Wednesday evening marked the official opening of the AWC Wine Academy. More than thirty VIP clients joined us in the new space for a night of first class education, stellar wine tasting and a bit of friendly competition. After many months of hard work by our staff, it was with great pleasure that we christened the facility with this inaugural event.
  
After a glass of 2004 Franck Bonville Blanc de Blancs Grand Cru (our house champagne) and a few canapés in our reception area, we retired to the Wine Academy for the lecture and tasting portions of the evening. Tim Atkin, MW presided over the exclusive event and joined us in sampling all of the wines blind. As well as a Master of Wine, Tim is a frequent contributor to many wine publications, is a regular on BBC 1’s Saturday Kitchen and is a fabulous presenter.

Above: The tasting stage is set...

The theme of the tasting was ‘Grand Cru Wizardry’ and it was aimed at addressing the historic founding and modern role of the 1855 Bordeaux Classification.

Many changes have occurred over the last 150 years and a lot of wine has been made, sold and drunk in the intervening period. Châteaux have been bought and sold and properties have made both good wine and bad. Reputations and prices have risen as well as fallen. The question we wanted to address with the tasting was whether the 1855 Classification is still relevant today.  In coordination with the educational component, for all tastings in the new Wine Academy we like to ignite a bit of fiery competition. The goal of this particular challenge was to determine, from the choices given, the correct vintage and appellation for each pair of wines. So, after a complete and informative lecture about the history of the ranking system by Tim, we started in on the tasting.

The format was simple. We had 8 wines in front of us in two rows. Each set had two vintage choices associated with it along with the choice of any of the northern Left Bank appellations (no Graves, Sauternes/Barsac or Haut-Médoc were included in the tasting). Additionally, per the evening’s theme, guests were also asked to ascertain which of the wines was ranked - according the 1855 Classification - higher than the other.

Right: Tim Atkin, MW prepares for the lecture.

Each tasting table was grouped as a team with one of our staff wine experts serving as team leader. As we had 5 tables in contention, each group was given the name of a First Growth Château as their team moniker. The resulting competition was spirited and intense - many Premiership matches aren’t this fierce!

Starting off with Pair 1, the very first wine of the night was, in a word, spectacular. By popular consensus it actually went on to become one of the two ‘wines of the evening’ - certainly a good way to kick things off! Markedly elegant and with a brilliant purity of fruit, it was clear that whichever estate produced this wine knew exactly what they were doing. Fragrant and beguiling, the judicious use of oak was also noted. Wine number two was less clearly defined and showed slightly rougher tannins in the mid-palate and finish.

A testament to the exceptional level of wine knowledge in the room, most teams pegged the vintage as 2006 (versus the other choice, 2005) and three of the teams agreed that it was likely from the Margaux appellation. However, one guest actually threw down the gauntlet and claimed that he could not only identify the vintage and appellation but the producer as well. ‘Go on then,’ said Tim. Low and behold - he absolutely nailed it. As a prize for his impressive efforts the gentleman in question received a half case of wine number 1, which turned out to be the fantastic 2006 Château Palmer. Wine number 2 was also well received and it was ultimately revealed as Château Rauzan-Segla. However, the showcase of tasting skills put on by ‘Mr. Palmer’ was enough to put Team Mouton, captained by AWC International Client Account Manager James Woodhead, out into the early competition lead. 

Pair 2 was arguably one of the most difficult to figure out. The first wine was fruity, forward and clearly well made, yet it lacked a certain ‘oomph’, particularly in the finish. The second wine was undeniably great - tobacco leaf, cedar box, red fruit, cassis and fine tannins all in perfect harmony - however somewhat confusing because the colour did not seem to accurately reflect the power of the nose and palate (there was a slight bricking to it).

To further complicate matters, the vintage choices were 2000 and 2003, both of which are formidable years. With the first wine appearing to be more like a 2003 and the second more like a 2000, many people were stumped. In the end, the vintage was identified as 2003, with wine 1 being Château Pontet-Canet and wine 2 (which was also my favourite of the evening) the neighbouring estate of Château Mouton Rothschild. The appellation was of course Pauillac, but what a fabulous and interesting contrast these two wines were! At this stage, Team Mouton was still the front-runner, however Teams Lafite and Latour, with Will Buckland (our head of Fine Wine Investment) and Julia Scales (our Head of Sales) at their respective helms, were tied for second and closing in on the lead.

