The Wine Society

Whilst browsing the internet the other day and seeing what new sites I could find on wine I came across one called Wine Society. I thought that this site was fabulous and that it must be shared from one wino to the next. 


The Wine Society is an online service that enables consumers of all different wine tastes and levels convenient access to wines from all around Australia that have been selected by a panel of experts and chosen based on their particular qualities. The site also provides support for consumers wishing to learn more about wine simply by reading current and useful information, or for those who wish to take their passion further they provide courses. 


To purchase however, you need to become a member of The Wine Society. Membership requires that you spend a minimum of $250 per year with them online. This is not a lot of money considering that the average bottle of wine in the city sells from $20 to $30 a bottle. I joined last Friday and had to pay $50 at the time of signing up, however this money was then credited back to my account to spend on the next batch.

You can shop for one or two bottles at a time as you would in the bottleshop, or purchase in cases which means that someone else carries that heavy box to your door step. Not only can you select for yourself, but they also have a mixed case package at all different price levels where the expert panel selects a dozen wines for you to try and provides the tasting notes to help you learn as you go. For anyone keen on improving their wine knowledge, this is one of the best ways to learn. Simply try many different types of wine and pay attention as you try it and your skills will increase rapidly. 

Wine Society Packages Available

The only issue that I can see with buying cases of wine online is delivery. Like many city dwellers I live in a security apartment building without a full time concierge. Unless they gave a specific service where I could be home at the specific time of delivery my wines will be taken either to the post office or left at the entrance to the building. The post office is too far to carry a case of wine from and with respect to leaving it at the front of the building, I would like to give the benefit of the doubt and say that no one would take it, however living in Surry Hills has taught me that is probably not the case. 

Other than the delivery issue the whole club thing seems like a pretty good idea where one can rely on the expertise of someone else to assist in the wine journey. You can check it out for yourself at

www.winesociety.com.au

Until next time, have a glass for me! Alex Mac

The Fine Wine Market Factors That Will Come into Play in 2012

Recently a number of research papers have been released by specialist organisations denoting the Fine Wine Market outlook for 2012, which highlight a number of challenges and opportunities that face the market. Some of these elements are external economic factors, to which a market has no control, and some of these have been internally created and now investors of the Fine Wine Market will respond accordingly.

The global Fine Wine Market is worth approximately US$4bn; throughout 2009 and 2010 the market made a stunning recovery, which came to a sudden halt in August 2011. There are a number of reasons for the decline in prices. Primarily the dramatic halt in auction house sales of premium wine was due to the escalating European debt crisis and an increasingly gloomy market sentiment.

There has been reference to 2011 ‘as the year that the wine bubble burst’ however the concept of a bubble generally refers to a market segment that has been flooded with capital beyond its worth and therefore prices become drastically overpriced. This is not the case for the Fine Wine Market, however it is clear that some form of pricing correction occurred amidst external economic conditions that could not be foreseen.

There is a resilience to the leading wine producers in this market segment that distinguishes it from equities, structured products or the art market, (which could potentially be seen as more closely aligned).  An interesting feature of the wine market is that generally market-leading wines have not just lead for decades but hundreds of years. 

History shows us that every time there has been a correction these leaders have fallen for the period of the crisis, only to regain their former glory when the waters have calmed. The Wine Yields 2012 Fine Wine Outlook purports that periods of exuberance and correction have generally coincided with macroeconomic crisis including 1974, 1997 and 2008. The important thing to note however is that the wine market rarely loses its grasp on true value as seen in other segments.

An interesting trend is the demand we are seeing from China and Hong Kong where the rising upper middle class now have a taste for the investment. Last November an auction held in Hong Kong saw 145 world record prices set. This recently awoken demand favoured the small supply of Burgundy’s rather than the previously untouched Bordeaux. In fact, 2010 Bordeaux suffered its worst market fall in three years.

