Why is Louis XIII New Wine more expensive?

Hey everyone, old and new friends of Chunxiang Cognac, I'm your recycling agent. Speaking of Louis XIII, this top-tier cognac, many connoisseurs have probably noticed an interesting phenomenon: "new wine is more expensive than aged wine." That sounds a bit unusual, doesn't it? Generally, aged wines are more expensive due to their rarity and aging value. However, the situation with Louis XIII has its unique reasons, so let's discuss the reasons behind it.

I. Distillery Pricing Strategy: The Price of the New Version Has Soared Too Quickly

The main reason is that the distillery adjusted the price of the new Louis XIII far too quickly. Consider this: early versions of Louis XIII, like the oldest "white-headed" version, were priced below HK$2,400 (based on an exchange rate of approximately HK$0.24 to 1 NTD, original data shows it was below NT$10,000). However, the new version is now priced at HK$19,200 to HK$21,600 (original data shows NT$80,000 to 90,000), or even higher, at airports.

This astonishing rate of price increases has meant that even after multiple price hikes, the market price of older Louis XIII versions has struggled to keep pace with the official pricing of the newer versions. For example, currently, the latest version (top and bottom lid packaging) of Louis XIII, as listed on the website "Hua Luo Yi Bei Jiu," is priced at approximately HK$21,599.76 (NT$89,999); while the "open-top" version is around HK$21,360 (NT$89,000). In comparison, the "white-top" version from the 1970s or the "brocade box with copper plate" version from the 1980s are priced at approximately HK$15,840 (NT$66,000). These figures clearly demonstrate that the newer versions are indeed significantly more expensive than the older ones.

II. Weak anti-counterfeiting technology in the old version: Counterfeit liquor problem affects market confidence.

Another factor that cannot be ignored is the inadequacy of anti-counterfeiting technology in older versions of Louis XIII. Especially the earliest "White Head Louis XIII" (circa 1950s-1960s), due to relatively weak anti-counterfeiting awareness at the time, the distillery did not implement many advanced anti-counterfeiting technologies. This directly led to the proliferation of counterfeit "White Head" wines on the market, and these counterfeits were extremely difficult to identify.

For novices unfamiliar with vintage wine collecting, these products are undoubtedly a huge pitfall, and Baijiulou even advises beginners to avoid them altogether. The rampant counterfeiting not only harms consumers' interests but also puts pressure on the overall price of vintage wines, making collectors hesitant to buy and sell, indirectly limiting the price appreciation potential of these older versions. In contrast, newer versions of Louis XIII should have more advanced anti-counterfeiting measures, giving buyers greater confidence when purchasing.

III. Changes in Market Trends and Product Positioning

The current spirits market is generally not favorable for brandy products. Most enthusiasts and investors are more inclined to invest in the whisky market, especially among younger consumers. In this environment, the brandy market has generally performed poorly, with Rémy Martin's overall price falling by more than 30% from its peak, and showing no signs of stopping.

However, as Rémy Martin's top-of-the-line spirit, Louis XIII is positioned beyond simply being a beverage. It's increasingly seen as a "display of wealth" and a "benchmark for gift-giving." This luxurious brand image and high-end market positioning allow the new Louis XIII to maintain an extremely high price, because its value transcends the liquor itself, residing more in its brand prestige and social significance. Selling it too cheaply might contradict its "ultimate luxury" positioning; no one would perceive it as truly "precious."

IV. Considerations on the completeness and storage condition of accessories

Furthermore, as a collectible wine, the completeness and condition of the accessories of Louis XIII have a significant impact on its value. Each set of Louis XIII, including the certificate, the bottom of the bottle, and the crystal cork, has a unique serial number. This "three-certificate matching code" is an important basis for distinguishing authenticity and assessing price. Older versions, especially those from very old age, may have defects such as peeling or damage to the outer box (especially for open-top versions made of environmentally friendly materials) due to storage environment, temperature, and humidity factors, or a drop in the liquid level. These will all affect their market value. Although this is not the direct reason why new wines are more expensive, it does make it difficult for many older versions to reach "perfect condition" when they are sold, thus affecting their price.

In conclusion, the phenomenon of new Louis XIII being more expensive than aged Louis XIII is a result of multiple factors, including the distillery's rapid pricing strategy, trust issues arising from the inadequacy of older anti-counterfeiting technologies, and its unique market positioning as a luxury brand. For collectors and investors, understanding these underlying reasons will enable them to make more informed decisions when purchasing and evaluating Louis XIII.

If you have any Louis XIII bottles, whether new or old, and in any condition, Chunxiang Trading Company is happy to provide you with free professional appraisal and valuation services. Want to know the value of your collection? Contact Chunxiang Trading Company today and let us give your fine wines their due value!