Two cases of 2005 Chateau Montrose, a second-growth wine estate in Saint-Estephe, sold for 850 pounds ($1,370) each in the past week, an 11-month low for the vintage on Liv-ex amid muted demand for top Bordeaux.
The transactions, one yesterday and another on Nov. 15, took the vintage down 5.5 percent from its September level and back to the price it traded at in late November last year, according to data on Liv-ex’s Cellar Watch website.
The Liv-ex Fine Wine 50 Index, tracking leading Bordeaux vintages, has declined since mid-March, erasing an 8 percent gain made in the previous 10 weeks to leave it 0.6 percent down since the start of this year as investors have sought value outside of the Bordeaux first and second growths.
“Montrose is fairly fully priced,” as are some other second-growth wines, Brian Mota, co-managing partner with Timothy Clew at TWT Investment Partners LP in Ridgefield, Connecticut, said by phone yesterday.
A “relative-value play” now exists in Bordeaux, according to Mota, with the 2012 vintage and some wines from the Pessac-Leognan district south of the city offering opportunities even as first growths remain under pressure. “While the Liv-ex is flat for the year, we are in decidedly more positive territory,” he said.
Montrose 2005 fetched 624 pounds in June 2006 soon after it went on sale, and is now trading 36 percent above that level. It peaked at 1,200 pounds in July 2011, as Asian demand for top Bordeaux was at its height.
Even after the recent decline, a case of Montrose 2005 still fetched $1,673 at a Hart Davis Hart Wine Co. sale in Chicago last month, according to the auction house’s website.
The 2005 Montrose is the estate’s fourth highest-priced vintage of the past 10 years, according to merchant data collated by Liv-ex.
It scored 95 points from U.S. wine critic Robert Parker, putting it among the top five vintages of the past 10 years, according the eRobertParker website.
Chateau Montrose has been owned since 2006 by Martin and Olivier Bouygues, who run Paris-based construction and media company Bouygues SA. The estate is ranked as a second-growth vineyard in the Bordeaux classification drawn up for Napoleon III’s 1855 Paris Exhibition. That puts it among the top 20 producers in the Medoc region, which is to the northwest of the city.