There is much speculation around the price fall of Bordeaux wines and their relation to the ‘En Primeur’ debacle that has come about. Historically Bordeaux has sold its most sought after wines in the futures market in a campaign called ‘en primeur’ which translated means ‘in first position’. Traditionally these wines have been sold to investors at a reasonable price mitigating the risk for the producer to sell their entire vintage at a price less than they perceive the value.

In 2009 the vintage was deemed to be extraordinary and therefore value for the price investors paid. Then in 2010 the en primeur tastings proclaimed that this vintage was again extraordinary.  This was an embarrassment to the validity of the judgement of the wines as the 2010 vintage was at least the ‘fourth vintage of the century in just 11 years’.

The pricing of Bordeaux wines was therefore impacted. This then had repercussions for the entire Fine Wine Market quite simply as Bordeaux constitutes approximately 95% of secondary trading. We are seeing new world wines from Australia, New Zealand and the USA come into the market at a premium level which leaves some investors questioning whether the premium price for Bordeaux is still justified.

In summary the Fine Wine Market has begun 2012 in a state of unrest due to macroeconomic conditions and internal factors affecting the international stage. While history can never be seen as a precedent for future success, it tells us that an alternative investment such as wine does not directly correlate with equities. This can therefore be seen as an alternative investment for those looking to diversify their portfolio.

Source: Wine Yields 2012 Fine Wine Market Outlook

What Alex Mac Drank

I was talking to my good friend David about my blog the other day.  I mentioned how I found it difficult to remember all the different types of wine that I tried and what I thought of them. He made a brilliant suggestion that I am now bringing into reality. Each time I drink a wine going forward I will photograph the label and write a short blurb on it. The name and variety, what it was like, how I drank it and how much it cost. 

I won't bore you with every single wine that comes across my path but ones that particularly strike a chord I will let you in on.

Over the last few weeks I have drunk some delicious wines over some lovely occasions spent with my friends and family as always. Give them a try if they take your fancy.

Oldbury  Southern Highlands  Pinot Noir 2010 Delicious light cherry character wine. Cold climate wine. Drank it with my friend David over a dinner of spaghetti and meatballs with toasty sourdough and rocket salad. 8/10 Yummies $25 a bottle	Torbreck Barossa Valley 2010 Cuvee Juvenilles Unusual mix of red grape varieties. Easy drinking heavier style. Drank it with a friend over dinner. Definitely worth a try though. 6/10 Yummies $25 a bottle	SHW  Southern Highlands Chardonnay Dry and crisp. Classic French style of Chardonnay. Drank it at a summer BBQ on a sunny balcony in Bronte with some new friends. 7/10 Yummies $20 a bottle
Wolf Blass   Clare Valley Eden Valley 2011 Riesling Regions famous for producing Riesling with delicate fruit and floral characteristics. Clean, crisp and perfect with light food. Drank this with 3 girls I lived with in Paris. We celebrated the engagement of Louise whilst eating yummy home made Vietnamese rice paper roles by the pool on a summer afternoon. 6/10 Yummies $25 a bottle	Annie’s Lane Clare Valley 2011 Quelltaler Riesling German style Riesling. Very crisp, lovely wine that can be drunk with or without food. Drank this at the Gourmet Traveller Wine Riesling Rampage event at Doltone House with Papa Guigs last Monday night. The winemaker was a lovely man who spoke genuinely about his wines and I was charmed by his passion. 7/10 Yummies $25 a bottle	Pewsey Vale  Eden Valley 2011 Riesling Cooler climate Riesling that is just a pleasure to drink. This wine was the absolute star of the Gourmet Traveller Wine show. Drank it will Papa Guigs whilst overlooking the view of the beautiful Sydney Harbour. 8/10 Yummies $17 a bottle

Invivo Wine Nights at Helm Bar

Since commencing this journey of wine appreciation, I have started to be invited to a few little wine functions here and there. The most recent event that I attended was the launch party of Invivo Wine Nights at Helm Bar Darling Harbour, and it was fantastic!


