Fine Wine Breathes Again

The fine wine market is showing signs of stabilization after a period of decline, according to a new report from Winefi, a fine wine investment platform backed by Coterie Holdings. The report highlights that, for the first time since 2022, Winefi’s index of investment-grade wines has posted a quarter-on-quarter increase, rising 4.3% in the third quarter of this year. This follows declines in both the first and second quarters.

Winefi’s analysis suggests that the recovery is broad-based rather than driven by a few outliers. The distribution of returns across different wines was generally higher than in previous quarters. Champagne brands led trading activity, with Dom Perignon, Cristal, Krug, and Salon accounting for about one-third of the 30,000 trades recorded over the past three years.

The report also noted positive performances from benchmark indices such as the Liv-ex 100 and Liv-ex 1000. Among regional highlights were younger vintages of Super-Tuscans and premium, older vintage Champagnes, which showed strong results during the period.

Another indicator of market stabilization is the narrowing gap between asking and selling prices. Wines are currently trading at an average discount of 6.2%, compared to a 15-year average of 9%. This suggests that sellers are under less pressure to lower prices and buyers are more willing to meet market rates. Winefi interprets this as evidence of improving confidence and healthier market dynamics.

These findings align with recent comments from Liv-ex during a webinar, where it was noted that buyers’ and sellers’ expectations are becoming more closely aligned. According to Liv-ex, this alignment indicates that the fine wine market may be moving past the worst phase of its downturn.

Winefi emphasized that the narrowing discounts are not simply due to falling list prices but reflect genuine improvements in how the market operates. The rebound seen earlier in the year for wines priced above £800 has continued to hold up through the third quarter.

Additional signs of stability have appeared in auction results. Zachys recently sold a collection of 19th-century Bordeaux wines from Jacqueline (de Rothschild) Piatigorsky’s private cellar for $11 million, far exceeding estimates. Another auction by Hart Davis Hart in Delaware achieved $8.1 million overall, marking its best performance relative to estimates since before the pandemic.

Winefi was launched in October 2023 by Callum Woodcock, who transitioned from financial asset management into wine investment. Coterie Holdings CEO Michael Saunders said earlier this year that data would play a central role in expanding the group’s understanding of market trends and supporting its ambitions in the sector.

While Winefi cautions that it is too early to declare a full recovery for fine wine investments, the third quarter’s results point toward ongoing stabilization and renewed confidence among both buyers and sellers.