- Hong Kong has captured over half of global fine wine auction revenues for the first time in 2011, totaling $123.5 million so far this year. - While Hong Kong auctions continue to perform strongly, Christie's experienced weak sales in April with a sell-through rate of just 69%, the lowest since 2010. - However, Christie's had a strong rebound in May, selling 100% of lots from Château Latour. - Overall demand from Asia, especially China, continues to drive the fine wine auction market, with Asian buyers winning the majority of bids at live auctions.

1. Buying and Investing in Jancis Robinson on video
How will the 2010 Bordeaux
campaign pan out?
The FT’s wine
writer (pictured)
WINE
FINANCIAL TIMES SPECIAL REPORT | Saturday June 18 2011
talks to
Claer Barrett
www.ft.com/
wine2011
www.ft.com/wine­investment­2011 | twitter.com/ftreports
Hiccups in Inside this issue
Fine wine
auctions
Hong Kong
confirms its
market as place at the
top of the
podium
Page 2
Funds New ways to tap
Chinese
into fast­growing asset class
Page 3
Liv-ex Opinion Don’t put all your
eggs in one basket Page 3
Fine Wine
bring cheer
En primeur Future is
100 index looking tense for 2010
350 vintage Page 4
Bordeaux profiles
Renewal at Haut­Bailly;
300 Martin Krajewski at Château
de Sours Page 4
Prices have risen 2008, reached just before the
financial crisis,” says Ben Nel- 250
unchecked for two son, HDH’s president.
Burgundy Books for the
true enthusiast Page 5
years but can such Similarly, UK merchants such
as Farr Vintners, Berry Bros & 200 Argentina
growth be sustainable, Rudd, Bordeaux Index and The wild
asks John Stimpfig Fine+Rare all reported record charms of
growth and sales, partly on the 150 Mendoza
T
he past two years have back of a bonanza 2009 Bor- are ideal
provided some very deaux futures campaign. for vines
happy returns to wine However, as the Chinese New 100 and visitors
investors as prices have Year came and went, there were Page 5
soared to record levels, largely concerns as to whether it was
on the back of unrelenting possible or even desirable to 50
Undiscovered Australia
demand from Asia in general maintain such meteoric growth. Five regions to look out for
2001 02 03 04 05 06 07 08 09 10 11 over the next few years
and China in particular. A number of investment profes-
In 2010, the Liv-ex Fine Wine sionals were quietly hoping that Source: Liv-ex.com Page 5
Photo: Dreamstime
100 Index surged by an intoxi- the market indeed would pause
Natural wines The grape,
cating 40 per cent, closing at for breath. whole grape and nothing
336, having started the year at At first, there were no such Significantly, most believe the of those listed rising by a stag- the Bordeaux négociants Bar- it appears that the pre-eminent but the grape Page 6
239. The performance of the signs as 2011 saw yet more current sideways movement is gering 64 per cent in the past rière Frères suggests that “the reign of the alpha asset that is
Liv-ex Fine Wine 50 Index (made gains, with the Liv-ex Fine Wine merely temporary before the two years. American market is definitely Château Lafite may be over – at Starting a collection
up of first-growth Bordeaux) 100 Index putting on another 7 market resumes its onwards and In comparison with Asia, tra- coming back more than last least for the time being. Questions to ask before you
was even better in 2010, rising per cent in the first quarter. But upwards trajectory. This is ditional fine wine markets are year”. Beck also believes it is Earlier this year, the London think of laying down a
57 per cent and thereby beating just as prices were starting to thanks to Asian demand, prima- positively anaemic. In particu- only a matter of time before the merchants Bordeaux Index bottle Page 6
gold, oil and equities. look frothy, particularly for rily for top red Bordeaux, but lar, Europe and the US remain Americans return. recorded a 30 per cent fall in
Equally, the wine auction Lafite, April produced some also a growing thirst for grand in a pickle with economic recov- But much depends on the Lafite unit sales compared with More on FT.com
market has been on a roll with much-needed respite. cru Burgundy. ery looking slow and patchy. strength of the dollar, which has 2010. “It seems unlikely that
some astonishing totals and per- According to Will Beck, fund Similarly, few people doubt “We’re unlikely to see the weakened against the euro. Lafite will drive future price Websites
centages over the same period, manager at Wine Asset Manag- that China will remain the driv- return of serious wine buyers in According to Judy Beardsall, appreciation any time soon,” are a useful
most notably in Hong Kong, but ers, “the market then began to ing and dominant force over the the UK, Europe or the US any the New York fine wine consult- says Bordeaux Index’s Geraint alternative
also in the US and UK. Accord- slow for several reasons, includ- coming 12 months and beyond. time soon,” says Andrew Davi- ant: “I don’t see much appetite Carter. Instead, the increasingly to checking
ing to the Chicago-based Hart ing the Japanese tsunami, politi- Last year, the Hurun “rich list”, son of the Vintage Wine Fund. from US collectors for the mar- fashionable Mouton and Haut- retail
Davis Hart, its HDH Auction cal unrest in the Middle East, which tracks the fortunes of the “Consequently, the demand pro- ket in general or the current en Brion are now showing the most stockists for
Index is up 39.97 per cent over global economic uncertainty – country’s wealthiest tycoons, file will continue to look very primeur campaign.” growth of all the premiers crus fine wines
the past 18 months. and the best part of two years’ showed a 36 per cent increase in Chinese.” Meanwhile, the ground still in 2011. but how
“Prices are now flirting with unchecked growth in fine wine the number of Chinese billion- Not everyone is quite so continues to shift in the ultra-
good are they?
the all-time highs of September prices”. aires, with the average wealth downbeat. Laurent Ehrmann of fine wine market. In particular, Continued on Page 6

2. 2 ★ FINANCIAL TIMES SATURDAY JUNE 18 2011
Buying & Investing in Wine
Hong Kong confirms its
place at top of the podium
H
ong Kong has this This year, though, Hong on the same period last year.
