Producer Spotlight - Fratelli Alessandria

by Wine Owners

Posted on 2021-06-17


Luke MacWilliam, June 2021

It is well documented that Piedmont is attracting more attention than ever before and activity in the secondary market has become increasingly frequent. 

Comparisons can be drawn between Burgundy and Piedmont in terms of quality and scale (no politically motivated 1855 classification here). Your regional Nebbiolo or Barbera (Langhe, d’Alba etc) equate to a Bourgogne rouge, your straight Barolo to a village cru and then your single vineyards to Premier Cru Burgundy. The most lauded single vineyards from the best producers can mix it with the Grand Cru big boys!  Pay particular attention to Cannubi, Bussia, Brunate and Rocche dell’Annunziata and Monvigliero.

One producer I’d like to place under our spotlight is Fratelli Alessandria. A 150 year old estate, Fratellis Alessandria  has 30 acres to its name, and produce a portfolio of wines from “simple” Langhe Nebbiolo right up the Premier and Grand cru equivalents in San Lorenzo, Gramolere and Monvigliero.

Wine Owners


Last January - following a trip to Piedmont our very own Miles Davis noted the following:

Wine OwnersThe same week, I attended a Monvigliero focused Barolo tasting at 67 Pall Mall and was blown away by the ethereal elegance, approachability and precision of Fratelli Alessandra’s wines (Diego Morra, Roset and Sordi also shone, but I’ll leave those for another day). Don't mistake “youthful approachability” as “lack of ageability” - it’s still Nebbiolo we are talking about - the structure is there to go 20-30 years. The killer combination of approachability, ageability and affordability is exactly why any self-respecting wine lover should buy into them, you can enjoy the evolution for years to come without getting involved in bonkers Burgundy money (yet). 

Fratelli Alessandria are moving forwards, and as demand increases for quality Barolo so are prices of the top crus and top vintages (investment anyone?) but on relative value terms they are still an absolute steal. 

Take their regular Barolo 2016. £175 + comms IB per 6 and earning a whopping 96pts from Monica Larner. Could you imagine such a write up for a village burgundy?

'The 2016 Barolo opens to tight elegance and a nervous quality that pits red fruit energy over lean fruit weight. The results are graceful, lithe, fragile and lasting. The wine's aromas unfolded slowly and seductively, revealing wild berry, cassis, bitter cherry, toasted almond and blue flower. This is a dreamy wine that promises more beauty as it continues its bottle evolution. An ample 20,000 bottles were produced. This is one of the very best values found anywhere in Barolo.' 96pts, Monica Larner, Wine Advocate

It doesn’t stop there, moving up to Gramolere 2013 (premier cru equivalent) at £215 + comms IB per 6.

'This is a wine of beauty and intensity. The Gramolere cru in Monforte d'Alba is distinguished by the focused and sharp nature of its aromas. The 2013 Barolo Gramolere is a textbook expression of the cru, with deeply delineated aromas of wild berry, rose hip, rosemary sprig and licorice. The mouthfeel is silky and smooth with good structure and firmness to add to that sense of purity and sharpness. The wine's profound depth is what stands out most.' 94pts, Monica Larner, Wine Advocate

And finally to Monvigliero:

'The 2010 Barolo Monvigliero shows a pretty degree of color salutation with brilliant garnet and ruby highlights. The bouquet is broad and wide-sweeping with a healthy succession of red berry, sweet almond, stone fruit, medicinal herb and crushed mineral. Fruit thrives from 220 to 280 meters above sea level with full southern exposures facing La Morra. They own 1.5 hectares of the 20-hectare single vineyard. Fratelli Alessandria keeps its Barolo in oak casks for three years, instead of two. The wine shows light spice notes with distant touches of dark fruit. The tannins are silky and long. The wine is amazingly expressive now, but promises great aging potential. Drink: 2017-2033.' 95ptsMonica Larner, Wine Advocate

From a relative value perspective, scores are high across the board. 2010 and 13 are the vintages that have begun to move upwards in price, 2016 has rocketed too. Value can be found in 11, 12, 14 and 15 where quality remains consistent.


Wine OwnersP.S For the adventurous out there - seek out their Pelaverga Speziale for something utterly different. Pelaverga is a local variety made almost exclusively around Verduno. My notes start with “Wow. Weird.  So floral….not like anything I’ve tasted before” and my attention was grabbed immediately.

