Drinks Business Hong Kong Issue 18 by Union Press

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ISSUE 18 HONG KONG

HONG KONG

ISSUE 18 • OCTOBER/NOVEMBER 2014

POWER POURS COUNTING DOWN THE WORLD’S 1OO MOST INFLUENTIAL LABELS IN OUR ANNUAL LIV-EX FINE WINE LIST

LIV-EX POWER 100 FINE WINE LIST • CHAMPAGNE • FRANCE • SPAIN • CHINA MARKET TRENDS • TAWNY PORT • BRAND BUILDING IN CHINA

HONG KONG'S LEADING TITLE FOR WINE AND SPIRITS

www.thedrinksbusiness.hk

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editorial Let’s be wary of turning our backs on Bordeaux – step away from some of the best known brands and there’s plenty of value to be had ONCE MORE, we’re pleased to bring you our annual fine wine power list in association with Liv-ex – the global marketplace for professional buyers and sellers of fine wine (pages 28-44). It’s a massive undertaking, requiring the analysis of all wines traded on Liv-ex in the past 12 months, and then selecting a top 200, before subjecting them to further tests to bring you a “power” ranking from 1 to 100. You can view the methodology on page 44, and the full list from pages 29-36, but it’s important to note here how much the results in this survey have changed since it all began in 2006. Back then, not only did Bordeaux dominate the list, but the brands at the top of the table were all first growths or long-time Right Bank favourites: Pétrus, Ausone, Cheval Blanc and Le Pin. Then, as the years went by, we saw the so-called ‘super seconds’ (such as Pichon-Baron and Cos d’Estournel) and ‘flying fifths’ (Lynch-Bages and Pontet-Canet) move up the rankings, but the trading was still focused on Bordeaux. Today, however, the power brands are an eclectic assortment from a more diverse range of regions than ever before. Indeed, every major source of fine wine is represented within the top 20 labels in the list, whether that’s Tuscany or Piedmont, Champagne, the Rhône, Burgundy, as well as all parts of the Bordeaux appellation. The change is reflective of two major trends. One is a move away from the Medoc’s major names – primarily the five firsts – due to high en primeur pricing, particularly with the weak 2013 vintage. The other is the rising quality of fine wines from the likes of Italy, California or Australia, as well as parts of France other than Bordeaux.

One development has of course fed the other: it’s a neat coincidence that as people began to look for brands beyond Bordeaux, other parts of the world started producing some of their best wines ever. But let’s be wary of turning our backs on Bordeaux. Not only have prices of famous labels in older and great vintages fallen to what many believe are their lowest point – see pages 78-79 on the 2005s – but step away from some of the best known brands in the more recent vintages and there’s plenty of value to be had. Any good merchant can point you in the direction of such wines, and while they may not reach the high points of the region’s most revered labels, they will still offer the drinker all that makes Bordeaux popular: a product that is age-worthy, complex, and with that hard-to-replicate combination of concentration and refreshment. Such qualities are also present, uniquely, in large quantities. After all, there are few things more frustrating than finding a wine you really like, and then being told you can’t get hold of it.

PATRICK SCHMITT EDITOR-IN-CHIEF In association with the

HONG KONG • Editor-in-chief Patrick Schmitt • Managing editor Gabriel Savage • Deputy editor Lucy Shaw • Senior staff writer Rupert Millar• News & website editor Lauren Eads • Contributing editor Tim Atkin MW • Sub-Editor Neal Baker • Contributors Andrew Catchpole, Jonny Forsyth, Mark Graham, Michael Edwards

Published by: The Drinks Business, 9B Amtel Building, 148 Des Voeux Road, Hong Kong and Unit 122, 30 Great Guildford Street, London SE1 0HS • Tel: +44 (0)20 7803 2420 • Fax: +44 (0)20 7803 2421 www.thedrinksbusiness.com

• Chairman & publisher Anthony Hawser • Deputy chairman David Rose • Art director Alan MacKenzie-Morris • Director of sales (spirits) Bert Grant • Director of sales (drinks) Andrew Oliver • Marketing director David Hennelly • Spirits manager Daisy Jones

