Senel Wine’s Top 10 Wine of 2011: #9

2009 Donelan, Venus, Sonoma County (California) $45

Ranking point total 3.5 (1.25/1.25/1)

Following-up on the success of the selection of their Cuvee Christine in last year’s Top 10, they’ve rightly earned their spot yet again. This time, they are simply showing off with a lovely Rhone Blanc. Their line-up of Rhone varietals is, in my opinion, second-to-none in California and rivals the greatness of the royalty found in the Rhone itself!

The ’09 Venus is no exception to the trend of amazing wines coming out of this winery. A blend of 90% Roussanne and 10% Viognier, this wine has popping aromatics and playful acidity. Aromas of wild honey, citrus, and wildflowers with hints of wet stone lead to an enticing palate of crisp Asian pear, juicy citrus, melon and lavender with a pleasant medium-bodied quality that’s a delight to find in a white wine. Winemaker Tyler Thomas has done a beautiful job with this, as always.

Senel Wine – 94 pts

For more on how the Top 10 was selected, read Senel Wine’s Top 10 of 2011. Cheers!

To purchase a bottle of this wine, click on the image of the bottle above, or visit the winery website for more details.

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Senel Wine’s Top 10 Wine of 2011: #10

#10

2009 Maison Nicolas Perrin, Crozes-Hermitage, Rhône (France) $23

Ranking point total 3.5 (2.25/.75/.5)

This was a wine I tasted a month or so ago at an event put on by Rhône Valley Wines. The event was a tremendous spectacle and the wines were truly phenomenal. This wine is the product of a relatively new collaborative venture of two historic Rhône families: the Perrins and the Jaboulets. With their first vintages emerging in 2006, I only see stellar vintages in the future for this venture.

The ’09 Perrin Crozes-Hermitage is such a fun wine! Aromas of cherry pie and raspberry liqueur lead to flavors of black cherry, rhubarb and black pepper. Invigorating, tangy and supple. What a tremendous value.

Senel Wine – 93 pts

For more on how the Top 10 was selected, read Senel Wine’s Top 10 of 2011. Cheers!

To purchase a bottle of this wine, click on the image of the bottle above, or visit the winery website for more details.

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Senel Wine’s Top 10 Wines of 2011

Which wine will take home the title of #1 of 2011? Check back Nov. 18 to find out!

This month marks yet another transitional moment in my life. With my upcoming move back to New Hampshire from the Big Apple, I’d like to take this opportunity to reflect on some of the great wines that left lasting impressions during this sometimes trying year. Thanks to connections and circumstances, I’ve had the opportunity to taste wines that surpass even my experiences from last year. This year alone I’ve tasted a wine that I scored a perfect 100 pts (2005 Penfolds Grange) and another I scored 98 pts (2006 Luce della Vite ‘Luce’), both of which scored higher than any wines I’ve previously tasted. With that being said, it’s been a damn good wine year.

Beginning Monday, November 7th, I’ll be unveiling my picks for the Senel Wine’s Top 10 Wines of 2011, culminating on Friday, November 18th, when I unveil #1. I know I’m a bit early this year; however I simply won’t have time to do this in December.

The selections have been thoughtfully filtered from the approximately 500-600 wines I’ve tasted this past year down to 10. Between attending wine tastings, wine dinners, attending expos, private tastings, public tastings at shops, samples and wines purchased for personal consumption, I’d say I have a decent pool to select from. Each wine selected for the Top 10 offers a wonderful experience that I strongly encourage you to partake in. To filter it down initially, I simply figured the points per dollar ratio and selected those in the top 10.

The Top 10 heirarchy is then determined by the following criteria:

  1. The wine must be of phenomenal quality. It must be well-balanced, complex, with terrific structure and superbly represents the varietal or style, with additional consideration for age-worthiness. If these things are in place, it will translate to a high rating by yours truly! (Rating = 25%)
  2. The wine must offer tremendous value.  It must be a wine that offers quality and experience well in excess of its price tag.  This could mean a $15 bottle that outshines $30 bottles, or a $50 bottle that drinks like a $200 bottle. It’s all relative! (Value = 25%)
  3. The wine must be one that I’d highly recommend. Since this is my list, my personal preference certainly comes into play. What I’ve done is narrowed down the wines I’ve tasted this year using the first two criteria and then stack ranked them in the order in which I’d recommend to my best friend. This is also the tie-breaker. (Personal preference = 50%)

For full-transparency, the Ranking Point Total will be illustrated as follows value/points/personal preference.

I look forward to sharing my selections with you over the course of the next two weeks.  If you’ve had any of these wines, please feel free to comment on them.

