May Fine Wine News round-up

A Review of The Wine Trade Market and Media News - David King - 25^th May 2018

This month we have seen an acceleration in the number of Bordeaux en primeur release prices. Predictably, the reductions from the much better 2016 vintage are modest and the market has identified better value in recent (physical) vintages. Of course, there has been the odd exception, but let us see what the top flight chateaux do. I dare say they will aim to make the awaited announcement during, or shortly after, Vinexpo which is in Hong Kong.

In other news, the Port producers have decided 2016 has the necessary quality to declare it a ‘Vintage’ year. Port sales have generally been steady if unspectacular, so perhaps this will help inject some growth in this sector.

Decanter Magazine

Chris Mercer – 23/04/18 - Croft, Fonseca, Taylor’s, Sandeman join Port 2016 declarations

Sandeman join the Fladgate Partnership (Croft, Fonseca, Taylor) in declaring 2016 a Port vintage. Quinta do Noval and The Symington Family Estates (Cockburn, Dow, Graham & Warre) have already made the move which pretty much makes it a full house of all the major brands. "2016 is likely to be only the fourth fully declared vintage since 2000," Richard Mayson, Port expert, author and regional chair for Port and Madeira at the Decanter World Wine Awards, told Decanter.com in early April.

"As soon as the grapes arrived at our Quinta do Seixo winery, we knew this was the best we had seen since the last declaration in 2011," Luis Sottomayor, winemaker of Sandeman and Offley Ports, commented.

"The keynotes of 2016 are purity and refinement," said Fladgate’s MD, Adrian Bridge. But, he warned that below-average yields could tighten supplies. "The amount of 2016 Vintage Port offered will be relatively restricted and allocations will be tight," he added. Fladgate said that that 2016 Croft, Fonseca and Taylor’s would be available in most markets by autumn this year.

Richard Woodward (16/05/2018) - Bordeaux making way for Burgundy and whisky at Sotheby’s...

Bordeaux’s share of sales has fallen to a record low at Sotheby’s as consumers, especially in Hong Kong, have switched to Burgundy and whisky, shows a new report from the auction house.

Sotheby’s started selling wine in 1970 and for the first time Bordeaux accounted for less than 50% of auction and retail sales in 2017. Bordeaux accounted for just 40% and follows an already shocking figure of 52% in 2016.

Sales in Asia have been strong for Burgundy (39%), but whisky has been the big mover in the global auction scene, at least for Sotheby’s, where it took a 6% share of revenues in the fine wine and spirits division, up from 1% in 2016. This increase was led by The Macallan single malt, which recorded $2.6m in sales, up 4,000% on the year and making it number 7 on the top 10 producers' list.

Ellie Douglas – 23/05/18 - Brexit warning from the Comité Champagne

The head of Comité Champagne has warned that houses and growers could feel the effects of a 'difficult 10 years' for the UK economy, but that markets elsewhere are currently making up for weaker sales in the country. In 2017, Champagne shipments to the UK fell by 11%, whilst exports to non-EU countries grew, particularly for Australia, Japan and the US. The Comité Champagne had previously said that weaker UK demand was likely due to the ‘Brexit effect.’ "The UK dropped over 10%, which is because of the currency problems," Jean-Marie Barillère, co-president of the Comité Champagne, told Decanter.com at the London Wine Fair this week. The UK remains the biggest export market for Champagne in volume terms, although the US is now ahead in terms of value.

Winesearcher.com

Natalie Sellers – 18/05/18 - Think you know Napa's most sought-after wines? Actually, you probably do.

It’s that time of year again, when we round up the 'who's who?' of the wine world. And for this popularity contest, where else would we start but Napa? If you go to the Napa County or Napa Valley region pages on Wine-Searcher.com and scroll down, you’ll see the 'Most Popular' wines based on search frequency. They are updated monthly so might change occasionally, but you can fully expect to see the usual suspects – just think through your California cult wines and you're pretty much there.

