Sterling Wine Auctions Australia

The 2006 wine Auction year has blessed wine lovers and there is no turning back!

Better wines, better prices and a range of choice to suit every jaded international palate.

The talk of wine lakes, gluts and industry crisis is constant and so misguided.

The background is simple, Australians are drinking more wine than ever before and we are exporting more than ever.

There is a surplus, mainly low quality wines and brands that have no market presence.  The commercial entry level is a blood bath.  Many independent retailers have left the sub $10 market to the big chains and the direct marketers.

There are exceptions, but most low cost wines are of low quality.  The story is very different in the $10 to 20 price range.

There are some stunning wines offering quality that would have cost double only a few years ago.  The Jacobs Creek Reserve project stands out as a beacon of value that sets an example for all who want to compete in the big volume, tough end of town.

One of the consequences of the big push to move volumes of mass market wines is that the variety in styles and flavors is becoming very limited.

Sadly, big fruity, fleshy reds are becoming so dominant and the similarity so striking than many wine lovers are looking to wines from Europe for some variety and a break in the boredom.

It is a big business and finding the niche that works for each producer is not easy.

The good news is that you don’t have to look far to find producers taking risks that have paid off. Yalumba has gone left of field and invested big money on their Viognier range from cheapie to super premium Vergilus.  A huge success! The only failure is in educating punters on how to say Voignier

The pioneers must always be recognized, The Purbrick family at Tahbilk were make world class Marsanne thirty years a go as a commercial wine.  If you ever see back vintage of this one grab then.  After 10 year in the cellar they truly sing!!

Fashion and Investment are wine sub-currents that can not be ignored.

Fashion is always driven by trendsetters and distributors.  Rave reviews, high prices, short supply and the delivery of consumer friendly “feel good” experiences are a killer combination.

Australian wine “haut couture” was dominated by brands like Penfolds Grange, Henschke  Hill of Grace, Jim Barry Armah and Mount Mary  Quintet.

The stage is much bigger now with Torbreck, Clarendon Hill and Greenock Creek pushing into the spot light.

Many commentators would agree the mantle of the No1 Aussie super model wine is no longer with Penfolds Grange and has moved to Torbreck Run Rig.

The private shows for royalty and tycoons would be the domain of Chris Ringlands Three Rivers.  So rare and special we might as well not worry, to expensive and exclusive for mere mortals!

Some tough old survivors like D’Arenberg, Elderton, D’Bortoli and Brokenwood are leading the charge in what is likely the more meaningful fashion stakes.  Stylish must have stuff we can afford and find locally.  Glaetzer, Mitolo, Langmeil, Kaesler and Two Hands are all new brands (usually with a heritage that is longer than your arm) that are pushing new “extreme” wine styles that can be found locally without too much fuss.

Investment in wine should always be a factor of future enjoyment.   If you are going to commit thousand of dollars to your wine collection, thinking of a rainy day and the need to unload is a good idea.

The simple, obvious advice is stay focussed on mid range, popular wines from strong vintages.  Buy in volume and go for the best discount price.

There is money to be made from buying and selling short to medium term.  This business, like following race horses or the fine art market,  requires the dedication of a lot of time and an understanding of underling risk and the need to cut losses.

The ideal, the dream… is to buy a palate of an unknown wine that is then reviewed as being perfect and given 100 Robert Parker points soon after.

This boost launching the wine from obscurity to rest with the stars in one step.

We can all dream and it is possible to identify and back unknown “roughies” with big potential.

Don’t pay premium prices for unknown wines just because they have been expensive to make.  The market decides value, there are countless premium wine projects selling below cost because the market has not recognised the value placed on the wines by the producer.

Names to watch, if you are interested in speculating / investing in upcoming brands might include the following.

Trevor Jones, Ralph Fowler, The Magpie Estate, Veritas, Kilikanoon,  Dutschke,

RL Buller, Branson, Rusden, Kalleske, Rolf Binder, Henrys Drive,  Jason Schwartz,

JJ Hahn,  Lengs & Cooter, Spinifex, De Lisio, Hobbs, Battely,  Troll Creek,  Killibinbin,

Standish, Barton Vale, Glaymond, Parsons Flat.

And Where does this list come from?  Well they are names that have already made it!

They are the smaller, less famous of the Aussie players on the top tier of Mr Robert Parkers rating system.

These producers have all made wine that have scored 96 to 100 points in Mr Parkers “Extraordinary” category.

If you want to cast the net wider look at the list of names in the next category which is the “Outstanding” 90-95 point cut.

According to Mr Parker,  there are currently (March 2006) some 212 Australian wines across all brand and vintage that achieve the “Extraordinary”  standard.  Some 1,800 wines, again across all producers and vintages achieved the “Outstanding” level.  The review system has looked at 4,100 Australian wine

By comparison of the 35,000 French wines reviewed 1,100 have achieved Extraordinary status and a massive 11,200 wines have achieved “Outstanding” status

Looking at Italy, 7,400 wines have been reviewed, only 100 have made the top Extraordinary cut,  with 2,650 sitting in the Outstanding category.

Love him or hate him you have to respect the professional and balanced approach of the parker system.  Have a look for yourself.  I think that it is well worth checking out the most influential wine critic in the world.  Go to www.erobertparker.com and try the 90 day $US29 subscription deal

The diversity in the Australian market continues to bloom.  Not only do we see many new and exciting varieties and blends coming from Aussie producers, we are seeing huge numbers of exotic European, South American and South African wines making their presence felt.

Many of these wines are living proof of the good reason Aussie wines are slaying much of the world market.

The gems are there and not always for top dollar.  Be adventurous and try new things.

The new found popularity for all things Rose has seen some real Rose finding its way from Spain and Portugal into local retail. Low alcohol, definitely not sickly sweet, some of these wines are brilliant back yard slurpers.

At the other end of the stick, the auction market is finding new enthusiasm for the big names from Champagne, Bordeaux and Burgundy.

The Super Tuscans are picking up speed and premium Spanish wines are finding new support.

The ripe for plucking auction opportunity from Bordeaux are the 2000 vintage wines that are starting to find their way on to the auction floor.

There are plenty of lesser lights that make stunning drinking.

Have a look and be adventurous!

Lynton Barber

March 2006