Fine wine auctions year underlined its Kong’s overall sell-through rate Sales have increased both in
rapid rise to the top is down by 1 percentage point. number (by one-quarter to 58)
City captures half of of the global heap in Christie’s faltered at the begin- and by average turnover (by
global revenues as fine wine auctions by capturing
more than half of global reve-
ning of March with a two-day
sale selling only 86 per cent of
one-third from $2.9m to $3.9m).
Traditional markets have also
Bordeaux fever grows, nues for the first time. lots. Alone, this would class as a been strong, with Europe and
writes Ella Lister In the five months to the end
of May, its wine auctions
minor hiccup, but on April 9
and 10 the auction house
the US growing overall revenues
by 158 and 150 per cent, respec-
brought in US$123.5m. Add a recorded a sell-through rate of tively, so far this year. The US
very small contribution from 69 per cent – the lowest in Hong has hosted several more sales
Singapore, and Asia represents Kong since Bonhams’ equally year on year, thanks in part to
55 per cent of the global total. dismal result in May 2010. the advent of new players.
European auctions totalled The poor sales were variously After Spectrum Group Inter-
$30m, and the US more than ascribed to overambitious pric- national’s success with Spec-
double that. ing discouraging bidders, and trum Wine Auctions, launched
Hong Kong generated reve- the coincidental absence of in 2009, other auctioneers have
nues of $160m last year, equal to some of Christie’s best local cus- made the horizontal move into
40 per cent of the global total, tomers. “We were selling at esti- wine. One is Greg Martin Auc-
not only eclipsing New York’s mates that were at the top of tions, the arms and armour spe-
23 per cent, but also the US as a the market for wines that are cialist. Formerly a Spectrum
whole (36 per cent). indisputably great but not par- Group subsidiary, the auction
The Asian city’s rise to the ticularly rare,” reasons Charles house returned to private own-
top took less than two years fol- Curtis, head of wine at Chris- ership this year and plans to
Contributors lowing the government’s adroit tie’s Asia. hold its first wine sale this
John Stimpfig decision to abolish duty on wine month, under the banner Martin
FT Contributing Editor in February 2008. This catalyst Wine Auctions.
enabled Hong Kong to become a ‘Purchases from Heritage Auctions, the collect-
Ella Lister
Auctions & Secondary
portal to mainland China, Hong Kong and Asia ables house, held its inaugural
whose fast-growing wealthy pop- wine sale in April in Beverly
Markets Correspondent, ulation has quickly developed are now the majority Hills, California. It has differen-
The World of Fine Wine
an unquenchable thirst for the
best that Bordeaux has to offer.
of the winning bids in tiated itself by publishing
reserve prices in the catalogue
Stephen Brook,
Andrew Jefford, Very few houses have resisted our live auctions’ and revealing absentee bid lev-
Margaret Rand, Hong Kong’s siren calls. The top els during the auction. These
Maggie Rosen, four – Sotheby’s, Acker Merrall transparent practices “were
FT Contributors & Condit, Zachys and Christie’s Christie’s came back trium- exceptionally well received”,
– derive 60-71 per cent of their phantly on May 27, selling 100 according to Frank Martell,
Andrew Baxter revenues from the city. per cent of lots hailing directly director.
Editorial Production With the surge in demand from Château Latour. Curtis put He noted, however, that “our
Nick Smith from Asian investors, revenues the success down to “great top buyer participated using our
Sub­Editor per auction are also much wines, exceptional provenance, [online] live bidding tool”,
higher. The 21 sales apiece in and once-in-a-lifetime rarity”. which highlights the other big
Steven Bird Europe and the US brought in Despite Christie’s recovery, the theme of the past two years to
Designer average revenue of $1.4m and Asian market has shown itself match Hong Kong’s rise – the
$3.2m, respectively, compared not to be untouchable. Its refusal exponential growth in the vir-
Andy Mears with the average of $8.3m from to pay over the odds for wine tual side to wine auctions.
Picture Editor Asia’s 15 events. In Hong Kong, without a remarkable history Houses such as WineGavel offer
the average sale spans two days puts provenance higher up on online-only auctions alongside The east is red: poster advertising a Sotheby’s auction preview in Hong Kong AFP/Getty
For advertising details, contact: and brings in $8.8m. Although the agenda than ever. Earlier their live events, or, in the case
Mark C Howarth, the number of lots per sale is this month, some shipwrecked of Winebid.com, as the primary internet, at only 10 per cent, quently adopted by newcomers champagne, the rarity factor also
mark.c.howarth@ft.com not significantly greater than 1840s Veuve Clicquot set a business model. compared with 15 per cent in Heritage and Martin Wine. paid off at Ornellaia’s Vendem-
+44 (0)207 873 4885 elsewhere, each lot is worth record for a bottle of champagne. Sotheby’s launched online bid- New York and 22 per cent in “Purchases from Hong Kong mia d’Artista charity auction in
or your usual Financial Times about $9,000. The champagne – certainly rare, ding at its live auctions in June London. Many buyers in west- and the Asian countries are now Berlin on May 19. Large-format
representative Historically, Hong Kong’s and apparently well preserved 2009 with 90 registered bidders, ern auctions participate online the majority of the winning bids bottles bearing original artwork
high-value lots have sold con- on the cold, dark seabed – was and now has 785. Since January from Asia, pushing up the pro- in our live auctions,” says Jason by Rebecca Horn fetched up to
All FT Reports are available on sistently well, with a weighted- purchased for $43,630 by an 2010, 39 per cent of lots have portion of remotely won bids. Boland, Spectrum Wine Auctions 30 times more than the going
FT.com. Go to: average sell-through rate of 97 anonymous Asian online bidder. received online bids in New A presence on the ground is president. The company plans to rate for the Ornellaia 2008 inside
www.ft.com/reports per cent in 2010. Sotheby’s can Overall, the global wine auc- York, 46 per cent in London and thus crucial if new houses are to host the majority of future sales the bottles. The auctioneer
Follow us on twitter at boast an unbroken string of so- tion market almost doubled last 48 per cent in Hong Kong. access the full extent of Asian in Asia, abandoning the US leg Christiane zu Rantzau, chairman
www.twitter.com/ft.reports called white-glove sales (100 per year, to $396m. In the first five Of the three selling centres, demand. Hence the original apart from small VIP dinners of Christie’s Germany, said of
cent sold) in the city from Octo- months of 2011, global sales Hong Kong has the lowest per- Spectrum model of holding live with live streaming. the bottles: “I’m sure they’re a
ber 2009. reached $225m, up 66 per cent centage of lots sold via the simulcasts in Hong Kong, subse- ●As with the shipwrecked good investment.”