A historic producer who embraces tradition and local identity, but also strives to improve and improve in a changing world ticks all the boxes for me. 


Pink Champagne - misunderstood?

by Wine Owners

Posted on 2021-06-10


Miles Davis, 10th June 2021

Whilst writing the offer for Bollinger Grand Année Rosé 2012 (still some available here!) this week, I started thinking about pink fizz in a different context. Before now, I had never stopped to think about it seriously, it had always been something for immediate, and possibly immature, pleasure. I have never taken it seriously or given it the respect it deserves – more fool me!

 

Harking back, my first introduction as a rather inexperienced taster (at circa 15 years of age) was when an older sibling brought back a couple of bottles of Laurent Perrier NV Rosé from France for a Christmas treat. I remember, very clearly, being absolutely blown away, and that was just the concept of it – champagne that is pink, surely not!? Suffice to say it was heartily enjoyed but then a few Christmases later, rather easily surpassed, by another Champagne, a white this time but by the name of Dom Perignon. Obviously comparisons between the two are not fair but in many ways the damage was done. I was aware there was a Dom Perignon Rosé but that was another chunk up on an already expensive price tag, which was a step too far. Instead of considering rosés, I became used to buying special cuvées and vintage white champagne for the big occasion, and the odd Sunday lunch! Ironically I believe I was thinking that rosés were just not as serious or interesting as their white counterparts, yet when you start looking at the various critics and ratings between the different offerings from the same stables it is clear that this is not the case at all.



Vintage rosés are not produced as often as whites and are often more ‘vinous’ or ‘gastronomique’. They are made either by either skin contact through maceration from the Pinot Noir and Pinot Meunier grape varieties or by blending typically 5-20% of red wine with the still white wine and before the 2nd fermentation in bottle. Bollinger’s Grand Année Rosé, for example, is made using 5% of red wine derived from their La Cote Aux Enfants vineyard.

When I was managing wine investment funds, a few vintages of white Krug and Dom Perignon found their way into the portfolio but we did not even consider rosés at the time. Now the wider wine market is growing ever broader and more tradeable, it would be foolish to ignore them. Some of the smarter money is already in and demand is growing. The best wines can age gracefully for a long, long time and the prices for top Champagnes (of both colours) from top producers and vintages only travel in one direction.

Some of the producers who produce top quality rosé Champagnes:

Krug

Dom Perignon

Bollinger

Billecart-Salmon Philipponat (Clos des Goisses)

Taittinger (Comtes de Champagne)

Ruinart


Read around, inform your choices, act decisively

by Wine Owners

Posted on 2021-03-24


Luke MacWilliam, March 2021

When buying wine with half (or even a full) eye on investment, there is a sea of information and misinformation out there. Often authors have an agenda or a producer to push, they want you to buy the wine they are selling. I recently had a call from an importer who was telling me how “Producer X” (that they imported) is going to be a great investment wine and would we want to promote that “fact” to our members. The lines between marketing, and genuine insight and opinion can become blurred.

I politely declined, explaining that Wine Owners is here to facilitate trading between collectors and that when we do publish opinions regarding the investment market, it is based on a combination of data, observations and personal experience.

How you then choose to use this information is up to you; my number one piece of advice is to read broadly. Do not exclusively read what we put out or content from other trade members and don't solely listen to your account manager who has a target to hit. Combine all three and when you see things repeated by people with different agendas (or no agenda) there may just be something to it.

For example, back in January, Wine Owners’ very own Miles Davis wrote the following unassuming paragraph in his annual investment report.

“The Rhone is solid but unexciting yet provides immense drinking pleasure at a relatively cheap price point. Back on solid form, I think (Jaboulet) Hermitage La Chapelle ’09 and ’10s are under-priced (the ’78 remains the best wine I have ever drunk).” Miles Davis/Wine Owners 2020 Wine Investment Report and a look ahead at 2021

Totally independently, Bordeaux Index released their own report with a similarly passive but very honest insight on Rhone:

“Rhone: If Piedmont can be frustrating from the stop-start nature of investment potential delivering results, Rhone is perhaps tougher still. Rising En Primeur prices have not helped as they tend to snuff out broader interest in the region rather than fan the flames. We see the potential this year as being in the Northern Rhone primarily and focused more on the classical names: Guigal, Chave, Jaboulet.” Bordeaux Index’s 2020 Market Review & 2021 Outlook

Two unassuming and easily overlooked comments resonated with me. I read both within a few days and I love the wines of Northern Rhone as a consumer. I checked out the trading platform, there was an offer for Jaboulet Hermitage 2010, and a bid, that's another tick in the box, the wine is liquid, others want it too.