To be perfectly honest I had never been to Helm bar. Darling Harbour has always seemed the place to go for tourists. However, since moving to my current residence China Town and Darling Harbour are right on my door step. My eyes have been opened up a whole world of opportunities in Sydney that one might miss out on if one simply resides in just one neighbourhood. Another thing that I hadn't realised was that now that many of the large enterprises are located in the South end of the city, which has given the area a great afterwork vibe during the week.

By way of introduction, Helm Bar is situated next to the Sydney Aquarium. It is an open space balcony that has recently been renovated. The outlook offers patrons a beautiful view of Darling Harbour catering to all weather rain, hail or shine. This comfortable space has teamed up with the fashionable kiwi wine brand Invivo and are celebrating by offering premium wines at the super cheap price of $5 per glass for Helm Bar members every Thursday night for the next five weeks.

Tim, Tim and Rob of Invivo Wines

Having over done it somewhat with sauvignon blanc when it was at the height of fashion, I am not generally not a fan. I often find that the unbalanced levels of acid pucker the sides of my mouth and result in unpleasant indigestion. The first wine that we tasted at the launch party was just that, a sauvignon blanc from Marlborough. Despite that Marlborough is actually one of the best regions in the world for sauv blanc, like most Australians I was complacent about what we were going to taste. The thing that did prick my ears, was when Invivo wine maker Rob Cameron said that the 'Bella' brand was low calorie.


We tasted the wine and were very impressed. Invivo 'Bella' is the first wine produced in New Zealand to be made in this style and has been a run away success. The wine itself is light, crisp and easy to drink. It is a sauvignon blanc but does not have any of the extreme characteristics that we sometimes associate with the style. It is simple, easy drinking and you wouldn't know that there were 30% less calories.

The bartenders at Helm aren't bad either

The way that they make the wine with less calories is to reduce the alcohol content. This is a dream for ladies who like to have a glass of wine when our male counterparts have a beer, and for those who enjoy a day at the races. Have you ever wondered why it is so easy to overdo it with wine? Wine ranges between around 11%-15% alcohol where as a beer or cider usually sit around 5%-6% which essentially doubles your alcohol intake in a serve that is half the size of a beer. By drinking a low calorie wine you will be able to indulge in that glass at the work lunch without fear that you will be asleep at your desk by 3:00pm.


The only thing to be careful with when drinking a low calorie wine is to think that just because you are drinking fewer calories and alcohol that you can have twice as much. This is a common trap that people fall into when eating low fat food.


If you prefer your wines in the traditional winemaking style then Invivo has one to suit almost every taste. We also tried the regular Sauvignon Blanc, Pinot Gris, Rose and Pinot Noir. All the wines are priced around $40 per bottle at Helm Bar or $9 per glass. If you want to try some delicious award winning wines for just $5 per glass make sure you sign up for membership at Helm bar and attend the wines nights over the next five weeks. http://helmbar.com.au/


At the end of the tasting one of the friendly Invivo guys asked me which wine I preferred and whether he could buy me a glass. Surprising even myself as the words came out of my mouth, "Yes please. My favourite was the Sauvignon Blanc. I would love another glass".


Until next time, have a glass for me! Alex Mac


http://www.invivowines.com/invivo.php

Gap in the knowledge

Over the past year I have attempted to cultivate a sense of gratitude for all that I have and the good things that come into my life. Along with this positive energy one is to be grateful for things that do not go ones way, for it is an opportunity to learn something and be set back on the right path. Clearly the latter is more difficult to do, however, it was something I have been taught, and as a dutiful student I have attempted to embody this way of thinking. You may wonder why on earth I am talking about Buddhist practices when this blog is dedicated to wine, but this very thought is from where I bring you my blog this week.

As the story would go, last Wednesday evening I was invited to meet a well-known wine industry personality Stuart Gregor founder and CEO of an alcohol and lifestyle PR firm Liquid Ideas. As you can imagine with my passion for wine, I was giddy with excitement. Liquid Ideas manages the PR for wine industry monster Treasury Wine Estate and such brands as Taylors and Wolf Blass. 

