The Shift in Global Economic Power Towards Asia Is Introducing New
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F I NEWINESTOBUY • C LASSICVINTAGES • V INEYARDS • M ERCHANTS Buying^Investing inWine Made in Lebanon Next generation Jancis Robinson Châteaux draw from The wave of new bars Classic vintages historic roots aimed at the young to drink now Vineyards Page 3 Merchants Page 2 Fine wines Page 4 Saturday October 19 2013 Old certainties are under threat or most people, austerity has interest from east Asia. Between 2009 The shift in global meant higher taxes, scarcer and mid-2011, bordeaux prices surged public services and eroding some 80 per cent, as buyers in China economic power living standards. For inves- and beyond fought to own the best tors in wine, however, the vintages from the top châteaux. Ever towards Asia is Fpressure on governments to show since, burgundies and champagnes greater fiscal probity has brought new have drawn a growing number of old- opportunities as some of the world’s world investors. introducing new most intriguing wine cellars have Since Asian interest began to slow opened up over the past year. from 2011, sufficient demand has tastes into the fine In January, the French city of Dijon remained for these wines to help them sold off 3,500 bottles of prized burgun- significantly outperform bordeaux, dies – roughly half its stock – to fund according to Liv-ex, the London-based wine market but municipal services. exchange for investment-grade wine. In March, the UK government sold “Investing in the wine market is bordeaux remains from its vast fine wine collection for becoming less about bordeaux, as peo- the first time, putting 54 bottles of the ple thought it was becoming too dominant, says best up for sale, including a 1961 Châ- expensive,” says Justin Gibbs, co- teau Latour, to raise £74,000. founder of Liv-ex. “People are rotating The French presidency put 1,200 their focus.” Peggy Hollinger bottles of its finest vintages on the Cult wines such as California’s block at the end of May. Comprising Screaming Eagle and Italy’s super one-tenth of the Elysée palace’s cellar, Tuscans have done well, helped not the auction raised close to $1m; the just by their quality but also by their most expensive bottle, a 1990 Château small output, which makes them more Petrus, went for €7,625. attractive to some investors. There All three auctions raised far more has even been some noise about cer- than expected. These were rare oppor- tain wines from Lebanon or Israel. tunities in what recently has been a But it will be decades before these lacklustre investment climate. newcomers can replicate the consist- The bidding also reflected investors’ ency of the fine French wines, says growing appetite for alternatives to Miles Davis, a partner of Wine Asset the traditional bordeaux, whose prices Managers, an investment fund. had been driven to heady levels by spectacular harvests and a surge of Retaining their cachet: many see little to challenge fine French wines for some decades yet Getty Continued on page 2 2 ★ FINANCIAL TIMES SATURDAY OCTOBER 19 2013 Buying&Investing in Wine Old certainties Modern breed of bar targets young are under threat Continued from page 1 “I don’t think any profes- sional investor would look at these,” he says. “You Down-to-earth approach sets out to cater as much to the novice as the seasoned tippler, writes Natalie Whittle have to have a track record and back library. You don’t know whether any wine is brilliant or not for 20 or 30 he wine is a garnet colour, Mr Sager-Wilde points out, but he is years. It is a risky policy.” with an almighty, rich nose. clear that the wine is worth it: “What Peter Shakeshaft, chief It is a Ramisco 1992 from we’re pouring now is hard to get.” executive of Vin-X, a bro- the tiny Colares region west Last year, the couple ran a sellout ker, says investors should of Lisbon, Portugal, and it pop-up bar and know that customers, beware of anyone proposing Thas made its way into a glass in even in their 20s and 30s, are prepared wines from unusual places. Crouch End, north London, at the Bot- to pay for something special. “If someone is going to tle Apostle, one of a new breed of wine Sager & Wilde has 32 wines by the talk about something com- shops and bars in the capital aimed glass and one or two change every pletely different, I would go squarely at young wine enthusiasts. day. You might get a £16 glass of for a second or third opin- A 30ml, £2.95 taster of this punchy Silex, Didier Dagueneau, or an ion,” he says. wine is dispensed from one of two “incredible value” Rioja 1997 for £6.50 However, no investor can Enomatic wine-dispensing machines – or, for adventure, a Gamay from escape the inevitability of at the shop and, at £49 a bottle, it is Serbia. bordeaux. The good news is expensive enough to warrant trying You can buy wine by the bottle to that after prices for the big before buying. take away at Sager & Wilde and this names hit historical highs That is not the only virtue: the tast- is another increasingly popular in 2011, some experts sug- ing opportunities are also a way to feature at contemporary, wine-con- gest value may be creeping notch up greater knowledge of differ- scious restaurants. back. ent wine styles. Over a (pretty decent) meal at Counterintuitively, per- Indeed, when the first Bottle Apos- L'Entrepôt you can pick from more haps, poor vintages in 2011 tle opened in Hackney, east London, than half a dozen wines by the glass, and 2012, and what prom- in 2009, its self-stated mission was to and take home a bottle of the one you ises to be a disappointing create “a wine shop [that] could cater like best with a 10 per cent discount. harvest this year, may also as much to the wine novice as it does At Sweet Thursday, a bright, buzzy help drive up prices. to the seasoned tippler”. pizzeria-wine shop in De Beauvoir “A smaller supply should Informality is essential to this new town, north London, co-owner Beth- mean prices have a chance style of wine buying – the antithesis any Chellingworth runs the wine side of pushing forward,” says of the quiet and haughty staff of the Rolling out the barrel: Borough Wines in London takes the informal approach to attracting customers Rosie Hallam of the business, which gives a 10 per Mr Gibbs. This could rekin- traditional wine shop. Across London, cent discount to bottles bought after a dle interest in stock from but particularly in the east, the trend floorboards and pinned with commu- really appealed to consumers, it’s the and they’re well informed. People are meal. other older vintages that is finding favour. nity notices by the door. But key to most important part of our business. asking more questions, they’re inter- She admits that the wine retail is have been overshadowed by Muriel Chatel opened her shop Bor- its success – it was quickly followed Most of the time, especially during the ested in organic wines – the whole “not as profitable as the restaurant, the bordeaux bubble. ough Wines, also in Hackney, in 2010, by branches in Stoke Newington and week, consumers want a pleasant, explosion of food and wine is reflected but it’s a nice asset to have; all our That is positive for the after a decade selling wine at her stall Deal, Kent, and a restaurant-shop, easy drinking house wine. How we do in the customer.” wines are on display, and our wine wine market as a whole. in London’s Borough Market. L'Entrepôt, in Hackney Downs – are it is [to ensure] all the money is spent Michael and Charlotte Sager-Wilde tasting events are really popular”. “Ninety-five per cent of the Ms Chatel, who grew up amid viti- the stainless steel vat and refrigerated on wine and not on packaging.” took an even bigger bet on this curi- Ms Chellingworth buys “things we trade is still in bordeaux,” culture in Bergerac, France, says: barrels that stand in the corner. Ms Chatel develops relationships ous consumer when they opened their enjoyed – the target was people our says Mr Gibbs. “I’ve been in the wine trade for 10 Every month it holds a different with emerging winemakers, rather wine bar, Sager & Wilde, earlier this age and background... there’s no “Other regions may have years and it has changed so much. wine, dispensed into refillable, retro than big domaines, and buys surplus year. New Zealand Sauvignon Blanc or Ital- caught the eyes of inves- “People are travelling and getting glass bottles with rubber-seal stoppers wine that still delivers on quality. By locating in an affordable part of ian Pinot Grigio, we wanted to chal- tors, but the market doesn’t interested in wine in Europe. When (made in Italy for olive oil, rather A recent Portuguese red certainly Shoreditch, in London’s East End, lenge people a little bit. [You have to] go up without bordeaux they come back, it used to be the case than wine). The customer first buys had a delicious balance unthinkable keeping the bar menu to good cheese build up trust and rapport.” going up.” you had to go to specialised places [to the bottle for £2.50, and each subse- in a supermarket wine of the same and charcuterie, and cutting out As Ms Pyke of Borough Wines says, Peter Meltzer, author of learn more], but that’s not where this quent refill is £5.