Vintage Returns

The right wines can mature into a ripe investment, writes P.Ramakrishnan.

Wine is no longer merely a palatable refreshment. Now it’s also a collectible, seen as a potentially lucrative investment. These days, a sip of win could mean a dip into your portfolio, and names like Lafite, Latour, Margaux and Mouton-Rothschild should be sprinkled into conversation not just over dinner, but when mulling over your private collection with your financial advisers.

If you do have “grape expectations” and are hoping for vintage returns, there are some simple steps to consider when starting your own collection. “Decide if you are doing this for profit, investment or pleasure – to accumulate some special wines to share with friends and family in years to come. This will have a large influence on your actions,” says Greg De ‘Eb of Crown Wine Cellars, who has seen some of the finest collections in Asia.

Imagine you’ve joined Epicureans Anonymous and think of it as a step-by-step programme. “Focus on Bordeaux and Burgundy wines with a smattering of Californian greats. Concentrate on the good, recognised vintages - ’82, ’86, ’90, ’96, 2000, 2003, 2005 – in order to see the highest returns,” says De ‘Eb.

Like researching a stock tip, read up on the subject; for example the ratings guides like the ones published by Robert Parker – his 100-point wines are revered and coveted.

While you’re hitting the books, get a map. Think global gumption, and expand your horizons to lesser known areas but still acknowledged estates, such as Vega Sicilia, Spain; South Africa’s Vergelegen, Meerlust and Kanonkop; Moss Wood, Australia; wines from Douro in Portugal; Alba in Italy and California’s Napa greats.

“Keep them for as long as possible or buy them old and keep them longer,’ says De ‘Eb. “It is great fun to bring out wines with age at dinners and gatherings – especially if they have a story behind them. It shows that you have made an effort and love your wines.”

Viviane Weller, marketing and sales manager at Howards Folly, a private collection of wines available in Hong Kong, adds. “If you keep an eye on other people’s collections the world over – as there are wines that have been saved for years and should be ready to drink or invest in - you must check what is available to buy or exchange with what’ve got.”

When tough economic times loom, many collectors try to unload their stock;, liquidating (literally) their assets. “People start selling their wines to get money quickly and auctions are keenly observed,” says Weller. “Andrew Lloyd Webber’s collection will hit the docks in Hong Kong, and that has sparked a lot of interest among connoisseurs.”

At the Sotheby’s wine auction, on January 22 (2010), Webber plans to sell off 748 lots of fine wine. “There’s a lot of buzz among collectors for this auction as it includes cases of the first growths on the 2005 vintage, Petrus 2000, Cheval Blanck 1982. Domaine de la Romanee Conti La Tache, and Domaine Leflaive,” says Weller. “The stage producer and director’s fine taste in some rare and excellent vintages will be up on the ballot.”

And speaking of directors, finding your “direction wines” is a key step for all aspiring connoisseurs. It tells what styles of wine, varietals and countries of origin you enjoy most.

“Try individual bottles of different ages to find out how they will hold up to ageing, and then align your purchases accordingly,’ advises De ‘Eb. “Only then go out and buy cases.”

New collectors can also make sophomoric mistakes. “Do not drink the wines too young; this is equal to eating unripe fruit,” say De ‘Eb. “Never buy wines that have been stored incorrectly; wine is a living product and will die if not properly kept. This is like having fresh eggs in the boot of your car for two weeks – they will still look okay but you do not really want to open them and see what’s inside.”

Although there seems to be an overwhelming crop of wines being sold in online auctions, websites and forums, never buy wine “blind”. There are many questions to ask vendors, from requesting photos and descriptions of the wine’s condition to inquiring about its history – where it comes form and how it was kept. It only takes one rotten grape to end up with vinegar.

“Do no simply accept the ‘It comes from a great cellar in Europe that is kept at 13 degrees’ line” says De ‘Eb. “This is usually nonsense.”

Once you’ve secured your taste, then comes the question of storage.

“Being a boring traditionalist, I have a good two-bottle cooler bag for my whites and a sturdy leather clad hard two–bottle case for my reds,” says De’Eb. “This serves my dinner transport needs. As for home wine-bottle holders – definitely a no-no, stylistically and functionally. A cold, dark place, and keeping your wines in a cardboard box is much better.”

But for serious collectors, dramatic measures are often taken. A property magnate in Hong Kong’s South Bay, for example apparently decked his basement with a state-of-the art temperature control room, designer bottle caverns; complete with colour-coordinated library efficiency, a password–protected door and a nanny cam recording ins and outs.

It’s a multimillion dollar effort, and yet believe it or not, this still read dilettante on the oenophile table. “Only store your great, collectible, high-value wines in professional facilities with exceptional security, 100 per cent insurance, HKQAA Fine Wine ratings and substantial financial backing” says De ‘Eb.

Although Webber’s older wines were cellared at Sydmonton Court, his 16th-century home in Berkshire, his newer wines (worth almost US$8 million) were kept in professional storage. “If you do not do this, you will discover with a shock at the time of selling that your precious wine is worth only a fraction of what you thought it would be,” says De’Eb. “Overall, the correct conditions are critical to the long term enjoyment of your wine.”



NOTE:
Out today! With the daily edition of South China Morning Post, in Style magazine.