Then, as I was cleaning up my inbox I spotted the offer. A regular offer from a trade client that I often overlook, but there it was, jumping out at me like a jack-in-a-box. Jaboulet Hermitage 2010 at 10% discount to market.

That was it, I was not missing out on this, and I didn’t (Miles might have, despite me telling him immediately…sorry Miles!).

It’s unlikely that I would have bought this as a modest investment punt based on just a single one of those events. I might have bought some to drink based on Miles’ comment about the ‘78 and other reviews, but all 3 events together added up and it made sense. I have no regrets (except maybe I should have bought more!). Previously trading at just over £600 per 6 the last trade on Wine Owners was £715, and that still feels like a good buy... I’ll be holding mine for a little while longer (unless Miles bids me for one!).


How can cellar management software help you unlock your collection?

by Wine Owners

Posted on 2021-03-17


For just a moment, imagine no longer having to depend on a tedious cellar spreadsheet and instead being able to view your entire wine collection all in one place in an interactive way, bringing your portfolio to life?

Spreadsheets can be dull and relentless at the best of times. By consolidating piles of paper, spreadsheets, emails and invoices all into a well organised online portfolio, you can pull other valuable pieces of information together that lend a new dimension of enjoyment to organising your collection. Contrary to what you may think, managing your collection end to end, ensuring that all your wine acquisitions are accounted for, can be a fun process!

Cellar management software enables you to achieve this in 3 steps:

Step 1) Getting your collection organised.

Figuring out what wine you have may sound simple but it often isn’t. Wines are sourced from multiple merchants and stored in numerous locations. Although the majority of merchants are organised, not all can be relied on to remind you of your purchases.

An online cellar management platform enables you to track your entire wine collection in one place, both your professionally stored wines and those at home. Wine Owners’ home cellar functionality enables you to track the exact location of each bottle down to hole in a bottle rack, so that no bottle will be forgotten and ensures wines will be consumed within their drinking window (a window that you can edit according to taste).


Wine Owners - Organising-my-collection


Having been built by a fellow wine enthusiast, all functionality has been developed taking every part of the wine journey into consideration. All important information can be recorded: the wine name, vintage, format, where it was bought, purchase price, condition, quantity or a shipment date if it is incoming stock.

When you join, you have instant access to a pool of valuable information including drinking dates, critic stores, producer profiles and up to date pricing information and more, enough to keep any wine collector happy. Optimised for mobile and tablet access, you can access your collection wherever you are, whether on public transport, at work or abroad.

2) Rediscovering your collection.

Now that you have catalogued your portfolio and you know what you have and where it is, Wine Owners can help you make well-informed decisions around a) which wines to drink next and b) what you have too much of thanks to overzealous purchasing or a very good relationship with your account manager!

Lots of fun is to be had exploring the integrated analytical tools which include sophisticated pricing graphs and relative value score analysis. You can also review your portfolio by a range of filters, view values per category, total value and category performance over different periods of time. Latest perspectives of the critics are also helpful to appreciate the quality of the wines you have bought, and you can add your own tasting notes as well.

Wine Owners - Percentage breakdown per country


3) Shaping your collection.

Once you’re clear on your inventory, it’s time to take key decisions around your collection. You may wish to sell surplus stock back to the merchant who initially sold you the wine or, if they refuse, you’re only a few clicks from being able to offer your wine for sale in a vibrant secondary market, with trading desk experts available to help.

An easy to navigate, comprehensive digital overview makes it a lot easier to make decisions around which wines in your collection you’ll want to keep and the ones that are ballast. You’ll also be less likely to miss a drinking window. As a wine collector, the satisfaction of enjoying that glass of wine that has appreciated 10-fold since the date of purchase cannot be understated!

For those members who want to buy and sell, it’s super simple.

As it is integrated with a peer-to-peer trading exchange, you are joining a vibrant ecosystem of like-minded collectors as soon as you upload your collection.

In addition, by making purchases through the platform, every part of the settlement process is looked after by our logistics team.

