February fine wine news round-up

David King – 27th February 2018

Here in the UK there seems no let up in the winter weather as we endure an icy Siberian wind known as 'The Beast from The East'! We look forward to spring with some impatience.

One of the things which helps us to look ahead is arranging our annual trip to Bordeaux after Easter, although the En Primeur 2017s might not bode well for greatness it is still an interesting exercise in finding value, early to mid-term drinking wines and bringing some of our customers in contact with wines normally outside of their budget. Watch this space. In the meantime...

Decanter Magazine

Sylvia Wu (February 5th) editor of DecanterChina.com, reports on the Chinese government's publication of 2017 wine import figures. This is largely to do with the higher volume productions. The big surprise is Georgia entering the race in 9th place! This is thanks to a free trade agreement signed back in May 2017 and waiving the 14% import tariff.

Some concerns exist about the amount of unsold wine in storage and importers continuing to place significant orders. If bulk and bottled wine were added together then 745 million litres of wine worth USD 2.8 billion entered China during 2017. Up on 2016 by 16.9% in volume and by 18% up on value.

China’s other free trade agreements are starting to gain traction. The steady increase in imports from Australia and Chile by both volume and value are directly correlated to the graded reduction in import tariffs. France continues to be top of the table, with the US premium wines doing well and boosting them to 6th place.

The increase in Australian wine imports is not lost on the boost to Penfolds owner Treasury Wine Estates. They have taken full advantage of the shift in demand thanks to the trade agreement, and the impact this has had on their premium brand Penfolds has not gone unnoticed by the rest of the world’s wine trade.

Jane Anson (1st February) has a look at the financial cost to the Bordeaux region as a result of the horrendous late frost decimating the 2017 vintage. For the region it is estimated that the financial loss is 1.6 billion Euros. Looking at some estates in the worst hit areas, specialist pruners are being employed to nurse the vines back to condition in time for the 2018 growth cycle. Yes, the damage is that bad.

Several chateaux are playing the longer game by not making any wine from the 2017 vintage. These include Ch. Fieuzal (Pessac-Leognan) and Ch. Climens (Barsac) who may make their second wine but not their primary marques. This is preserving their brands’ standing on a quality level.

On the right bank we may be seeing some strange blends. Higher vineyards may have escaped the worst of the frosts but the proportion of usable grapes for each variety will dictate the style of wine produced. Probably not a typical style for the region I suggest, with proportionally greater amounts of secondary and tertiary grape varieties taking a lead.

Chateau Cos d’Estournel are launching a new wine call COS100. Made exclusively from a parcel of 100-year-old Merlot vines planted in 1915. It is ‘paying tribute’ to the women of who kept the vineyards tended whilst the men were fighting on the Western Front. The 2015 vintage will only be available in large format and on a very limited release and produces from two barrels; there are 100 double magnums (3 litres) and 10 balthazars (12 litres).

Yohan Castaing (1st February) writes about the French billionaire Jean-Pierre Savare buying St. Emilion Grand Cru, Chateau Franc-Mayne. Savare (81) is chairman of Oberthur Fiduciaire, one of the largest printers of security documents and bank notes. Already an investor in the cru bourgeois estate Chateau Paloumey, its general manager Martine Cazeneuve will also manage Franc-Mayne.

It is understood there will be an extensive program of replanting so it may be a few years before we see the full results of these changes. I’ve had a number of vintages of this wine in the past and recall the wine being well-made; fruity, forward and excellent value. All the facilities have been purchased including a well-established bed and breakfast business. It is also reassuring that French investors are still interested in wine production. Many of my posts from 2017 would indicate otherwise.

Liv-ex Insights (5th February)

We get a heads-up on Jane Anson and Jeb Dunnuck’s review on 2015 Bordeaux from the bottle and have come up with a list (not identical) of perfect scores. I dare say more will follow.

Anson – Margaux, Figeac, Eglise Clinet, Lafleur, Petrus

Dunnuck – Margaux, Figeac, Haut Brion, Ausone, Mondotte

Château Margaux 2015 has been creating a stir not just for the quality of the wine but also the commemorative bottle. The impact on the market is similar to that of the millennium bottling from Mouton Rothschild, however it is also a measure of the high regard in which Paul Pontallier was held and the sadness of his passing.

Figeac’s 2015 has been consistently praised, but its low market price relative to the other maximum scorers is notable. I suspect this is due to the patchy performance from this chateau for many years. I am pleased to say that from 2008 (and for the first time in decades) we have seen a run of scores on e.RobertParker.com running at a minimum of 90 points. This will help with the standing of Figeac’s brand for sure.

Live-ex Market report

The market appeared confident at the start of the year, though most were distracted by the latest wines on offer from Burgundy (2016 en primeur). Bordeaux continued to take a back seat with just 51.1% market share by value (lowest ever recorded). Areas boosted by this slump in Bordeaux performance being Burgundy 15.9%, Italy 15.1% and Rhone 7%.

The trade will hope the passing of Chinese New Year will make way for a return of activity from that region by March. The market share figure above is barely reflected in the major indices, which show little significant movement...