Sterling Wine Auctions Australia

2008 Wine Market Update & Pre-view

From Burning Bras to Hairy Chested Brutes

To be a better Wine Auctioneer, yes I did it all for you! I visited Germany, Switzerland, Italy, France and Thailand over the Christmas New Year Break. My research findings are very hard to condense, but I know what I like.

I like keeping drinks outside because its colder than in the refrigerator. I like going to the local supermarket and buying Barolo for $40 and Chianti Classico Reserva for $25. I like simple food make from fresh farm produce. I didn’t know it took so many different types of German sausages and cheeses to keep me warm. Not sure if Gluwein will catch on in Australia. Enjoyed traveling at 250km on the Auto Bahn and 330km on the ICE train. Looking forward to doing same in Australia. Lake Como in the winter sunshine must be closer to God. French Restaurants in Germany, Japanese Restaurants in Italy, Korean eateries in Switzerland and Italian food in Thailand just doesn’t work.

Fondue in Switzerland with just the right amount of Kirch is not fattening. Paris is the Eye-Bling capital but Milan has mouth-Bling and Bling mineral water at $A120 a bottle. Phouket beach houses are more expensive than the same house on the beach in Australia. Playing Golf in Asia is for Millionaires. Gorgonzola is Italy is better than the stuff we get here. Looking at lots of old churches, paintings and relics from lost civilizations makes me hungry. Paris stopped smokers in Cafes two days after I left. It not fair that so many people look at the Mona Lisa at once, she deserves some privacy…. and the Winged Victory has something to do with sports shoes and would look better with a head.

With 2008 well and truly underway the Wine Auction market is delivering more bargains to more buyers than ever before. The quality end is the mainstay with the cheap and nasty end of the business being mangled by the on-line wine dumpers.

Interesting to look at; Hope this market, fueled by past low quality / value wine surplus, will perform in a market where producers are struggling to meet orders. Clean Skin retailers and brokers are looking very nervously at their supplier’s ability to deliver. Interesting that Clean Skin prices are about the same as low end wines sold through regular retail. Some “premium clean-skins” are more expensive that the branded retail equivalent at the corner Bottelo.

A new trend that delights me is the number of new “lady” wine auction buyers that are bidding and buying on line.

No doubt, sick of being told what and when to drink they have begun to invade one of the last male bastions. Skirmishes are common although hand to hand combat has lacked commitment and it seems that the “ladies” have established a beachhead with full spa facilities and excellent supplies of wonder wines.

The same “ladies” who heard about Mum burning her Bra to find liberation have moved aggressively to shake off any misconceptions about traditional “Lady” taste. They do like flash Bubbles…. Well they would, wouldn’t they.. Who doesn’t?

The idea of the “lady” wine interest beginning with Chardonnay and ending with Pinot Noir with some dry sherry on the way; is another myth that belongs chained to the kitchen sink.

Slinky girls sheathed in designer labels and oozing style are well acquainted with the joys of wrestling with a hairy chested Shiraz brute.

In fact, in my experience, many “ladies” are surging into the big wines at a time when many “blokes” are slipping into lighter Pinot Noir and European delicacies.

NZ Pinot Noir gave up on being like Burgundy and just decided to do their own thing. Big, fruity, alcoholic and EXPENSIVE. Well done!

The auction market pounces on any premium NZ pinots and happily pays big bucks. Many of the single vineyard and reserve wines are comfortably pushing the $100 a bottle barrier. No end in sight. A brave man might say that the Kiwis are doing better at Pinot than the Aussies.

What do you do with a wine named Grange? Should be a song for this one.

Thinking of a spin off of the Broadway musical standard “Put the Blame on Mame”.

Celebrating a dame that is larger than life, beautiful, brassy and just thrives on attention and success.

Rita Hayworth in full fight might personify Penfolds Grange! Well there just doesn’t seem to be enough of the stuff to meet the need of the rich and showy. Conspicuous consumption seems to demand a few bottles of Grange to add the right tone.

Prices are rising ever so gently and sales just keep ticking along. Every bubble breaks but this one has very thick skin.

Big points, Big Bang and Big Ticket are still the winning way.

Torbreck Greenock Creek and Noon big guns are still red hot Auction property.

The pantheon of Aussie wine Icons would start with Penfolds Grange slip to Henschke Hill of Grace, pay respect to Jim Barry Armagh and the Roman Clarendon Astralis, fearfully glace at the ever growing power of the Torbreck Run Rig and Greenock Creek Roennfeld Road and add Mount Mary Quintet for stability.