Cheers,

Erol

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Autumn Pairing: Pork Chops and Cabbage w/ Savory Apple Cider Gravy & ’09 Donelan Venus

Now that we’ve had two stunning dishes paired with two exemplary wines, it’s time for the pièce de résistance, my recipe! Ok, so we were supposed to have a third guest recipe; however it seems as if they’ve backed out. The key to life is rolling with the punches and I’d never let you guys down.

A few weeks back I made this dish and considering we’re basking in the glory of autumn (or in the case of New England, winter), I wanted to make a dish that exemplified the season, while providing an awesome pairing with my favorite white blend, Roussanne/Viognier.

The wine selected for this pairing is from one of my favorite winery, Donelan. Their line-up of Rhone varietals is, in my opinion, second-to-none in California and rivals the greatness of the royalty found in the Rhone itself! The 2009 Donelan Venus is no exception to this trend, with popping aromatics and playful acidity. Aromas of wild honey, citrus, and wildflowers with hints of wet stone lead to an enticing palate of crisp Asian pear, juicy citrus, melon and lavender with a pleasant medium-bodied quality that’s a delight to find in a white wine. Winemaker Tyler Thomas has done a beautiful job with this wine and I grade it out at 94 points, and would like to note that this is a white that almost any red lover would embrace.  

The greatness of this pairing is that it brings into focus everything that’s great about autumn. The colors, the ingredients, the crispness, it’s all there and works harmoniously together. This wine will also pair seamlessly, as well as lift-up,  traditional Thanksgiving fare.

Pork Chops and Cabbage w/ Savory Apple Cider Gravy (Serves 4)

The pièce de résistance!

Ingredients

  • 4 pork chops, cut ¾ inch thick
  • ½ medium head of cabbage, shredded (3 cups)
  • 1 large carrot, halved lengthwise and coarsely chopped
  • 1 medium onion, cut into medium-thin wedges (3/4 cup)
  • 1 clove garlic, minced
  • 1 ½ cups apple cider
  • 1 ½ tablespoons cider vinegar
  • 3 teaspoons prepared horseradish
  • 1 medium red apple (preferably Courtland), cored and sliced (1 cup)
  • ½ tablespoons cornstarch
  • 1 tablespoon of flour
  • 2 beef bouillon cubes
  • ½ teaspoon black pepper, coarsely ground

Directions

  1. Trim fat from meat. Spray an unheated, large skillet with non-stick spray or coat with butter. In the skillet brown chops over medium heat about 4 minutes on each side.
  2. Add cabbage, carrot, onion, 1 cup of the apple cider, vinegar, garlic and horseradish. Bring to boil and then reduce heat to simmer. Cover and simmer mixture for 7 to 8 minutes or until cabbage is crisp-tender. Add the apple; cook for 2 minutes more.
  3. Promptly transfer the pork chops and vegetables to a platter, reserving the liquid in the skillet; keep platter warm.
  4. For gravy, stir together the remaining half cup of apple cider, bouillon cubes, and pepper. Blend with liquid in skillet, then begin whisking in cornstarch and flour. cook and whisk until thickened. Cook for 2 additional minutes. Strain through colander into serving vessel (to catch any chunks of cornstarch or flour) and then serve with the pork chops and the vegetables.
  5. Enjoy!

I hope you enjoy this dish, I know my family did. Let us know what you think AND be sure to check out Donelan Wines, they’re 100% worth my hype!

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Autumn Pairing: Berkie’s Filet Mignon w/ Root Vegetable & ’06 Luce

Our second recipe in the autumn food & wine pairing series is the ultimate pairing for many. I can’t think of a better way to proceed than with a recipe for filet mignon from one of the best chefs out there to pair with one of the best wines out there. Pay attention, as this is how you can easily create a tremendous, fine dining dish at home!

Legal Seafood found a talent when they hired Chef Jason Berkman 13 years ago. Currently an Area Chef, after years serving as an executive chef, Berkie has proven his versatility, not only with seafood, but with other proteins as well. He piloted the introduction of steak and pork into the Legal Seafood menu in Burlington,MA with terrific success. Pedigree aside, the key reason Berkie was asked to contribute is his astute skill at pairing the correct dish (not just protein) with a wine. Over the years, he and I have teamed up to put on wine dinners that have been nothing short of first class (WD #1 & #2). The typical protocol in the development of these diners, we hone in on the wine’s attributes and then his mind starts to develop what dishes will complement them best.

