Pinot Noir, Sanviovese and Tempranillo

It is 2:39 on Saturday afternoon 19th May and I am hosting only the second wine club of the year in two and a half hours. I have swept and mopped the floor, cleaned the balcony and bought the food, yet still I have not chosen my wine which is a worry.

As we are almost in winter again, we decided that it would be a good idea to try some reds. Generally reds that are common in Australia are Pinot Noir, Merlot, Cabernet Sauvignon and Shiraz, however more and more often interesting varieties are appearing in our bottle shops and on wine lists. In an attempt to help my fellow winos meet the daunting challenge of facing a wall full of words one can't pronounce at the bottle shop, we decided to do something different this time. Each Wine Club member will choose a bottle of either Pinot Noir, Sangiovese or Tempranillo. With each bottle each member must also do a little research and bring a plate that matches the food. I am super excited about this one as I think that we are really going to learn something from each other.

Now you may already know that Pinot Noir is originally from the French region of Burgundy and has been in grown in Australia for many years now. The typical regions that are particularly good for Pinot Noir are Tasmania or in Southern Victoria as the climate is cool and allows for a long growing season. In New Zealand the place to get a Pinot from is Central Otago. 

Sangiovese and Tempranillo are newer additions to the Australian palate, however equally as exciting and both offering a great experience. Tonight though, I am sharing a Tempranillo - so I had better get researching so not to disappoint my guests.

Tempranillo is a Spanish grape that is blended in many Spanish wines especially reds from the Rioja region. Tempranillo is to Spain, what Shiraz is to Australia and what Bordeaux is to France. It is the most prized red wine and is at home in a variety of climates.

It is primarily found in the cooler climate of Rioja in the North Central Spain, slightly further south in Ribera del Duero and more and more often it is found crossing oceans in a world wide boom. As a thick skinned black grape it is relatively durable and grows best in cool climates at high altitudes. This type of environment allows the variety to obtain acidity and elegance.

Tempranillo is similar to Shiraz in some circumstances as the thickness of the skin of the grape also requires heat  to acquire a level of fruity ripeness. These conditions therefore lend the variety to a mediterranean climate. This variety shows versatility for growing conditions and therefore means that many different styles of Tempranillo can be made simply depending on the Terroir.

Tonight I bought a Spanish Tempranillo from Rioja so the club can taste what a typical Spanish variety tastes like. My friend at my local bottle shop 'The Oak Barrel' was particularly helpful in picking out this particular wine. The bottle cost $21.95 and has a pretty groovy label. I am serving it with Spanish tapas of chorizo, fried haloumi and stuffed bell peppers. I will let you know that the verdict is. 

Until then, have a glass for me. Alex Mac

A Taste for Investment

There are a number of characteristics of wine as an asset class that make it perform differently from other alternative assets, which makes it an interesting topic to explore. As I have mentioned in previous blogs, the investment grade wines that offer the most consistent returns are those from the French region of Bordeaux. The reason for the superiority of the Bordeaux wines dates back to 1855 when Napoleon requested a classification be drawn up detailing the all of the best wines in France.

The Expoisition Universalle de Paris classified the red wines of Medoc and the wines of Sauternes as quality products. The 1855 classification came to dominate Bordeaux wine and now remains with us to this day. There is no regular review of the list and today there remain 61 chateaux listed, all in Medoc except for Haut-Brion which is the sole Graves estate.

The region is broken down into five categories:

1. Medoc Premiers Crus Classes (Class A) – First Growths
2. Medoc Deuxiemes Crus Classes (Class B) – Second Growth
3. Medoc Deuxiemes Crus Classes (Class C) – Third Growths    
4.  Medoc Deuxiemes Crus Classes (Class D) – Fourth Growths
5. Medoc Deuxiemes Crus Classes (Class E) – Fifth Growths

In 1855, classifying 61 wineries as ‘quality’ probably would have covered a significant proportion of the wines available in France. However, 157 years later we have a global population of 6,840,507,003 (World Bank 2010) and 26,216,967 tonnes of wine being produced by the top ten wine producing countries in the world (Food and Argiculture Organisation, 2012). All of a sudden it appears that the 61 humble Chateaux in Bordeaux may not be able to produce enough wine to keep up with the demand. It is this simple supply and demand phenomenon that causes many wines to be destined to an inflationary future.

