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2014 Review and Hopes and Fears for 2015: Liv-ex's James Miles

Published:  19 December, 2014

James Miles, managing director of fine wine exchange Liv-ex, reflects on the "tough year" for fine wine that was 2014, and why he believes the Bordelais will offer more realistic prices in the coming year's en primeur campaign.

James Miles Liv-ExJames Miles of Liv-Ex says 2014 was tough, but the broadening of fine wine trades away from Bordeaux can only be a good thing in the long-term.  

James Miles, managing director of fine wine exchange Liv-ex, reflects on the "tough year" for fine wine that was 2014, and why he believes the Bordelais will offer more realistic prices in the coming year's en primeur campaign.

How was 2014 for you/your business?

It has been another tough year for the fine wine market. Despite a 14% increase in the number of transactions on Liv-ex, the value of trades on the exchange has fallen 16% year to date. Nonetheless, the Liv-ex Fine Wine 100 Index has risen for the last four months, suggesting that the Bordeaux market is recovering.  

What do you think were the most significant things that happened/ issues/trends that occurred in 2014?

The problem has been falling prices and a lack of interest in high value wines. France in general has been weak; of the major regions, only the Rhone (+13%) has shown any growth in turnover on Liv-ex in 2014. Trade in First Growths is down 25% and trade in DRC is less than half last year's level. Elsewhere, the picture is better, with Italy (+63%), Spain (+154%) and USA (+115%) all showing big gains in turnover thanks to some attractive new releases. This broadening of the market away from France and Bordeaux in particular is probably healthy long term, but the process has been a bit painful.

What opportunities are you most looking forward to working on in 2015?

I think Bordeaux 2014 provides a real opportunity to inject some positive energy back into the market. The vintage looks like being the best in terms of quality and quantity since 2010. I think the trade wants to get behind the vintage, but it will require prices to be sensible.

What are the biggest challenges facing the trade in 2015?

A series of failed en primeur campaigns has left a lot of unsold younger wines in the supply chain. It will take a number of years to work through these.

Who are the people/companies/retailers to watch in 2015?

All eyes are on the Chateaux. The market for young Bordeaux is a buyer's market. The trade - the negociants included - are going to become even more discerning about what they buy. The pressure will be on the producers to get their prices right if they want to sell. Contrary to conventional wisdom, I don't believe Bordeaux  - the Chateaux included - can sustain another failed campaign without triggering a crisis.

What are you doing for Christmas and New Year?

I have four children and a large extended family. Christmas is family time for me.

What will be your favourite tipple over Christmas and New Year?

At Christmas it has to be Claret.

Favourite Christmas film?

Anything from Bond.

Ideal day out over Christmas period?

Not going out over Christmas!

What do you want most from Father Christmas?

A holiday with my wife

New Year's resolution?

To book a holiday with my wife

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