The Wine-Searcher.com Top Ten:

1. Opus One
2. Screaming Eagle Cabernet Sauvignon
3. Dominus Estate, Christian Moueix
4. Caymus Vineyards Cabernet Sauvignon
5. Joseph Phelps Vineyards Insignia
6. Harlan Eastate
7. Caymus Vineyards Special Selection Cabernet Sauvignon
8. Scarecrow Cabernet Sauvignon
9. Silver Oak Cellars Cabernet Sauvignon
10. Shafer Vineyards Hillside Select Cabernet Sauvignon (Stags Leap District)

Wine Spectator

2017 Futures Preview: Do American Consumers Want Bordeaux’s Latest Vintage Yet?

Prices may be dropping, but with three good vintages already on the market there may not be buyers for now. There is about a 20 percent drop on their 2016 release prices. American retailers who traveled to the region to taste barrel samples were happy: “Good trend here. We need to send the message of adaptability to the market in vintages like 2017," Chris Adams, CEO of Sherry-Lehmann in New York, told Wine Spectator. But there was a catch. "There hasn’t been much interest for the vintage," admitted Adams.

Barbara Hermann, wine director for Binny's Beverage Depot in Illinois, agreed: “I think there will be zero interest in the 2017 vintage,” she said. Sentiments echoed on the West Coast: "The public's buying interest in EP [en primeurs] 2017 is almost non-existent. The lowest in my 30 years of selling EP," said Ralph Sands, Bordeaux buyer and senior wine specialist at K&L Wine Merchants in California. “The [price] decreases make good common sense, but I don't feel that it will change any demand for the vintage pre-arrival.”

If Palmer and Valandraud are any indication, the 2017 pricing simply won't be low enough to entice consumers for a vintage that doesn’t match the quality of the previous two, when other vintages available on the market cost less.

Australian Winemakers Are Thrilled with the 2018 Harvest...

Quantity down, quality up in Barossa and McLaren Vale

Torbreck – Chief winemaker Ian Hongell described it this way: "Harvest was late, flavors came on very slowly and the dry, mild conditions allowed fruit to ripen slowly. We were able to hang safely without the risk of weather. It was pretty ideal."

Two Hands – For Michael Twelftree of Two Hands, irrigation was necessary. "This increased berry size and extended veraison, as warm nights, especially in the Barossa, did not give any respite." He adds that he believes 2018 will rival 2016 and 2010, with Grenache and McLaren Vale Shiraz the standouts in his lineup.

A balanced year out West

Leeuwin – Senior winemaker Tim Lovett said they harvested their white grapes before a rain spell arrived in the middle of March: "This topped up the soil moisture levels for the reds, without the usual requirements of irrigation."

Domaine Naturaliste – Winemaker Bruce Dukes commented: "A special feature of this season was its extremely gentle nature, without any heat spikes." He believes that protected the aromatics in the resulting wines.

Cool in Victoria and Hunter Valley

In Victoria's Yarra Valley, vintners report a significant amount of rain during the growing season: "That replenished groundwater and helped the vines maintain good, healthy canopies," reported Steve Flamsteed of Sexton.

Matt Fowles of Fowles Wine in the Strathbogie Ranges reported dry and cool weather: "It was noticeably cool this year. Since late February I left the house every single day with a jumper or jacket on. We are a cool-climate region for sure, but this is still quite unusual." But he's not complaining, "Cooler weather led to excellent acid retention," he said.

To the northeast in Hunter Valley, Iain Riggs, chief winemaker at Brokenwood, called it a 'stress-free' harvest: "We joked that 2014 red wines in the Hunter Valley were 11 out of 10. I think that some individual vineyards from 2017 and 2108 will be better than those from 2014."

Bloomberg

Guy Collins – 19/05/18 Bordeaux 2017 - Wine Prices Generally Lower Than Previous Year

Bordeaux vintners releasing their 2017 wines over the past week broadly followed the general pattern of price reductions relative to the more consistent 2016 vintage, even if some estates opted to hold levels stable.

Several top estates have yet to set prices, gauging the response of international buyers to the presentation of the vintage in Bordeaux three weeks ago. The “en primeur” futures system, by which wine is sold to merchants and customers while still maturing in barrels, has been under some pressure in recent years due to volatile prices and a run of mediocre or poor vintages between 2011 and 2013. Yet market sentiment has improved with better vintages since 2014, and most growers still say the system works well in focusing the global wine trade on Bordeaux during the peak sales season.