Peter Lunzer, CEO and CIO of Lunzer Wine Investment recalls that “During the past 30 years I have been involved in the wine industry, it has become evident that one factor which regularly caused wine prices to rise was limited supply against a backdrop of sustained demand”.  He says that from an investment perspective Lunzer Wine Investments have always steered their clients toward the famed five famous Chateaux in the Premier Crus classification, and also the 2^nd, 3^rd, 4^th and 5^th growths. Although diminishing in prestige numerically, the most interesting thing about investment grade wine is that as the best wines of the best vintages become scarcer, prices rise in value.

The rising middle class in China will affect this scenario greatly, with an estimated $1.3Bn middle class consumers predicted by 2030 (Forbes, 2011). While many investors take the business of wine seriously and get their hands on cases of premium wine ‘en primeur’ (before they have been harvested and bottled), there are many more who want simply one or two bottles to represent their status in society. In 1855 this would not have really been a problem, however today with our growing population, the pool of desired stock seems to be getting smaller and smaller every day.

Despite all this talk of the doom of supply of the historical greats, Peter Lunzar says that investors can still make money, you just have to be smart. For a consistent pathway with steady growth he suggests a generous helping of 2^nd – 5^th Growths, with a carefully selected pinch of right bank wines (St Emilion and Pomerol). As a novice wine investor myself I asked him to explain this is greater detail to which he replied “There are many wines costing $200 today which we believe will be $400 in five years time. However, if they cost $3000 today, will there be someone willing to pay $6000 for them in the future? While there will always be rare gems who fetch a ravishing price, they will be few and far between. Why run the risk when you can make consistent returns from wines which start at $200 and sail well past $400.”

Investing in wine today, compared to previous decades or centuries, we can see a greater correlation being established between the returns and major economic themes. Wine, however remains the only commodity with an inverse supply curve – the further you get from the harvest, the less wine there is available for the market. This is a particularly good reason to argue that wines will continue to create great investment returns.

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

Just a little bit about loving wine...

As the cool weather sets in and we replace bikinis and kaftans with stylish scarves and coats, so to does our taste in wine generally move from the crisp aromatics to something a little more smooth and comforting. Almost like Day and Night I have turned back into my red blooded wine loving self and see a few more red tainted blogs coming this way.

I just noticed the change last night as the cold snap of wind gushed around my bare neck. Jumping from the bus and hurrying along to the front door all I could think was that there was a lovely soft red to embrace me when I finally got inside. The sheer thought of the comfort a lovely glass of wine will bring when braving the weather, is almost as intoxicating as the drink itself. It occurred to me yesterday that there is just something so comforting about escaping the cold to warm up with a vino, and considering that Europe is so cold there is no wonder why they produce some of the best reds in the world.

Not only is the wine itself comforting but the premature conjuring of images about food and wine is a delight. The whole event in France begins with deciding what one will eat, followed by a spirited trip to the market to fetch the freshest of ingredients, the anticipation then builds as delicious complementary flavours permeate the air and whet the palate. Of course someone must bring the wine, but you can bet your bottom dollar that those guests have subtly acquired this information from the host and have selected a wine to match the meal perfectly. The actual meal itself is the icing on the cake as by this stage all the senses have been evoked through the preparation. Ahhh, such is the bliss of the delights of common day practices in France! Those foodies and winos among us can take heed from their practices though and add a modern twist.

Tonight I sit here drinking a delicious glass of Marlborough Pinot Noir from a label called Fox by John Belsham which retails for around $20. It is aged three years and has a slight brown tinge to the red colour. The palate is also more developed and the flavours last on my tongue for longer than I am able to resist another scrumptious sip. 

Unfortunately I do not have the luck of being invited to a dinner party with lavish courses this evening (or any evening that I can remember in recent history) however, as I walked home from yoga the crisp air hit my face and I was delighted by the thought of my Marlborough Pinot Noir that was going to greet me in my cosy apartment. The beauty of wine for me comes in so many different forms, from sharing with friends and family, to enjoying Sunday evening solitude with a glass all to myself. Perhaps I see the whole industry with rose tinted glasses, however as they say 'ignorance is bliss'.

This evenings blog may be a little more self indulgent rather than academic, however occasionally I think it is necessary to reassert why we do what we do, and why we love what we love. A life without passion is a sad life indeed and I am pleased to say that with a vino in my hand, or a lovely one waiting for me when I get home this will never be me. Decide what it is you love and make sure you have a little bit of it a lot of the time. Tonight I truly feel in a state of utter bliss.

Enjoy whatever you are drinking tonight and be grateful for the company you have sharing it with you. Tonight I don't need you to have a glass for me, I am having one for myself. Alex Mac.