Obviously I was keen to impress with all the research that I have been doing. Including regions and varieties, climate as a determinate for the grape selection and the winemakers impact on the wine. No doubt he was going to discuss tricky topics like the main varieties grown in Alsace France and the noble white varieties, so I polished up on my homework and made my way to Liquid Ideas.

Stuart was friendly and jovial when he invited me in for a chat and to ask why I was interested in the wine industry. I gushed about my passion for the industry and how Australia was particularly ahead of the game in its ability to blend traditional varieties to make new and interesting wines that are impressing the world over. 

"Oh really" he said, "very good, tell me five wineries that are doing interesting things", 

"Ahhh..." gulp! My eyes widened as I frantically searched for anything I had read in gosh, what's that wine magazines name... Gourmet wine? No...

"Ahhh..." sudden flash of brilliance, "off the top of my head I can't recall as I have been doing a lot of reading. Actually the trend in the market is actually toward boutiques and aspirational wine which is what I have really been focusing my attention to", big teethy smile, Phew!

"Great" says Stuart, clearly not totally impressed, but not dismissive either "so, give me the names of five of your favourite Australian boutique wineries"

Crap, crap, crap! I hold the teethy grin, which becomes somewhat strained as I completely rack my brain to try and think of something, ANYTHING! But nothing comes...

"Ahhh... Off the top of my head..." There is no need to finish the sentence as the opportunity to shine has passed. Where had my brilliance disappeared to in the time of need?

"Well, your are clearly enthusiastic, which is great." He smiles whilst rubbing his head thinking, 

"Steep learning curve though I am thinking!"

The conversation continued and luckily my charm and luck didn't see me booted out the door immediately. I did however leave with a feeling of gratitude. You don't know what you don't know until somebody points it out. I set off on my merry way with a whole new list of topics to learn.

The first place that I thought I would go to find out who were the leading Australian wine producers was Google. When searching for premium wines I came across Investment grade wines. There is an index called the Langton’s Classification of Australian Wine Index (LCAWI). This index tracks 28 of the leading Australian wine producers over time in five exceptional vintages. I thought this would be a good place to start learning about Australian wine.

You can check out the index at http://www.langtons.com.au/tools/wineindex.aspx

Some of the top producers listed include:

Penfolds, Bass, Cullen, Henschke, Leeuwin Estate, Moss Wood, Mount Mary and Rockford.

Hmmm... I can see this might take awhile. Until next time, have a glass for me. Alex Mac.


www.liquidideas.com.au

The Business of Booze

As a commodity wine and alcoholic beverages are as interesting in their market behaviour as they are to consume. In July 2011 the Australian beverage category declined for the first time in five years. While markets whirled and shook the world over throughout 2008, total beverage retail sales increased. Not until three years after the world’s greatest financial crisis since the Great Depression did the domestic retail sales decline.

It is possible to conceive that during times of hardship people may turn to alcohol to help them through. The idea being that they simply continue to drink but substitute from one price point into another lower level brand. This may be one reason the sales have remained buoyant, however there are few other key elements at play, which have dictated the movement of Australian produced alcohol and wine in particular. Despite the seemingly continued growth in the market through pure sales figures, the Australian wine market is in crisis.

From the 1980’s to the early 2000’s Australian produced wine was the Golden child of the global industry. It assisted in the development of a consumer market worldwide and particularly in the UK, the USA and Canada. Australia built itself up to be the 6^th largest wine producer in the world after (France, Italy, Spain, the USA and Argentina).

The great advantage Australia has in its capacity to produce wine is the vast differences in the climate range. Grape varieties from all over the world have been brought to Australia and grown successfully in conditions not that far off their original old world climate counterparts. In Australia’s ability to produce quality wine and sell it on the international market at a lower price than competitors throughout the 80’s and 90’s, it did.

Due to the success of the export industry investment continued to flow into the industry and vines continued to be planted in our vast land. All the success came to a screeching halt however when all of a sudden the Australian dollar increased in value and we no longer became competitive. The local industry was stuck with an immense oversupply of grapes and unsellable wine.

