Vega Sicilia breaks records in 2024 and tops the Power 100 list
- Amaya Cervera
- January 21, 2025
2024 has been the best year in the history of Vega Sicilia both economically and in terms of international recognition. The winery, located in Valbuena de Duero in the Valladolid section of Ribera del Duero, was founded in 1864, although the wines we know today date back to the second decade of the 20th century.
The key lies in a record production across the entire Tempos Vega Sicilia group, which includes the main winery, Alión in Ribera del Duero, Pintia in Toro, Oremus in Hungary, and Benjamín de Rothschild & Vega Sicilia, the only jointly owned winery, in Rioja. In total, they sold 1.44 million bottles compared to 1.2 million the previous year. The group announced that revenue for 2024 will exceed €80 million, a significant increase from €65 million in 2023, their best result to date.
The revenue jump is due to the greater availability of Único 2014, their flagship red wine released 10 years after harvest. "This is the largest Único harvest possible: 120,000 bottles, plus 200,000 bottles of Valbuena and strong harvests at the other wineries," explained Pablo Álvarez Mezquíriz, CEO of Vega Sicilia. The 2014 vintage follows the very challenging 2013 vintage, which yielded just over 85,000 bottles. Ignacio de Saralegui, the group's commercial and marketing director, also highlights the greater availability of sweet wines from Oremus, the group's winery in Tokaj, Hungary, including allocations of older vintages, as well as sales of vintage collections from Alión and Valbuena.
Most sales were concentrated in international markets (900,000 bottles), which saw a 10% growth, compared to half a million bottles sold in Spain and a small percentage of local sales in Hungary.
Winning the Golden Vines* award for Best Fine Wine Producer in the World at an exclusive gala dinner in October in Madrid, attended by the crème de la crème of the international wine world, can be considered the cherry on top of a remarkable year for the company.
An Unexpected Leader
In early December, even bigger news broke. Vega Sicilia climbed to the top spot on the Power 100 list compiled by the Liv-ex** platform. This is the first time a Spanish winery has taken this position in the benchmark index of the fine wine secondary market.
All this in a subdued context where only 11 of the referenced brands saw price increases, with Burgundy in decline and many Bordeaux châteaux disappearing from the list due to the collapse of recent vintages, some of which fell below their release prices.
The ranking, which considers price trends, average price, traded volume, and total value, has in recent years been led by iconic Burgundy estates: Domaine Leflaive in 2023 and Domaine Leroy in 2020, 2021, and 2022. Generally, these are estates whose wines are priced much higher than those of Vega Sicilia.
"This is the first time for a brand whose flagship wine is relatively reasonably priced," notes Tom Burchfield, head of analysis and market intelligence at Liv-ex. "During the period analyzed by the Power 100 [October 1, 2023, to September 30, 2024], the number of transactions for Vega Sicilia increased by 193%, resulting in a 324% growth in volume and a 310% growth in value. Furthermore, the demand increase has mainly come from the U.S., where the fine wine market has remained more stable than in other countries," he explains.
For Pablo Álvarez, demand for Único is the result of consistent quality year after year and a history of dedication, sacrifices, and respect for customers. "We could do a tasting of 40 vintages of Vega Sicilia and not find a bad one. This inspires confidence among fine wine consumers," he asserts. Regarding the U.S., he acknowledges having done "a tremendous amount of work" in this market: "The U.S. is the largest wine-consuming country in the world."
A Unique Management Style
The revaluation of Vega Sicilia in 2024 cannot be considered an isolated phenomenon. "Since January 2020, the price of Único 2010 has increased by 27.3%, the 2009 vintage has risen by 33.3%, and the 2005 vintage by 50%," notes Burchfield.
However, Vega Sicilia remains cautious about speculative movements and the secondary market in general. "There is a fine line between collectors and investor-speculators who buy wine but do not drink it," says Saralegui.
Yet, current market conditions have placed the Spanish winery in a privileged position. The conclusion of the Liv-ex report is clear: "As the market has lost confidence, investors have shifted towards less risky bets. If Bordeaux dominated last year, now the brands that have appreciated the most are those that share typically Bordeaux values, though not its terroir. Their calling card: volume, liquidity, history, and prices that allow bottles to be uncorked. As the market continues to seek a turning point, a change in trend seems unlikely."
This explains, according to Burchfield, why there have not been significant price increases for Único despite the growing demand: "We will have to see the behavior during the next cycle, but we do not expect sharp rebounds in the market, only slow growth." He adds: "The greater visibility achieved by the brand has the potential to generate more consistent demand from collectors."
For his part, Pablo Álvarez is not interested in wine revaluation in the secondary market. "I want them to be drunk, enjoyed, and repurchased for consumption again." The CEO of Vega Sicilia criticizes the frenzy of unjustified price increases in recent years. "Consumers have said they are no longer willing to pay certain prices for certain wines. The luxury world is suffering and must rethink its future. I am convinced that France's great wines will adapt because they are great for a reason."
How Many Bottles Can Vega Sicilia Produce?
Production at the Ribera del Duero winery is heavily influenced by weather conditions, with frost and hail having a significant impact, leading to wide ranges: between 40,000 and 120,000 bottles for Único, 100,000 to 200,000 bottles for Valbuena, and 15,000 to 20,000 bottles for Único Reserva Especial, made from a blend of Único vintages.
During the Álvarez family's ownership, which began in 1982, frost prevented the production of Único in the 1984, 1988, 1992, 1993, 1997, and 2001 vintages. On May 2, 2001, the thermometer dropped to -5°C. This was the last time the entire Vega Sicilia vineyard was affected by freezing temperatures.
Since 2002, frost towers have been installed, eventually reaching the 24 currently used by the winery. As Pablo Álvarez himself says, "Unless a meteorological disaster occurs, we will no longer stop producing Único every year."
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*The Golden Vines awards were created in 2021 by Liquid Icons, a company founded by the revered sommelier Gerard Basset, who passed away in 2019, and Lewis Chester, focusing on the fine wine world. Their goal is to recognize industry leaders based on the opinions of over one million wine professionals from 120 countries who contribute annually to the creation of The Golden Vines Report. The awards ceremony, held in a different city each year, is part of a three-day event that brings together the major names in the international fine wine scene and includes exclusive tastings, gastronomic experiences, and tourism events aimed at raising funds for the Gérard Basset Foundation.
** Liv-ex (London International Vintners Exchange) is a trading platform for fine wines between businesses. Among its more than 600 members are wine merchants, wholesalers, importers, wine investment firms, producers, auction houses, and logistics companies.