Categories
News

Penfolds to Produce Special Made-in-China Bottling

Penfolds is Treasury Wine Estates’ most iconic brand. Its most sought-after bottling is undoubtedly ‘Grange’ which is revered by wine lovers and collectors the world over and has received a wealth of 100 point scores, rave reviews and awards since its first official vintage in 1960.

China is an important market for Treasury Wine Estates and its Penfolds wines are in high demand. However, due to the eye-wateringly high tariffs (up to 200%) that were imposed by Beijing in November 2020, its exports to the country are down by 26%. 

In order to supply its wines to China as smoothly as possible in future, Treasury Wine Estates has found a way to bypass the tariffs: by growing grapes and making wines domestically to create ‘Penfolds China’. The international drinks company has been experimenting with viticulture in the western province of Yunnan in the Ningxia and Shangri-la regions and is happy with the results of its ‘primarily Cabernet-based’ wines so far, as Chief Executive Officer Tim Ford commented: ‘China is an emerging fine winemaking region and we’re confident we can produce a premium Chinese Penfolds that maintains the distinctive Penfolds house style and uncompromising quality’.

Penfolds is expected to release this new wine in the second half of 2022 and each bottle will reach between A$30 – A$50, as reported by Bloomberg.

This isn’t the first time that Penfolds has looked to foreign shores in order to push winemaking boundaries. It launched Penfolds California last year, with a series of wines made in Napa from Cabernet Sauvignon and Shiraz. ‘Quantum’, its top cuvée, was released at £545, 10% higher than Grange in the UK. Interestingly, its parent company has also acquired vineyard holdings in Champagne and Bordeaux.

All eyes are sure to be on China, Champagne and Bordeaux over the coming months and years as the fine wine world waits to see which other innovative and ground-breaking wines Penfolds releases from both established and emerging wine regions.  

Categories
News

E. Guigal Buys Château d’Aqueria

The esteemed northern Rhône producer E. Guigal has acquired Château d’Aqueria in Tavel, one of the jewels of the southern Rhône. The celebrated maison made the purchase from the de Bez family and the estate spans 242 hectares with 168 under vine. Some 100 acres are in Tavel with the remainder in the neighbouring Lirac appellation.

This isn’t Guigal’s first purchase in the southern Rhône; the maison bought Domaine de Nalys – now Château Nalys – five years ago. It had previously sourced grapes from there over the course of three centuries for its négociant arm.

Château d’Aqueria dates back to 1595, when Louis Joseph d’Aqueria purchased the land for grape growing. The estate has been bought and sold over the centuries and, most recently, Paul de Bez’s sons, Vincent and Bruno, were in charge of it until this new purchase. 

The Tavel appellation lies just across the Rhône river from Châteauneuf-du-Pape and spans some 933 hectares. The region is famous for producing complex and deeply coloured rosé wines from primarily Grenache and Cinsault grapes, with Syrah and Mourvedre supporting. Tavel rosé must have at least 11% alcohol which renders it suitable for ageing.

The estate produces approximately 16,000 cases of wine each year and it will be kept by E. Guigal as a separate domaine, aside from the négociant arm. 

Lirac is gaining more and more interest recently as Châteauneuf-du-Pape lovers look to this region which shares a similar terroir. Producers from Châteauneuf have been buying vineyards here and making more accessibly priced white and red wines from old vines. 

Philippe Guigal, winemaker and CEO, said that the team is ‘eager to make its contribution to Château d’Aqueria’ and that its first project will be to ‘drive forward the practice of biological-ecological viticulture, with the help of the existing team at the Château.’ 

Categories
News

Bordeaux En Primeur 2021: Initial Thoughts

The Bordeaux En Primeur 2021 campaign is set to begin this quarter. Critics and the wine trade have descended – in person this year – on the famous French wine region to taste samples of last year’s vintage which will be sold as new releases while the wines are still in barrel.