The Southern Highlands - NSW

Recently I had the pleasure of being taken away for the weekend to the Southern Highlands and discovered one of the true treasures of NSW's wine country. With the McGuigan family hailing from the Hunter Valley it has always been the first place that my mind goes to when wine regions come up in conversation. Over the last 30 years the Hunter Valley has developed beautifully and it is a fantastic place to go for a weekend away. There are however some other regions in NSW that aren't quite as mature as the Hunter that are producing beautiful wines and offer a weekend getaway at a fraction of the price.

Centennial Winery

In a large city like Sydney the seasons blend smoothly and are difficult to distinguish rather than a cold chill one day that tells you the sunshine has gone for a while. Whereas in the Southern Highlands the vibrancy of the changing colours of the leaves in all shades of orange from a gold to auburn act as curtains down the streets and into the distance. It is truly like driving through a painting, and this is just the beginning.

The main area in Bowral has charming shops and cafes filled with delicious treats for a mid morning stop after the drive from Sydney. Only an hour and a half from Sydney, you can be in Bowral driving through the tree lined streets before you know it. 

The wineries are a little further out but are a delight to find. I was taken by a local to visit the Centennial winery which is the first five star winery in the Southern Highlands. It is an absolutely beautiful place to visit with gorgeously manicured gardens that lead up the driveway to the winery itself. 

The Southern Highlands is a cool climate region with about 60 vineyards and 10 wineries. Cool climate wines generally have a long growing season where the warmth of the day is minimal. This means that the grapes take a longer time to ripen than in warmer climates and therefore elegant wines with finesse can be produced. Personally I prefer wines from regions like this as they are light and easy to drink without food as an aperitif.

 

In the tasting room at Centennial there we were greeted by lovely knowledgeable staff who helped us taste through a number of wines on offer. Among the ones we tried were the Pinot Chardonnay Sparkling which is a delicious crisp sparkling made in the traditional French method; the Brut Rose, which was light pink in colour and a little sweeter to taste with a bit of a berry essence. Of the two sparklings we preferred the Pinot Chardonnay and bought a bottle for $27.99.

Pinot Grigio

Of the whites I tried the chardonnay and the Pinot Grigio which were both delicious and easy to drink. They both sell for $21.99 and are definitely worth trying at some point. Finally the reds were lovely. Centennial are definitely innovators in their attempt to try new and different varieties including Sangiovese and Tempranillo. Out of these reds personally I prefer the spice and hot Spaniard that the Tempranillo grape offers. This variety is light like a pinot noir but has a hint of spice like Shiraz without the Dracula affect on ones teeth. Tempranillo is another story all together though, one deserving its own blog.

In summary, for those looking for a weekend getaway that is close to Sydney, not too expensive and offers plenty of culinary and viticultural delights the Southern Highlands is the place to go. Check out the tourism link below for more ideas.

Southern Highlands Tourism

Centennial Vineyards

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

Investing in wine - what you need to know

When it comes to investing, knowledge is power and it pays to do your research. As the old adage goes ‘there is no free lunch’ and you must run as fast as you can from anyone silly enough to suggest that there is, especially when it comes to an unregulated asset class such as the fine wine market. While it might be romantic to think that the bottle of wine which you bought whilst travelling through the French countryside 20 years ago will now be worth a pretty penny, this is most likely not the case and there is more to investing in wine than biding your time.

Before we even enter the realm of parting with money for investment in wine there are a number of things to be considered and researched by the investor. To have the greatest possibility of a reasonable return it is imperative to understand the market and factor these elements into the investment. Now to say that there is no free lunch is not to say that there is not money to be made, however one must be extremely frugal in such an environment and trust only well respected wine merchants.

The investment should focus on the top wines from the top vintages. Just as it is likely that the first investment one would make in equities would be in a company listed on the ASX, the FTSE 100 or the Dow Jones, when investing in Fine Wine it is advisable to begin with Bordeaux. Dating back to 1855 Bordeaux wines have been classified into five categories ranking from the cream of the crop known as the ‘first growths’, closely followed by the ‘super seconds’, and then on to the third, fourth and fifth growths. The wine is classified on its ability to mature, the longer life of the wine to maturity, the better the quality. Wines in the ‘first growths’ category generally take 15-20 years to mature, if not more. The track record of Bordeaux wines demonstrates a consistent product from the region that investors can see as a benchmark. While there is always risk involved in investing, with Bordeaux wines there is at least a history, which can help the investor to understand the product more intimately.