The wine I’ve asked Berkie to work with is a 2006 Luce della Vite ‘Luce’ that’s simply the best Super Tuscan I’ve had from this terrific vintage. After double-decanting, the palate immediately makes an impact with its bold, full-bodied allure and wonderful acid. This wine exhibits clearly delineated flavors of dark cherry and blackberry lead to undertones of chocolate, ground nutmeg and other spices. The tannins are soft yet present and the balance of the wine is seamless. This memorable wine earned every one of its 98 points from me by being nearly perfect.

Considering the magnitude of the wine, Berkie came up with a recipe that’s clean and plays off of the boldness of the wine in a way that intertwines complementary flavor components. By using a lean cut of beef, the dish avoids having fat mellow out the wine since it doesn’t need it. The root vegetables offer a subdued compliment to the undertone characteristics and the port wine sauce plays to the fruit components. In short, a great pairing!

Berkie’s Filet Mignon w/ Root Vegetables (serves 2)

Berkie’s Filet Mignon w/ Root Vegetables

Ingredients

2ea. – 8oz. filet mignon
1/4 cup blackened or Cajun spice
1 cup 1/2″ diced parsnips
1 cup 1/2″ diced turnips
1/4 cup 1/4″ diced carrots
1/4 cup 1/4″ diced celery
2 cups julienne leeks
2 cups heavy cream
2T fresh thyme chopped thyme
2T fresh chopped parsley
3T olive oil
2 cups port wine
salt & pepper to taste
chive sticks for garnish

To Prepare

  1. Boil in lightly salted water or steam parsnips and turnips for 4 minutes. Add celery and carrots to the parsnips and turnips. Continue cooking for 4 additional minutes or until tender. Drain and hold. This can be done ahead of time and refrigerated until the meal.
  2. Put port wine in a sauce pot and simmer on low-medium heat. Reduce by half or until the port becomes viscous. Reserve for meal.
  3. In a sauté pan add olive and set to medium heat. Once warm, add leeks. Sweat leeks on low to medium heat until translucent. Do not brown the leeks. Add root vegetable mixture and mix until hot. Add cream and cook until the cream reduces and incorporates into the vegetables 2-3 minutes. The cream should not run off of the vegetables. Add thyme, parsley, salt & pepper to taste.
  4. Roll filets in blackening spice leaving both ends of the filet free of spice. Heat cast iron skillet or sauté pan on high heat. Sear the four spiced sides of the filet only, not the ends (1-2 minutes per side for rare). The filets can be cooked for additional time on medium heat for a higher desired temperature. Once cooked allow the filets rest for 2 minutes before cutting.

Plating

  1. Gently reheat the root vegetable mixture if necessary and place in the middle of the plate stacked to a height slightly higher than the filet.
  2. Spoon the port reduction in a puddle in front of the root vegetables.
  3. Cut filet into 4 equal sections. Spread the filet apart shingling each piece onto another. Take the four shingled pieces and rest them on the root vegetables on top of the port reduction. Garnish with chive sticks.
  4. Bon appétit!

I’d like to thank Chef Berkman for sharing his recipe and look forward to hearing what you think of the pairing and recipe. If you’re in New England, be sure to check out Legal Seafood, remember, if it isn’t fresh, it isn’t Legal.

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Autumn Pairing: Polpettina Bolognese & Frescobaldi’s Lamaione

It’s that time of year again. The leaves have changed and the air is crisp. Along with the cooler temps comes a transition from lighter summertime fare to heartier meals and lighter wines give way to more full-bodied reds. It’s with this in mind that I asked a few of my favorite chefs/restaurateurs to come up with simple yet delicious recipes for the autumn that would compliment the wines I’ve selected for the season.

First up is the team from Polpettina (Eastchester, NY), Kyle Inserra and Mike Abruzesse. I was first exposed to Polpettina a month ago and it’s no wonder why this culinary hotspot has such a welcoming buzz. Kyle and Mike’s love of food and cooking shine through their playful yet cozy restaurant that prides itself on locally sourced ingredients. Polpettina, which means “Little Meatball”, has a refreshingly simply menu, one which I’d describe as refined rustic. From their unique Escarole salad to their signature Polpette (meatballs), it’s all about purity of flavor, or in other words, letting the food do the talking.

As for the task at hand, Mike and Kyle were asked to pair a dish with Frescobaldi’s sensational Super Tuscan, Lamaione. The ’06 Lamaione is a gorgeous example of what Italian Merlot can be, with tremendous body, refreshing minerality and structure that allows the ripe blackberry, cocoa, spice and herbs playfully interact with one another on your palate. In short, it’s a very complex, polished and beautiful wine that I rated 96 points, as it’s an astounding merlot.

