Cult Wines, a specialist in fine wine investment and collection management, has released its Bordeaux En Primeur Report, 2020 Vintage showing that the 2020 vintage could potentially be among the most memorable vintages in Bordeaux’s history.
The report, which offers early insights for potential wine investors and collectors on this year’s En Primeur (EP) campaign as well as in-depth analysis of the quality of individual wines reviewed by Cults Wines’ global experts, notes that despite disruptions caused by the global pandemic, Bordeaux continues to thrive.
“Bordeaux En Primeur has proven to be the central event in the annual fine wine calendar and for two consecutive seasons has adapted to the challenges caused by the global pandemic, continuing to provide high-quality wines for avid collectors, oenophiles and investors,” says Tom Gearing, CEO & Co-Founder of Cult Wines. “The 2020 vintage has produced wines of outstanding potential but there has been variance in quality across different terroirs and producers, underscoring the need to remain selective even during quality vintages. While EP campaigns allow consumers an opportunity to have an early look and get a feel for a new vintage, they benefit from the specialised knowledge, access, relationships and investment insight that only our global experts at Cult Wines can offer.”
The report highlights that 2020 looks to be the region’s third straight quality vintage and, with an improving macro backdrop, Bordeaux shows more confidence in the starting blocks of the 2020 campaign as compared to the previous year. The 2019 EP involved talk of cancellation before a last-minute switch to virtual format due to the global pandemic. Despite the disruptions, the 2019 EP campaign was a resounding success due to the region’s flexibility with both format and prices. The discounted release prices of up to 30 per cent over the previous year helped invigorate the region that remains the benchmark of the global fine wine market.
Alongside lower volumes than last year, the upcoming Bordeaux EP has received favourable reviews by globally respected critics, adding upward pressure on prices with increases over last year’s discounted releases. However, Cult Wines expects prices for this campaign’s vintage to remain lower than the pre-pandemic EPs, which will be an attractive factor for both buyers and investors. More information about the 2020 vintage and history of returns are available in the report, which provides exclusive insights and early access to EP through world-class fine wine experts at Cult Wines.
The report also introduces Cult Wines’ EP index that objectively tracks the year-over-year performance of EP wines (since 2015). The Cult Wines EP40 (CWEP40) includes a fixed list of 40 wines from across Bordeaux that meet the firm’s liquidity criteria of being regularly traded and accessible and is available in five separate series by vintage – 2015, 2016, 2017, 2018 and 2019. In the last four EP campaigns, Cult Wines specific selections have outperformed the CWEP40 since their respective releases, demonstrating the value in the brand’s selective approach based on quantitative research and knowledge of individual producers and wines.
The Bordeaux 500 index, Liv-ex’s broadest measure of the region’s market, enjoyed an 8.77 per cent return in the 12 months ending 31 March 2021, asserting the region as the stable stalwart of the fine wine universe. The big question becomes how much can wine producers afford to push 2020 prices without disrupting the new-found momentum in the Bordeaux market? With ongoing pandemic disruptions, an unproven economic recovery, and the risk tariffs get reinstated, buyers will likely expect 2020 prices to remain lower than the pre-pandemic EPs and more in line with 2019 levels.