Performance isn’t just about how good a wine or a vintage is though, growth can be seen across the spectrum. For instance, Château Lafite Rothschild 2013 (Neal Martin, 90 points), is up 110% since release, Carmes Haut Brion 2012 (Antonio Galloni, 94 points) is up 160%.  Younger wines haven’t had the chance to move as far yet, but there are still good numbers to be found: Château Beychevelle 2017 is up 30% and Château Pontet-Canet 2019 45%

Initial Thoughts on the Bordeaux 2021 Vintage

After speaking with winemakers, the négociants who sell the wine, journalists and other members of the trade, the general opinion is that 2021 is a fresh and approachable vintage that’s good quality and that many remarked is similar to other cooler years. WineCap will make a full assessment of it once critics’ scores and release prices are out in the next quarter. 

2021 was a more challenging year than each of the three vintages that preceded it. January started off mild but with some heavy rain. Temperatures were cooler than normal which helped create wines with a fantastic freshness to them with lower alcohol levels. Many producers experienced frosts in April and May. However, some châteaux weren’t affected at all due to their terroir’s elevated topography, as is the case with Pomerol’s Troplong Mondot which had almost no loss of yield. Rain in mid August and September helped promote downy mildew in the vineyard which affected grapes, although this wasn’t a problem for all châteaux. Merlot was the most affected grape as it is an early ripener and is also the most prone to suffer from mildew. This meant that production levels were down, as rigorous sorting in the vineyard allowed only the finest grapes to be used. Many producers on both the Left and Right Bank held off harvesting until as late as possible in the hope of warmer weather to ripen grapes a final bit more. This paid off as those who waited were rewarded with sun and higher temperatures. 

New Technology Helping Create the Best Bordeaux Wines

Producers now have excellent technology at their disposal to help them identify and select the finest grapes possible. In 2021, many châteaux used optical sorting machines that have cameras and/or lasers to determine grapes’ colour, size, structure and chemical composition. Another technique that was employed last year and that is gaining more and more prominence is density sorting. Grapes are bathed in a sugar solution at a sweetness level the winemaker desires. Ripe grapes that meet the desired sugar level sink to the bottom. These methods are enabling winemakers to create fantastic wines even during a challenging vintage. 

Of course, while these machines are gaining more popularity, the hard work begins in the vineyard: taking care of the vines and hand sorting grapes there before further quality control can take place in the winery. Château Pontet-Canet in Pauillac is the posterboy for good vineyard management and – in particular – biodynamic practices as it retained most of its yield in 2021 as it was prepared for inclement weather.  

2021 appears to be continuing a trend of fresher wines that are approachable earlier, while still having the potential to be able to age for decades to come.

Left Bank Bordeaux

As with many of the Bordeaux wines we tasted regardless of appellation, the Left Bank producers were happy with their wines, despite not having been able to make as much of them as they’d like. Pessac-Léognan’s Château Haut-Bailly and Saint-Julien’s Château Beychevelle were textbook examples of the 2021 vintage, delivering fantastic freshness, purity of fruit and fine tannins.

Right Bank Bordeaux

What stood out in Saint-Emilion and Pomerol was the higher percentage of Cabernet Franc used in the 2021 blend, typically with Merlot, as it is a late-ripening grape. Château Angelus’ 2021 Grand Vin contains the highest amount of Cabernet Franc on record: 60%. This gives the wine fantastic freshness and soft tannins. It was a similar story for many producers on the Right Bank, with higher levels of the grape used than usual. 

The Outlook for Bordeaux En Primeur 2021

While we eagerly await the release prices and critics’ scores that will appear during this quarter, the general opinion is that the 2021 vintage has produced fresh, approachable wines that are good quality. With yields down significantly in the case of some châteaux, we can expect there not to be as many bottles released as in previous years. Therefore it’s reasonable to expect that producers won’t be pricing these En Primeur wines at a discount. As always, it’s a question of individual châteaux prices.

Want to keep up-to-date on the Bordeaux 2021 En Primeur campaign? Sign up here to receive the latest news and releases.

Categories
News

Rare Burgundy Auction at Christie’s

Rare Burgundy wines are set to feature in Christie’s upcoming ‘Luxury Week’ in May and also in its Finest and Rarest Wines and Spirits sale in June. Spring heralds warmer weather, new growth and for one of the world’s most famous auction houses, a series of auctions that include some of the finest wines, watches, jewellery and handbags ever produced.