In response, Kyle and Mike selected a dish from their menu, Bolognese, and as a former sommelier, I couldn’t think of a better pairing. The acid from the tomato in the sauce will lift up the wine and the fats from the pork and beef will serve to meld the experience, in doing so bringing forth all of the positive qualities of the wine and vice versa.

Polpettina Bolognese (serves 4)

Polpettina's Bolognese

Ingredients

  • ½ cup Extra Virgin Olive Oil
  • 1 medium onion, chopped fine
  • 3 celary stalks, chopped fine
  • 2 carrots, peeled and chopped fine
  • 6 cloves of garlic, sliced
  • 1lb ground beef
  • 1lb ground pork
  • 1lb ground veal
  • ¼lb chicken liver, chopped
  • 1 can tomato paste
  • 1 cup red wine
  • Salt and Pepper to taste
  • 8 oz Pappardelle (per person)

Instructions

  1. In a large sauce pan, heat olive oil and then add vegetables, but do not brown. Add meat and brown over high heat.
  2. Deglaze the pan with the red wine and allow alcohol to cook off. Add tomato paste and chicken livers. Bring to a boil and then reduce heat. Allow to simmer for 1-1 1/2 hrs.
  3. Boil water with two tablespoons of sea salt. Cook pasta until al dente.
  4. While cooking pasta, take two cups of the Bolognese sauce and reheat gently if necessary. Once pasta is done, drain immediately and add to sauce. If pasta is dry, add a slight amount of pasta water to Bolognese.
  5. Divide evenly, top off with grated pecorino and enjoy!

I’d like to thank Kyle & Mike for sharing their recipe and look forward to hearing what you think of the pairing and recipe. If you’re in the Lower Westchester area, be sure to check out Polpettina, what a great find!

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The sensuality of the Rhône

Exotic adjectives are gracefully woven into wine lexicon. Such terms as sexy, round, buxom, supple, shapely, full-bodied, and a host of others are the norm in wine critic circles and would lead one who walked into a conversation late, to mistake the conversation about wine for one about a beautiful woman. There’s a reason that many of these descriptors find their way into dialogue about the aroma and flavor make-up of any given wine. Simply put, wine is sensual.

Rhône Valley Wines & Formula PR created an atmosphere conducive to expounding the sensuality of the Rhône's wines.

The experience of drinking wine can be as simple as an enjoyable, yet superficial sip, or as immersed as following through the full progression of swirl, sight, smell, sip and savor. Since this immersion in a nice glass of wine typically produces feelings of appreciation for its great beauty and because early wine professionals/critics were mainly men, the vocabulary of wine drew from men’s appreciation for another object of adoration, women. However it’s not all about the ladies. Men also hold in high regard what they find to be ideals in themselves and this is why such terms as masculine, brooding, and muscular a woven in as well.  It’s partially due to these connections to the ideals of both sexes that one truly begins to experience the sensual nature of wine.

A major component of the evening was the amazing talents displayed by the ImaginAerial performance group.

Last week, I had the privilege to attend a tasting that was exceptionally orchestrated at Capitale in NYC. The tasting, put on by Rhône Valley Wines and Formula PR offered wine writers and restaurant industry professionals an experience that wholly encapsulated the sensuality of wine by combining the charming wines of the Rhône with a venue and entertainment that set the tone for something special. Actually, to call it a wine tasting doesn’t do it justice, it was more of a wine spectacle. Besides the wines, the other main attractions of the Rhône Flights & Flights tasting were the burlesque dancers and aerial acrobats that were brought in to incorporate additional sensuality through their provocative movements in various disciplines. It goes without saying that this will be a wine tasting that will be difficult to top.

The group was vibrant, the discussions were intelligent, the atmosphere was energetic, and the wine was the inspiration.

As for the other co-stars, the wines, the selection offered a well-rounded representation of the unctuous, or rather sensual, experience that the Rhône has to offer. Of the approximately 40 Northern and Southern Rhônes served, I partook in roughly 30 and kept notes on those I’d want to drink again. From there I narrowed the field down to 8, which were selected for perceived quality and ability to convey the moment. A healthy proportion of the wines poured were from the stellar ’07, ’09 & ’10 vintages. Each wine that I’m about to mention is worthy of being sought out as they all beautifully represent their appellations and are approachable at a young age.