The third set validated Tim’s earlier pronouncement that, "the wines of St. Julien tend to be a bit more tannic than Pauillac, but not as immense and backward as those of St. Estèphe.” By process of elimination, most teams quickly guessed that the wines were probably from one region or the other. But which one? Upon tasting wine 1, a number of guests were completely floored by its purity and structure. It was absolutely sublime. Wine number 2 had a bit more leafiness to the clearly Cabernet Sauvignon dominated nose, yet it was nonetheless delicious. The vintage choices were 1996 or 2000. Having just gone through the 2003 versus 2000 debate (with a few teams coming up on the wrong end), this decision was no easier!

After all the teams had voted, the first wine was revealed as the 2000 Château Beychevelle and the second as 2000 Château Gruaud-Larose. Once again it was Team Mouton on top with Lafite and Latour nipping at its heels. Unfortunately, Teams Margaux and Haut-Brion were beginning to languish behind and concerns about relegation were entering the minds of the captains.

By the final pairing, everyone realised that the appellation was likely St. Estèphe. The challenge remained as to which estates and which vintage the two wines were from (the choice was either 1995 or 1996). In many ways this was the most evenly matched pairing. Both wines had clearly defined structures and were of truly great quality. This was perfectly aged claret at its best. Most teams came around to the idea that the vintage was likely 1996 (as that year was slightly better on the Left Bank, with 1995 slightly superior on the Right), yet no consensus could be made as to which of the region’s top properties - Château Montrose, Château Cos d’Estournel and Château Calon-Ségur - was the odd one out. Passionate arguments were given for and against each estate.

Above: A fun and informative competition.

Ultimately it was Team Mouton that once again emerged victorious - correctly marking wine 1 as Cos d’Estournel and wine 2 as Calon-Ségur. This also meant that Team Mouton won the entire competition, with each member receiving a complimentary bottle of Grand Cru Champagne for their fine efforts. The final standings, out of a possible 16 points, were as follows:

Team Mouton – 14/16
Team Lafite – 13/16
Team Latour – 11/16
Team Haut-Brion – 10/16
Team Margaux – 9/16

Impressively (and despite his early warnings about the perils and pitfalls of blind tasting), Tim proved his mettle - correctly identifying 50% of the wines, from the vintage all the way down to the producer - and rightfully upheld his reputation as a Master of Wine.

Above: The evening's wines. Interested in tasting them yourself?  Order here >>

In the end a fantastic evening was had by all. The positive feedback was overwhelming, with many guests already planning their own private events in the space or signing up to attend future tastings - which is exactly what we designed the Wine Academy for and why it is now open. We look forward to welcoming you into the building in the coming months for more exciting events of this nature.

To purchase any of the wines which were covered in this particular tasting, please contact one of our staff wine experts.

To learn more about our Team and the staff members mentioned in this post, please visit our staff profiles page.

To join us for a tasting or to reserve the Wine Academy for yourself, please visit - https://www.awcwineacademy.com - or contact Deborah Ives via email or on +44 (0) 20 3219 5560. 

Overview -

It’s likely that those who have invested in fine wine over the past few years were able to enjoy some great bottles during the holiday season; 2010 was another boom year for wine investors.

Economic circumstances over the past several years have had relatively little impact on the overall value of upper-echelon fine wine. This is because during times of prosperity demand for fine wine is driven by consumption. However, during more economically adverse periods, fine wine may also be considered a safe haven thereby resulting in an inflow of capital from investors as they switch to tangible asset classes.

As a commodity, fine wine is rather unique. There is only a finite amount produced by each chateau in each vintage and great vintages get better with the passage of time. Yet, because the product is consumable, while the quality is improving the volume is simultaneously decreasing.

Over a reasonable timeframe this situation can be capitalized on as portfolios can either be partially or fully liquidated and returns are paid out. Additionally, the returns generated may be re-invested into younger vintages, with a few cases skimmed off and consumed for free, having been funded by the profits.

Fine wine investment indices have steadily outperformed the FTSE 100 over the last five years and should therefore be a leading candidate for inclusion in any portfolio as an additional investment class.

2010 Retrospective -

Two topics dominated the fine wine investment conversation over the past year - the much anticipated 2009 en primeur campaign and the effect Asia is continuing to have on fine wine prices.