If you are ready to upgrade your cellar management experience, we’re here to help. You can start by creating a free account HERE to organise, value and monitor price changes on up to 30 wines. If you have over 30 wines, our premium plans offer all the tools you will ever need to easily and successfully manage your collection.



Fine Wine Investment Report 2020 and a look ahead at 2021

by Wine Owners

Posted on 2021-03-04


Miles Davis, March 2021

In early December I wrote the following:

‘Traditional assets continue to bounce around, no doubt causing palpitations and stress. More than ever, this year has been about timing in the capital markets, and if you got that wrong, the chances are you got it expensively wrong. Not so for vino! Unlike after the global financial crisis, the wine market has held its nerve, merchants did not mark down prices and the market has been stable. Investors are about, and even Bordeaux prices feel like they are firming up. Collectible assets are in vogue and it is easy to see why given these circumstances.’

Not too much has changed since then although there has been plenty more talk about inflation, with the UK’s November numbers coming through much higher than anticipated. This can be viewed as a positive. There has also been the small matter of a new American President. This, in itself, should not have a direct influence on the wine market (!?) but a $1.9 trillion stimulus package and a clear signal that money is going to keep being pumped into the system might be!

So, the macro factors are looking stable and the index performances from last year are also looking sensible. There is no massive ‘feel good factor’ about, which often brings about a more boom-and-bust style dynamic, so this is beginning to feel like an old-fashioned wine market, steady as she goes, nice little earner, thanks very much.

Bordeaux First Growths continue to be the fly in the ointment, underperforming all the other regions with +2.8%, save California with -2%, and generally Bordeaux’s market share continues to slide and is now less than 40% (95% ten years ago!). Pricing from a few of the Chateaux meant the 2019 en primeur campaign awoke the old beast for a moment but otherwise, the top end wine market of Bordeaux continues to struggle. Interestingly, the much broader Bordeaux 750 fared far better with a nearly 10% rise.

Italy was the star of the wine market show in 2020, with Tuscany posting nearly 20% gains and Piedmont 6.4%, followed by Champagne with 12.7%. It is more than coincidence that these markets have been exempt from US tariffs in recent times. Italy has long lived in the shadows of France in terms of reputation and price in the fine wine world, but the gap is still vast, certainly pricewise. The super recognizable names of the Super Tuscans, which have recently benefited from the mega vintages of ’15 and ’16, consistently receive incredibly high scores.

The 2016 Sassicaia (100 points WA, 97 VM), one of the most expensive Sassicaias of all time, is £230 a bottle, Lafite Rothschild 2016 (99 WA, 97 VM) is £530 a bottle, and production levels are roughly twice as much at Lafite. Maybe this is not a fair comparison but given the price differential and the tariffs in place, I know which one I would be backing:

Wine Owners - Relative Value Analysis

This is a short excerpt from Miles Davis' 'Wine Owners 2020 Wine Investment Report and a look ahead at 2021'. CLICK HERE to read the full report.



What is in a label?

by Wine Owners

Posted on 2020-12-16


Luke Macwilliam, December 2020

At the beginning of December, Mouton Rothschild announced that Chinese artist Xu Bing had been chosen to design the latest installment in their famous long running series. The label itself features the words Mouton Rothschild styled to resemble Chinese characters. Visually it’s attractive enough, it’s certainly quite clever and effective in the way you are compelled to look beyond the characters and see the recognisable letters hidden in the design.

                                                                                                                      Mouton Rothschild 2008 - label


Predictably the price jumped around 12% after the announcement, Mouton Rothschild, Chinese artist, good vintage, it's a banker! Isn’t it?

The last time Mouton entrusted the honour of designing their label to a Chinese artist was a decade ago in 2010, on the release of the 2008 Vintage. Now the market was very different back then, and the Chinese market was the main driver of the wine market as it grew and grew despite the financial crisis of 2008. Upon announcing the label design, prices skyrocketed.

The excitement was short lived, however. The Chinese bubble burst in the summer of 2011 and prices came tumbling down.


Mouton vs other wines


If we compare the big five from 2008 (nb. Lafite also included a Chinese Symbol on their 2008 label), you can clearly see the over inflation the hype caused compared to the other 1st growths. Those who bought Mouton and Lafite 2008 between Nov 2010 and June 2012 will have been licking their wounds for some time, destined to never recoup their losses. If you bought in 2014 however, you will have seen Mouton 2008 perform in a much more sensible manner.


