When Andy Warhol signed bottles of 1975 Mouton Rothschild in Sherry-Lehmann
IN THE HEADLINES
Wine is the “biggest loser” of the UK’s new alcohol duty changes, in effect from the 1st August 2023.
Australian wine exports declined by 10% in value in the year to July 2023, due to lessening demand in the US for bottle shipments. Exports to the UK also reflect a downward trend.
The government of Spain has added 15 new ‘Singular Vineyard’ sites to the Rioja Qualified Designation of Origin, increasing the total number of these to 148.
Champagne Pommery launched its first Champagne in collaboration with the Japanese rockstar, Yoshiki, reportedly selling out in minutes. Not a bad move considering the rockstar’s historical success as a brand ambassador - a joint venture with Napa Valley’s Robert Mondavi Jr. is now Japan’s best selling premium wine!
BUSINESS
Trading Slowdown
The Fine Wine index "Liv-ex Fine Wine 50" witnessed a significant decrease in its value in the second quarter of 2023, in contrast to leading indices like the Dow Jones and the S&P 500. Liv-ex 100 and Liv-ex 1000 have also devalued by over 6% in the same period. Liv-Ex has linked the slowdown to inflation and a potential US and European recession, leading to “cautious investment behaviour”.
Innovation Crunch
Circana, a leading advisor on consumer behaviour, has revealed in its latest report, a significant decline in product innovations for alcoholic drinks brands across the last two years, due to difficult trading conditions and the cost of living crisis. The report focused on key European markets (France, Italy, Germany, Spain, UK and the Netherlands). The data shows 31% fewer new alcohol product launches in 2022 compared to the previous year.
Sherry-Lehmann Scandal
Last week, the FBI searched long-standing New York wine retailer, Sherry-Lehmann, as part of an ongoing investigation into tax debts ($2.8 m) and failure to deliver prepaid wine to customers.
An interesting piece in Fortune pays homage to the rise of this prominent Manhattan retailer:
“Sherry-Lehmann was long considered the gatekeeper to the US market for brands from around the world. Its founders, brothers Jack and Sam Aaron, changed what New Yorkers drank, introducing them to Dom Perignon and Bordeaux’s Chateau Petrus. The store became the wine-buying destination for the city’s elite after World War II, and for the holidays saw the best wine brands vie for a spot in its windows and catalog.
In 1978, Andy Warhol stopped by the store to sign bottles of 1975 Chateau Mouton Rothschild, the vintage that carries his artwork on the label. Sales clerks covered the signature with saran wrap and upped the price.”
COMMENT
How did Cru Wines become one of Europe’s fasting growing companies?
Helen Arnold reports for The Buyer.
Gregory Swartberg, founded Cru Wines in 2013, now one of Europe’s fastest growing companies. The London-based investment service also offers its clients “exclusive parcels, new wines and rare vintages”.
A former financier, Swartberg believed that prior to the launch of Cru Wines, private clients had no way to determine “the market price of a particular wine”. This inspired him to help customers collect and invest "in a much more user friendly and transparent way”.
With an interest in wine from a childhood spent in France, Swartberg utilised his background in corporate strategy to launch a business with “tailor made customer service” all while remaining “competitive on pricing”.
Regardless of budget, each client is paired with a personal account manager and can access the company’s cutting-edge investment platform whenever they wish, to build and manage their portfolio. The system is automated so clients are notified immediately if a wine they might be interested in has landed. This, Swartberg believes, is the secret to the high level of client retention, repeat business and growth.
TRIVIA
The 10 most valuable wine companies in the world
New research by Brand Finance has revealed the world’s top 10 most valuable wines (The Drinks Business).
10. Jacob’s Creek
9. Concha Y Toro
8. Beringer
7. Penfolds
6. Barefoot Wine
5. Dom Pérignon
4. Veuve Clicquot
3. Chandon
2. Changyu
1. Moet & Chandon
And that’s it! I hope you enjoyed this 3 minute read!