• Advertising manager Marcus Clark • Research & events Sheila Crisp • Web designer Matthew Quitter • Subscriptions sales manager Lewis O’Sullivan • Production manager Mile Budimir • US consultant Clint Rodenberg

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contents 24

n ews & v i ews

f e a t u re s

04 news of the month

28 liv-ex power 100

How the China slowdown is affecting drinks; Robotic wine critic; Tech tycoon buys château

24 interview Altaya’s Paulo Pong discusses his past and the drinks trends taking place in Hong Kong

cover image Getty Images

We discover how the world’s most influential fine wines performed in the past 12 months

48 port Looking at the top prices charged by leading Douro producers for their very old tawnies

58 champagne pressing Considering the pressing stage in Champagne production and its impact on quality

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finder 1847 Alicante

6 75

Allegrini Amarone 18 Antinori Guado al Tasso 18 Ausone

Baileys

Ballantine’s

Bierzo

Borsao

Bouchard Père & Fils

Brunello

Campo de Borja

Castilla La Mancha Jumilla 75 Castillay Leon 75 Catalunya

Chairman’s Reserve 88

Chateau d’Angles

Château de Pommard

Château Latour 10, 78 Château Léoube 67 Château Smith Haut-Lafitte

Cheval Blanc

Cordon Bleu Crémant de Loire

4 70

Cristal

Deep Blue

Dom Pérignon

8, 18

Domaine Clarence Dillon

6, 68

Domaine de la Romanée-Conti Domaine Michel Lafarge

5 67

Don Maximiano 83 Emilio Moro 74 Gaja Barbaresco 18

66 france Why French producers can still turn heads despite the dominance of the New World

72 spanish wine in china Analysing why Chinese consumers are increasingly demanding wines from Spain

76 brand building in china How social media is being used by spirits brands to attract drinkers in China

78 fine wine monitor Revisiting the underrated 2005 Bordeaux, and considering its potential to tempt buyers back

80 china market trends A look at what’s shaping the Chinese market for wine in the country’s new era of austerity

84 top ten places to go out We bring you Hong Kong’s best outlets for wine, whisky and cocktails, as well as food

88 last word Judy Leissner from Grace Vineyardon her fears, regrets and ideal dinner party guests

Graham’s

Guinness

Haut Brion 6, 68, 78 Hennessy

Johnnie Walker 20 Louis Jadot67 Louis Latour 66, 78 Louis Roederer

Maison Albert Bichot

Malleolus de Valderramiro 74 Margaux Marqués de Cáceres Martell Noblige Miraval

78 73, 75 4 67

Niepoort

Pape Clément

Pavie

Pavie Decesse

Pétrus

Porto Cruz

Priorat

Quintus 6, 68 Ribeira Sacra

Rosso di Montalcino 16 Sassicaia

Seña

Solaia

Taylor’s

Teeling

The Macallan 8, 12 Toro

Tullamore

Viña Errázuriz

Vinedo Chadwick

Whyte & Mackay 8 Yaldara

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top story

CHINA’S SPIRITS DROP ‘DEEPER THAN ANTICIPATED’

After several years of heavy investment in China, the world’s major spirits producers have been quick to identify it as the root of a string of depressed annual results published in the past few months. They blame much of their decelerating profit growth on Beijing’s anti-extravagance crackdown introduced 18 months ago – a policy designed to stop state and local officials lavish each other with premium and superpremium priced wines and spirits. In the year to the end of June, Diageo’s net sales to China fell by 33%, reflecting a slump in demand for premium products, notably Scotch and high end baijiu, a category in which the group was forced to slash prices in the mid market. The group’s organic volumes in China were 20% lower. Rémy Cointreau blamed its end of year results largely on a 20.8% fall of Rémy Martin Cognac in China, its largest market, where it is the category leader. Organic sales declined by 23% and the swing from positive growth (in 2012/13) at the group level was equivalent to almost 5% growth of earnings before tax, interest and depreciation. China is Pernod Ricard’s second largest market and ranks second in terms of profitability. “It is crystal clear that the Chinese authorities wanted to respond to the frustrations of the population,” said Pernod CEO Pierre Pringuet. “Some people were spending in an extravagant manner and [the government] had to respond to the situation. And at the end of the day, yes, some of our sales have plummeted.” Pringuet has admitted to evidence of trading down in China. “The higher the price band, the more severe has been the decline,” he said. So while Martell Noblige (VSOP priced at about £28 (HK$348 a bottle) actually posted a

