INVESTING IN WINE
Investing in wine
As the saying goes, only two things in life are certain, death and taxes. Actually the second-mentioned may be merely an unhappy memory for many people – but there is certainly an additional dictum: Wine prices will always increase.
Serious wine investment usually requires the intervention of a third party specialist, and their advertisements can be found in many publications aimed at expatriates. However, not all has been smooth sailing. London-based firm Forrester & Lamego was, until recently, offering ‘millennium investments’ in champagne and port although, in reality, these were nothing more than everyday vintages sold at inflated prices. The firm was wound up by the UK’s Department of Trade and Industry.
Meanwhile, Gibraltar-based Hamilton Spirit Management offered port at hugely marked-up prices: 40-year old Rozès was offered at £128 per bottle, while it could be acquired from practically any other port merchant for around £55. Its 1985 Hutcheson Feurheerd sold at £41 but a high street chain had it on offer for less than £12.
Nevertheless, for careful investors, this can be a happy hunting ground. For example Chateau Latour 66 has doubled in price since late 1996, and Chateau Lafite Rothschild 82 jumped from £2,420 to £4,180 in just one year.
Obviously, when looking at Bordeaux, there is a limited range of wines that should be considered. Latour, with a typical annual production of only 20,000 dozen bottles, is among these -as is the previously-mentioned Lafite-Rothschild. Margaux, Mouton-Rothschild, Beycheville, Cos d’Estournel, Palmer, Lynch-Bages, Ducru-Beaucaillou, Léoville-Lascases and Montrose can also be included in the list, all these being from the Médoc where Cabernet Sauvignon and Cabernet Franc grapes predominate. From other areas Auson, Cheval Blanc, Pétrus and Le Pin (500 dozen bottles annually) are also worth considering.
If port takes your fancy, then try to find the 1963 and 1977 vintages, while a 1985 champagne may only be bettered by the later 1990 vintage. The Möet Dom Pérignon sells for around £1,000 currently.
Most drinkers are already aware of the fact that classic clarets and ports can fetch astronomical prices, but what about wines from other countries?
Did you know that California’s Opus One, a creation of Robert Mondavi and Baron Philippe Rothschild, has a history of meteoric price rises, while Martha’s Vineyard from Heitz is another star? Italian wines can also hold their own at auction, above all the ‘super Tuscans’ like Tignanello, Ornellaia and Sassicaia. The 1995 vintage of this last-named jumped from £1,400 in April 1996 to £3,450 in April 1997.
So, where does all this leave wine in Spain?
Well, for one thing, our Spanish wines were never originally made to improve in the bottle, which tended to be a little tiresome for the investor. When they were bottled, after some years in oak barrels, they were reckoned ready for drinking, and many people have been severely disappointed when they have laid down wine for later drinking.
Certainly, the very idea of buying a bottle of wine to drink in a year’s time was alien to Spanish mentality although, fortunately, things have now changed, since wine-makers have changed production techniques have realised that some people like to buy wines for laying down. Generally speaking, the more expensive the wine – the longer it will last in the bottle.
For obvious reasons the Rioja and Ribera del Duero regions are the ones to consider for this type of investment, although Priorato (‘small production but of the very highest quality’ according to El Pais newspaper) and Somontano will soon be in the same class. So let us just run through the very best Spanish wines, most of which will not disappoint, if bought for later drinking
Of the Riojas the outstanding wine currently available is the Baron de Chirel 94. This outstanding wine, from the Riscal stable, sells well if you can get it. The Roda 1 94 is referred to as one of the ‘new Riojas’, and is well worth buying. Torre Muga 94 is excellent value, as is Finca Valpiedra 94 from the Martínez Bujanda bodega. Other superb wines from the same region, generally reckoned to be in the top-ten, include Campillo Reserva Especial 88 , Marqués de Vargas 94 , Remirez de Ganuza 94, and Contino Graciano 96. None of these wines will disappoint and you can be sure that, within a year or two, the prices will have gone up substantially.
There are those who believe that the Ribera del Duero wines last longer in the bottle, although it is not clear why. Certainly, they are heavier, darker and usually more ‘meaty’ than the Riojas. Anyone who has visited a specialist wine shop will have seen, often under lock and key, the old Vega Sicilias. This is probably Spain’s most famous vintage wine, and prices can be very high depending on age. If you are lucky enough to find the Vega Sicilia único 86 at the right price then snap it up. It will last for years and increase in price with effortless regularity.
The Pesquera Gran Reserva 90 sells well and again can be a good buy. After that the prices fall to very moderate levels, proof, if required, that Spanish wines are horribly under-priced when compared with their counterparts in other European countries. Try any of the following: Valsotillo Reserva 94, Hacienda Monasterio 94, Teófilo Reyes 94 , Alión 94 , Villacreces 94 ,Pago de Carroviejas 94 – a particular favourite this one – and Viña Pedrosa 96 .
With some real give-away prices (remember we are talking about the very best wines from Spain’s two best regions), it is easy to see why American wine drinkers visiting Spain just cannot believe that a top quality Rioja or Ribera del Duero costs about a quarter of what an equivalent Californian wine (if there is such a thing) would cost.
However, there is little doubt that producers are under extreme pressure to put up prices. The other countries in the European Union are not happy that Spain produces some of the continent’s best wines at laughable prices, compared with their French, German and Italian counterparts. Tax increases will force prices up in order to achieve a level where there is little difference between other countries and increased production costs will do the rest.
So the message must be: Buy now for later enjoyment, and happy drinking!