Mouton-last 5 years


The last 5 years performance is a much healthier representation of the Bordeaux market in general, steady growth between 2015-2018, a flat 2018-19 (read THIS market report from Sept 2019 for the explanation) and finally strong resilience in a really difficult 2020 for markets of any kind. Has Mouton 2008 performed in this way because of it’s label or because it’s a top wine?

All of the 1st growths have tracked steadily, but more recently, Mouton and Lafite 2008 have begun to diverge in price once more showing that continued demand for these special labels does still exist.

In 20 years time when supplies of these vintages become more scarce, will Chinese demand for a label outrun the global demand for the greatest vintages (2010, 2016 etc)? That is the million dollar question.

Let’s look at the example of Mouton 2000, we have a golden combination of a special wine from a special vintage in a special bottle (not just for the Chinese Market, but for the world). The result? Steady increase in value over time as demand remains high and stocks steadily run down. The troubles of 2011 did not affect Mouton 2000 in the way they did affect Lafite and Mouton 2008.


Mouton 2000


If you buy into a Chinese label, you are buying into the notion that China is, and will continue to be the main driver of the top end of the fine wine market. If you buy into a wine, then the whole world will potentially be after what you have.

Wine is a long game, and snap reactionary decisions based on hype come with great risk. If you are looking to make a quick buck then you are likely to come unstuck. Call me boring, but I find trends more compelling than one-off anomalies. There is a place for special editions in your portfolio, they do tend perform well over time, so long as the wine is up to the task as well.

Oh, and if you fancy picking up a case of Mouton 2008 BID or BUY here.


                                                                                                                               Mouton Rothschild 2008 - label


Luke MacWilliam, December 2020



Banner Image: http://www.domainedechevalier.com


Italian wines - ripe for investment

by Wine Owners

Posted on 2019-11-15


This article is a republished version of one that appeared earlier in the year. Why? Because there’s another reason to sing about the virtues of Italian wines; the Trump administration have recently introduced a 25% tariff on all wines from France, Germany and Spain below a 14.1% alcohol level (Champagne is exempt). This has caused a loss in confidence in the French heavyweights and Bordeaux and Burgundy prices are on the slide. Italy’s cheese industry was the one selected to take the hit in this particular trade war, leaving their wine sector sitting pretty. We’ve been bullish on Italy all year, this adds further grist to the mill.

The Italians are not only the largest wine producing country in the world, they have been making wine for over four thousand years and cultivate over two thousand grape varieties on a multitude of different soils in twenty different regions! They are not bad at food either. Their climate seems to suit most of the finer things in life.

Italian wine being recommended is nothing new, but having it recommended as a collectable asset bearing an investment case is another matter. Ten years or so ago, a few canny collectors realised some of the ‘Super Tuscans’ (red wines typically made of a Bordeaux blend in Tuscany) such as Masseto, Ornellaia, Sassicaia (recent blog) and Solaia were ripe for decent returns. Traditionalists were a bit put out by these glossy new pretenders turning up on the Italian wine scene with their fancy French grape varieties and lots of marketing but it is fair to say they have helped the overall attention given to Italy and, as a result, the ‘Bs’ are blossoming – namely, Barolo, Barbaresco and, to a lesser extent, Brunello.

Wines from the best producers of Italy’s most venerable regions have been collected by the cognoscenti for years but now their appeal is becoming more widespread. The problems of Bordeaux, following an explosive China-driven period, have been well documented in the last decade and in its place, the smaller top-quality regions have been profiting. The indices for the last five years show Burgundy +120%, California +79%, Piedmont +76%, Tuscany +62% and First Growth Bordeaux +47%, the broad base WO 150 is +55% (all nice numbers!).



The reason for Burgundy’s performance is that old tried and tested wine world fundamental of genuine demand outstripping supply - who knew!? I think it is fair to say prices in Burgundy have been coming off the top for nearly a year now. Californian prices were a little more ‘forced’ and are in retreat now, but both these regions produce tiny quantities in comparison to the number of people looking to access these markets and gain exposure. Very widely held Bordeaux has been steady but is beginning to slide in this difficult environment. Piedmont and Tuscany are holding firm to gently positive.

The complex nature of Burgundy, California and Piedmont with their tiny (compared to Bordeaux) vineyards is attractive. This adds to the aesthetics, spurring on both the well-seasoned and newcomers alike, keen to learn more and invest time and money accordingly. More of the written word is more easily accessible to interested folk, and with platforms such as Wine Owners to trade on, the visibility of the product and the liquidity of the commodity has increased.