3. FINANCIAL TIMES SATURDAY JUNE 18 2011 ★ 3
Buying & Investing in Wine
New ways to tap into
fast­growing asset class
The fund is an Enterprise cent so far this year and 67 It is widely accepted
Funds Investment Scheme, provid- per cent since its inception today that the most reliable
ing income tax breaks to in 2003. Nonetheless, Davi- returns are to be had from a
Wine’s outstanding UK investors on top of the son sees wine investment as small proportion of Bor-
investment capital gains exemption
enjoyed by wine. The “wast-
“a dalliance for private
investors” – the market
deaux classed growths, the
very same wines purchased
performance is a ing asset” rule means wine lacks capacity for invest- by the British upper classes
big attraction, – with a life of less than 50
years – is not classed as an
ment by big institutions,
which would cause it to
over the past century. Davi-
son expounds the wisdom of
writes Ella Lister investment for the purposes “very quickly inflate and sticking largely to Bor-
of UK capital gains tax. bubble”. deaux, “which trades day
Despite its ascendancy in Several funds have met in, day out”.
I
nvestment wine funds the world of wine, China their demise in recent Miles Davis and Will
are a phenomenon of has yet to see a wine fund. years, including Vinum and Beck, ex-City of London
the new millennium. Elsewhere in Asia, South Arch, wound up following founders of Wine Asset
There are now more Korea and Singapore have portfolio mispricing and Managers, have one holding
than a dozen such funds had wine funds since 2007. reporting issues, respec- in Champagne, with the
worldwide; no surprise, Many western funds have tively. This led to a call for rest in red Bordeaux, and 90
given the outstanding per- an active presence in Hong pricing transparency, and per cent in eight wines.
formance of the asset class. Kong, in an effort to tap the widespread adoption of They manage two funds,
Prices for the top wines, into the region’s growing independent valuation prac- the first launched in Fruitful activity: harvest time at the Château Margaux vineyard in the Bordeaux region Bloomberg News
as tracked by the Liv-ex wealth. tices using Liv-ex’s “mid- August 2006 as an open-
Fine Wine 100 Index, have At a conservative estimate, price”. ended vehicle aimed at indi- firmer during the period Andrew della Casa, direc- launched in March 2008 and larger institutions with
risen at a compound annual wine funds globally are The first fund, run by vidual investors. The Fine thanks to its no-redemption tor, pointing out that wine suffered considerably dur- strict internal investment
growth rate of 15 per cent worth a modest Ascot Wine Management, Wine Fund is up 75 per cent policy, which impeded any has a better risk-return pro- ing the crisis as it was 100 policies. There have been
over the past decade. £150m-£200m, which repre- folded five years after its since then (3 per cent this flights of fear. Anpero has file than leading stock indi- per cent geared: it entered no further developments.
New funds are springing sents about 3 per cent of launch in 2000. The AWM year), riding out the global found a winning combina- ces, and even oil and gold. positive territory only in Whether or not the listing
up this year. Bordeaux total investment-grade stock. Fine Wine Fund had built financial crisis relatively tion of factors: high returns, Anpero also advises SK early 2011. goes ahead, however, it
Index, the UK wine mer- Before the credit crisis, up a portfolio containing unscathed, despite a decline low risk and low correlation Networks’ wine fund in In January, the Wine seems inevitable that inter-
chant, plans to launch the the Vintage Wine Fund had many wines peripheral to of 17 per cent during 2008. to financial markets. South Korea, Accilent’s in Investment Fund est in wine as an asset class
First Growth Wine Fund in more than €100m of assets the core investment-grade The closed-end Wine “Wine is a low-risk asset Canada, and Stratton Street announced its intention to will increase, especially if
October. Funds are being under management, but stable, such as mid-range Investment Fund, run by class, and we are low-risk Capital’s Fine Wine Geared launch an Aim-listed vehi- prices continue their
raised now with a minimum institutional investors Rhônes and Burgundies. Anpero Capital, held even asset managers,” says Growth Fund. The latter cle, to enable access by upward trajectory.
investment of £75,000 pulled out en masse in Sep-
($121,090). tember 2008. “It was a very
Gary Boom, previously a touch-and-go situation,”
partner in the Vintage Wine recalls Andrew Davison,
Fund, says this venture will portfolio manager, putting
follow a similar format, as the setback down to sheer
an open-ended vehicle size in a small market.
investing largely in top Private investors “sat
Bordeaux. through the storm and have
Ingenious Media, another been proved right to do so”,
London outfit, is fundrais- he adds. The fund is now
ing for Vindemia, although thriving, with assets under
the deadline has been twice management (AUM) of
deferred, now to July 29. about €30m ($43m), up 2 per
Look beyond
first growths
and, in a consistent way,
Opinion rise in value as the best
PETER LUNZER wines of the best vintages
become scarce. Second-
Among the many rules of growth wines such as
prudent investment Léoville Las Cases, Pichon
strategy, one of the most Lalande and Léoville
obvious is not to put all Barton are bankers in this
your eggs in one basket. field and yet even they
Statistics show occasional struggle to match the
meteoric rises in the price consistently predictable
of premier cru (first- and positive performances
growth) wines, but some of of the fifth growth, Lynch
the most consistent Bages.
performers are to be found There are many more
in a broader group. members of this clique,
During the past 30 years such as Ducru-Beaucaillou,
of being involved in the Mission Haut-Brion and
wine industry, it has Montrose, but there are
become evident to me that also a few returning to the
one factor which regularly high-performance arena,
caused wine prices to such as Pontet-Canet and
change was limited supply Pichon Longueville.
against a backdrop of The Pichon was brought
sustained demand. In a up from a deep depression
biography of Thomas by wealthy new owners,
Jefferson (by John while Pontet-Canet
Hailman), a telling quote emerged as a result of an
from M. Parent in extraordinary family effort
Burgundy, defending the to maximise the land and
price of a cask of the fruit’s capabilities.
