By James Fletcher
Albany Portfolio Management
September 2010
Important news this week for wine investors: China has finally legalised the importing of sweet desert wine from Bordeaux, including Sauternes, hitherto disalowed due to the high sulphite levels. Consequently, prices for the definitive, undisputed king of noble rot - Chateau d'Yquem (the only wine from the region to be credited with Premier Cru Supérieur status) - are expected to go into orbit.
The absence of any exposure into China has kept prices relatively modest (in First Growth terms at least), but commentators have long agreed that the combination of sweetness and pedigree would be an enormous hit in China were it allowed.
To further add to the appeal in brand-conscious China, the estate was recently bought by the luxury goods brand Louis-Vuitton-Moet-Hennessy (LVMH), who's other brands are under serious demand in China already.
According to Liv-ex, LVMH are in the well advanced planning stages of a major marketing campaign throughout China, including a permanent Yquem ambassador. Yquem Director Pierre Lurton added weight to this, telling Decanter magazine that LMVH "had a good business network in place in China, and they were planning to market the wine there" read article
Since buying the estate in 2004, LVMH have hiked prices for en primeur Yquem significantly. Consequently the 05, 06 & 07 (all 95+ from Parker) are trading at around £3,500. Familiar territory in the world of First Growths for sure, but when one looks back at equivalent quality from older offerings - all the better as Yquem takes an age to mature - one can find quite remarkable value.
We are strongly recommending the fabulous 1996 vintage, graded 95/100 by Parker, in cases of 24 half bottles - the best way to buy Sauternes.
Albany Portfolio Management
September 2010
Important news this week for wine investors: China has finally legalised the importing of sweet desert wine from Bordeaux, including Sauternes, hitherto disalowed due to the high sulphite levels. Consequently, prices for the definitive, undisputed king of noble rot - Chateau d'Yquem (the only wine from the region to be credited with Premier Cru Supérieur status) - are expected to go into orbit.
The absence of any exposure into China has kept prices relatively modest (in First Growth terms at least), but commentators have long agreed that the combination of sweetness and pedigree would be an enormous hit in China were it allowed.
To further add to the appeal in brand-conscious China, the estate was recently bought by the luxury goods brand Louis-Vuitton-Moet-Hennessy (LVMH), who's other brands are under serious demand in China already.
According to Liv-ex, LVMH are in the well advanced planning stages of a major marketing campaign throughout China, including a permanent Yquem ambassador. Yquem Director Pierre Lurton added weight to this, telling Decanter magazine that LMVH "had a good business network in place in China, and they were planning to market the wine there" read article
Since buying the estate in 2004, LVMH have hiked prices for en primeur Yquem significantly. Consequently the 05, 06 & 07 (all 95+ from Parker) are trading at around £3,500. Familiar territory in the world of First Growths for sure, but when one looks back at equivalent quality from older offerings - all the better as Yquem takes an age to mature - one can find quite remarkable value.
We are strongly recommending the fabulous 1996 vintage, graded 95/100 by Parker, in cases of 24 half bottles - the best way to buy Sauternes.
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