Christie’s Auction House 

Last year’s sales of luxury items at Christie’s was incredibly successful, topping just over $980m and the highest since 2015. Interestingly, 35% of buyers across all categories were new to the business and 32% of them were millennials, according to Christie’s CEO Guillaume Cerutti. It’s these new buyers that are driving the current buoyancy at the top end of the luxury auction market and that continue to push prices up on rare, collectible wines. What’s more, Christie’s has heavily invested in technology, a move brought about by the pandemic, in order to livestream auctions.  

All eyes will no doubt be focused on the upcoming rare Burgundy auction in June. It’s sure to be a real highlight as all of the 45 lots have been brought above ground from the deep, vaulted cellars of King’s College Cambridge. King’s College is said to have one of the most well respected cellars out of all of the university colleges and a real heritage when it comes to wine as its University Wine Society was founded in 1792. The college bought all of the wines on release from UK importer Richards-Walford and the cases were then moved to the university’s cellars, where they have remained since then. Only four wine stewards have been appointed in the past two centuries and their enviable role is to act as the cellar’s guardians and curate its collection.

A Wine Investor’s Dream

The 45 lots are set to feature rare Burgundies from such highly sought-after producers as Henri Jayer and his nephew Emmanuel Rouget, who is now the proprietor of some of Jayer’s most famous vineyards. Wines from these producers are expected to hail from such revered appellations as Echézeaux and Vosne-Romanée Cros Parantoux. Bids are sure to reach eye-wateringly high amounts for stand-out wines from a region that has tiny production levels.

Speaking about the upcoming auction, Adam Bilbey, Christie’s Global Head of the Wine and Spirits Department commented: “The hallowed cellars of King’s College, Cambridge are steeped in such history and tradition that this sale will garner the imagination and attention of wine lovers around the world. This small glimpse into the King’s College cellar will most certainly be a highlight of Christie’s wine sales this season”.

Want to find out more about rare Burgundy wine? Download our Burgundy report and discover why the region and its producers’ wines command some of the world’s highest prices.

Categories
News

The Champagne Brands Driving Price Growth

Champagne looks set to capitalise on its excellent 2021 performance. Last year was fantastic for Champagne brands as sales figures for the category rocketed beyond pre-pandemic levels. Over 350 million bottles were exported worldwide last year and the appetite for French bubbles – synonymous with luxury, indulgence and good times – gained the most ground in the US which has now surpassed the UK (37.4%) as the largest export market by volume (39.1%). 

This price growth can be attributed to two things: restaurants, nightclubs and bars reopening worldwide, as well as ultra high net worth collectors focusing their attention on the category. With less supply available, prices surged.

The sky was the limit for Champagne in 2021 as it ended the year up 40% and at a record high level. 2022 looks incredibly promising for the category too as it’s up 9.6% so far this year. 

Louis Roederer Cristal Rosé

Prestige Champagne brands were the key price drivers in 2021 and the headline acts with the top performance were highly sought-after names including Louis Roederer Cristal (with high demand across the 2008, 2012, 2013 and 2014 vintages). Interestingly, the most traded wine by value was the 99 point scoring Louis Roederer Cristal Rosé 2012 as the market for rosé Champagne expands. Other Grande Marques with top billing were the ultra-premium Salon (2007, 2006 and 2002 vintages), as well as Taittinger’s Comtes de Champagne 2006 and Dom Pérignon’s Rosé 2005.

Non-Vintage Champagne

However, it wasn’t just vintage Champagne that sparkled. The trade of non-vintage (NV) Champagne also broke new ground and made up the most-traded part of the category. The market has also broadened with NV Champagne’s trade share up from 5.1% in 2018 to 17.6% in 2021.

With such impressive performance in 2021 as well as in Q1 this year, there’s no doubt that Champagne has now cemented its place in the secondary market for fine wine. What’s more, there is no other region where the top wines are still this affordable. Savvy investors who hold top Champagne know just how approachable this category is, when compared to the most prestigious Burgundies, top Napa wines and the very best of Bordeaux.