Meursault in a letter dated First growths symbolise
December 4 1787, states: a “money no object”
“In the past two months approach to showing off
prices on old wines have and quenching thirst, and
risen greatly in our area.” since the world is filling
Despite evidence to the up with wealthy
contrary from the Jefferson individuals I believe we
story and more recent have seen nothing yet of
examples, some objectors the heights to which these
to the notion of wine as an wines may rise in price.
asset class still suggest As for value, that is
that what is happening to another question. The wine
prices today is new. There trade loves the insider
element so that, as the
Peter Lunzer Rolls-Royce pulls away
suggests a from the St James wine
generous shop with six bottles of
helping of something reassuringly
second to expensive, the wine expert
fifth growths jumps into the Audi with
six bottles of something
nearly as delicious at a
is a thread of truth in this fraction of the price.
because brand influence is But if investment is only
becoming more polarised about being boring,
and less predictable than following consistent
before. performers and being risk
By illustration, armed averse, then we
with an arbitrary £3,700 recommend first growths
($6,025), would we choose for the long term – but be
12 bottles of a humble aware of the many
Bordeaux “second wine”, plateaus along the way.
Carruades de Lafite 2005, For a more consistent
or about 20 bottles of a path with steady growth,
“first wine”, Château we suggest a generous
Léoville Las Cases 2000, helping of second to fifth
2ème Grand Cru Classé, St growths with a carefully
Julien? considered pinch of
Logic would steer my Bordeaux right-bank wines.
money to the Las Cases In summary, many wines
but other forces are at costing £200 today will be
work and immature £400 in five years’ time.
markets react to those But if they cost £3,000
forces unpredictably, so today, will someone be
Carruades rises in value paying £6,000 at some point
just because it is related to in the future? We remain
Château Lafite. We convinced that one day
congratulate those who £6,000 will be the norm for
have made money on certain rarities, but that
second wines but suggest consistent returns will still
that it was anything but be created from wines that
an obvious outcome. start at £200 and sail past
In the meantime, as well £400.
as first growths, we
continue to steer clients Peter Lunzer is chief
towards second, third, executive and chief
fourth and fifth growths investment officer of
which represent old money Lunzer Wine Investments

4. 4 ★ FINANCIAL TIMES SATURDAY JUNE 18 2011
Buying & Investing in Wine | Bordeaux
Future is looking tense in 2010 campaign
with another embarrassing, is in effect a €1.5bn initial pub- the same enthusiasm for 2010, Rudd had shifted about 15,000 prices move to a whole new markets will take up the slack.
En primeur once-in-a-lifetime vintage that lic offering has been the collec- which is stylistically more akin cases by the end of May – more level. “There are high hopes that this
followed the once-in-a-lifetime tive and individual indecision to 2005 and even more exp- or less the same as last year. “Brits who bought big in 2009 will be the year that mainland
Speculation grows over 2009.” on the part of the châteaux over ensive.” Fine + Rare has also reported are even more inclined to keep China becomes a significant
demand and prices, The get-out clause for Bor-
deaux was the contrasting
price – what the wines are
worth and what the market will
Delaney is not alone in this
view. In a recent Liv-ex survey,
brisk business, with UK demand
by the end of May exceeding
their hands in their pockets this
time round – especially with the
player,” says Matthieu Chadron-
nier, managing director of négo-
writes John Stimpfig styles of the two vintages. pay. 59 per cent of international wine last year’s equivalent figures. weakness of the pound against ciant CVBG Grands Crus.
Simon Davies at Fine+Rare To date, many châteaux have merchants expected demand to Wines which have gone well the euro,” says Gary Boom of However, that remains to be
described 2010 as 2009’s “non- seen little or no reason to drop be lower than last year. In fact, in the UK include Potensac, Bordeaux Index. “The US is also seen. Many are predicting the
B
y the time you read identical twin”, while Jeffrey their prices from the dizzy several UK merchants reported Petit Bocq, Ormes de Pez, in absentia again – as are the grand finale of this year’s cam-
this, there is a faint Davies, the Bordeaux-based heights of 2009 – arguably with they had received barely 10 per Chasse-Spleen and Cap Gas- mythical Russian and Indian paign will be much narrower
possibility that the pre- American négociant, defined the good reason. As Christian Seely, queton. markets.” than 2009.
mier cru (first-growth) age-worthy 2010 as a much more Axa Millésimes’ managing direc- Some châteaux Finally, in June things began Experienced investors are also “We might see only 10 or 12
Bordeaux will have released classical, “European” vintage, tor, points out: “It’s quite proba- probably made to warm up with the release of likely to give it a miss – not brands really sell through if the
their 2010 en primeur prelimi- compared with its more voluptu- ble that some châteaux have their best wine d’Armailhac, Calon Segur and least, because prices are likely prices are as high as we expect.
nary prices (for those prepared ous elder sibling. made their greatest wines ever ever last year, Pontet-Canet, all of which sold to be at least as high as the It that happens, there will be
to buy in advance of bottling). Which is superior? in 2010, including Pichon says Christian in short order, despite some 2009s, some of which have now blood on the carpet,”’ says
But after the slowest and most Take your pick. As Anthony Baron.” Many critics agree, Seely of Axa hefty price increases. In particu- gone down in value. Boom.
