Southwold 2015 tasting (Bordeaux 2011)

Following the spectacular duo of 2009 and 2010, some questioned the pulling power of the 2011s. Whether it was the charm of this somewhat derided vintage or the lure of cooked breakfasts and sea air, the Southwold regulars nearly all made the trip to Suffolk.

The vintage got off to the very best of starts. While we were tasting the embryonic 2010s from barrel, we basked in warm sunshine and admired the precocious vines. This was one of the earliest flowerings in recent times. Summer had arrived early - but it didn't last. Seasons were getting muddled. July and August were decidedly spring-like and didn't help grape maturity. Thankfully a fine September (except for the hail in St Estephe) came to the rescue and provided relief for some very worried vignerons. 

My general perception of the vintage is quite positive. The wines have a soft ripe core that to my mind is reminiscent of the 2001s. They are charming and not at all aggressive or astringent. They don’t have the concentration or complexity of 2009 and 2010, but that is an unfair comparison. Having tasted two of the all-time great vintages, this was definitely a bump back down to earth. 

Wines that stood out included: Pichon Baron and Grand Puy Lacoste. Both displayed the hallmarks of elegant Pauillac and possess ample density. From St Julien, Leoville Poyferre was glossy and impressive, while Montrose and Cos d’Estournel stood out as the class acts of St Estephe. Chateau Palmer and Smith Haut Lafitte Rouge were both head and shoulders above their peers in their respective communes. On the right bank, star performers included Angelus, Tertre Roteboeuf, L’Eglise Clinet and Vieux Chateau Certan. 

As one would expect, the First Growths and top estates from the Right Bank are generally a notch up on the super seconds. However, Pichon Baron, Eglise Clinet and Chateau Palmer could more than hold their own, even in this company. 

Sauternes and Barsac are traditionally a bit of an afterthought in these reports. High costs of production and waning demand makes one wonder why anyone struggles to produce these wines. But struggle on they do and thank goodness they did in 2011. The wines are wonderfully sweet and beautifully balanced. They will be a joy to drink young and they should age gracefully for decades. Our old friend Doisy Vedrines was the pick of the bunch, as it was for our Buying Director when we tasted en primeur - good spot Giles! 

Commercially the 2011s are not that interesting at the moment. This is often a problem with vintages preceded by a great crop (or two in this case). Prices don’t fall fast enough. Bordeaux was certainly guilty of over-inflating prices on release. Subsequently, market conditions deteriorated making prices look even less attractive today. I felt that a general despondency about pricing probably unfairly influenced peoples’ impression of the wines. I believe that this is a superior vintage to 2007 at this stage. Bordeaux’s euphemistic phrase, ‘classical’, springs to mind when tasting the 2011s. Because of the lack of heat in August, these are not fruit bombs. Californian Cabernet they are not; this is an orthodox Bordeaux vintage, which, given a few more years in bottle, should blossom into something quite interesting.

Tom Jenkins, Bordeaux Buyer

Liv-ex 100 - Turning the corner?

In economic terms, two quarters of negative growth constitute a recession. In the wine world, two positive months on the Liv-ex 100 constitutes cause for cautious optimism. After January's 1.39% gain, the first positive month end since March 2011, the leading fine wine index has posted another small rise, up 3.36 points at 293.66 (or +1.16%). This makes the index down 17.8% for the last 12 months, but maybe the re-building process is underway - next target is the 300 mark!

Market Update

Amid the general unease about the state of the global economy, we are frequently quizzed about the health of the wine market. The last data released by Liv-ex showed the Liv-ex 100 up 3.9% at 444.55; a year on year rise of just over 41%. This sustained rally has largely been due to the enormous demand for First Growths in the rapidly expanding Chinese market. New figures now confirm that the so called `Super Seconds` have been pitching in too. Brands such as Lynch Bages and Pontet Canet (both technically 5th growths...) along with the likes of Montrose, Cos d’Estournel, both the Pichons, Leoville Las Cases and Ducru Beaucaillou have enjoyed steady (if not spectacular) gains.

Of course, events in Japan, stratospheric prices for First Growths and the impending 2010 Bordeaux campaign have the potential to bring an abrupt end to the bull-run; but only time will tell. At present, Haut Brion and Mouton Rothschild are enjoying the top spot (in terms of demand if not price) and the `Super Seconds` still look attractive to those seeking First Growth quality without the price tag.

End of year report

How did the fine wine market fare in 2010? And what of the future?

After some strong re-building in 2009, 2010 always had the potential to be a great year for the fine wine market. The Liv-ex 100 index started the year at 239.36 and rose to a new high of 336.28 by the close, an increase of 40.5%. Lafite Rothschild and second wine Carruades de Lafite continue to lead the way. There is no let up in demand from China for wine’s über-brand. Most vintages of Carruades now trade at over 3.5K/cs and the Grand vin prices head ever further into the stratosphere. The other first growths have also seen big gains in 2010. Mouton Rothschild’s decision to commission Xu Lei to design the label for the 2008 had an overnight impact on the demand for all Mouton vintages. And what of the auspicious 2008 vintage? Much was made of the significance of these lucky numbers before the `08 primeur campaign, but buyers from China never materialised. Now that some wines are available, we expect this to change.