Want to find out more about investing in Champagne? Read WineCap’s in-depth analysis in our Champagne Report.

Categories
News

Spring Frosts in Bordeaux

Bordeaux wine producers braced themselves this week as temperatures dropped as low as -7℃ in certain areas. It’s the second year in a row that the region has experienced Spring frosts and the coldest temperatures for this season since 1947. As châteaux try to ward off the frost that can wreak havoc on their entire crop, we’ve taken a closer look at how it impacts vines and what producers can do to try and combat it.

Frost and Wine: How Does it Affect Vines?

Spring frosts happen when cold air below 0℃ collects at ground level and freezes any water that has settled on surfaces. If this happens to new buds that have burst it kills them. The impact of this is huge and can impact the vintage yield significantly.

Vineyard Frost Protection

There are several ways that wine producers can try to combat frost in the vineyard. One popular and traditional method in French winemaking regions is the use of ‘bougies’, literally ‘candles’ in French, but more often ‘burners’, using old oil drums. They are placed throughout the vineyard to generate heat which helps the air to circulate and prevents the cold air from settling and causing the frost.

Wind machines are more common in areas that are prone to frosts. They act as large fans with a heating element inside and aim to keep the temperature at ground level above freezing. You might have even seen photos of some producers using helicopters above the vineyards in order to circulate the air!

Sprinklers are also used to spray water onto the vines. As the water freezes around the green tissue, it releases some heat which gives vines just enough protection to fight off the frost. 

One Bordeaux producer who has fought frost with 100% success using another method this year is Liber Pater in the Graves region on the Left Bank. Owner ​​Loic Pascquet no longer bottles his wines adhering to the AOC system which has strict production requirements. Instead, he chooses to bottle his wines as ‘Vin de France’ and is free to use frost nets in the vineyard, something that AOC classified producers are not permitted to do. Frost nets cost half the price of burners and are also reusable.

The Impact on the 2022 Vintage

While we don’t know just yet the full impact the Spring frosts may have had in Bordeaux, it’s likely that yields will be down. With less fruit available to make the wines, the amount of the 2022 vintage released on the market could be drastically reduced, meaning that the global demand for Bordeaux would struggle to be satisfied.

 

Categories
News

Welcome to WineCap

Hello, we’re WineCap and we’ve changed our name from Westgarth Wine Investments to give it a bit of a refresh, invested more in our technology, streamlined the new site and have added extra features that benefit our visitors. You can now schedule a free 30-minute consultation with one of our investment experts. We’ve also created the Academy which is a hub of online resources.

New Name. Same Team.

We’re still the same independently-owned company and team who’ve been proud to serve you for the past ten years and who will continue to offer expert investment advice for the next chapter of your wine journey.

Do I Need to do Anything?

You don’t need to take any action. Your online details remain the same, there are no changes to the wines you hold or where they’re stored and you can phone the same people using the usual number.

What’s New?

You’ll see our updated branding on our new website. We’ve also launched the WineCap Academy where you can learn more about the producers you invest in, stay up-to-date on what’s been happening in the market and get the low-down on everything in the wine investment sector. What’s more, you can expect new quarterly reports in order to stay informed with market trends.

So, a big ‘hello’ and ‘welcome’ from all of the team here at WineCap and we’re excited about this new phase of our wine investment journey together.

Categories
News

Asian Buyers make up 65% of the World’s Total Drinks Buyers

Asian buyers now make up 65% of the total wine and spirits buyers in the world. That’s according to Sotheby’s 2020 Wine Market Report. Asia’s demand for the world’s finest wines looks set to grow too, as 2020 was the second highest percentage on record for Asian buyers, after 68% in 2019.

There are multiple factors that can be attributed to Asia’s growing market share of the total wine and spirits market. The Coronavirus pandemic had a direct impact on drinking habits last year. Unable to visit restaurants and bars, China’s wealthy citizens began opening bottles of some of the finest wines from their cellars at home.