Grand Nebbiolo from Piedmont is yet to hit the big time, apart from a special few producers, but the word is spreading and there are ‘new’ names coming through; dedicated collectors and the inquisitive are homing in. It is a Burgundian-like network of vineyards, producers, families and reputations and you need to know what you are doing. Famous names like Conterno, for example, have six listings in my favourite reference book: Aldo, Diego, Fantino, Franco, Giacomo (the big one) and Paolo.


Some of the bigger names like Giacomo Conterno famed for his Montfortino vineyard, Giuseppe Rinaldi, Bartolo Mascarello, Bruno Giacosa and Gaja are already highly sought after superstars, with prices to match, but there are a host of others with reputations and demand beginning to swell; Brovia, Cappellano, Fratelli Alessandria, Sandrone, Voerzio and Vietti to name a few.

The ‘Super Tuscans’ of Bolgheri are much simpler to understand, like Bordeaux versus Burgundy, and are produced in larger numbers. The names mentioned earlier are virtually household names (in wine terms!), are less exciting right now overall but tend to deliver very steady returns.

Brunello di Montalcino, made from Sangiovese, is also comparatively easy to piece together in relation to Piedmont. Biondi Santi, Poggio di Sotto, Salvioni and Soldera are the big names with the fancy price tags. The secondary market for Brunello has not yet developed so, for now at least, it is a case of keeping a watchful eye although Soldera has been added to several portfolios already. There are many other less well-known names that have been attracting huge plaudits from the top critics that remain under the radar. This group haven’t matured into the darlings of the market, so far, and back vintages are cheap and well worth consideration.

There have been some excellent vintages in Italy in the last decade or so, attracting fantastic media coverage and now the battle-weary Bordeaux buyers and profit takers of Burgundy are moving in. Another reason for favouring Italian wines in the current climate is that the U.S. and Germany are the biggest export markets, so the market unlikely to be affected by any potential fallout from Brexit.

Most of all, however, these wines are barely scratching the Asian surface as yet and we all know what happens when that changes!

Miles Davis 15th November 2019



Wine Market Investment Report August 2019

by Wine Owners

Posted on 2019-09-09


August was much like July with summer holidays being the prime concern for most people. The wider market has felt quiet, maybe because the Bordeaux market is still largely flat, but there are definitely pockets of excitement about and the broad-based Wine Owners Index was up 0.9%. Trade was brisk with Piedmont, Tuscany and Champagne dominating turnover at Wine Owners.

The solid, relative value investment case for the wines of Piedmont has created demand which, in turn, has led to us step up our sourcing efforts. Liquidity is tight, obviously one of the plus points in the investment case, but we have managed to unearth some lovely parcels, particularly some legendary Bartolo Mascarello vintages.

Sterling has remained weak due to the Brexit shenanigans, and this has finally translated into some positive moves for various wine indices. As we know, a weaker pound generally leads to increased demand in the sterling denominated secondary fine wine market, especially from U.S.$ based buyers. Little has come out of Asia, however, as continuing rhetoric surrounding the U.S./China trade wars rumble on and Hong Kong is still suffering from the most vocal political protests in its modern history. They (the people of Honk Kong) have even appealed to Mr. Trump to help!

The largest region within the wine market will always be Bordeaux and it is business in the wines of Bordeaux that is suffering the most from these continuing issues. Many of the other top wine regions are less affected by these global events and market conditions as the wines are less traded, and the supply and demand ratio in a different place. Bordeaux has been looking cheap versus its peers for some time now, and there’s a lot of bad news in the price but the stars need to start aligning. This can and will happen, but when is the big question!


Wine Market Investment Report July 2019

by Wine Owners

Posted on 2019-08-20


A brief and holiday interrupted report for activity in July

The wine market continues to hold its breath. Boris fulfils (what somehow now feels like) his destiny and moves into Number 10 and the pound plummets. It has since recovered a bit but even so, the wine market didn't flinch. As we know, a weaker pound generally leads to increased demand in the sterling denominated secondary fine wine market, especially from U.S.$ based buyers, but maybe not during the hot days of summer? Certainly not when the U.S./China trade wars rumble on, the rhetoric becoming ever stronger, and most definitely not when Hong Kong explodes into the most violent scenes of pro-democracy protest in its modern history. The Brexit backdrop adds to the confusion, so no wonder little happens.