dilatory campaign on record, Barton, Château Léoville Bar- including Jancis Robinson and Millésimes lar, the must-have, much fan- “So, there’s very little incen- No wonder négociants and
the odds are very much against. ton’s engaging owner, wittily Robert Parker. The latter came cied Pontet-Canet was up 39 per tive to jump in at this stage,” merchants alike are concerned
Ironically, it all began so commented: “Both vintages are out strongly behind the vintage, cent the number of wishlists for cent but still sold out in less says Susie de Paolis, a wine con- about ending up with unsold
promisingly with the April tast- better than the other.” giving potential perfect scores 2010, compared with 2009. than half an hour. sultant. Her view is that the stock. Having taken a €50m
ings confirming that Bordeaux Despite the chorus of praise to 10 properties. Yet in spite of such wide- Now the gloves are off as we 2010s will be available in the position on the first growths,
had plucked yet another annus for the wines, the subsequent But what about the all-impor- spread fears, the early part of await the impending arrival of market at the same or very Staples is “genuinely worried”
mirabilis from its chapeau in progress of the campaign has tant punters? “A lot of people the campaign has gone surpris- the heavy-hitting super similar prices in a year or two. about how well they will sell.
2010. Writing on eRobert- been akin to “pulling teeth”, filled their boots with 2009 ingly well in terms of cases sold. seconds and premiers crus. That, of course, leaves Asia, It looks like another white-
Parker.com, the critic Neal Mar- according to Edward Sheldon, because it was such a ‘one-off’,” Much to the astonishment of Even so, many in the trade and especially China. Once knuckle ride. But at least there
tin observed: “Whatever deity is the UK merchant. says Chad Delaney of Justerini Simon Staples, its fine wine are wondering where the again, Bordeaux will be praying will not be much more waiting
up there bestowed Bordeaux Part of the problem with what & Brooks. “So, I just don’t see sales director, Berry Bros & demand will come from, as that these new and emerging before we know the result.
Elegant reds that epitomise
refined style of the Graves
In 1955 the estate was bought by a Château Smith Haut Lafitte, on the
Profile Belgian wine merchant, Daniel map. She also retained the services
Château Haut­Bailly Sanders. By this time, the vineyards
were much reduced, and Sanders,
of Professor Denis Dubourdieu as a
consultant. Bordeaux’s foremost
It has legions of admirers lamenting that some of the finest
wine-producing soils in Bordeaux
authority on white-wine production,
Prof Dubourdieu was increasingly
drawn by reliability and were now mere grazing land, set turning his hand to red wines as
price, says Stephen Brook about replanting and restoring them.
In 1979, his son Jean took over, and
well.
Sanders and her team know that
by 1988 Haut-Bailly was back to its Haut-Bailly has never been a wine
Not far from the bustling market original size. that strives to impress. It is not
town of Léognan, the road leading to As so often happens at Bordeaux super-ripe or overtly powerful or
Cadaujac climbs a gentle slope and properties, some shareholders within voluptuous. Its distinction is in its
traverses an expanse of vines, the owning family decided to cash balance and harmony, qualities that
passing many famous properties in. Jean, unable to buy out the allow the wine to age gracefully.
including Haut-Bailly. defectors, had no choice but to put Although about half the barrels in
This estate differs from its the property on the market. He was which the young wine is aged are
neighbours in that its vineyards are lucky to find as purchaser a pensive new, Haut-Bailly rarely comes over
entirely composed of red grapes, banker from New York State: Robert as oaky. And if, in its youth, it can
although a few rows of white grapes Wilmers. The two men shared a seem restrained and diplomatic, after
did survive until the 1950s. This area passion for the wines from Haut- a few years in bottle, it exudes the
just south of the city of Bordeaux is Bailly, and Wilmers was prepared to subtle aromas – blackcurrants,
the main source of the region’s best invest heavily in renovating the mulch, tobacco, cedar – and shows
dry white wines, but Haut-Bailly winery, without wishing to stamp his the silky texture and discreet
sticks to what it knows best: elegant, own personality on the wines. tannins that are among its
savoury red wines that epitomise the The wine trade – writers as well as hallmarks. Great Bordeaux does not
refined leafy style of the Graves. importers and winemakers – had just impress; it should charm as
The property dates back to the always been made welcome at Haut- well, and Haut-Bailly does this in Doing just vine: Haut­Bailly’s distinction comes from superb soil rather than smoke and mirrors in the winery
1630s, when it was founded by a Bailly, where they were often regaled spades. It is a wine that always
Parisian banker, Firmin Le Bailly, with a fine meal by Jean and his seems to have more to give. but from the superb quality of the Wilmers, for example, less, which, compared with the
but it did not remain in his family shrewd, intelligent granddaughter, Other illustrious growths may be soils on which the grapes are commissioned a detailed soil study, prices demanded for wines that may
for long, passing subsequently Véronique. Wilmers swiftly more coveted by collectors and more planted. to allow more informed equal but not exceed Haut-Bailly in
through many hands. In 1872 it had recognised her qualities and made garlanded by some wine critics, but Here, Cabernet Sauvignon, the micromanagement of the vineyards. quality, makes the latter something
a new owner, who built the château her administrator of the estate in Haut-Bailly has legions of admirers, noblest variety of Bordeaux, thrives, Haut-Bailly has never been a of a steal.
– which is little more than a 2000, a universally popular choice. and purchasers, because it sells at a while the quarter of the vineyard “collectable” wine and is all the But think of it primarily as a wine
dignified and spacious family home – Haut-Bailly was in Véronique’s reasonable, though never cheap, devoted to Merlot contributes flesh better for it. Its top vintages hold for the table rather than the cellar.
and expanded the vineyards. This blood and she knew what needed to price, and rarely disappoints, even in and suppleness to the final blend. their value, and even gain some, but Yes, buy and store for a decade, but
was a period of great renown for be done to maintain and improve the trickier vintages. Véronique and If the Haut-Bailly formula has been wine lovers will not make a killing then pull the cork and enjoy.
