liv-ex at £6,800 per 12×75 (€722 per bottle), down 40% from its peak in March 2011 when it traded at £11,275. It has a current Market Price of £7,200 (€767 p/b) and received a score of 98 points by Robert Parker. Current best live bids and offers stand at £6,700 (€712 p/b) and £6,850 (€727 p/b) respectively.

Latour 2000

Forts Latour 2009 last traded on Liv-ex at £1,210 (€128 p/b). This is 48% lower than its peak price of £2,306 on the Exchange in June 2011. The wine was awarded 95 points by Robert Parker. Current best live bids and offers are at £1,210 (€128 p/b) and £1,280 (€136 p/b).

With 95-points, 2009 is the second-highest ranking of the vintages released since 2000, pipped only by the 97-point 2010 vintage.

Forts_latour_2009

Some recent ex-Chateau releases, such as Pontet Canet 2006, came out above the current market prices of the respective wines. Anecdotal evidence suggests they did not sell through.  In the case of Pontet Canet 2006 the release did, however, stimulate secondary market activity and price increases.

Mission Haut Brion 1998, on the other hand, was recently released ex-Chateau at a price equal to its Market Price and is reported to have sold through.

Robert Parker once said that Latour 2000 “flirts with perfection” and called Forts Latour 2009 “possibly the best second wine ever made” at the property. The quality is there – but will the price be as good?


Bordeaux 2006: performance of the First Growths

As we enter the tenth year since the 2006 vintage, Liv-ex will be examining the performance of the wines in a series of short blog posts. These posts will examine price variations – the highest and lowest Market Prices against the current and release prices – for wines within the Bordeaux 500 Index, starting with the First Growths.

Overall, 34 of the 50 wines from 2006 within the index have gained or held value since release. The average price change since release is +5.5%. The wines of the Second Wines 50 index have increased the most on average, and the three top performing wines come from this sub-index. The wines of the Sauternes 50 have lagged the most. Carruades Lafite is the biggest climber; Yquem has fallen the most.

Four of the 50 wines are currently at their highest ever price; two are at their lowest. The wines are 34.3% below peak on average in Sterling terms.

The First Growths

The chart below shows price variations for the five Bordeaux First Growths from the 2006 vintage since En Primeur release. Lafite’s Market Price has varied the most over time: it climbed from £3,000 in December 2008 to £8,550 in March 2011, just ahead of the market’s peak. Its current market price – still the highest of these wines – has fallen to £4,600 since, but remains 43.8% above release.

At the other end of the scale, buyers seeking relative value might look towards Haut Brion 2006. It is currently available at 13.6% below its En Primeur release price. Despite being among the higher scorers, its current market price is the lowest of the five – and is just 4.8% above its all-time low.

First_Growths_2006

For analysis on the remaining wines of the Bordeaux 500, check back over the next week.

You can see historic price information for the wines mentioned on Cellar Watch, by clicking below:

Lafite Rothschild, 2006; Latour, 2006; Mouton Rothschild, 2006; Margaux, 2006; Haut Brion 2006.

Cellar Watch subscribers can track the value of these wines by adding them to a cellar. To subscribe to Cellar Watch, please click here.


Second wines – back in focus?

First Growths and second wines over five years

During the bull market that drove the fine wine market to its peak in June 2011, the second wines of the Bordeaux First Growths saw exponential price rises. This was largely due to brand-driven Asian buying: “Little Lafite” and its peers were seen as extensions of the Premier Crus by Chinese buyers. By offering access to the brands at lower price points, they were first in line to benefit from rising prices, as Liv-ex observed in October 2010.

Eight months later as the market rolled over, they were first in line to fall. As the chart above shows, the price movements of the First Growths and their second wines have been following a similar path since: dropping until June 2014 and running roughly flat over the year that followed.

First growths and second wines over two years

Since July last year, however, the two groups appear to have parted course. While the First Growths have dipped – down 1.3% – their second wines have climbed 4.5% since July. When ranked by performance over 2015, three of the top ten wines within the Bordeaux 500 Index are second wines – and Petit Mouton takes the top spot by a comfortable margin. The Chateaux’s first wine, Mouton Rothschild, was the best-performing First Growth but achieved only 16th place in the table.

Performance of the First Growths and second wines in 2015

It is likely that the recent success of the second wines can still be linked to the strengths of their brands in Asia. With the current climate for buyers in China – where a weakened Yuan makes fine wine more expensive – not favouring high-priced First Growths, the more accessibly priced seconds look particularly interesting.