The largest market within wine will always be Bordeaux and it is business in the wines of Bordeaux that is suffering the most from this continued malaise. Many of the other top wine regions are less affected by these global events and market conditions as the wines are more scarce, with the supply and demand ratio is in a different place. Bordeaux has been looking cheap versus its peers for some time now, but the stars need to start aligning. This can and will happen, but when is the big question!

Despite these almost stagnant overtones, trade has never been brisker with July setting a record level of turnover. Numbers of users, bids and offers forever grow. Collectors looking to trim positions have been well accommodated by others adding and reorganising their cellars, something we are seeing a lot more of.

Burgundy continues to look for its feet, Champagne and Super Tuscans gently hum along nicely, and we’ve seen a little demand for some of the new world too.

Here at Wine Owners, Barolo dominated trading in July. Many vintages of Bartolo Mascarello changed hands, also many Bruno Giacosas, Riservas and otherwise. Fratelli Alessandria becomes ever more popular, as does Luciano Sandrone. And there were some big-ticket trades in Monfortino and Ca d’Morissio.


Miles Davis, 20th August 2019
miles.davis@wineowners.com


The Wine Market Investment Report - June 2019

by Wine Owners

Posted on 2019-07-08


The highlight in June for the wine world was clearly the Daily Telegraph event ‘Wine; for profit or pleasure?’. A sell out crowd witnessed excellent talks from four leading experts from the wine world, including two of us from Wine Owners (Miles and Nick). Please contact us for a copy of the presentation.

Otherwise June was again tranquil with trade bobbing along just fine but with no particular surges or dips anywhere. Global stock markets enjoyed a rise after Messrs. Trump and Xi found some accord but this doesn’t seem to have inspired the wine market as yet! Wine stock levels are healthy amongst Asian traders so not even a continuing depressed sterling is bringing about much marginal demand from that corner although most indices are in positive territory in June.

The Bordeaux en primeur campaign came to an end with an almighty whimper. En primeur gets under the skin of the wine trade and all involved spend far too much time talking, writing and moaning about it…yet even so, I shall continue! Within the wine market(s) it has represented very poor relative value for a decade, prices are just too high, yet merchants don’t dare turn their back on this once great provider. It was a great system for all involved, including the man on the street. Now only a very few wines ‘work’ each year (whereby they make sense to the supply chain and the end buyer). And now, to compound the problems of high prices, the Chateaux have decided to retain more and more of their own stock. How this comes to market, when and at what price will fuel debate but based on the evidence of the mighty Chateau Latour, the market may just turn its back. The feeling of stock overhang may easily outweigh the feeling of short supply and it’s not as if the world is going to go thirsty, there will always be alternative choices.

If only our Italian friends came together with a synchronised offering, we could have a proper old school primeur market again. All the market players would have to be involved at the same time, jostling for position, scrapping over every six pack and would still be able to sell at a price that would make everyone happy. The hype that the merchants used to create in Bordeaux primeur markets, that we are still hungover from, could be regenerated. We all miss the hype and the excitement which created such fear amongst the white-faced, panic-stricken collectors and consumers who couldn’t possibly stand even the faintest whiff of FOMO (fear of missing out). 

As it is, Italian releases come to market in no organised way and importers and merchants release when they feel like it. It’s all very Italian really but it does make buying easier. We have been acquiring some 2015 Barolo new releases from Fratelli Alessandria, whose reputation is markedly on the up. Prices are very reasonable for these high scoring wines, ranging from c.£35 per bottle for their basic Barolo (94 Wine Advocate points) to nearer £60 for their top cru, Monvigliero (96+). Outside of the very top group, Luciano Sandrone is another producer worth mentioning - consistently high scores at affordable prices. Their equivalents in quality in either Bordeaux or Burgundy would be far more expensive.

Piedmont is easily our favourite region at the moment, due to the demand/supply equation and the blue chips remain well bid. Whilst Bordeaux and Burgundy remain lacklustre, Champagne and Rhone have attracted some attention. There is no question we would recommend the brilliant 2008 vintage in Champagne and the recently released Sir Winston Churchill looks a good bet with the ’96 being double the price.

Please see the Blog for more articles about the wine investment market.

Miles Davis

8th July 2019

miles.davis@wineowners.com


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