Atlas Fine Wines | Aug 16, 2016
Simon Larkin, MW and Managing Director of Atlas Fine Wines, went live on Bloomberg TV with Caroline Hyde (Berlin and Guy Johnson (London) this morning to discuss the outlook for the fine wine market post-Brexit. You can what the full interview here.
While the fine wine market looks to be resurgent at present – with various Liv-ex indices all showing good growth YTD –Simon points out that the currency situation has, in part, led to dramatic changes in terms of the performance of those indices and a far flatter picture of the indices is presented if viewed in USD. Simon says this not to down-play the current situation as this has undoubtedly led to a lift in the market. He comments that there has been a real surge in US interest and that Asia has remained stable across the otherwise quiet summer months: ‘We have seen a catalyst that has been brought about by the exchange rates; these [foreign] traders and investors – and UK traders and investors – are focusing on mature Bordeaux... the vintages of the 80s which are now dwindling in supply and are now not as prevalent in the UK market as they we once were. We are seeing a shift in pressure points with people moving onto the next five-star vintages within that region 2000, 2005, 2009 and 2010 at play.’
Simon adds that this re-engagement has made for good news in the wine market but ‘What is going to be crucial to the market is that we see private investors and wine merchants in the UK happy to take inventory on board at these prices and that would be a really strong sign of health. At this stage, the currency play is probably the dominant factor but it is leading to some very positive coverage and there are wines that are far outperforming the market.’
More comments on the current market situation will follow in next week’s market update but with any questions in the interim, please contact any member of the Atlas team on +44 (0) 20 3017 2299.