Liquid assets
Here we dip into the world of great wines and discover more about the importance of origin, vintage and, of course, taste.
WORDS: JOHN C SILCOX
PHOTOGRAPHY: MITCH PAYNE
According to David Bolzan, Managing Director of the French wine-trading house Cordier Mestrezat, a wine’s quality is always determined by geographical provenance. ‘The unique composition of a vineyard’s soil leaves its mark on the wine made there,’ he says, ‘which is why France’s Bordeaux region is famous.’
Bordeaux has been producing superior wine for hundreds of years, and in 1855 a special classification system was set up, ranking estates into five different levels. The First Growths topped this list and include Château Latour and Château d’Yquem. Other regions of the world have developed their own classifications, or appellations, but Bordeaux wines remain extremely sought-after. Bolzan explains: ‘Each of these famous Chateaux own small domains, which produce limited volumes of wine. The demand is greater than what is available, and this keeps the prices high.’
After its origin, the second most important feature of a fine wine is its vintage. ‘A great wine is the reflection of the weather during the year it was made,’ says Bolzan. ‘To grow to perfection, grapes need enough rain to develop, but also plenty of sunshine to ripen properly.’
For table wine, many wineries are bypassing nature and using modern agricultural developments to improve their harvest. Techniques such as covering vines to protect them from the elements and special irrigation systems can deliver more regular yields. This doesn’t apply to fine wines.
‘In the best regions growing rules are very strict,’ says Bolzan. ‘Instead of getting a mediocre but steady harvest each time, fine wine producers gamble on nature. This can produce some bad years, but more importantly it will produce some exceptional years such as 1982, the holy grail of Bordeaux, known as the best in the millennium.’
Most wines should be consumed within a decade, but the very best wines can age for centuries. Stephen Williams, founder and CEO of the Antique Wine Company (AWC) explains: ‘As the years pass, the secondary and tertiary flavours gracefully develop to yield a complexity that provides intellectual engagement as well as enjoyment.’
This complexity is sought-after by collectors and enthusiasts across the globe. Most of AWC’s clients buy wine because they enjoy owning it, maturing it and drinking it, but it’s also an investment opportunity.
‘In all probability a wine’s value will increase over time, making it feasible to sell off a proportion of one’s holding from time to time to fund the purchase of a new vintage, or extend the range in the cellar,’ says Williams. ‘The only risk is that thanks to developments in winemaking, great wines can be opened and enjoyed without having to wait a century.’
Fine wine collectors can still expect to make steady returns on their investment, but the market isn’t quite as buoyant as before. Williams explains: ‘Between 2005 and 2010 rising Chinese demand had a significant effect on the ultra-premium market, but it ended with a huge bubble.
Bordeaux prices went beyond the reach of many traditional markets, giving Italian, Spanish and New World producers the opportunity to gain a foothold among consumers of very fine wine.’
However, market volatility isn’t the only risk associated with expensive wine. In the 1990s, Williams once spotted a modestly priced 100-year-old bottle of Château Margaux on a French restaurant’s wine list. ‘I told the waiter I wanted to buy it,’ he says. ‘So he took my credit card and returned with the bottle – and a corkscrew! What I’d intended to be a shrewd investment almost turned into a very expensive mistake.