net gain, Cordon Bleu, at £75 (HK$932), suffered. Sales of Ballantine’s Finest were 5% ahead, but aged styles of the scotch were hit. “It means it’s not an overall decline. We have some products that did well,” Pringuet said. So the Chinese were careful to be less ostentatious, but still sought premium international brands. The dynamics of demand changed but not the desire. But have the global spirits groups pinned too much faith on future demand growth from the world’s most populous nation to boost their profit patterns? All believe that the events of the past 18 months do not represent a sea-change in fortunes and all point to conditions easing in the past few months as evidence that they have got the focus correct. The foot is coming off the brake pedal. They underline their optimism by pointing to the fundamentals of China’s position in the world, which they believe are impossible to ignore. China is has the world’s largest population of 1,366m people, or about a fifth of the global total. Already it has more

‘It is crystal clear that the Chinese authorities wanted to respond to the frustrations of the population. Some people were spending in an extravagant manner’ than 350m in its “middle class”, the group able to afford international brands. That is already more than the entire population of the United States (319m), the world’s largest market for spirits. What’s more is that China’s middle class is expected to swell to about 700m by 2020 as its economy expands. Indeed, it is only a matter of a few years at present growth rates before China’s economy takes over the US and becomes the global number one. “I first went to China in 1987,” says Pringuet. “My impression was that it was a very poor country. The GDP per capita was just $300 (HK$2326) a year. Today, 25 years later, it is $6,000 (HK$46k), which means that in Beijing, in Shanghai, it is probably much higher and very near numbers similar to those in Western

Europe.” Continuing, he said: “On my first visit there were only bicycles, millions of bicycles. Today China is the largest car market in the world, ahead of even the US. In Beijing they are just completing the sixth ring road around the city. It is also the largest market for mobile phones. China is a rich country,” he added. And as the middle class expands, it is more difficult to quell demand for desirable international brands. Not only that, more than 100 million Chinese travel abroad each year, broadening their exposure to international products and expanding demand. Once tasted, it is hard to ignore premium products. The travel-trend will continue as the economy expands and the middle class grows. That dynamic is at the root of Diageo buying control of the premium baijiu Shuijingfang, one of whose targets is the travel gift market and Chinese ex-pats. The sheer power of China’s growing economic might is why all the major spirits producers are convinced that China will continue to be a prime driver of demand (alongside India) over the coming years as more people demand more international products. At Diageo, chief executive Ivan Menezes echoes that theme. He expects the baijiu market to stabilise by the end of this year. Even Treasury Wine Estates has sales to China as a central plank in its long overdue recovery strategy. And while volumes and consumption in China fell over the past 15 months, all groups have taken drastic action to streamline their supply chains; the pipeline of costly stock is slimmer and the effect on bottom lines will be less drastic in the present financial year. The drive to premiumisation will continue, even if it is on the back-burner for a year or two. After getting the taste for scotch or Cognac, local spirit is less attractive. And once a Chinese middle class consumer is on the quality ladder it is natural for them to want to move up the rungs as wealth expands. The longer-term outlook for pricing is positive. Pringuet expects medium-term growth to come more from volumes of mid-range products rather than at the very high price end of the spectrum. Like his competitors, Pringuet believes that in a few years’ time the effects on demand and profits of Beijing’s crackdown will be seen as downward glitch in the long-term growth of the Chinese spirits market. It may be slower, but it is inevitable, they say.