Haut-Bailly, and its wines sold for quality of its wines. In 2003 she hired Vialard know that the wine’s successful for decades, that does not by buying a case. Even great years
prices that sometimes rivalled those as winemaker Gabriel Vialard, who distinction comes not from smoke incline the owner and his team to such as 1982, 1989 and 2000 can be Stephen Brook is author of
of the Médoc’s premiers crus. had helped put another Graves wine, and mirrors in the winery and cellar, rest on their laurels. obtained for £700 ($1,146) a case or “The Complete Bordeaux”
New owner is ‘pulled along by the momentum’
How do you make a small De Sours was an three-year plan to make hand it on to somebody.” He has bought more
Interview fortune in the wine established brand with an the château secure, A potted history of the vineyards, replanted nearly
Martin Krajewski business? Start off with a enviable reputation for its improve the vineyards and recent ownership of de all the original 26 hectares,
large one. rosé when Krajewski took winery, and sell. “But the Sours run something like and built a €3.5m winery.
The businessman­ Martin Krajewski,
however, would probably
it over in 2004. He says the
house was in poor
moment I got my feet
under the table, everything
this: 1990, bought by
Johnstone; 1997, Krajewski
In so doing, he has
demonstrated the ticklish
turned­winemaker not disagree with this condition and the estate changed.” The three-year invests at Johnstone’s nature of making the
is creating a family oldest of wine trade jokes.
He has turned round
effectively bust: it had
been kept going “by
plan became a five-year
one, then seven, and now
request; 2003, Krajewski
joins the board; by 2004 he
numbers work.
Take the apparently
legacy at Château Château de Sours in moving money round the 10. “The momentum pulls has bought out Johnstone. simple matter of planting a
de Sours, writes Bordeaux partly by
financial acumen and
whole time”. The previous
owner, Esme Johnstone,
you along,” he says.
Krajewski’s older
Krajewski is clear why
he wanted the château: “It
vineyard. If you plant at
8,000 vines per hectare,
Margaret Rand partly thanks to extremely says it “was viable”, and daughter has trained as a was a marvellous asset; a which in Entre-Deux-Mers
deep pockets. These come that “compared with a lot winemaker, and his son is beautiful property, with a produces better quality
from founding and then of vineyards around, it was about to do the same. brand with a following than the traditional 5,000,
selling Blomfield, a in pretty good shape”. “It’s not like other jobs,” round the world, and a can you charge more for
recruitment group. Initially, Krajewski had a he says. “You have to legacy for the future.” your wine?
The annual cost of
running the vineyard rises
if there are more vines in
it.
“The problem in Entre- Martin Krajewski turned Château de Sours around
Deux-Mers is that the
properties tend to be too new baby, Clos Cantenac. which has now been sold.
small to be viable,” he Once you start buying He was involved, with
says. “At 20,000 cases, you vineyards it seems hard to winemakers John Duval
can’t sustain more than a stop. In 2006, Krajewski’s and David Fatches, in
team of two or three. winemaker, Sebastien making small batches of
“Break-even point is at Lamothe, suggested they top-quality Shiraz, Riesling
about 45,000 cases, though buy 1.7ha in Saint-Émilion. and Pinot Noir.
it’s a fine line and varies That has now been But it was all very far
from year to year.” increased to 3.4ha, and away. “It’s incredibly
De Sours made 50,000 Clos Cantenac broke even expensive to make wine in
cases last year, and will in its first year and made Australia – two or three
make 70,000 in 2012. It has a small profit in 2009. times the cost of making it
been breaking even on a Saint-Émilion fetches a in Bordeaux,” he says.
trading basis for the past higher price than Entre- Still, he has not fully
two years, and profit is Deux-Mers – five or six closed that chapter. “I’d be
expected in 2011. times as much. dreadfully sorry not to do
Krajewski has a team of Krajewski also had a anything in Australia ever
14, but it also makes his venture in Australia, again,” he says.

5. FINANCIAL TIMES SATURDAY JUNE 18 2011 ★ 5
Buying & Investing in Wine
Books draw the
cork on the
passions of the
Burgundophile
Burgundy’s appeal is strange repeated disappointment and
and unique. It offers constant court the sublime; Norman
intellectual challenge, repeated provides all the context you
disappointment and occasional, could wish for, and is
intense sensual reward. particularly strong on geology,
How do you respond to the history and the theory and
first, avoid the second and practice of terroir in Burgundy.
pursue the third? Via books – There is more, though: once
and the past year has brought the vineyards are dealt with, a
Mendoza region suits
three very fine ones. final part of the book tackles
grape varieties, winemaking,
tasting, the failings of wine
journalists and much else.
Norman is as reluctant to
both vines and visitors
rhapsodise as is Morris; he is,
Inside Burgundy though, entertainingly testy on
by Jasper Morris occasion. Burgundy’s grands
crus truly deserve a book or
Berry Bros & Rudd, two of their own, and this
£50 unapologetically intellectual
author has met the contextual The futuristic O Fournier bodega resembles a spaceship that has just touched down on planet earth and its wines are out of this world
Only one of the three challenge with assurance and
functions as a general guide to skill few others could have wine and tourism in Mendoza. Here, as are an excellent spa and restaurant.
the region, Chablis and the managed. Argentina almost everything is new, bold, bright, Travel tips Luxury accommodation is also scarce
Mâconnais included. This is epic – and well worth the trip. in the Uco Valley. But things are acceler-
Inside Burgundy: The John Stimpfig discovers the In addition, the region has plenty of ● If you are staying in Mendoza City, ating apace. This year, a 310-hectare
check out the Vines of Mendoza tasting
Vineyards, the Wine and the
People by wine merchant
wild charms of the world’s natural attributes to recommend itself to
travellers. Its spectacular Andean back- room near the Park Hyatt Hotel. There,
development, Valle de Uco Golf, Wine
and Country (www.valle-de-uco.com) will
Jasper Morris (Berry Bros & most exciting wine region drop never disappoints; nor does the you can taste more than 50 wines from start construction of a five-star hotel and
Rudd Press, £50; check Pearl of the Côte weather. With more than 300 days of various bodegas and get advice on boutique vineyard lodge.