One of the outstanding successes in 2010 was of course the release of the 2009s from Bordeaux. Our tasting team travelled to Bordeaux in April and tasted extensively throughout the Medoc, Graves, Pomerol and St Emillion. The vintage is rightly heralded as one of the greats. We witnessed some of the most decadent, hedonistic, enchanting wines we have ever tasted. Release prices, as we had forewarned were very high, but the demand was even greater. As with previous `greats` (2000, 2005), the record release prices didn’t put consumers off. They also had a knock on affect to older vintages, which comparatively looked cheap!

2011 has started with a bang. Our Burgundy 2009 campaign has broken the records set by the 2005s. Over 450 people attended our tasting and demand for the top wines has been typically voracious. And whilst the very top wines have now been snapped up there are still plenty of wonderful wines to be had from Bourgogne to Grand Cru level. Have a look on our website for full availability. 2010 Bordeaux is potentially very exciting too; a small crop, but the quality is excellent, so there is much to look forward to. We don’t have a crystal ball, but it seems likely that the fine wine market, in near term at the very least, will depend on the evolution of the Chinese market. We are already seeing an increase in demand for super seconds and other top Cru Classés. And why not? The gulf between the firsts and the others has never been greater. Those looking for smart drinking are clearly looking beyond the likes of Mouton and Lafite, and who knows, maybe investors will follow...

Xu Lei unveiled as the latest Mouton Rothschild artist

The speculation is over; Mouton 2008 will indeed wear a label painted by a Chinese artist. He’s not exactly a household name, but Xu Lei’s profile is sure to rise amongst wine lovers if no-one else. According to the Chateau's press release, 'Xu Lei's ram asserts the role of a great wine as a link between people and cultures, from one hemisphere to the other of "planet wine"’. Presumably the eastern and western hemispheres...

Conjecture over the nationality of the latest Mouton artist started at the end of 2009 and the price has been rising steadily since. After the announcement, the 2008 has traded at £7800 per case on Liv-ex, some way behind the Lafite 2008 (£13,643/cs), but nevertheless, an enormous increase on its release price (£1750/cs).

Liv-ex 100 storms to record high

With all the excitement and hysteria surrounding Bordeaux 2009, we seem to have missed something of a landmark. The Liv-ex 100 has powered its way back to an all time high at the end of March, surpassing the July 2008 figure of 264.14. April’s figures show even more positive growth closing at 281.21, a rise of 6.1% for the month, an 18.6% rise for 2010 and a staggering 31.8% increase for the year.

Although all the talk is of 2009s, there appears to be no let up in demand for older vintages of classified growth claret. And who knows, the current trend for record release prices from the Place could have a further drag effect on landed vintages...

Off to a flyer...

2010 has started with a bang. The Liv-ex 100 has closed January 2.7% up at 243.59, that’s a 17.4% increase year-on-year. The Hong Kong market has also posted some positive results. Sotheby’s first Hong Kong sale of the year (23rd Jan) realised HKD52.9 million (USD6.78 million), their largest ever total for a one day wine sale. Highlights included an imperial of Lafite `82 (HKD363,000, USD46,526) and a case of Petrus 2000 that achieved HKD411,400 (USD52,730).

Will it be a Chinese artist?

There is much speculation and conjecture as to which artist will appear on the 2008 Mouton Rothschild label. Who will join the list of luminaries that includes Prince Charles, Lucien Freud, Francis Bacon, Keith Haring, Andy Warhol, Pablo Picasso, Wassily Kandinsky, Marc Chagall and Salvador Dali? Mouton is keeping tight lipped; Hervé Berland told Decanter that ‘no decision has been made to date’. But investors have sniffed an opportunity. A Chinese artist and an eight in the vintage could make Mouton the new darling of the Orient. The official announcement won’t be made until later this year, but it looks very much like the cat is already out of the bag...

For interested parties, we have just received our 4th tranche allocation at more than double the price of our 1st release!

http://www.justerinis.com/Mouton_Rothschild/Chateau_Mouton_Rothschild_1er_Cru_Classe_Pauillac_2008/10694/0/WineDetails.aspx

Quelle surprise

The 2009 `Liv-ex Fine Wine Power 100` poll is out, and no surprises for the winner, Chateau Lafite Rothschild. The only shock is that Lafite was only in sixth spot last year...

The results are compiled by the Liv-ex boffins, who analyse data including the volume of trades on the exchange, the average Parker scores, average prices, annual performance and a weighted production (average price multiplied by the total production).

There are some fascinating results. Lafite accounts for a staggering 23% of business on the exchange, with the other first growths taking the next four places. Taylors, way down in 48th position has the highest average Parker score (97.2 points!). Petrus, DRC and Le Pin have the highest average prices, all exceeding 10K per case. Price performance is probably the most important statistic used, and it is Carruades de Lafite, not Lafite that leads the way (up 55%), followed by Duhart (33%) and completing a 1-2-3 for Domaines Barons de Rothschild, the Grand Vin, Lafite (up 26%). The only other contender in this category is Beychevelle, with a very respectable 23% rise.