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CALIFORNIAN QUAKE COSTS WINE INDUSTRY $80 MILLION Napa’s wine industry has lost an estimated US$80 million (HK$620m) after an earthquake ripped through the region. Napa Valley wineries were rocked by a 6.1 magnitude earthquake in the early hours of Sunday, 24 August, on the eve of the 2014 harvest, mainly in the southern and western parts of the county. In a report released by Silicon Valley Bank, commissioned by Napa County officials and Napa Valley Vintners trade group, the damage caused to the industry was estimated at HK$620m. The estimate related to damage caused to winery buildings, equipment, infrastructure, vineyard irrigation systems and the cost of clean up and removal of debris and waste. As reported by the San Francisco

BEAST OF A BREWERY Diageo has opened the doors to its new €169 million (HK$1.66bn) brewery in Dublin, officially the world’s largest stout brewery. Located at St. James’s Gate in Dublin, home to Diageo’s Guinness brand, “Brewhouse No.4″ is a state-of-the-art brewery covering 10,000 square metres. It is the fourth brewery to be built on the site which was first founded by Arthur Guinness in 1759. Earlier this year, Teeling Whiskey announced plans for a €10m (HK$98m) distillery and visitor centre in Dublin – the first to be built in the city for more than 125 years – which is expected to be completed by 2015.

Chronicle, Rob McMillan, the bank’s executive vice president, said the damage estimate was “conservative” predicting that actual losses could rise to $100m (HK$775m). The report said 60% of wineries in Napa County suffered some damage with 25% suffering moderate or severe damage which exceeded $50,000 (HK£387k). One winery, which has not been named, was said to have sustained about $8 million (£4.9m) in damages. Wineries near Mount Veeder, Yountville, Oak Knoll and the Carneros region were said to have suffered the most damage. It is hoped the report will help support winemakers’ claims for federal assistance to rehabilitate the industry. The Napa Valley Vintners (NVV) has already

donated $10 million (HK$78m) to help meet the immediate needs of local residents and businesses affected by the quake, while the E&J Gallo Winery donated $100k (HK$775k).

DRC SUPERLOT SETS WINE WORLD RECORD A “superlot” of Domaine de la RomanéeConti has become the most expensive wine auction lot ever, selling for over HK$12 million in Hong Kong in October. Part of Sotheby’s fine wine sale on 4 October, the superlot was comprised of 114 bottles of the sought-after Burgundian estate and spanned the 1992 to 2010 vintages. The total for the collection was HK$12,556,250 (US$1.6m), HK$110,143 (US$14,000) per bottle or HK$13,768 per glass. The previous record was a 50-case collection of 1982 Mouton Rothschild which was sold by Sotheby’s in 2006 for US$1.05m (HK$8.14m). “The Romanée-Conti superlot presented a

once-in-a-lifetime opportunity to acquire an unprecedented quantity of the world’s most desirable wine,” Robert Sleigh, head of Sotheby’s Wine in Asia, said. “It is only fitting that it has broken the world record to become the most valuable single wine lot ever sold at auction.” Also sold at the auction was a 66-magnum collection of Henri Jayer, which made HK$8.2m, or HK$125,000 per bottle. Overall, the sale reached HK$45.7m, with 90% sold by lot and 50% of lots selling over their high estimates.

FOURTH YEAR OF FINE WINE DECLINE IS ‘UNPRECEDENTED’ The fine wine market is likely staring at a fourth year of decline, but there is the chance 2015 will get off on the right foot. According to Liv-ex’s recent Cellar Watch report: “For the Liv-ex 100 to close the year up it would have to rise 8% between now and the end of December. This seems unlikely. It is more probable that 2014 will be the fourth negative year in a row – an unprecedented event.” Nonetheless, the reasons for Liv-ex’s optimism going into next year are manifold. The market has been stabilising since July, with both August and September recording slight up-turns. The overall market is broader too, less reliant on Bordeaux and Liv-ex director Justin Gibbs recently told the drinks business that this was no bad thing. He explained: “What’s good about the current state of play is that the market’s a lot broader and less singularly focused on the very top wines from one region. That was always going to lead to trouble.”The reliance on

Bordeaux for many years before its final fall from grace has led to enormous price corrections. Lafite 2008 for example has dropped from a high of £14,000 (HK$174k) a case to £5,000 (HK$62k), a 64% correction. As Liv-ex stated: “2014 was the year in which Bordeaux dropped away from the rest of the market. Having traded at such a premium during 2010 and 2011, the first growths saw prices fall until they were trading at a parity with the broader market from June 2012 through to September last year.” Despite a few years of dissatisfaction stemming largely from misjudged en primeur campaigns, Bordeaux appears to have been rehabilitated with buyers leaping on Montrose 2010 and Hart Davis Hart offering an all Bordeaux line-up at its next auction. So with a broader, more stable market, “2015 has every chance of starting on a positive note.”

