A combination of the Brexit effect and rising demand from Asia has given Bordeaux wine a boost after years in the doldrums, the Financial Times has reported. The papers says July’s sales for wine merchants were the best for the past five years.
While top Bordeaux wines from châteaux such as Lafite Rothschild and Margaux are traded around the world, many are held in bonded warehouses in the UK and priced in sterling.
When the pound fell sharply following the Brexit vote, international buyers benefited from a 10 percent reduction in prices.
The paper reports that the global fine wine merchant BI reported a spike in sales in July, driven partly by the fall in the value of sterling but also by the return of Chinese investors and collectors.
“We literally had to close down our [sales] screens at the moment of Brexit,” chief executive Gary Boom told the FT. “Everyone just piled in — and now the market is really moving.”
The company’s BI LiveTrade Index, which tracks the prices of almost 250 leading Bordeaux wines, is up by almost 15 per cent in the year to date. By comparison, the FTSE 100 has risen by less than 6 per cent.