Farmers began to go broke, unable to sell their fruit; wine makers couldn’t sell their wine and were forced to sell at a basement price in unlabelled ‘clean skin’ bottles; and distributers could not export as the other new world wine countries had become more competitive as the value of the Aussie dollar remained sky high.

This is the reality that the industry remains in today. While the wine glut may have subsided somewhat from it’s highest point, there still remains an oversupply. The Australian wine industry is completely dependent on export as in reality there simply are not enough people in Australia to consume the product, even if every man, woman, child and pet drank a bottle a week.

The problem that the industry faces over the next few years remains to be a simple economic concept of demand and supply. While there is low discretionary spending throughout the rest of the world, low consumer sentiment and a high Australian dollar it is not possible to recreate balance within the demand and supply relationship.

However, as always there is another player that comes into the picture when we talk about Australia. Asia is our neighbour, kind of like our big brother who keeps just out of trouble just enough so mum and dad don’t find out. If somehow Australia can speed up the process of Asian consumers coming around to the taste and custom of drinking wine, then maybe a bright future is closer than we thought.

Just something to ponder over your next glass of wine. Alex Mac.

And then there was Champagne!

There is a stereotype about the French that they are incredibly sophisticated and sometimes look down at other nationalities as inferior. I have heard many people say that the French are a little rude and when we travel in their country that they aren't friendly and refuse to speak anything other than french.

Whether this stereotype is true or false is irrelevant to the topic. I was recently having this very conversation with a friend who said to me "throughout history the French have brought the most refined, exquisite and sophisticated luxuries to the world including the invention of Photography and Film, created movements of art that changed the world, Haute Couture, Michelin stars, mouth watering pastries and wine. If you had created all these things, would you not turn your nose up a little too?"

Quite clearly I am a Francophile through and through. The word luxury rings like bells in a church tower and there is nothing that says luxury like Champagne! It is the drink of kings and has been hailed as the ultimate in sophistication since the 1600's. Unlike many other wines Champagne is as a symbol of upward mobility in society. This time for wine club we decided to splurge and have Champagne club instead. In preparation for our phenomenal little event I did a little research on my favourite drink on the planet and found out a few little gems that might come in handy at your next dinner party.

The reason Champagne is perceived to be so exclusive is simply a supply and demand equation. True Champagne only comes from the Champagne region in Northern France. This area is made up of a few towns including Epernay and Reims that reside on the most fertile and exquisite land that produces the highest quality grapes. As there is such a small area in the world that can legally produce this style of wine and call it Champagne, a premium price can be charged for the product. However there are other parts of the world that make wine in the same style with the same grapes and effervescence, they simply cannot be called by the same name therefore reducing the prestige. 

There are three types of grapes that are used to make Champagne Pinot Noir, Pinot Meunier and Chardonnay. Out of the three grapes Chardonnay is the only white grape, and in fact it is the only white grape grown in the Champagne region. The three grapes are generally blended together over a number of years to maintain consistency in the flavour of the Champagne house. When the vintage is particularly good the winemaker might create a wine made from only that year. A wine like this will have a different characteristic to it depending on the growing conditions of the year it was produced. Vintage wines will generally be more expensive as they are the best grapes.

Types of Champagne include

Prestige Cuvee

This is the wine that is generally considered to be at the top of the producers range. The most famous of this would be Cristal, which is produced by Louis Roderer or Dom Perignon, which is produced by Moet & Chandon.

Blanc de Noirs

Quite literally means 'white of blacks' - white wine produced of black grapes. The grapes in this Champagne would be Pinot Noir and Pinot Meunier. This is a rare type of wine.

Blanc de Blanc

This is Champagne produced with only Chardonnay grapes. This is also an expensive variety of Champagne that is great for celebrations.

Brut

This is the most common of the Champagne varieties and is produced by mixing the three grapes together. It can be non vintage or vintage.

Next wine club we will try a Bollinger Vintage Brut, Veuve Clicquot Non-Vintage Brut and an Australian version of the wine. It is going to be a good night! 

Until then, have a glass for me. Alex Mac