Don’t let the title fool you. This is not another article devoted to extolling the virtues of what will go down as one of the great Bordeaux vintages. Rather, its focus is on the hype that the wine press has created, the attention that the ’09 futures have received around the world, and the massive opportunity that it’s presented to collectors. Identifying what has caused the opportunity is just as important as the opportunity itself. Other investment opportunities will come along, but it’s your ability to identify what it is that causes this hype that will allows you to successfully and strategically take advantage of it in the future.
To find out the keys to taking advantage of the ebbs and flows of the economy, as well as collectors lack of foresight, you have to check this out. Read Thank you Mr. Economy, bloated cellars, and 2009 Bordeaux to find out cues and clues to assist you in becoming a more intelligent wine consumer.
Last week I came across a thought that really got me motivated. The concept stemmed from a blog post by James Suckling on WineSpectator.com.
What Suckling did in his blog was break down what he would purchase with the $3,200 he had allotted himself for wine for the remainder of the year. He discussed going all out on a single bottle of the $3,200 Chateau Le Pin, from Bordeaux’s Right Bank region of Pomerol, or going about things more practically.
When faced with a similar decision, I thought I would shoot a little lower and base mine off of a $1,200 bottle of Chateau Haut-Brion ($1,200 is its current price, offered by widely known and trust retailer, Zachys).
What would I do if I had $1,200 allotted for wine for the remainder of the year?
To see what I would do, check out The $1,200 Wine Question written for Cork’d.
It is amazing what the hype-machine out of Bordeaux can achieve. The 2009 Bordeaux Futures are without a doubt, a success. The demand for this vintage has exceeded my expectations! I thought that the stagnation of our economy would put downward pressure on the futures. However, it turns out that Asia, Hong Kong to be more precise, is playing their trump card (in conjunction with strong demand from US Venture Capitalists). To this, I say “let them!”…
To find out how you can approach this in a responsible manner and capitalize on some favorable pricing, read 2009 Bordeaux Pricing is Set: Now What?
Over the past few years, anybody with a pulse realizes that China’s prominence on the world stage is quickly rivaling U.S. superiority. Manufacturing, commerce, technology, finance and now wine!
Peter Meltzer, author of Keys to the Cellar and contributor to Wine Spectator has been following the evolution of the Hong Kong wine market quite closely.
One would think that their market has been thriving for some time but it wasn’t until February of 2008 that a real move of significance was made. That is when the import duty on fine wine was taken down to zero from a staggering 80% in 2007.
“By abolishing import duties, Hong Kong has positioned itself to become the world hub of fine and rare wine sales”, said Meltzer.
Since this has taken place, the Hong Kong wine auction market has since passed the U.S., as of Q1, 2010 ($28.5M vs. $24.3M).
What does this potentially mean for the 2009 Bordeaux Futures?
In a word, DISASTER, for now!
The poor economic conditions of late 2007-early 2010 have created more patient buyers of Bordeaux futures. No longer is the demand so high that collectors will shell out huge sums for what are clearly inferior wines.
Now, the 2008s have to compete with the newly canonized “legendary” 2009 vintage for a place in your cellars.
Did the 2008s ever stand a chance? Is there a bright side to this?
2009 Bordeaux - Photo courtesy of Olivier Magny & O Chateau
Throughout the last year, I’ve been watching with a keen eye on any news regarding the quality of 2009 Bordeaux, especially the release and pricing of the 2009 futures.
During this time, I’ve seen countless blog posts and newspaper entries that have sung the praises of this vintage as if the authors of the entries were in Bordeaux themselves to harvest, press and taste the wines.
The only problem is, few of them were. Considering the potential importance of the upcoming release of the 2009 futures, I thought this would be a good opportunity to sort the wheat from the chaff.
What are Bordeaux futures and why do people buy them?
Why is this vintage important?
What makes 2009 potentially great?Will I buy 2009s?
To find out the answers to these questions and more, check out 2009 Bordeaux Futures: Separating the Wheat from the Chaff that I wrote exclusively for Gary Vaynerchuk’s Cork’d.