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CHINA WINE BOOM ‘NEVER HAPPENED’ The widely reported fine wine boom in China never really happened, according to Simon Staples of merchant Berry Bros & Rudd. Speaking to the drinks business at a lunch held at BBR’s London office, Staples said: “I think it’s been a bit of a case of Chinese whispers. The wine boom we think has happened in China hasn’t actually happened – it’s a bit of a smoke and mirrors situation. It’s incredibly difficult to get wine into the mainland legally, what with the handling fees and 50% tax. The Chinese are also very funny about what they pay for things,” Staples added in relation to consumers not wanting to

pay over the odds for fine wine. Speaking of how the recent austerity measures in China had dramatically curbed the country’s spending on fine wine, Staples remained upbeat. “It’s good to be able to go back to being a merchant again and be selling wines rather than a commodity like stocks and shares. We’ve been selling a lot of our own label Bordeaux, which is doing well,” he said. As Chinese consumers turn their backs on Bordeaux, Staples reports increased interest in wines from producers in Spain and Italy. “Wine consumers are now incredibly sharp and are showing off their sophisticated knowledge by buying wines from small producers in Barolo like Bartolo Mascarello. Buying Sassicaia is too easy now,” he added.

Bruges to enjoy subterranean beer The medieval town of Bruges in Belgium has approved plans to install an underground beer pipeline to reduce the number of delivery trucks rumbling through its streets. The project will see a 3km underground pipe connect the five-century-old De Halve Maan brewery to a nearby bottling factory carrying 6,000 litres of beer every hour. Said to be driven by environmental rather than economic considerations, the pipeline will take some 500 trucks off the city’s cobbled streets each year. The cost of the project has not been revealed, however it will be paid for by the historic brewery, a UNESCO World Heritage site, which welcomes up to 100,000 tourists each year.

CHINESE INVESTORS EYE OZ WINERIES Chinese nationals are expected to dramatically increase investment in Australian wineries over the coming years, according to data released by Credit Suisse. The Switzerland-based multinational has predicted the Chinese will spend A$44 billion (HK$300bn) on Aussie real estate over the next seven years with wineries said to be particularly appealing. Much like the boom in Japanese investment in Australian holiday resorts during the 1990s, Australia is witnessing a rush of Chinese buyers looking for a glamorous piece of Australia. Chinese requests for wine have turned into requests for wineries and wealthy

Chinese buyers have taken particular interest in purchasing a combination of functioning wineries and a market-ready brand with established distribution such as occurred earlier this year when Chinese businessmen Zhitai Wang and Kuifen Wang purchased the historic Yaldara winery in South Australia’s Barossa Valley for A$15.5 million (HK$105.5m), after previously acquiring the nearby 1847 Winery. And while there are concerns about established wineries being sold offshore, the influx of Chinese investment is generally viewed positively as Chinese investors tend to retain the services of local viticulturalists and, in some cases, such as that of Ferngrove Frankland River Wines in Western Australia, Chinese investment has resulted in much sought-after access to the Chinese market.

Princely estate to ‘equal’ Haut Brion

Prince Robert of Luxembourg has predicted that his group’s recent purchase in St Emilion is poised to become “an equal” of its other estates, first growth Haut Brion and the adjacent La Mission Haut Brion. 2011 saw Domaine Clarence Dillon make its first move into Bordeaux’s Right Bank with the purchase of Château Tertre Daugay in St Emilion. Since renamed Quintus, the hillside estate expanded last year with the acquisition of neighbouring property Château L’Arrosée and now covers 28 hectares. Pointing to prestigious neighbours such as Ausone and Angelus, Prince Robert set out ambitious plans for Quintus, which he described as “the fifth child” in the Domaine Clarence Dillon family alongside the red and white wines of first growth Haut Brion and the adjacent estate La Mission Haut Brion. “We anticipate Quintus in time becoming an equal to our other estates,” he told the drinks business, describing the purchase as “a rare opportunity to reveal and revive a ‘Premier Grand Cru’ terroir that had unfortunately lost some of its lustre.” In support of this claim, Prince Robert cited references to the estate and its terroir in early editions of the reference work Bordeaux And Its Wines, which was first published by Charles Cocks and MichelEdouard Féret during the second half of the 19th century. Despite the current negativity surrounding Bordeaux’s top-end estates, Prince Robert remarked: “We believe that Bordeaux still remains the benchmark for quality wines the world over. We cannot control the global wine market so all of our energy is focused on making the best local wines in a region that we understand and know well.”