2005 Cave de Tain, Gambert de Loche, Hermitage $53

  • 100% Syrah

The benefit of 6 years of age is clearly present in this wine. Phenomenal structure and alluring sensory attributes make for a sexy experience. Perfumed aromas of cherry, cranberry and violet integrate nicely with white pepper and oak and transition to the palate where they are joined by allspice, cocoa and tea leaves. A rich and velverty mouthfeel coupled with balanced fruit acid assures that this wine doesn’t get bogged down. Fantastic.

Senel Wine – 95 pts

2009 Chateau de Saint Cosme, Côte-Rôtie $55

  • 100% Syrah

In my opinion, this is a perfect example of Côte-Rôtie. Bright cassis, blackberry and spice notes permeate the aromas and into the palate along with notes of cream which are held together by subtly firm tannins. The structure allows for a long, strong finish.

Senel Wine – 95 pts

2009 Maison Nicolas Perrin, Crozes-Hermitage $23

  • 100% Syrah

What a fun wine! Aromas of cherry pie and raspberry liqueur lead to flavors of black cherry, rhubarb and black pepper. Invigorating, tangy and supple.

Senel Wine – 93 pts

2009 Domaine Montirius, Le Clos, Vacqueyras $22

  • 50% Grenache, 50% Syrah

Interesting, deep aromas and flavors of soy sauce, blackberries and spice box, along with balanced acid and tannin structure sum up this provocative Vacqueyras.

Senel Wine – 92 pts

2009 Dauvergne Ranvier, Vin Rare, Crozes-Hermitage $17

  • 100% Syrah

Racy acid and pronounced spice lead to red fruit, fig and green pepper. Overall balance is nice with firm, almost dusty tannin.

Senel Wine – 91 pts

2009 Domaine Lafond Roc Epine, Tradition, Lirac $17

  • 70% Grenache, 30% Syrah

Bright cherry, sweet spice and perfume aromas that are strikingly similar to Chambolle-Musigny yield to deepness of flavor. Black cherry and spice meld to make a bold and coating mouthfeel with just enough acid to lift it up. Overall very pleasant.

Senel Wine – 91 pts

2010 Gigondas la Cave, Beaumirail, Vacqueyras $12

  • 70% Grenache, 30% Syrah & Mourvedre

The red fruit starts out strong, but goes slightly austere in the middle, then introduces with a creamy black pepper note that reminded me of steak au poivre. Very nice structure and firm tannins, interesting.

Senel Wine – 90 pts

2009 M. Chapoutier, La Ciboise, Luberon $9

  • 60% Grenache, 30% Syrah, 10% Carignan & Mourvedre

Nicely sleek and focused with bright cherry, cinnamon, other spices and dry tannin. A good everyday wine.

Senel Wine – 88 pts

I highly suggest that you branch out and get acclimated with the Syrah-based wines of the Northern Rhône and the Grenache-based wines of the Southern Rhone. Their US and Australian cousins may offer a bolder experience; however the purity of even Chapoutier’s Luberon is admirable. It’s in a glass of these wines that we feel the passion and tradition that’s in the blood of these wonderful vignerons. It’s through their love of the vine that we can make such outlandish connections between sensuality and wine and experience such pleasure because of it.

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Tenuta San Guido: A revealing experience

The wines of Tenuta San Guido: Guidalberto, Sassicaia & Le Difese...marvelous!

Tenuta San Guido, the name that demands reverence and awe. This famed producer best known for its legendary “Super Tuscan” Sassicaia, or as I like to call her, “Sassy Kaya”, has one of the most impressive line-ups from top to bottom that I’ve come across. Granted, their line-up consists of only three wines, yet each is top-notch. Typically there’s a clear hierarchy starting with Sassicaia at the peak, then Guidalberto and finally the newbie, Le Difese. However their current release doesn’t represent this traditional pecking order.

Last week, I had the pleasure of tasting their current release and was blown away by one, unsurprisingly impressed by another and slightly miffed by the last. My palate was fresh and the pours were from new, yet double-decanted bottles, so why the surprise?!

In order to answer this question, why don’t we meet the wines first?

2008 Sassicaia, Bolgheri (Tuscany, Italy) $160

The best wine gets the best grapes and this was evident. Tightly wound and unsurprisingly not showing a ton, what it did offer was insight into the future of this behemoth.  Deep and juicy blue and black fruit, and hints of pencil shavings are held close together by gripping tannins that are firm and insightful. It has composure with a healthy level of forcefulness that indicates that with time, the integration of tannin into the fruit will rip it open and expose a beautiful wine.

I wouldn’t open a bottle of my own prior to 2014 at a minimum, anything before then and you’re drinking a nice wine, but will by-in-large be wasting your money. Sassicaia was made to have some age behind it before consumption, have some restrain, it’ll be worth the wait!