www.bbr.com for non-UK by Allen D Meadows sky-blue sunshine, it is ideal terroir for where to go Meanwhile, check into the Posada
S
suppliers). Morris has elf-drive tourists beware. Unless vines and visitors. Last year alone, 1.5m Salentein, an impressive modern country
macerated in Burgundy for 30 www.burghound you have a fully functioning sat- people made the trip and more will ● Ensure you make reservations for all hotel set in an expansive estancia. There
books.com, $59.99 winery tours and restaurant visits. Most
years, and has a rangy nav, getting to the O Fournier undoubtedly follow as word gets out. is plenty to do on site, as Salentein has
charge for tours and tastings, which last
intellectual curiosity about the bodega and restaurant at the Currently, Mendoza is a work in 60­90 minutes its own Killka cultural centre. Remark-
region that goes way beyond The focus of the third book southernmost tip of the Uco Valley in progress. But for the adventurous wine ably, one can do almost anything: taste
assessment alone. is tighter still: the twin Mendoza, Argentina’s largest wine tourist looking for the world’s most ● Many wineries accept only cash, not wine, tour the monumental winery, wan-
The history of the vineyards villages of Vosne-Romanée and region, requires considerable map-read- exciting, largely undiscovered wine credit cards. Also some bodegas are der through its art galleries or go horse
and their winemaking families Flagey-Echézeaux, the ing skill. region, that is all part of the appeal. closed at the weekend riding. It is also the ideal base for visit-
is woven, in this 656-page book, vineyards and their wines. The nearest outpost is La Consulta, Many describe its wild, unspoilt bucolic ing the many must-see boutique wineries
with domain profiles and This is Allen D. Meadows’ The which is little more than a one-horse charm as reminiscent of the Napa Valley ● Mendoza is vast, so plan your trips of the Uco Valley, including Andeluna,
landholdings, winemaking Pearl of the Côte: The Great town in the middle of nowhere. From 40 or 50 years ago. Some believe the by specific regions – Maipú, Lujan de La Azul and Atamisque.
particularities, vintage Wines of Vosne-Romanée there, the road to the winery barely con- wines are potentially much better than Cuyo or the Uco Valley. Then aim to do Much closer to Mendoza City is the
assessments and attractively (www.burghoundbooks.com: stitutes a bumpy dirt track and signs are those of its North American counterpart. between two and four visits a day award-winning hotel, Club Tapiz, in
clear, precise relief maps of $59.99). in short supply. No wonder our driver is Consequently, O Fournier is not the Maipú. According to its owner, Patricia
each significant village. Meadows has, I suspect, lost and quietly cursing in Spanish. only new kid on the block looking to lure Tapiz, it was the first boutique hotel to
Charting both vineyards and created the model for many Eventually, he regains his bearings in tourist dollars with its wow-factor open in the vineyards in 2004 and it
domains from Tonnerre to wine-writing careers by and within seconds we are approaching winery and restaurant. Closer to the city Fine wine aficionados should also beat remains one of the most charming, com-
Chaintré with this level of becoming the English-language one of the most stunningly futuristic of Mendoza is the appellation of Lujan de a path to the door of Achaval-Ferrer’s fortable and understated places to stay.
detail is an ambitious online specialist for a single wineries in Mendoza, if not the world. Cuyo, where foodies and oenophiles will tiny Bella Vista winery in Perdriel on the Part of that charm comes from its vine-
undertaking, but Morris region through his subscription Perched in the foothills of the Andes, find the tiny region of Agrelo together famous Via Cobos. For many, Achaval- yard setting and its heritage. The 19th-
succeeds admirably. This will site www.burghound.com. This with soaring snow-capped peaks beyond, with several boutique bodegas to tickle Ferrer make the best Malbec wines in century property used to belong to the
be the Burgundy book I reach is the first hard-copy distillate the O Fournier bodega resembles a their fancies. Argentina. If you are planning on mak- governor of Mendoza and has been
for first when faced with yet of his work. spaceship that has just landed on planet Not all are avant-garde; the likes of ing the pilgrimage, it is essential to book expertly converted into an 11-room hotel,
another unfamiliar bottle or Under other publishing Earth. Luigi Bosca and Norton are almost “old in advance. complete with pool and the highly rec-
half-remembered domain. circumstances, the book might The subsequent tour and tasting are world” compared with Melipal, Pulenta, Boutique hotels are still few and far ommended Terrunyo restaurant.
There is no room in this be called a monograph: no less impressive. Ditto the lunch at its Decero and Vistalba. Apart from provid- between in the wine regions, which is Guests at Tapiz can also enjoy dinners
already weighty single volume Meadows has a very keen eye award-winning Urban restaurant, ing first-class accommodation, the latter why most people stay in Mendoza City in the vineyards or cycle to nearby win-
for systematic, vintage-by- for detail, and there are points expertly presided over by chef Nadia also has Mendoza’s finest French restau- and drive out to the vineyards. But there eries such as the excellent Trapiche,
vintage tasting notes, but the where readers may reel a little Ortega. A blend of Argentine, Spanish rant, La Bourgogne. are exceptions. Familia Zuccardi, Carinae and Tempus
summary tasting element under the weight of this and Mediterranean cuisine, the food is Nearby, are two other wineries not to Vistalba apart, the other place to stay Alba. For those who are “wined out”,
usually provides a useful steer. (sorting out the climats in every bit as sophisticated and cutting- be missed. One belongs to the godfather in Agrelo is the new Relais & Chateaux there is horse riding, river rafting or
A little more lyricism would Beaux Monts, for example). edge as its remarkable architecture. of Argentine wine, Nicholas Catena. Cat- Cavas Wine Lodge where 14 fabulously cooking lessons. By which time, they
have been welcome, as would Like both Morris and In many ways, O Fournier’s brilliantly ena Zapata, with its pyramid design bor- appointed adobe villas dot a 35-acre vine- might have worked up a thirst for the
the occasional critical dig. Norman, Meadows has a ambitious statement winery perfectly rowed from its Mayan heritage, provides yard. Here, luxury, privacy and exclusiv- evening wine tasting, which always
Morris in print is a little more magnificent historical grasp of reflects the modern dynamic approach to a benchmark tour and tasting. ity are all part of the package, takes place at 8pm sharp.