David King Says: "The full picture of this campaign has yet to be revealed. Let’s wait for the first growths to announce their prices. From a UK perspective the en primeur market for this vintage has been lukewarm, due in part to the weak pound. There have been a few successes such as Beychevelle (they escaped frost damage) which sold out almost instantly according to Liv-ex. The Wine Spectator (above) indicates little interest from the US retailers. I think the market feel this is a vintage to come back to once in the bottle as there are other better value wines available physically."

Liv-ex Insights May 2018

02/05/18 - Neal Martin’s Bordeaux 2017 report published

Martin calls the vintage: “good to very good”. Despite not coming close to 2015 or 2016 in most cases, he says that, “some proprietors talked of a ‘2014-plus’ which is pretty fair.” He adds: “In banal terms, I like this vintage. I am not saying it is the best, but they were mostly a pleasure to taste and fascinating to learn about.” Martin’s top red wines from the vintage are Lafleur (“an awesome 2017”), Lafite Rothschild (“classic from start to finish”) and Eglise Clinet (“gets better and better as it opens in the glass”). Each received 95-97 points. Two Sauternes, Yquem and Doisy-Daene, received equally high scores.

On the market, Martin suggests that releases fall into two camps: those that are priced to sell through to the end customer – that the trade can get behind – and those that are priced to move no further through the supply chain than the negociants’ holdings. He comments: “I am privy to merchants’ actual sales to consumers and it is black and white, successful or disastrous, often hundreds of cases or zero … There is no such thing as a vintage that cannot sell. It just means the price is wrong for consumers”.

Antonio Galloni is one of the very few major critics to strongly favour one side of the Gironde this year. He suggests that 2017 is: “very clearly a Right Bank vintage”. Despite many vineyards being devastated by frost, the best sites were spared and a number of the wines are: “positively thrilling” according to the critic. Like his colleague, Neal Martin, Galloni compares 2017 to 2014, commenting that, “stylistically, the 2017s are reminiscent of the 2014s, but with a bit more flesh”.

Jane Anson calls the vintage a: “bronze to silver year…with some clear pockets of gold,” suggesting that it is a year: “where technical details count,” and collectors should not buy blind. Mission Haut Brion Blanc, which Anson calls: “an absolute testament to what white Bordeaux can achieve,” is one of her two top-scoring wines from the vintage with 98-100 points. Its stablemate Haut Brion Blanc achieved 98 points. Both were: “incredibly accomplished, sit-up-and-take-notice whites this year”, according to Anson’s notes. Pavillon Blanc (Chateau Margaux) also achieved 98-100 points thanks in part to its “great aromatics and powerful flavours”. Lafite Rothschild was Anson’s red wine of the vintage with 98 points. She called it “effortless but questioning, and most importantly it feels like a Lafite – for me this is a contender for red wine of the vintage.”

Liv-Ex Market Report for April

April siesta

April was a slower month for trade, falling both in volume and value. However average transaction value was up 5%. The average spread remains quite wide at 4.4% which is 1% higher than April 2017 and indicates a diminished appetite in the market.

Parker's last 100

The most traded wine in April was Cheval Blanc 1998. Parker came out of retirement for one day and scored this wine 100 points in the Hedonists Gazette. In terms of overall trade, 2015 was the most active vintage mostly because it recently became physically available.

Minor regions flourish

Bordeaux market share falls from 63.8% to 60.5% due to slower First Growth activity. Burgundy’s share of trade fell for second month in a row. Italy, Champagne, USA all made gains. 9.1% 7.7% & 5.8% respectively. The new releases of Dom Perignon 209 and Screaming Eagle 2015 were the most active wines.

All rise

All of Liv-ex’s indices rose in April, reversing March’s losses. Toward the end of April a stronger euro helped the Fine Wine 50 up 0.4%. The Liv-ex 100 rose for the first time in 5 months. Liv-ex 1000 – the broadest measure of the market – was again the best performer up 0.8%.

Liv-ex Indices

Liv-ex Fine Wine 50 +0.4%

Liv-ex Fine Wine 100 +0.3%

Liv-ex Bordeaux 500 +0.5%

Liv-ex Fine Wine 1000 +0.8%

Liv-ex Fine Wine Investibles +0.3%