2022 marks another tough year for Bordeaux. While Burgundy and Champagne continuously build on last year’s momentum, 2022 Liv-ex Power 100 ranking saw Bordeaux further losing attractiveness with no single wine from the region on the top 10 list for the first time, says Liv-ex.
Bordeaux’s dramatic fall is also reflected in the shrinking number of brands in the top 100. In 2022, only 25 Bordeaux brands made it onto the top 100 list, down from 2021’s 30 and an even sharper fall from 2017’s 53.
The 2022 Liv-ex Power 100 is ranked using four criteria: year-on-year price performance, trading performance by value and volume, number of wines or vintages on trade, and average price of wines in the brand.
The sluggish performance from Bordeaux is exacerbated by market’s cooling demand, which is reflected by its stabilized prices; shrinking regional trade share (by about 6%, mainly siphoned off by Burgundy and Champagne).
The highest-ranked Bordeaux wine on the list is Chateau Mouton Rothschild, which only stood at No. 13. The Pauillac first growth was ranked No. 6 in last year’s list. Chateau Lafite Rothschild kept its place as the second most traded Bordeaux brand by value, but is ranked 17th overall due to, similarly, softening market demand and decrease in price.
Despite Bordeaux’s overwhelming fall in the ranking, Château Figeac emerged as a fast climber. Its promotion in the Saint-Emilion classification this September made it one of Bordeaux’s best price performers. The winery is ranked the 35th place since its trading volume fell as many buyers had stocked up for the year before the promotion.
It’s worthy to note signs of Bordeaux decline as one of the most historic and prestigious wine growing regions started to surface years ago. When other regions all increase their number of wines in the top 100 in the past few years, Bordeaux is the only region that saw decreases in this number. From 2017 to 2022, the number of wines in the Liv-ex Power 100 dropped from 53 to 25 for Bordeaux, compared with a steady increase from 24 to 39 for Burgundy in the same period.
That being said, there are still some bright spots for Bordeaux. Brands that do hit the top 100 get to maintain a decent number of wines or vintages on trade and value traded. Meanwhile, as the report put it, Bordeaux still stands firm as one of the very few regions that are consistent in offering the concentration of brand power, prestige, availability, longevity, and good value. For Bordeaux, good claret remains a solid proposition.
In terms of other regions, Burgundy reigns supreme this year. Seven Burgundy brands appeared on the top 10 list and 39 on the top 100 list with broadening of wines traded and great price rises. Its regional trade share also rose to 26%, up from last year’s 20.7%. Champagne, another winner of this year, took the 6th, 7th, and 10th place, as collectors sought more value and portfolio diversity.
However, for Burgundy, one should be cautious about the potential lack of supply and buyers holding off given the surging price. As Rupert Millar, Liv-ex’s Managing Editor said, “Burgundy’s latest surge may be dizzying but could be swiftly stymied by a lack of supply and an increasing reluctance to pay such steep prices for handfuls of bottles.”