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For more information please contact r.berardi@fraternityspirits.com www.fraternityspirits.com

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UNITED SPIRITS REVEALS HK$5.5BN LOSS Hotel launches United Spirits (USL) has revealed a net loss of HK$5.54 billion, having finally released its end of year results, prompting majority stakeholder Diageo to launch an investigation into the company’s financial arrangements. The group’s full-year financial results for 2013/14 were published in September following lengthy delays due to uncertainty surrounding loans of around HK$1.7bn issued to its previous parent company UB Holdings, owned by Indian liquor baron Vijay Mallya, to help support his Kingfisher Airlines company. USL attributed the loss due to a write down on the sale of its

Whyte & Mackay Scotch whisky business, which was purchased by spirits producer Emperador for HK$5.4bn earlier this year. Diageo, which recently acquired a 55% cut of USL in a deal worth HK$13.7bn, has now authorised along with the USL board and CEO a “a detailed and expeditious” inquiry into whether company cash had been “improperly advanced” to UB Holdings prior to its takeover, as reported by The Financial Times. Just days before the inquiry was launched, Mallya was declared a “wilful defaulter” by the United Bank of India amid claims he deliberately failed to pay an emergency overdraft lent to him to support Kingfisher Airlines. As current chairman of USL, the tag could have disastrous consequences as it prohibits an individual or company from accessing banks for funding needs.

Hyatt HK names new head sommellier Yves Nizan has been selected as the new hotel sommelier for the Grand Hyatt Hong Kong. Nizan will be responsible for overseeing the wine selections at the hotel’s seven restaurants, two bars and all of its event venues. Nizan began his career in Paris in 2008 as a trainee sommelier at the three-Michelin starred restaurant Alain Ducasse at Plaza Athenee before moving on to Restaurant Le Cinq at the George V hotel. He moved to Hong Kong in 2010 and was most recently assistant head sommelier at the Four Seasons Hotel. Nizan also worked for a year in Central Otago in New Zealand to learn more about viticulture.

WINE IN MODERATION EXPANDS TO ASIA

With a goal to defend the culture of wine, its people, its territory, and moderate consumption, the Wine in Moderation-Art de Vivre (WIM) programme has progressed significantly and is now looking to expand into Asia. Founded in 2011 by the European wine sector, the non-profit association was set up to coordinate the European and international implementation and development of the WIM Programme. Through various outreach projects

and campaigns, WIM aims to change the way people approach alcohol, promoting moderation while protecting the drinking culture in different countries. Besides welcoming three new members in 2014 (Austrian Wine Academy, Bodegas de Argentina & Vinos de Chile), WIM activities have been developed in parallel in eight additional countries: Australia, Croatia, Hungary, Russia, Sweden, Switzerland, Turkey, and USA. In total, WIM has developed structured programmes in 20 countries. With its members rapidly growing beyond EU geographical borders, the programme is now looking bring its “message of moderation and responsibility” to Asia. For more information on the programme visit wineinmoderation.eu.

HK$7.7k sundae Infused with Hennessy VSOP Cognac, 24kt gold leaf and served in a Wedgewood crystal bowl, with a bottle of Dom Pérignon on the side, it might just be the world’s most luxurious sundae. The latest in a line of increasingly high-end alcohol and food tie ups, the recently released Victoria sundae comes in at costly HK$7.7k, served by the Pavilion restaurant at the Langham Hotel in Chicago. The luxurious dessert is made with Tahitian vanilla ice cream, Guittard Complexite 70% chocolate ice cream, 24kt gold leaf, caramelised golden peanuts, 24kt gold dust, dark chocolate croquant, hand-crafted chocolate crown, Hennessy VSOP, hot fudge, salted caramel, butterscotch, and whipped cream. Served in a Wedgewood Crystal Bowl, which one can keep, it comes with a bottle of 2003 Dom Pérignon. Last month a New York branch of US diner Denny’s launched a $300 (HK$2.3k) brunch served with Dom Pérignon Champagne.

