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Chateau Latour 2010 Climbs to 16-Month High of $16,700 on Liv-ex

February 21, 2013

Julien de Beaumarchais de Rothschild

Julien de Beaumarchais de Rothschild, grandson of Baron Philippe de Rothschild. Source: Baron Philippe de Rothschild SA via Bloomberg

A case of Chateau Latour 2010 traded for 10,994 pounds ($16,700) on the London-based Liv-ex wine market this week, its highest level for 16 months and part of a broader recovery by top Bordeaux wines, while Chateau Mouton- Rothschild 1998 reached an eight-month high.

The Latour, a first-growth Pauillac, was 22 percent above the record low of 8,991 pounds paid for the vintage last July, while still below the 12,500 pounds at which it traded soon after release in the wine futures market in July 2011.

Prices for top Bordeaux wines have rallied as broader investor interest resumed after a decline during the financial crisis, and buying from China ahead of this month’s New Year festivities spurred demand. The Liv-ex Fine Wine 50 Index of leading clarets climbed 3.5 percent in January, its biggest monthly gain for two years, after a drop of 9.7 percent in 2012. The index rose further this month, taking it 8 percent up from a two-and-a-half year low in November.

“This year started with a great flurry of activity,” Peter Lunzer, founder of Lunzer Wine Investments in London, said in an e-mailed report this month. “Many buyers sought wines which last year were ignored, and which for some time we have been saying were undervalued.” Lunzer helps manage investment and trading accounts worth $34 million.

The 2010 vintage of Chateau Latour, in common with much of the Medoc, is the third-most expensive of the past 30 years, trailing only the 2009 and the 1982. The rally in its price reflects buying interest across a wider group of Bordeaux wines.

Mouton-Rothschild

Mouton-Rothschild 1998, another first-growth Pauillac, climbed to 3,240 pounds on Liv-ex on Feb. 19, up more than 20 percent from last November’s 32-month low. A case of the same vintage sold at a Sotheby’s auction in London in January for 3,290 pounds. Mouton, restored by Baron Philippe de Rothschild in the last century, is now run by his daughter Baroness Philippine de Rothschild and grandson Julien de Beaumarchais.

The 2000 vintage of Chateau Pichon-Longueville, a second- growth Pauillac owned by Axa Millesimes and run by its managing director Christian Seely, and the 2008 wine of Chateau Lynch- Bages, a neighboring fifth-growth vineyard, both rose to their highest level for five months on Liv-ex this week.

Pichon-Longueville 2000 advanced to 1,430 pounds a case while Lynch-Bages 2008 rose to 750 pounds, according to data on Liv-ex’s Cellar Watch website.

Other winemakers whose prices rallied included Chateau Grand Puy Lacoste 2010, climbing to a 14-month high of 577 pounds and Chateau Clerc Milon 2009, touching an 18-month high of 410 pounds.

A case of Pavillon Rouge 2009, the second wine of Chateau Margaux, traded at 900 pounds this week, its highest level on the exchange since June.

Latour 2004 is the biggest gainer in the Fine Wine 50 over the past year, ahead of three vintages of Mouton-Rothschild, according to Liv-ex data, based on merchant list prices in Europe, while Mouton 2008 leads declines.

Wines Gaining Most in Past 12 Months on Liv-ex Fine Wine 50
Producer           Vintage         % Change
                                 (12 months)

Latour               2004           +12.1%
Mouton               2001           +10.7%
Mouton               2000            +6.8%
Mouton               2004            +2.4%

Wines Falling Most in Past 12 Months on Liv-ex Fine Wine 50

Producer           Vintage         % Change
                                 (12 months)

Mouton               2008           -26.5%
Haut Brion           2008           -21.6%
Haut Brion           2003           -21.5%
Lafite-Rothschild    2008           -20.6%

To contact the reporter on the story: Guy Collins in London on guycollins@bloomberg.net

To contact the editor responsible for this story: Paul Sillitoe at psillitoe@bloomberg.net


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