The Wine Bubble

Fine wine has increased dramatically in price over the last few years.

Here is an interesting article from the Daily Telegraph today.

Chateau Mouton Rothschild 2008 New Artist

As I have written before here, Chateau Mouton Rothschild selects a different artist from anywhere around the World in order to feature on their wine label.
For the 2008 vintage the Chateau have chosen a Chinese artist called Xu Lei.
Here is the new label:



Interesting to see that Chateau Mouton Rothschild has chosen a Chinese artist. Recently I wrote about the links between Chateau Lafite Rothschild and the Chinese market.
It makes good marketing sense to have links with your most emerging and promising consumer market.
The release of this label for the 2008 Chateau Mouton Rothschild has already pushed the price up per case. Less than 12 months ago Mouton 2008 was trading at £2000 per case. More recently the price had pushed up to £6000 per case of 12. It is tricky to get hold of any of this wine today.....and it will be interesting to see what price this wine is traded at over the next few weeks. I would presume £8000 per case.

Saint Emilion Re Classification

The Saint Emilion classification was established in 1955 in order to differentiate between the quality levels for better wines produced in the Saint Emilion Appellation and give the consumer a clearer indication of quality. The classification would be re assessed every 10 years and Chateaux, which might be under performing would be downgraded and Chateaux that were making exceptional wine would be elevated to a higher status. The first classification was in 1955, then it was re assessed in 1969, 1986, 1996 and 2006.

The current classification in 2010 is:

Premier Grand Cru Classé

Class A: Chateau Ausone and Chateau Cheval Blanc

Class B: Angelus, Beausejour Becot, Beausejour Duffau Lagarrosse, Belair (Monange), Canon, Figeac, Clos Fourtet, La Gaffeliere, Magdalaine, Pavie, Pavie Macquin(Upgraded in 2006), Troplong Mondot(Upgraded in 2006), Trottevieille

Grand Cru Classé

L'Arrosée, Balestard-La-Tonnelle, Bellefont-Belcier, Bellevue, Bergat, Berliquet, Cadet-Bon, Cadet-Piola, Canon-la-Gaffeliere, Cap-de-Mourlin, Chauvin, La Clotte, Corbin, Corbin-Michotte, La Couspaude, Couvent des Jacobins, Dassault, Destieux, La Dominique, Faurie-de-Souchard, Fleur-Cardinale, Fonplégade, Fonroque, Franc-Mayne, Grand-Corbin, Grand Corbin-Despagne, Grand Mayne, Grand-Pontet, Les Grandes-Murailles, Guadet St-Julien, Haut-Corbin, Haut Sarpe, Clos des Jacobins, Laniote, Larcis-Ducasse, Larmande, Laroque, Laroze, La Marzelle, Matras, Monbousquet, Moulin-du-Cadet,Clos de l'Oratoire, Pavie-Decesse, Petit-Faurie-de-Soutard, Le Prieuré, Ripeau, St-Georges-Côte-Pavie, Clos St-Martin, La Serre, Soutard, Tertre-Daugay, La Tour-du-Pin, La Tour-du-Pin-Figeac (Moueix), La Tour Figeac, Villemaurine, Yon-Figeac.

Grapes coming in to the winery in October 2009 at Chateau Troplong Mondot. This Chateau ultimately benefitted from the classification, as it is now a Premier Grand Cru Classe

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The contentious issues in 2006 centred around 11 properties that were demoted from Grand Cru Classe: Bellevue, Cadet-Bon, Faurie de Souchard, Guadet St Julien, La Marzelle, Petit Faurie de Soutard, Tertre Daugay, La Tour du Pin Figeac, Villemaurine and Yon Figeac. A group of 4 of the demoted Chateaux challenged the classification. They complained that the panel of tasters and decision makers from the INAO were not impartial. The legal wrangles lasted three years until 2009. During this time there was consternation from all sides, especially the promoted Chateaux (Pavie Macquin and Troplong Mondot), who really did not know what label to put on their bottles.

Although Chateau Tertre Daugay was initially downgraded in the 2006 classification, they ultimately retained their status as Grand Cru Classe. Since then they have had a major overhaul of the winery. The picture on the left shows the new fermentation tanks. They are investing in the vines and the Chateau in order to retain their status in the next classification. The proof is in the exceptional wines produced in 2007, 2008 and 2009.

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The Premier Grand Cru Classé and Grand Cru Classé Chateaux account for 72 Chateaux covering 880 hectares approximately 17% of Saint Emilion's 5,500 hectares under vine. This also shows how small the properties are on the Right Bank. Lynch Bages and Pontet Canet in Pauillac are 80-100 hectares each!