Senel Wine – 96+ pts

2009 Guidalberto, Tuscany (Italy) $40

This is a dense, round, weighty and highly-extracted wine. It shows quite well of super-ripe cherry and cassis with bell pepper, black pepper and anise on the nose and palate. The tannin and acid balance are nice and will lead to this wine opening-up nicely over the next couple years. I look forward to coming back to this in a couple years and see what develops.

Senel Wine – 91 pts

2009 Le Difese, Tuscany (Italy) $22

It’s amazing how a 70% Cabernet and 30% Sangiovese tastes just like Pauillac. This is the cleanest, most clearly delineated wine I’ve had this year. The layers are perfectly discernible with black fruit, then molasses, and then pencil shavings on the nose. Evenly ripened cassis and blackberry, cola and underbrush characterize the seamless flavors that are held together by refined tannins and uplifting acid.

Personally, I find the structure of this wine to be impeccable, quite the experience. I know it’s not trying to be a Bordeaux with the 30% Sango; however it really reminded me of Pichon-Lalande, it was that good. The only knock, it won’t have as long of a life as the Sassicaia, but then again, it’s not supposed to. Overdelivers immensely.

Senel Wine – 94 pts

When it’s all said and done, Sassy Kaya was brilliant and fulfilled the belief their best wines are made in years ending in 8. There aren’t too many other wines that I’ve been more excited about AND have lived up to expectation. The Guidalberto is the one that left me slightly miffed, because the weight on it was almost sloppy; however I’m being nitpicky, it was still a very good wine. Finally, there was the beautifully structured Le Difese. It’s not often that I’m stunned by a bottle at this price level, but damn this is a sensational wine that I’d gladly sip every day. At that price I just may!

Tell us a little about your experience with the wines of Tenuta San Guido!

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Appreciating the parallels in the emergence of the American and Chinese wine industries

Great wine selection and much more.

I’ve always found it fascinating to see how industries develop over time. Be it reading about the emergence and growth of the American wine industry, witnessing the transition of the print media and auto industries, or being brought-up in the aftermath of the regression and subsequent death of the Midwest steel industry, it’s surreal to watch them all go on a relatively human trajectory of birth, maturation and potentially death. We’re currently witnessing the birth of another industry, one that’s exceptionally similar to one we’ve already experienced. In order to appreciate it, I think we should revisit our story first, the birth of America’s wine industry.

Viticulture in the US has surprisingly deep roots (pun intended). Dating back to times even before the days of missionaries planting vines in San Diego for communal wine and Thomas Jefferson trying to grow Bordeaux varietals on his property Monticello, the US has had a rich history of the vine from which to start. In fact, it’s American rootstock that proved resistant and subsequently saved European vines in the later 19th century from the catastrophic outbreak of phylloxera, the vine destroying microscopic insect. Yet with all this history, the US wine industry only emerged as a viable industry, in earnest, towards the middle-to-later part the 20th century. But why?

Through my studies of American history, I’ve come up with the conclussion that the US simply wasn’t ready to start embracing its Europe roots. Italian, Irish, German, Slovak and other ethnic communities were viewed through xenophobic-tinted glasses by a vehement  Anglo-American society that looked down at holding on to the Motherland’s traditions as backward and whose distrust of things European is rooted in pre-revolutionary and Puritanical bias. It took something significant to begin to soften this antiquated way of thought. The initial transition began with the return home of servicemen from Europe after WWII. During their time abroad, they saw a different way of life, became educated in different cultures and saw the side of a deeply historic continent that was largely misunderstood. Part of the culture these servicemen and support staff were exposed to was wine. They witnessed the role it played in family and society as more of a communal drink than as an evil as deemed by Great Depression era Prohibition. 

Another significant development was the emergence of the relentless marketing genius Robert Mondavi, who’s exposure to wine was shaped completely by his immigrant parents. With his upbringing in the early years of the biz in Napa, he focused his energy and charisma on making wine approachable (thus the advent of the term Fume Blanc which was easier for Americans to pronounce than Sauvignon Blanc) and exposing Americans to his ideal of gracious living. Mondavi’s passion of living a gracious life showed a deep appreciation for music and the arts, fine cuisines of the world and fine dining, in which food and wine play the lead. It was on his trips to the largely French wine drinking East Coast that he was able lay the inroads that would begin a nationwide revolution.

Eventually, as with other populations of growing wealth, American consumers began to embrace the gracious living notion and reach to wine for its aspirational qualities instead of beer or liquor. This didn’t take hold over night; however once the initial European pretension was cast aside, Americans began favoring the more mild, food friendly and female-palate-pleasing beverage. The stage was now set for the American wine industry to take off; however it was still looking for that final impetus to send it into orbit.