Shooting stars are hard to hang onto and the blazing, blinding trails of the Ringlander and Mr & Mrs Marquis are hard to find and stay on.

(Translates to: Amazing wines, huge success, almost impossible to find or afford and who knows what they will be doing tomorrow)

In other words Three Rivers / Chris Ringland and Molly Dooker Velvet Glove or Carnal Dreams must be on the bigger list, maybe the one titled Icons and the Supernatural.

Not sure if I have focused on Mr Andrew Noon and his winning ways. If not, it’s about time.

Drew does his own thing and doesn’t suffers fools lightly. The runs on the board speak for themselves.

In the wide world of Mr Robert Parker, Noon Wines have cracked four Parker Perfect 99 pointers and five 98 pointers.

Not bad, Clarendon Hills only has four 99ers and Torbreck has six 99 pointers.

The scariest of the dark horses is the “Art of Waugh” and their huge brace of Grennock Creek mega pointers, six perfect 100pointers and four 99 pointers.

The Big News; Noon is the cheapest of the top end players. In fact, I reckon the cheapest 99pointers in Australia. Don’t wait, just one Russian or Chinese Billionaire could change all that in a flash!

Said it before; will say it again: Get in early for your birth year wine and save a bundle. The surge of demand for 1958 and 1948 vintages has been staggering. The prefect 50th or 60th birthday present just happen to come from vintages that have always been thin on the ground.

When we have offered these vintages at a Sterling Wine Auction this year (2008) bidding pushes prices 30-50% higher than they would have been last year (2007) or next year (2009)

The BIG TIP! Grab your 1949 1959 and 1969’s this year (2008) and beat the rush and price rise next year.

Every now and then you come across wines that are truly amazing. Real Treasure. The March Sterling Auction offered a stella collection of the rare and historical. Very hard to value, many of the wines have amazing stories. Imagine 1943 Mouton Rothschild made in France during the height of the Nazi occupation by a skeleton crew of old people and children. Most of the workers were off at the war or forced to work in Nazi factories.

The list goes on. Imagine the 1920 JW Burmester Reserva Novidade, bottled when Europe was still wrecked by WW1. In the bottle for almost 90 years, the valuable aristocrat has survived wars, depressions dictators and the constant threat of the corkscrew.

Gems from France and Australia that would be a privilege to own and display “pride of place” in the cellar.

My favorites are listed on the Sterling Web page for your interest.

Lots going on out in that big bad world. Amazon, the world’s biggest on-line retailer has just gone into wine sales.

Remember when China was the stuff you ate Chops and the three Veg off? It seems a very long time since the China boom plastered China stories all over the news. Don’t expect any less. Expect more! Hong Kong has just been catapulted into wine Hyper-drive with some very serious import tax cuts.

With Hong Kong becoming the centre of the Asian Wine Universe the Chinese taste for the good stuff is gathering pace. I remember the Boss from Chateau Latour winging about how unforgiving the French people were when Latour prices skyrocketed and the Lions share was exported.

Get ready for the time when we are the street urchins out in the cold, noses pressed against the Sweet Shop window watching and dreaming. Its not sales spin, stock pile the premium Aussie wines you like. There are Millions of wealthy Chinese thirsty for our red gold!

I am often asked about my taste in wine and what I buy. Like any good plumber with leaky taps, I usually drink what is put in front of me, or the stuff that doesn’t have a home.

Yes I do get to drink some smart stuff but always as a humble guest!

The Following wines, no strangers, I think are worth a second look. I think they represent value and may be suffering from underexposure or just are too old and stodgy to be up with todays bright young things.

I have been specific about vintages but don’t shy away from other vintages. D’Arenberg Dead Arm 2001, Penfolds RWT 2003, Fox Creek Reserve Shiraz 1997, Henschke Mount Edelstone 2002, Yalumba The Signature 2002, Houghton Jack Mann 1995, Leeuwin Art Series Chardonnay 1995, James Irvine Grand Merlot 1992 Tyrrells Vat 1 and Vat 47 any vintages with bottle age and a chilly cellar history, Orlando Centenary Hill 1995 Orlando Johann 2001 Hardy Eileen Hardy Shiraz any vintage, Wynns John Riddoch and Wynns Michael, Cloudy Bay TeKoka, Houghton White Burgundy.

March 2008