The current classification will be fully reviewed in 2011.....so we might start legal debates again, which will do nothing for the reputation of this beautiful place. The classification is very sensible, when you consider that the 1855 classification of the Medoc (and Haut Brion) has only had one significant change in the last 155 years....when Chateau Mouton Rothschild was elevated to 1st growth in 1973.

In Saint Emilion there have been examples when Chateau such as Beausejour Becot have been demoted in 1986...(they expanded their vineyard area by buying another neighbouring Chateau) and then re instated in the classification of 1996. This is an efficient 'check and balance' for a classification system and if everything works out well it is a good system. We will just have to wait and see.

Chateau Lafite Sothebys Hong Kong auction,

If there needed to be confirmation that Chateau Lafite has become one of the most sought after wines in the World, then the auction by Sothebys last Friday in Hong Kong was truly impressive.

The auction attracted some of the keenest Chinese buyers.

In the table are some of the prices achieved at the auction courtesy of LivEX. It is staggering to think that the 2009 was only released from the Chateau 4 months ago and is now being sold at over 5 times the en primeur price. The wine is still in barrel!!
It will be interesting to see whether these prices are a 'one off', due to the publicity/promotion for the auction, or whether they sent a new level for the Chateau Lafite pricing.
Later in the auction 3 bottles of 1869 Chateau Lafite sold for HK$1.815 million each (£147K). Now I could buy a house for that price! Will the bubble burst?

Chateau Lafite 2008

Very interesting developments from Chateau Lafite Rothschild. Their wine has been at the forefront of speculation and investment from the emerging fine wine drinking markets of China and Asia. This has pushed the prices significantly higher for their undoubtedly excellent First Growth wine from Pauillac. I have certainly noticed many Chinese people gawking at the gates of Chateau Lafite Rothschild when I visit the Chateau to taste the wine as part of www.bellawinetours.com

The Rothschilds have recently invested in a 25 hectare vineyard project on the Penglai peninsula in Shandong province of China. This area 800 km south of Shanghai could be very interesting for future wines.

The latest devolopment from Chateau Lafite Rothschild is to feature the Chinese figure 8 on their 2008 wine. This has immediately shaken the fine wine market, as earlier this week there was an incredible 10% rise in the price in one day. The bubble of fine wine has certainly not burst.....yet!

There is also an interesting article here in Decanter Magazine.

2008 Bordeaux

Wine maturing in the barrel cellar at Chateau Lynch Bages, 5th Growth Pauillac.

Earlier this week I was fortunate to taste 100+ wines from the 2008 Bordeaux vintage. The tasting was held at the Royal Opera House in Covent Garden, London by the Union de Grands Crus de Bordeaux.
It was a great opportunity to assess and discuss the wines, which I had previously tasted in Bordeaux as barrel samples in April 2009. These are now finished wines in bottle and ready for the market.
Overview: The 2008 vintage has been generally acclaimed to be of good to very good quality. The yields were severely reduced due to coulure and millerandage, which effect the vines at flowering. These two factors reduce the quantities and size of the eventual grapes on the bunches, but not necessarily the quality. There was also mildew, which is not un common in the humid Bordeaux area. The crucial time of September and October were exceptionnally good in 2008, which really saved the vintage. The yields are the lowest since the frost effected 1991 vintage.
The Markets:The wines were received by the international buyers and journalists in Spring 2009. The initial response was surprisingly positive after the doubts over the 2007 quality.
The only issue at the time was the fragility of the financial markets...plus ca change! And whether anyone would buy them after so many people had filled up with 2005 and 2006 wines.

Here are my personal views of a selection of the wines tasted:

The Wines:

Pauillac
Chateau Lynch Bages 2008....incredible classic cassis Cabernet Sauvignon. Dark cedar character with a very fresh vibrant pure fruit style.
Chateau Pichon Longueville Comtesse 2008....very elegant lifted fruit style. Freshness. A bold style with excellent balance and oaky wrap.
Chateau Pichon Longueville Baron 2008....a rich dense brute. Full power and depth but also layered fruit and finesse. Seems like a long ageing wine.
Saint Julien
Chateau Leoville Barton 2008....Velvet smooth harmony between fruit and oak. Dark brooding fruit. Great texture and firm assertive tannins. Graphite, pencil shaving in mid palate.
Chateau Lagrange 2008....a full rounded style. Slightly creamy wrap of oak around the fruit. Good dense style, but also fresh.
Margaux
Chateau Rauzan Segla 2008....Very bright fresh fruit. Clean spicey and powerful cassis/cedar.
Chateau du Tertre 2008....Rich bold style, but elegant too.
Moulis
Chateau Poujeaux 2008...Good deep plummy style. Richness and balance, dry tannins after. A big mouthful!
Listrac
Chateau Fourcas Hosten 2008....Light fragrant elegant style. Good balance and finesse.
Pessac Leognan
Domaine de Chevalier Blanc 2008....Wow. Absolute class. Broad Sauv Blanc structures, not at all like commercial Gooseberry, nettles. This has a harder backbone of stone fruit and balanced oak ageing. Zippy acidity but evolving tropical fruits. Mango, green apples, pineapple. Would love to see this wine evolve.
Chateau Haut Bailly 2008...Superb balance of fine elegant plum/damson fruits and rich ripe tannin wrap. Classy.
Chateau Malartic-Lagraviere 2008....A modern style of deep spicey fruit, but balanced with a velvet texture and good oak.
Saint Emilion
Chateau Canon-La-Gaffeliere 2008....Very good dark spice and fruit. A powerful style.
Pomerol
Chateau Petit Village 2008....Very lifted fesh dark damson, plum spice. Excellent texture and a deep layered palate. Velvet smooth finish.
Chateau Clinet 2008...Excellent deep cassis/plum style.
Sauternes/Barsac
Chateau Climens 2008...almost hints of toffee on the nose, but also tropical fresh fruits.
Chateau Coutet 2008...excellent fresh zip from Coutet. Clean defined ginger spice.
Chateau Doisy Vedrines 2008.....Fresh bright almost flinty initially but with a great even depth of sweet fruit and long finish.

I tasted many many more wines! But these were the wines that grabbed my attention.

Impressions: The vintage is generally looking very good. The Saint Emilions were slightly disappointing...having shown so well in Spring 2009. Maybe the merlot has just tightened up. The Lynch Bages was spectacular, when it was less opulent than the Pontet Canet at the Primeur tastings (April 09). Pauillac and Saint Julien seemed to have the best consistency. The under rated (in the UK at least) Pessac Leognan area had some stellar wines...Haut Bailly, Domaine de Chevalier.

If I had two wines to choose.......

Domaine de Chevalier Blanc 2008
Chateau Lynch Bages 2008

2009 Bordeaux, Facts and figures

A selection of Chateau La Gaffeliere, Premier Grand Cru Classe Saint Emilion tasted at the Chateau in August

This year has been truly remarkable. When I read Jancis Robinson's small article about 2009 growing and harvest conditions back in October last year I could sense that something was happening in Bordeaux.
The last 10 vintages of Bordeaux have all been of good quality. Perhaps the peaks have been 2000,2005 and 2009. But the troughs have not been disastrous either. The 2001, 2002, 2004 and 2007 will offer very good drinking wines, whilst the 2006 and 2008 are exceptional. The 2003 was the heatwave vintage, which has slightly more variability....but selectively there are some fantastic wines...mainly from the Left Bank.
But the real long term 'Great' wines will come from the 2000, 2005 and 2009 vintages.
I have been lucky enough to taste many of the top wines at the Chateaux from 2005 and 2009. In fact I have been in Bordeaux tasting and guiding with Bella Wine Tours almost 20 times this year.

The majestic Chateau de la Riviere, where we often stay on Bella Wine Tours.

The global wine trade has witnessed some extreme price increases for the 2009 Bordeaux wines, but sales have continued at great pace.
Here are some interesting stats for volume and value from Farr Vintners, who trade a lot of wine!

2009 £53m (30,000+ cases)
2008 £10.7m (12,000 cases)
2007 £5.5m (5,400 cases)
2006 £10.6m (9,000 cases)
2005 £24.7m (29,600 cases)

The figures are not precise. However the marked difference in value (for roughly the same volume) between the 2005 and 2009 vintages gives an indication of the price increases for the 2009 wines.

There are still wines available to buy from the 2009 vintage. The purchase is still Primeur, which means that the wine is in barrel and will be released in bottle from 2012. In fact I have been tasting some really interesting 2009 wines at the lower levels...ie early bottled wines from Entre Deux Mers and the 'satellite' appellations rather than the big boys from the Cru Classe areas. The quality of ripe dense fruit and class is exceptional. Even at the lower levels (and more affordable levels) there will be some delicious wines available.

The immaculate vines at Chateau Petrus maturing nicely for the 2010 vintage (August 19th, 2010)

And just a thought.......I have been witnessing a very good growing season so far in Bordeaux for the 2010 vintage. The summer has been very good. The harvest is currently in full flow, so we will be able to assess the quality in a few months time.....but what will the prices be? Will it be a 'Classic' or a 'Great' or a 'Very Good' vintage? We shall see.............