Sterling End of Year Report
Awards, predictions & rambles.
The international wine crisis has been seen from all
sides now. The gluts, the rampant $A dollar, every changing tastes and the Euro
forces striking back at the new world have cooked up fun times for all.
A great American minstrel and thinker once remarked "when you're hot, your hot
and when you're not you're not." (See the Jerry Reed video on U-Tube for some
good old boy's home cooked wisdom.)
No surprises; if you have good strong brands and proven distribution, no GFC
or radical social changes will slow you down.
Lets look at the world wine wonder brand Chateau Lafite. Sure, its wine royalty
and has been around for centuries. Don't forget most royalty over the past few
hundred years have had big career changes and some even lost their heads!
Lafite prices have strengthened radically over the past five years. Clever
marketing and a great wines captured the imagination of the Chinese, Indians and
Americans alike. Lafite knows their market and have worked their way to
the very top of the Chinese pile with some very cunning stunts.
Special Auctions in Beijing, Special visits to Shanghai and the cherry on the
cake, putting the Chinese character for lucky number eight on the 2008 vintage
bottles. Prices jumped by 25% in one day! The second wine of Lafite, Carruades
is now fetching better prices than many second growth Bordeaux houses.
The stories go on, check the prices for 2009, look at the 1982 prices over the
past few years. Why so strong? Great product and great promotion from the top
down. This if no lucky coincidence, every member of the Lafite team hard worked
tirelessly for these well-deserved results
When you're not hot? Sometimes it's best to go home and try something else. The
polarisation of the Oz retail wine market must be complete. Price buyers can
drink reasonable generic varietals for the same price as a bottle of imported
mineral water (cheaper?) NB I used the word generics not cleanskins. Important
difference, a generic is house branded and is packaged to sell the contents not
the producer.
Much smaller and just as strong is the top brand segment that is selling the
sizzle and the promise of luxury and recognition as hard as Rolex or Mercedes
ever have.
The Sterling November auction catalogued over 200 bottles of Penfolds Bin 707
from many choice vintages. At over $200 a bottle for most this unusual
consignment, we might have flooded the market. Not even a blip! Every bottle
(other than 2 in poor condition) were swallowed up at prices that were very
close to top market.
In the same sale we tried to give Wild Duck Creek Duck Muck away at a fraction
of the high auction prices seen a few years ago. Not a nibble! This cult wine
has apparently been deserted by fickle followers who demand ongoing success and
recognition.
At the end of the year and the beginning of a new decade we should look at some
winners, some fear mongering and some unsung Heros
Winners Circle
Penfolds Grange for defying gravity for another year and dominating the Oz wine
auction prestige and dollar stakes.
Penfolds Bin 707 for being the pin up girl and work horse, every one want to
take her home and she works hard at delivering. She is never cheap.
D'Arenberg Dead Arm is the winner of hearts and minds; The thinking man's
Grange; Style and elegance with the punch to persuade
Fear and Loathing?
Just how much quality Riesling planting is there in Eden, Clare, SW WA, Victoria
etc? Watch out, if the $A exchange goes back and the Yanks discover the
quality and price of our Rieslings? The good stuff will be exported and prices
will double
Same story with Semillon; precious few quality old vineyards in the Hunter and
if the stuff catches on as it should prices will boom.
Buy up good value wines like McWilliams Elizabeth Sem and Leo Buring Riesling
(under screw caps) and store them cool. I predict Grosset Polish hill will hit
$US100 a bottle inside the next five years
Unsung Hero's?
Heck this is the mushy bit. How about Kevin Cullen and his memorial Chardonnay
getting the top award in the world? Biggest win since Jack Brabham took on the
elite with a car he built in his Mooney Ponds garage and raced himself to become
F1 World Champion.
Another gracious memorial to an inspiring lady. Eileen Hardy Shiraz and
Chardonnay is a fabulous story of consistent super quality and just too good to
sell! (bring back Eileen?s portrait to the labels!)
Rockford in Barossa, is a legend that quietly moves from strength to strength.
Mr O?Callaghan is the Baron of Basket press who has given more pleasure and
smiles to true shiraz believers than any man alive. Another spike prediction.
Watch Rockford Basket Press prices double over the next few years.
The strong pillars that carry the back vintage market should be congratulated.
Where would we be without the following list of liquid gold in the Cellar?
Wynns Coonawarra Riesling ,Cabernet and Shiraz; Yalumba Signature and Menzies;
Orlando / Jacobs Creek Lawsons; Penfolds Koonunga, Bin 28 and 128; Saltram No1;
Leasingham Bin 61 and 56; Redman Coonawarra Cabernet & shiraz; Lindemans
Coonawarra Limestand St George and Pyrus:
Margaret River Flood?
Maybe it?s in the water over here in WA? Margaret River worship has a new high
priest who sings the praises the a world eager to award Margs far more serious
awards and accolades that its small size should warrant. The story Cardinal JJ
sings is so powerful and so well documented, it is hard to ignore the potential
for MRiver to become the greatest wine region in Australia a world destination
in the same way as Bordeaux or Napa Valley. Big tip. Rush in now and buy a
block of rural land with a view down there. Prices are low and the Chinese are
moving in for lifestyle and reward.
Hot shot of the Year!
When you?re hot You are Steaming!
Just got news that is the biggest coupe.
Lets do the rip and read from Decanter Magazines
Chinese billionaire buys Chateau Chenu Lafitte, in Cotes de
Bourg
Friday 19 November 2010
by Jane Anson in Bordeaux
Be the first to comment
A Chinese billionaire, together with a group of investors, has bought a Bordeaux
estate called Chateau Chenu Lafitte, in Cotes de Bourg, as a gift for his son.
(see it in full
http://www.decanter.com/news/wine-news/507702/chinese-billionaire-buys-chateau-chenu-lafitte-in-cotes-de-bourg?utm_source=newsletter-181110&utm_medium=email&utm_campaign=newsalert
)
Just brilliant! What you can do with a budget and imagination. Wait and watch
this brand will be the biggest thing in Lafite crazed and obsessed China. Not a
bad litle project for an ambitious 20 year old
Merry Christmas!
Sterling Wine Auctions & Exchange conducts sales every month go to the web site
www.sterlingwine.com.au for a
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