If I had to speculate, we are probably within 15% of the bottom of the market now in a “most likely” scenario. In an extreme scenario, I speculated with Sara Danasse recently that it could be as much as 50% below where we currently are, but clearly that relies on systematic changes in Bordeaux too (eg reducing quality to reduce cost of production).
A previous drinks business article suggested it was somewhat worrying that the price decrease hasn’t found the elastic demand to pick up the slack - so I think the question is where you fall in that opinion. Do you think 30% more off would make these wines sell out, or is the world just off Bordeaux/wine/etc. that’s a speculative question that will rely more on opinion than data.
For the first year that I’m aware of, negociants aren’t taking their allocations, they’re mainly ordering to demand (as far as I know). I suspect we are at the very start of the turmoil, rather than coming out of it.
One thing I would observe, between 2018 and 2023(?) one whole “UK” worth of consumption was switched off by China reducing wine consumption.
I think there’s a very good chance wine gets utterly shredded over the next five or ten years. There’s no bulk volume replacement for “one UK” worth of wine consumption unless you get one of the SE nations to really get into wine.
Worth a view : Video - Is Wine Going Out Of Fashion? - by Sara Danese
Perhaps to put it more succinctly…
If you think wine returns anti correlate with the interest rate, as these come down then wine should do well as investment goes back in (though of course t bill rates are actually going up under Trump so may be a while)
If you think wine returns are driven by demand of consumers, then that’s probably going to keep going down
If you think our current lull is driven by cost of living, or general disillusionment with en primeur, then it’s only going one way in the short term.