Gracious living at its finest, welcome to Napa!

Like any significant development, it takes a seminal moment to change the trajectory of history, be it for a nation, or in this case an industry. The combination of Robert Mondavi’s promotion and the beginnings of a fundamental shift towards accepting wine laid the foundation, but The Judgement of Paris set things on its irrevocable course. The stunning victory of two Napa wines over a field containing greats from Bordeaux and Burgundy, helped to create what we now know as America’s wine industry by instilling a level of patriotism into wine. Prior to the blind-tasting, in which a  ’73 Stag’s Leap Wine Cellars Cabernet and the ’73 Chateau Montelena Chardonnay took top honors, the California wine industry was inaccurately viewed by many as being manned by a bunch of unsophisticated hick farmers attempting poorly to beat the French at what they do best. This tasting set the record straight as they prove everyone wrong and in the years that followed emerged as one of the World’s greatest winemaking regions, with Napa now serving as its new benchmark, not Bordeaux or Burgundy. This event had such an impact that French wine houses began partnering with American wineries (most famously Opus One, the joint-venture between Mondavi and Baron Philippe de Rothschild of Bordeaux First-Growth Château Mouton Rothschild) and in some cases starting wineries of their own (Domaine Chandon in Napa and Domaine Drouhin in Willamette, Oregon are two terrific examples).

Fast-forward 35 years and we are witnessing a foundation waiting for its own seminal moment. Thanks to the progressive mentality of Deng Xiaoping during his time in power from 1978-1992 and Hong Kong’s exposure to English culture, the door was opened for China experienced a period much like post-WWII America in which it began to open up to those things foreign and becoming more and more accustomed to the finer things in life thanks to its burgeoning wealth. Mondavi’s concept of gracious living is running rampant amongst China’s emerging middle and upper-middle class; however in this case it’s not due to the Chinese ancestral ties to Europe. Rather, it’s their extreme appetite for perceived luxury, especially Bordeaux wines, that’s driving this movement. The Chinese’s lust for the best wines from Bordeaux is well-documented and this will likely not change on the high-end; however as a whole, their growing consumer base is open to wine experiences from Spain, Australia and the US, including mid-tier wines from these regions. With this growing appetite for more accessible, value wines, it’s only a matter of time before domestic wines begins to supplant foreign wines on the table.

Grace Vineyard, from the Shanxi appellation, currently sets the standard for Chinese wine; however it will have to pick up its game with more "flying winemakers" and foreign investment coming to town!

The Chinese government has taken strategic steps by slowly integrating the Western dynamic into their Sino-centric culture. The Chinese wine industry’s pro-growth movement is one such beneficiary. Beginning in Hong Kong early last decade, the government gave up tax revenue on wine with a progressive vision of generating a wine consuming culture. How did this end up being progressive? Well, the government at the time had enough foresight to realize that once wine is embraced and even embedded in the mainstream, there’s a real opportunity to establish China as the chief supplier of wine to its own consumer base, thus creating a thriving industry. It seems only logical that this take place, especially in a country that has an army of farmers, some of whom are dying to experiment and broaden their scope, which will prove useful in this endeavor. This all sounds all too familiar. Where have we heard this story before? Oh yes, in the US, only this time the industry’s emergence is being largely orchestrated as opposed to emerging organically.

With China’s massive consumption in the world’s wine auction and Bordeaux en primeur scene (which is eerily similar to the tech bubble years in the US), partnerships are being forged between government-run agricultural firms and foreign wine houses (primarily French houses) especially in the most familiar regions of Xinjiang, Shanxi and Ningxia (the last of which recently witnessed Moët enter the market in a partnership to make a sparkling wine), the foundations are being set for a significant industry. They aren’t there yet; however we’ll likely see this fledgling industry begin to take its first significant steps soon and then be ready for the moment that makes it boom.  I only wonder what fateful event will galvanize the Chinese around their domestic wine industry. I have one theory; however it spells anguish to those who are currently benefitting, and in some cases relying on this nation of unimaginable wealth by selling their wines to its consumers.

In the end, it’s wine that’s proven once again to be the gracious host of dreams that’s leading yet another massive world player to embrace it, learn from it, and then make it its own.

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How recent events have impacted the investment wine market?

