Sterling Wine Auctions Australia

Bargain hunters are a joy to behold. Working with the ruthless precision of a Bengal tiger, they show no mercy to the weak and vulnerable. There are bargains to be had in the wine auctions and as with all things commercial, cash reigns supreme.

It seems the richest vein of opportunity is with the junior super premiums. Grant Burge Meschach, Jim Barry Armagh, D’Arenberg Dead Arm, Cullen Cab Merlot and BVE E&E Black Pepper. All these fine performers are in strong demand but when a vendor is in a hurry to cash in, the prices can slip by 10-15%

The mother lode is still out there in “dem ills” outside Adelaide. Noon is still the best buying big hitter, with successive vintages of the Reserve Shiraz and Cabernet permanent fixtures in Mt Parkers Extraordinary 96+ category.

Torbreck is still my Number One. Love the wines, the packaging, the marketing and best of all they sell so well.

The mysterious folk from Greenock Creek still have the holy grain (nailed to the roof of the shed?) Looks like Team Waugh have the secret of huge refined balanced flavour bursting wines down pat. Had a Greenock Creek Seven Acre 1999 recently, Just loved it!

Mr Parker where are you? Looks like a few cracks are showing in Fortress Parker with the Australian new releases reviews, which were always published in October are to appear in February 2009.

Some clever commentators see the Parker star starting to fade. American readers bored with Oz wines that are overpriced and too much the same etc etc.

Dr Jay Miller has took on the Oz reviews for Mr Parker, a few years ago. Lets wait and see how he goes in 2009.

Planet Lance landed in Adelaide for the Tour Down Under Cycle race in January 2009. Never to be written off, Lance “Livestrong” Armstrong is a one man serious circus.

Mr Parker is a winner in his own racing circles, like Lance Robert is a stayer with a huge heart and buckets of guts. Not sprinters, stayers who will make the distance at the head of the bunch.

There are those who would have you believe that Rhone style elegance and petit weight is all the go and Big Barossa thumpers are relic’s of past folly.

Well there are more folks taking Pinot seriously and there are many playing around with the Spanish, Italian and French new guns. We even see grown men drinking Rose with their slab of charred steak.

Hold the phone, big is good and lovers of big abound.

Big, fat and ugly is bad. Making overblown wines with out of control wood and spirit isn’t that hard. Certainly easier than drinking these pin headed brutes.

The Holy Grail (as referenced, likely nailed to the Waugh’s shed roof in Greenock Creek) is to make wines with spine, brain, muscle and sexy curves. Not easy, and it does cost more.

My experience, these are the wines that bring a smile to the hardest dial and these are the wines that always disappear first at a party line up.

We are hearing way too much about Rhone style, funny thing is the killer Rhone wines of 2004 and 2005 have evolved to taste like they came from Heathcote or maybe even WA Great Southern.

The brave new world of Financial Crisis is hard to understand, there are too many contradictions.

Rare in demand wines like Penfolds Grange 1971, 1976 and 1998 continue to improve in value.

General quality back vintage prices have lost some shine over the past 6 months. In most cases, current auction hammer fall is within the hyped up estimate ranges of early 2008. 2009 auction sales tend to be at the bottom end of the range, sometimes just below estimate.

Importantly, some prices paid in early 2008 , at the end of the back vintage wine price bubble; were hyped up by fantastic stories of spectacular prices paid for 2005 Bordeaux and Burgundy.

This hype; 2005 crazy prices combined with legend stories of giant Russian and Chinese appetites for the best wines of the world, brushed too many layers of gloss on the local wine auction market.

Thank God for a reality check! There are still more Oz wines selling for over $100 a bottle than ever before. There was a time, only five years ago, when Penfolds Grange and Hill of Grace were in blue sky miles ahead of the pack.

Today Torbreck Run Rig, Greenock Creek Roenfeldt Molly Dooker Velvet Glove and Chris Ringland Three Rivers all give the top price points a push.

There is a legion of strong performers that have left the $100 barrier well behind: Penfolds Bin 707 and RWT, Jim Barry Armagh, Mout Mary Quintet, Moss Wood Cabernet, even Giaconda Chardonnay all have broken the ton for good.

Tin tacks are still very sharp and don’t expect the Bordeaux gems from 1982 or 1986 to take a tumble. Rock solid maybe just a little easier to buy.

Sadly new US Presidents, new stimulus packages, new deals and new horizons just wont take away the problems of the also ran’s and has been’s.

There are too many tricked up over priced Oz wines trading on dreams and promises. The rush to find markets has humbled some high and mighty wine Guru’s who had some strong US reviews and a prayer of serious distribution at premium prices.

The real-estate analogy is inescapable. The wine market is so much like selling houses. Good houses on a smart street are just as desirable today in lean times as during the boom. Maybe the price is down just a little but demand is strong. There isn’t a queue of buyers waiting for listings like there were in the boom. If you are desperate and want quick results you might have to drop the price. If you are happy to wait a while you good house with its smart address will sell for the big bucks the boom delivered.

Building blocks carved from the scrub out in the boonies were a roaring trade item during the “boom” being traded off the plan by speculators using borrowings to move ever big numbers.

The bottom has fallen out of this world and prices have retreated almost as fast as demand.

New estates out in the boonies = wine brands with low awareness, low image and poor distribution. You can manage and grow these vital stats during tough times.

We hate to see the boot put into Aus wine producers but tough times help see mistakes clearly. How did NZ sauv Blanc become the biggest selling white wine in Australia?

Maybe the Kiwi producers marketed their product better. Heck it wasn’t on the back of discounts. NZ SB’s are still streets above budget price points.

What are we doing about the new wave of French Spanish and Portuguese wines that are wowing the world? Maybe they have tapped in consumer demand the Oz Guru’s missed.

Pity help us when South America cranks up They have just passed us on volume, wait until they get the quality right.

Not to mention China with its huge wine industry only 20 years old.

Some Aussies will tell you that the drought, bad currency fluctuations and unpredictable fashion trends are to blame for the mess that many wine producers find themselves in.

Maybe so. Or Maybe it is pride that cometh before the fall!

Good news for the locals; dumping wines via the internet has become a national obsession. Sadly so many wines are being scalped on-line below production cost.

Thank God for the quiet achievers that just get on with it and make great products that the wine world snaps up.

We do it so well. Tonight my research led me to the 1998 Moss wood Cabernet and the 1991 Seppelt Show sparkling Shiraz. Tour de force! We will never compete on volume and price on a world stage that can undercut us on wages and production costs.

Quality products and smart marketing, sensitive to consumer need is what will win the race.

Today we stand on the abyss, throw pride in and lets get on with it.

Sterling Wine Auction every month in 2009. Check http://www.sterlingwine.com.au/calendar.php for dates.

February 2009