WINE INVESTMENT THOUGHTS – MAY 2010

With the imminent release of the much anticipated 2009 Vintage from Bordeaux, we felt now might be an appropriate moment to look back over past vintages to see if there might be an opportunity to acquire some good value wines. Judging by the early demand we are seeing for the 2009 wines prior to their release, there will not be enough supply to satisfy demand. Will this demand, which is hoping to acquire wines which will appreciate in value, then look elsewhere in the wine market for other wines which may also appreciate? Potentially. So we have looked back to identify a number of top wines which we believe offer upside in value. Maybe worth considering ahead of the disappointed 2009 buyers?

Ch. Margaux, 1er Cru Margaux 2004                                        £2,700 In Bond (Subject)

Should the 2004 vintage be the same price as the 2001? Jancis Robinson (JR) scored the 2004 19 points while the 2001 received 18, while Robert Parker scored both a ‘lowly’ 93, while Neal Martin (NM) scored the 2004 one point higher at 95. But, we believe the 2004 Margaux should be a higher price due to the momentum we have seen in other 2004 wines. Recent tasting have revealed a marked improvement since bottling, and we would anticipate an upgrade in scores for the 2004. Potential - £3,500.                                              

Ch. Haut Brion, 1er Cru Pessac-Léognan 2000                      £5,650 In Bond

For a while, the least ‘fashionable’ of the First Growths, leading to opportunities as the Château constantly scores well. The 2000 scored 98 from RP and 18+ from JR. It is a great wine in a great vintage. Latour on 98+ trades at over £9,000, Lafite at a mad £18,000 a case (although a 100 point wine), Mouton, a lower rated wine, scores a ‘disappointing’ 97 from RP and 17 from JR and yet is still£8,900.

Potential - £9,000

Ch. Palmer, 3eme Cru Margaux 2004                                      £950 In Bond

This wine, which keeps company happily with the Super Seconds, scores well with NM scoring 94, RP 94 and JR a strong 18.5. The 2000 Palmer, which scores 95 is currently £1,950, the 2005 with 97 points is over £2,000, the 2006, which scores considerably lower than the 2004, is priced at £1,200. Even the 2007, with a score of 92, is £1,200.

Potential - £1,450

Ch. Le Mission-Haut-Brion, Pessac-Léognan 2006             £2,800 In Bond

In 2005, Mission really came of age in terms of its recognition. The wines they make are so often as good as, and occasionally better (as in the case of the 2005) than the de facto First Growths, whereas historically it was priced along side the Super Seconds.. In 2006 the château made a cracker. 18.5 from JR and 95 from RP. The lower scoring Margaux2006 is priced at £3,200.

Potential - £3,500+

Mouton Rothschild, 1er Cru Pauillac 2006                            £4,900 In Bond

Mouton has been on a resurgence over the last couple of years, and added to this, the wine has caught the eye of the Asian market. If Lafite it anything to go on, the sky’s the limit. The 2006 from Mouton scored very well – JR 18, RP 98+, NM 96. Lafite with its 97 RP points is just below £6,000.

Potential - £6,000+

Ch. Margaux, 1er Cru Margaux 2005                                        £7,400 In Bond (Subject)

A great wine from a great vintage. Parker scored it 98, Jancis a staggering 19.5 and Neal Martin perfection – 100. £7,400 may seem a lot, but this wine was over £9,000 before the financial crisis and its peers are being bought at more lofty levels. Lafite @ £10,000+ and Latour @ £9,000, both of which ‘only’ scored 96+ from Parker.

Potential - £10,000+

Also, a brace of wines from the 1996 vintage which is just beginning to drink beautifully

Ch. Mouton Rothschild, 1er Cru Pauillac 1996                     £3,500 In Bond

1996 is a wonderful vintage, and many of the top wines do still offer value. The Mouton, now on the Asian radar as discussed earlier scores 19 from JR, 95 from NM and only 94 from RP….but he last tasted it in 1999. I would wager an upgrade if he did. This compares to the Margaux which JR scored 17.5 which is priced over £5,500.

Potential - £5,000+

Ch. Haut-Brion, 1er Cru Pessac-Léognan 1996                     £2,650 In Bond

Same argument as the Mouton. 18 from JR and 95 from NM, but only 92 from Parker but he hasn’t scored the wine for over 10 years. With all the other Firsts trading at a substantially higher price in this vintage, and with us suggesting the Mouton should be over £5,000, this looks very undervalued.

Potential - £4,500

And finally……

Ch. Lafite-Rothschild, 1er Cru Pauillac 2007                         £5,100 In Bond

Lafite has been the most talked about game in town as the Chinese have been buying almost anything with the Lafite name. 2007 as a vintage hasn’t. Compared to every other vintage of Lafite this wine is trading at a significant discount. Parker has just upgraded the wine from his initial 90-93 at the time of En Primeur to 94. It is also a vintage he suggests is drinking young which potentially means the supply side become tighter a little sooner than others. Looking at the 1999 which scores one point higher, it is priced at £7,500.

Potential - £7,000

The wines are quoted In Bond lying in London City Bond and are subject to availability. Where prices are Subject we don’t have any stock, but estimate that to be the level we could provide the wine at. This is not a binding price and we would confirm a firm price on order.

E&OE