For the full report, please follow the link below.

http://liv-ex.typepad.com/.a/6a00e55150c0be8834012876528b9f970c-popup

Movers and Sheikhers

The Liv-ex 100 finished November up just 0.4% at 235.13; 14.7% up for the year. A modest gain after some really impressive months, but a gain none-the-less. So, what’s been trading at J&B in November? Well, we make no apologies; it’s been the usual suspects. Lafite and Carruades march on and Mouton continues to gather pace, but still remains several furlongs behind Lafite. There is still insatiable demand for 2007 Chateauneufs; whilst old and rare vintages from Burgundy get snapped up tout de suite.

The big question is - how will major economies respond to the Dubai crisis? Hopefully this won’t be the double-dip we all fear, but if it is, bargain-hunters will probably be disappointed; it’s unlikely that there will be a glut of distressed sellers emerging from the Middle East!

More signs of recovery

One of the key barometers for the health of the wine market is the strength of auction sales. We have become accustomed to lofty figures being returned from the auction rooms in Hong Kong, however, New York and London results over the past twelve months have not provided a great deal of cheer.

However, yesterday’s sale at Christie's posted some very respectable figures. The total value of the sale exceeded £600,000, with almost 92% of lots sold. Highlights included an exceptionally rare case of Henri Jayer’s Vosne Romanee Cros Parantoux 1978, which achieved £36,800 and a case of Latour 1961, which reached £21,850. Both items sold to UK trade. A case of 1982 Lafite Rothschild topped £20,000 and unsurprisingly went to and Asian client. How many of these wines will actually be consumed in the UK, well, we can only guess. Many of the lots will inevitably end up with Asian collectors, but we should not make pejorative comments about the state of our own market – things are looking up!

Up up and away

The Liv-ex 100 recorded its seventh consecutive monthly rise, leaving the index at 234.25, up 1.9% for the month and 14.3% up for the year. Lafite continues to lead the way, but there seems to be renewed interest in Mouton. Could it be the Rothschild link? Who knows, but rumours that this is the new brand to follow in the influential Chinese market are rife. There also seems to be strong demand for La Mission Haut Brion 2005 after its 100 point showing at the Executive Wine Seminars blind tasting in New York.

Outside the Liv-ex 100, there has been some astonishing trading. One case of Clos des Papes 2007 sold for £1150, although whoever bought it must have felt pretty foolish as a case was offered soon after at £1000! Since Robert Parker's remarks about 2007 Southern Rhone, there has been a sharp upturn in demand. Well done to those who bought 2007s en primeur; wines from this red-hot vintage are becoming quite scarce and increasingly expensive to find…

The rise and rise of Carruades

If you analyse the top investment wines over the last five years, there's no doubting that there have been some meteoric risers - none more so than Carruades de Lafite. To put it in context, Carruades has outperformed Gold and any of the major world indices over this time period. The Lafite brand is the darling of the newer and increasingly important parts of the Asian market and the insatiable demand has driven prices to extraordinary levels. Only a year or so ago we surmised that Carruades had hit the ceiling at £1000/case. How wrong we were; now most vintages trade at circa £2000/case.

So to be very tabloid and vulgar about it, what does £2000 buy you. Well it probably doesn't even fill the tank on the latest luxury yacht, or pay a premiership footballer's salary for a day, but it can buy you a case of Mouton Rothschild 2002 or 2004 and there'd still be change for dinner at one of London's Michelin starred restaurants. Alternatively, and rather extraordinarily, you could buy over seven cases of the wonderful 2008 Grand Puy Lacoste, one of our star Pauillac buys from the acclaimed 2008 vintage.

It has never been our position to dictate what represents value to our clients. After all, we are all individuals and we each assign a different worth to nearly everything we buy; we merely select and point out wines based on our tastings. But if you purchased Carruades with the intention of drinking, you might like, given the astronomical prices, to reconsider your position. If you are a stockholder or simply a follower of the fine wine market, you may be interested to see our purchase prices listed below:

Carruades de Lafite 1996 - 1800GBP/cs
Carruades de Lafite 1998 - 1620GBP/cs
Carruades de Lafite 1999 - 1620GBP/cs
Carruades de Lafite 2000 - 1890GBP/cs
Carruades de Lafite 2001 - 1710GBP/cs
Carruades de Lafite 2002 - 1620GBP/cs
Carruades de Lafite 2003 - 1620GBP/cs
Carruades de Lafite 2004 - 1755GBP/cs
Carruades de Lafite 2005 - 1485GBP/cs
Carruades de Lafite 2006 - 1350GBP/cs
Carruades de Lafite 2007 - 990GBP/cs

Carruades de Lafite 2008 - 1035GBP/cs

Should you wish to sell, please don't hesitate to contact our broking team on 020 7484 6408 or contact jacqueline.barfoot@justerinis.com