An international travel ban and lockdowns across China also meant that those who usually would have travelled abroad on holiday, opted instead to spend their money on buying top wines such as Domaine de la Romanée-Conti: a producer that represented 20% of all wine sales at Sotheby’s last year. However, while Bordeaux and Burgundy producers still make up the top ten names in Sotheby’s annual producer rankings, Asian buyers are looking further afield to regions such as Napa, in order to discover new wines such as Harlan Estate, Sine Qua Non and Colgin Cellars.

The future for wine imports into Asia, particularly into China, looks very promising. 2.25m nine-litre cases were imported into China in 2006 compared with a colossal 50.5m cases in 2019. Although there was a slight drop in the number of cases imported in the past two years, the trend for increased wine consumption looks set to continue. This is due to a combination of wine enthusiasts having opened bottles from their cellars during lockdown, as well as the disruption caused to supply chains to mainland China by the Hong Kong riots having ended.

As more and more Chinese cities open up – such as Shanghai – on-trade sales of fine wine are beginning to blossom, as consumers celebrate the easing of lockdown restrictions. With such strong figures from Sotheby’s recent report, all eyes remain firmly fixed on Asia with big expectations for this wine market that shows huge potential for growth.

Categories
News

Invest in Wine with Confidence now that we have a Brexit Deal

Investing in wine is more straightforward now we have a deal

Ever since the UK voted to leave the European Union in 2016, trade talks and negotiations between the two sides had been full of uncertainty, posturing and brinkmanship which at times made it feel like a deal was unobtainable. So, the news that a trade deal – now ratified by the UK Parliament – had been struck on Christmas Eve in 2020 was met with welcome relief across all industry sectors on both sides of the Channel and especially by those looking to invest in wine.

1. The costly VI-1 import documentation for UK and EU wines is no longer going to be introduced in July as previously planned. Taking its place will be a straightforward Wine Import Certificate which asks for basic producer and product information. This means far less admin and fees for wine importers, which in turn means no extra costs will be passed on to customers.

2. Crucially, wines will not have to undergo lab assessment for the new Wine Import Certificate. Submitting wines for lab analysis would have caused backlogs of wines which would have created frustrating shipment delays.

3. While UK wine importers are going to have to get to grips with new processes and forms over the coming months, this is just part of the anticipated bedding-in period which will become second nature as time goes on and as new processes are established.

With the previous uncertainty around Brexit having disappeared with the end of the transition period and with the years to come looking as though they’ll mirror previous years of healthy returns for fine wine, contact us to speak to one of our advisors about creating your portfolio to invest in wine.

Categories
News

Bordeaux En Primeur 2020: First Impressions

The Bordeaux En Primeur 2020 campaign is well underway and the general consensus from the trade and from critics is that this is an excellent vintage, the third in a row:

‘We have a reputation in Bordeaux to say the last vintage is the best one. But we did with 2018, 2019 and now 2020… after we did our tastings in the spring I can say it is a really great vintage. It is different from 2019 with more freshness, more tension, more balance. It’s a good one. Maybe a bit less powerful than 2019 but it made really great wine. I think that we can call it a trilogy now (three consecutive high quality vintages: 2018, 2019 and 2020).’ – Michel Rolland in conversation with James Suckling

Ahead of the Bordeaux En Primeur 2020 campaign, we’ve all been expectantly waiting to see how this year’s prices compare to 2019’s, as last year’s prices were considerably lower than previous years, due in part to the ongoing global pandemic that caused significant disruption, especially when it came to mass tastings being cancelled. Initial releases have come in either at the same price as last year or slightly higher. Increased prices are due largely to volumes being down some 25% on the year before.

The quality of the vintage has been declared as very good to excellent and the wines that have been released so far have commanded varying scores that range all the way from very good to 100 points.

As Jane Anson writes in Decanter: ‘Bordeaux 2020 is a year of contrasts, so it favoured terroirs that are best able to cope with the changes – and winemakers who were able to follow closely and help their vines adapt.’ There are some stunning wines being released and those who have done their research will reap the benefits. For expert advice, schedule a call with one of our investment analysts.

Interested in reading the Bordeaux En Primeur 2020 report in full? Access it here.