diplomatic than I recall Morris his subject, which helps shine
in person to be, and he must light into the thickets of detail.
have plenty of ammunition His book differs from the
(after 30 years of frank other two in two important
discussions and close
friendships with growers) with
which to lambast regional and
professional failings. The
respects. Most notably, he
provides a wealth of tasting
notes and scores on specific
wines, culled from what is now
New locations show value as knowledge grows
strengths of this commanding a database of 55,000 notes on
overview greatly outweigh any Burgundy. Western Australia intimate, a many-chambered average has just seven days a Kinzbrunner’s own outstanding
deficiencies, though. Since many of the wines he Australia Frankland landscape where height, aspect year over 30C). Long, slow work with Chardonnay, Shiraz
describes are regional In contrast to Margaret River’s and soils vary constantly, and ripening Pinot Noir and and Roussanne from his
references and sometimes Andrew Jefford picks gilded coastal strip, cascading where the heat of the Adelaide Chardonnay are already Giaconda vineyard now extends
monuments, these notes are with surfers and tourists, plain is dissipated by elevation compellingly good here, and to an exemplary Nebbiolo –
very useful to anyone five areas that Frankland is empty and and breezes. We know its most of Australia’s finest and Julian Castagna up the
Grand Cru
contemplating buying or have much to offer forlorn, a place where dark higher, cooler sites can make sparkling wines are built on a road has had fine results with
opening one of these hugely forestry plantations seem to magnificent Chardonnay and core of Tasmanian fruit. Sangiovese, too.
by Remington expensive bottles. Meadows’ have chased away the people. precise and satisfying Domaine A, though, has proved Top producers: Giaconda;
Norman notes are detailed, sometimes With every new vintage, the But the quality of the wine Sauvignon Blanc. Pinot Noir is that you can even get Cabernet Castagna; Savaterre
torrentially so, but this is diversity of Australian wine emerging from its large, remote prospering in niches in the ripe here, given a generous
Kyle Cathie, £40 better than excessive concision. grows. This is partly because vineyards suggests this will be hills – and Shiraz from the season and a warm, sheltered New South Wales Orange
Secondly, the Burghound is the country’s avant-garde WA’s greatest zone for Shiraz: lower-lying sites to the south- site. The island has an exciting The vineyards of Orange are
Remington Norman’s Grand prepared to let himself off the understands the restraint sombre, sometimes profound east is stonily promising, too. century ahead of it. the highest of the five regions
Cru: The Great Wines of leash from time to time and necessary to allow the inherent wines with an architectural Top producers: Anvers; Arrivo; Top producers: Domaine A; profiled here (indeed this is the
Burgundy through the express something of the sense differences in terroir to emerge. opulence backed by natural Ashton Hills; Barratt; BK Apsley Gorge; Freycinet; only GI in Australia where
Perspective of its Finest of wonder and awe that great No less importantly, it is freshness. Intricate, bone-dry Wines; Bird in Hand; The Frogmore Creek; Grey Sands; height forms part of the zonal
Vineyards (Kyle Cathie, £40) is Burgundy can inspire, giving because the regions pioneered Riesling and promisingly meaty Lane; Lucy Margaux; Ngeringa; Josef Chromy; Lubiana; stipulation: the vineyards must
a different kind of book. It his work a welcome emotional over the past two decades are Cabernet are the other Penfolds; Petaluma; Pike & Moorilla; Pipers Brook; Pirie; lie above 600 metres). As in the
contains no grower dimension lacking in Morris beginning to show their value strengths of Frankland’s Joyce; Protero; Shaw & Smith; Tamar Ridge Adelaide Hills, white varieties
assessments at all, but is and Norman. This is also one as vines age and the nuances continental climate and iron- Tapanappa; Geoff Weaver; dominate the heights, and red
instead a scholarly and deeply of the most elegantly designed of soil and climate are better rich laterite soils. Whisson Lake Victoria Beechworth varieties flourish beneath; the
considered account of the self-published books to have understood. Top producers: Larry One of Australia’s greatest complex soils (you can find
region’s 33 grands crus; such come my way. Here are five regions to look Cherubino (Cherubino, The Tasmania Tasmania winemaking talents, Rick both volcanic basalt and
tasting notes as the book All three are essential out for over the next few years. Yard); Ferngrove; Frankland The tautology arises because Kinzbrunner, chose Beechworth limestone) encourage further
contains are amalgams which purchases for the Each has already produced Estate the entire island is both a state in the early 1980s; others nuances. Freshness, poise and
coalesce to form a kind of ideal Burgundophile – and remember great, naturally balanced table and, at present, a single followed. Now this granite- purity of flavour are all Orange
of each studied vineyard’s that their combined cost is less wine of finesse, poise and South Australia Australian GI (geographical soiled zone in the foothills of hallmarks, and the long, cool,
wine. than that of a single bottle of global distinctiveness, and will The Adelaide Hills indication). Tasmania’s higher the Victorian Alps stands out luminous season brings natural
The pursuit of grands crus is, most of the great wines they produce more. They are the Forget those images of latitudes give it decided for the production of some of balance and drinkability, too.
for those with the wherewithal describe. perfect counterweight to the featureless, five-mile vineyards advantages over the rest of the Australia’s most food-friendly, Top producers: Bloodwood;
to afford it, a less hazardous homogenised output that dogs under a glowering sun; the country in terms of an absence layered, textured and subtly Cumulus; Philip Shaw;
means than most to avoid Andrew Jefford Australia’s reputation. Adelaide Hills are wooded and of heat spikes (Hobart on composed red and white wines. Printhie