The last few weeks have seen insatiable demand for Margaux’s second wine push numerous Pavillon Rouge vintages to new price highs. Vintages 2000-2008 have risen in value by an average of 75% year-to-date, whilst all of the most recent vintages (2006-2008) have doubled in price since the start of the year. This increase in trade is likely a result of brand-driven Asian buying. Like Carruades de Lafite, the Pavillon Rouge label closely resembles that of its grand vin (thus procuring considerable status through association). But at less than half of the price of Lafite's second wine, Pavillon Rouge seems to represent good value.

The 2008 (RP 90-92) has seen particularly strong demand of late, having traded at £750 per 12x75cl case at the end of August – up from £540 per case in July. The wine’s current price level puts it just £100 below the 2009 (RP 91-93), which has yet to benefit from the recent surge in demand.

Celebrated (and expensive) vintages such as the 2000 and 2005 have also seen an increase in trade. The 2000 (RP 89) changed hands at £1,200 per case last week, reflecting an increase of 4% month-on-month, and the 2005 (RP 91) remains well bid at £910. 

The graph below shows the price performance of Pavillon Rouge vintages 2000-2008 since the start of the year. As you can, the less popular 2002 (RP 87) has put in the weakest performance over this period and has risen by just 8% year-to-date. The vintage is currently bid on the exchange at £743 per case.

Pavillon Rouge 07-09