The past month or so have been largely volatile for the world’s equity markets to say the least. The S&P started August 1,292 and finished the month with its tail between its legs at 1,213. Although that’s only a 6.1% decrease, along that bumpy trail it dipped to 1,120, a thumping of 13% in a matter of two weeks. The first part of September has seen a continuation of the uneasiness, with the close on Tuesday at 1,162, a decrease of 10% from August 1.

This was largely caused by three factors:

  1. The Debt Ceiling Debate and subsequent S&P downgrade,
  2. Continued weak US economic data, and
  3. That mess of a world body known as the EU.

With all of this happening simultaneously, the market has been highly reactive, with nearly ever news story sending equities either higher or lower in 2-5% intervals. Luckily, the past few days have restored some relative optimism; however with the EU’s handling of the P.I.I.G.S’ (Portugal, Ireland, Italy, Greece, Spain) debt situation, don’t expect prolonged calm seas anytime soon.

Over the course of the past few months, I’ve been writing heavily regarding wine’s viability as an investment. It’s certainly an asset that doesn’t have the same strictures of an equity (i.e. earnings, balance sheets, restructuring, etc) and in trying times, it’s been seen to be a hedge against volatility. This past month has seen the different Liv-ex indices take a hit; however when looking at aggregate long term performance, along with YTD performance, wine is holding up and has held up quite nicely through some violently turbulent periods in the equity markets.

The first illustration below shows the Liv-ex indices through the end of August and the second illustrates the two major, broad-based US indices along with the numbers for the Hang Seng. I’ve included these as they are the indices of the markets of the two largest wine collecting nations,Chinaand theUS. Finally, I’ve been getting a lot of hits on my blog with searches surrounding “wine stocks”, so I’ve thrown in the two major players in this game, Diageo and Constellation Brands. 

Index  MOM  YTD 1yr  5yr
Liv-ex Fine Wine 50  -4.4%  3.6% 20.2%  175.6%
Liv-ex Fine Wine 100  -4.0%   2.5% 13.5%  109.8%
Liv-ex Claret Chip  -4.9%  1.5% 14.8%  139.9%
Liv-ex Fine Wine Investables  -3.7%  5.3% 17.9%  132.7%
Liv-ex Fine Wine 500  -0.4%  13.9% 24.4%  120.1%

*through 8/31

Index  MOM  YTD 1yr  5yr
S&P 500  -1.49%*  -6.29% 8.52%  -0.31
Russell 2000  -2.45%*  -12.56% 8.09%  .08%
Hang Seng (Hong Kong)  -4.43%*  -17.89% 11.35%  3.21%
Constellation Brands (STZ)  -1.81%*  -16.41% 8.53%  -33.36
Diageo (DEO)  0.34%*  5.22% 15.45%  30.81**

*through market close 9/12    **includes dividend reinvestment

As one can see, over the longer term, including the debacle of ’08, the different wine indices held up amazingly well. There was a recent shift and month over month the wine indices have stumbled somewhat. From everything I can tell, this is largely due to the steady decrease in performance of different vintages of Chateau Lafite-Rothschild, most notably the performance of the ’08 vintage. Why all of a sudden?

Is this the Lafite "bubble" bursting, or simply correcting?

If we look closely at the relative decline of the Hang Seng, I think we’re able to isolate the issue. Lafite benefited from a meteoric rise in price and stature, becoming the most sought after of all Bordeaux First Growths amongst the Chinese. With the Chinese government’s attempts to slow down the ferocity of growth in their economy, I feel the side effects are being felt in this “bubble” within the wine investment world. Other First Growths have lagged the dynamic growth and demand of Lafite for a couple years now; however this much needed reset seems to have finally arrived thanks to tightened liquidity in China and a recent sharp correction in the Hang Seng. If this does turn out to be a reversion then this is quite healthy and is an indicator that this may not be a bubble after all.

The overall murkiness of the global economic condition and its direct impact on wine investments will be something to pay attention to. All has not been doom and gloom, in fact I expect to see a gradual tick upward as two very strong indicators offered hope. First, Acker, Merrall & Condit recently completed a US auction in which 97% of the lost sold for a total of $3.8M. This is a very promising participation rate. Second, in China, the most expensive single lot of the year went for $539K. To me this shows that the money is still there; however its probably going to be more selective moving forward. In the end, it’s through these times that we can truly assess whether or not an asset class is truly a hedge against volatility. I still feel wine offers that hedge and over the long term, so do the numbers.

Please be sure to consult different expert guides to wine investing before taking the plunge. Below are a couple articles I’ve written that may assist in offering additional clarity as to some of the topics discussed in this article:

The mentioning of the stocks in this article by no means constitutes a recommendation to buy or sell, rather they were used for informational purposes only.

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Filed under Collecting