To say the en primeur campaign was eagerly awaited would be an understatement. Traders, investors, collectors and drinkers alike all held their breath in anticipation. With reports declaring unprecedented quality across the board the big question was going to be what quantities would be available and at what price.  Unsurprisingly, the prices were unanimously high and the first growth wines lead the charge.  Price levels of the very top wines inevitably spooked many prospective investors. This forced those individuals to look elsewhere, often by seeking value lower down the hierarchy of quality. The high scoring ‘Super Seconds’ and the St Emilion Grand Cru Classe wines became areas of heavy investment activity.

One of the unexpected side effects of last year’s campaign was that back vintages of first growths suddenly started to become relatively good values, creating a situation where the en primeur campaign had the effect of pulling up the prices of older vintages. Ultimately, the market illustrated that it was still willing to absorb the high 2009 prices. The question now is, in the short term, whether the wines leading the price charge can keep up the current rate of growth and, if so, will they continue to drag the rest of the market up with them?

As predicted, the Asian market grew considerably over the last 12 months.  The only aspect of the market to disappoint traders, to an extent, was the limited appetite of Asian buyers for the 2009 campaign. On the growth side, the demand for all things Chateau Lafite Rothschild has been unprecedented. This trend was illuminated by the many Hong Kong auctions that brought in stunning sales numbers. The resulting movement in this market sector has had a hugely positive effect on portfolios which include any vintage of Lafite Rothschild or Carruades de Lafite.

Investment Pick of 2010 – Chateau Lafite Rothschild, 2008 – The steady increase in value of this wine over the last 24 months highlights how comparatively undervalued the wine was at release. This growth was only bolstered by the craze created when it was announced that the Chinese symbol for the number ‘8’ would appear on the bottle.  The graph below shows the performance of Lafite Rothschild 2008 vs the FTSE over the last two years.

Looking forward to 2011 -

It is hard to imagine any circumstances that would cause consumers in the emerging ‘BRIC’ economies of Brazil, Russia, India and China to reverse their burgeoning interest in historically Western lifestyle products and symbols, including fine wine.  The biggest of these economies is certainly China. Whilst we currently see China as an abnormal sales market due to the complete fascination with Chateau Lafite Rothschild, we also observe an enormous appetite to learn about wine. As educational programs and opportunities expand there is no doubt that Chinese consumers will begin to appreciate other high-end wines as well.

Which top-tier wines the Chinese market eventually pursues may seem to have a somewhat random nature to Westerner observers. Partly these choices are driven by the translation of the brands into Mandarin and the symbolism of the labels.  In this brand driven environment, it is likely that some of the up and coming wines are going to be estates like Chateau Leoville Las Cases (which translates to “wine of the lion”), Chateau Angelus (“golden bell”), or Chateau Beychevelle (which has a ship on the label not dissimilar to a Chinese dragon boat).

It is also interesting to note that current per capita wine consumption in China is half a litre per person per year. This compares to 55 litres in France and 18 litres in the US.  In the event that Chinese consumption increases to just half of US per capita levels then the whole wine business, on a global scale, will change dramatically.

As we move fully into 2011, it appears that the popularity of Lafite Rothschild in Asia will continue unabated. Be this as it may, I predict that the other first growths will start to enjoy some of the same popularity over the coming months.  Following on Lafite’s tip of the hat to the Chinese market with their 2008 bottle, Mouton made a similar move by offering their 2008 label design to Chinese artist Xu Lei. This acknowledgement of the importance of Chinese consumers will go a long way towards fostering goodwill in the marketplace and increasing demand.  At this stage Mouton is still looking undervalued compared to the other first growth estates, creating an investment opportunity which could prove to be a shrewd long-term move.

Having spent considerable time with Chateau owners and winemakers in Bordeaux over the past 6 months, the word at some properties is that 2010 is reckoned to be an even better vintage than 2009. Yet, given the successes of 2009, are 100 Parker Points going to be enough to sell through the available stock of the 2010 campaign? At this point we have yet to taste the wines or get a solid feel as to whether the market still has deep enough pockets to absorb another top vintage. Although, if the rumours are true, we could be looking at another pair of successes along the lines of the famed fin de siècle vintages of 1899/1900, which would offer investors further opportunities to enhance their portfolios.

To all of our fine wine investors in 2011, here’s raising a glass to a successful coming year and many great returns.