Margaux 2010 Bordeaux Slides to Record Low $8,260

Photographer: Carol Olona/Bloomberg

The facade of Chateau Margaux in the commune of Margaux, France. The house on the left bank of the Gironde estuary is at the center of a winemaking industry, and produces some of the world's most expensive vintages. Close

The facade of Chateau Margaux in the commune of Margaux, France. The house on the left... Read More

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Photographer: Carol Olona/Bloomberg

The facade of Chateau Margaux in the commune of Margaux, France. The house on the left bank of the Gironde estuary is at the center of a winemaking industry, and produces some of the world's most expensive vintages.

A case of 2010 Chateau Margaux, a Bordeaux first-growth wine estate, sold for 5,325 pounds ($8,260) on the Liv-ex market in London, a record low and down 16 percent from its high for this year as demand weakened.

The transaction on Aug. 28 was 36 percent below its peak of 8,328 pounds a case at which it traded in June 2011 at the height of the bull market for Bordeaux.

The Liv-ex Fine Wine 50 Index, a benchmark for top Bordeaux wines, fell 2 percent in the second quarter after gaining 7 percent in the first three months, and has slipped further since then. A muted response to the Bordeaux 2012 sales campaign earlier this year has sapped appetite for some other vintages as well, while investors are comparing Bordeaux values increasingly with those of Burgundy, Italy and California.

“It’s not just about Bordeaux anymore,” Jeremy Peacock, broking manager at Redhill, U.K.-based Vin-X, said by phone this week, while noting some pick-up in trading after the recent market drop.

The 2010 Margaux ranks as the estate’s fourth highest-priced wine of the past 30 years, lagging only those from 2009, 2000 and 1990, according to merchant prices collated by Liv-ex on its Cellar Watch website.

The vintage was awarded a 99 rating on a 100-point scale by U.S. critic Robert Parker, putting it among the six highest-ranked Margaux wines of the past quarter century, according to the eRobertParker.com website.

First Growth

Chateau Margaux, whose wines have been sold in London since the early 18th century, was acquired in 1977 by Greek retail magnate Andre Mentzelopoulos and has been run since his death in 1980 by his daughter Corinne.

The estate has 80 hectares (198 acres) planted with red-grape vines Cabernet Sauvignon, Merlot, Petit Verdot and Cabernet Franc and 12 hectares planted with white Sauvignon Blanc.

It produces an annual average 130,000 bottles of its main wine, a similar quantity of second wine Pavillon Rouge du Chateau Margaux and 15,000 bottles of white Pavillon Blanc, according to its website.

The vineyard is on the left bank of the Gironde estuary and ranked among the top Medoc first-growth estates in the classification drawn up for Napoleon III’s 1855 Paris Exhibition, which remains in force.

To contact the reporter on this story: Guy Collins in London at guycollins@bloomberg.net

To contact the editor responsible for this story: Paul Sillitoe in London at psillitoe@bloomberg.net

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