Britain loses its taste for fine wine as other commodities soar
Enthusiasm for the fine wine market dipped in April as the nation clocked off to enjoy consecutive bank holidays and the royal wedding.
With investors gaining confidence following the Japan earthquake and subsequent tsunami, equity markets enjoyed solid gains - compared to the 0.01% gain in fine wines, Wall Street advanced 4% and the FTSE nearly 3%.
"While the major share markets were enjoying a reverse of fortune, at the same time British buyers were clocking off to enjoy the 'bridge week' provided by the Royal wedding," said managing director of the Bordeaux Index, Gary Boom.
Asian demand show no sign of abating, with sales in Hong Kong 30 percent higher than in the same month last year.
"It's worth keeping an eye on the bigger picture," said Boom. "So far this year wine buyers have enjoyed returns in excess of 10% - a figure only exceeded by the ongoing bull run in the oil market."
Despite being overshadowed by gains in more general commodity prices - such as gold which climbed 9% - interest is expected to surge thanks to the reviews and score of several influential critics.
"We're already seeing strong interest in customers entering pre-orders," said Boom. "Interest has gathered throughout April but the numbers have surged across the board since Parker released his scores."
Elevated 2010 En-Primeur pricing expectations were a likely agent provocateur as prime vintages of the first growths dominated the top 10 in sales by value for the first time in many months.
"Back from the doldrums, prime vintage Lafite contributed heavily to activity with brisk trading in the 2000, '05 and '08 vintages".
"Margaux took three positions, up from one in 2010. And Latour continued to be neglected, shut out completely by strong showings for Mouton and Haut Brion", he added.