Fine Wine is generally sold through an auction house directly to a wine merchant. Throughout the USA investment grade wines are almost exclusively sold at auction in Chicago. The prices set for the rest of the world take place at London auctions, which are used as the benchmark worldwide.  To determine the appropriate price one should pay for a case of a particular vintage of Bordeaux it is important to research the prices obtained at these auctions as well as the current retail pricing for the most popular wines. As all markets fluctuate, to truly understand the value of the product it is advisable to follow the prices on the market. Auction Fine Wine Prices can be found at a number of sources including WinePrices.com (http://wineprices.vinfolio.com).

Storing the wine correctly is imperative to retaining the value of your investment. Wine must be stored at 14 degrees Celsius and constant which is generally not possible in a home cellar. Storing the investment wine at home also runs the risk of a very expensive dinner party, especially if you have thirsty friends. The ability to prove the storage history of the wines will be advantageous on price when it comes time to make a profit. Professional storage however is an additional cost and should be considered in the entire investment as a whole, so not to erode ROI unknowingly. If the wines are purchased in Europe and stored ‘in bond’ or in a professional warehouse they are considered to be ‘wasting chattel’ (something that will ultimately deteriorate in value) and therefore you will not have to pay capital gains tax.

One of the most highly respected wine critics in the world is Robert Parker Jnr. The US wine commentator gives wine scores out of 100. Anything that is scored above 90 is likely to be worthy of considering as an investment grade wine. His website is at www.erobertparker.com.

Have a happy Easter and until next time have a glass for me! Alex Mac

Around Town, 2012 so far...

The last few weeks have been rather social and it is no wonder why with everything that has been going on in Sydney. I hadn't actually realised just how many wine events that there always on for the humble lady who enjoys a vino or two with friends.


January/February
The year began with Riesling Rampage which was based at cute little wine bar Fix St James on Elizabeth St, just near St James Station. Early on in January Fix had a number of different Rieslings to be tasted and poured by the glass. It was a great opportunity to show wine enthusiasts the variety of different styles that Riesling can be produced. To complement the event at Fix, Gourmet Traveller Wine Magazine hosted an event on the 6th February that showcased many different producers of the variety and they way that they interpreted grape. 


I took papa Guigs along to this event and although we were clearly not the most educated wine buffs, after two hours of trying different styles and speaking with the winemakers we were able to identify three distinct styles. The first was my favourite which is a young Riesling from a cool climate. The best ones that we tastes were from the Eden Valley and Clare Valley in South Australia. The cool climate means that there is a long growing season which means that the grape ripens slowly. This then creates a crisp, dry and refreshing white wine of the most delicate form. The best wine I tried by far at this event was the 2011 Pewsey Vale Riesling which is very reasonable in price at $17 per bottle.


The second style of Riesling is one from the regions mentioned above, but with a little bit of age on it. Most white wines don't mature very well, however Riesling is the exception. After its first stage being young, aromatic and crisp the wine goes into a period of hibernation. After several years the wine has gone through a change in composition and becomes drinkable again as an aged wine. There is a distinct aroma to this wine of limes. This particular type of wine is not to my personal taste, however there can be some very good aged Rieslings.


The third notable style to the Riesling grape is the traditional sweet version from Germany. This type of wine is commonly what people think of when trying Riesling, however it makes up only a small part of what is available. Even if it is too sweet to drink at a bar, this style goes really well with spicy food. 


March
March in Sydney has most notably been referred to as Parched March. The three year old festival is the antidote to Feb Fast and promotes 30 of Sydney's best bars in 30 days to raise money for charity and encourage drinking responsibly. March into Merivale was one of the month long events where the Merivale group put on great deals at many of its venues which encouraged people of all income levels to enjoy the great food and venues that Sydney has to offer. For a Friday lunch two weeks back my girlfriends and I had a glass of wine and main meal at Sushi-e on George St for $33. The service was pretty slow, but the maitre-d gave us a little something extra to make up for the wait with which we were perfectly satisfied. In fact we really appreciated the gesture.


Coming up
April will show the inaugural celebration of Wine Australia’s A+ Australian Wine Celebration being held for the first time from 12 to 29 April 2012. The launch party will be held on 4th April at the Ivy Ballroom and showcase 150 wines from 25 wine regions in NSW. The events will continue for 17 days from Mudgee to Murrumbateman. This is a fantastic way for wine enthusiasts to see the different regions in NSW as all to often people think that the Hunter Valley is the main area however there are some great wines being produced all through the state.


To find out more about the activities that are taking place throughout April click on the link below or drop me a line below and I will be happy to post more information.


Wine Australia's A+ Wine Celebration


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

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