HK$500k spent on charity whisky shot An entrepreneur spent HK$500k on a shot of Macallan 64 Year Old single malt whisky in September, supporting a Koreabased charity. Blaine Vess purchased the pricey dram at The Macallan’s cocktail lounge at the Montage hotel in Beverly Hills, as reported by West Side Today. The Macallan promised to donate proceeds from the sale to the charity of the buyer’s choice, in this case, to Liberty in North Korea (LiNK) – a charity that rescues North Korean refugees via a 3,000mile underground railroad. Vess has supported the charity since 2012 and recently became chairman of the nonprofit’s board of directors. Instead of drinking the one-of-a-kind dram, Vess instead returned it to the hotel’s safe adding that he would only drink it when “the Korean people are free.” The Macallan 64 Year Old comprises three single malts filled in 1942, 1945 and 1946.

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BURGUNDY LAND PRICES HIT FEVER PITCH

The desire to own vineyard land in Burgundy has reached fever pitch, with one producer in the region comparing it to buying a piece of the Eiffel Tower. Speaking to the drinks business during a lunch at London-based fine wine merchant Berry Bros & Rudd, Beaune-based Olivier Bernstein said: “The price of vineyard land in the region has reached cult status. Everyone wants in on a slice of the grand cru and premier cru action. Demand is really crazy at the moment and the price per hectare is so high – I’ve heard rumours of offers for grand cru land being made at HK$471m per hectare.” Bernstein revealed that interest in the land

was coming from all over the world: “There has been interest from Chinese, Japanese and American businessmen – buying a prime plot of land in Burgundy is like buying a piece of the Eiffel Tower,” he said. “Bordeaux’s crazy pricing lately has helped bring people back to Burgundy. Demand for the wines has increased due to small yields over the last four years. The price of land in MazisChambertin has gone up five times in the last two years,” he added. In addition to foreign entrepreneurs, there has also been a recent surge in interest in buying land in Burgundy closer to home, with French luxury goods giant LVMH snapping up Clos des Lambrays earlier this year for a reported HK$981m. The company’s first acquisition in Burgundy, at 8.66 hectares, LVMH paid HK$113k per hectare for the privilege. Château Latour owner François Pinault is also reportedly interested in buying land in the region. Bernstein owns 0.2 hectares in MazisChambertin and also owns a plot in GevreyChambertin Les Champeaux. He reports that the price of premier and grand cru grapes in Burgundy has doubled over the last 7 years. “It would be impossible to do what I did seven years ago now, so I was lucky I bought the land when I did,” he told db. The average price of a hectare in Bordeaux’s Pauillac region is HK$20m, while the average price for the same amount of land in grand cru Burgundy was HK$40m in 2013. Bernstein’s first vintage was 2007. He now produces six grand crus from the Côte de Nuits, along with small amounts of white from Meursault, Puligny and Corton-Charlemagne.

Institute of Masters celebrates six new MWs The Institute of Masters of Wine has welcomed six new Masters of Wine into its ranks, taking the total number of MWs worldwide to 319 spread across 24 countries. Of the new MWs, two are American, two British, one German and one Swedish, with four women and two men. Penny Richards, executive director of the Institute, said:“We are thrilled to welcome these outstanding individuals; their diligence

and commitment to excellence will be great assets to our community, as will their diversity,” adding: “We had our greatest-ever number of candidates, and overall results for the theory examination were the best that we have ever seen.” The newly named Masters of Wine include Natasha Hughes MW (UK), Robin Kick MW (US), Anne Krebiehl MW (Germany), Rob MacCulloch MW (UK), Nicholas Paris MW (US) and Louise Sydbeck MW (Sweden).

Hong Kong’s ‘only whisky club’ launch Hong Kong’s only whisky club is seeking to create a stronger appreciation for malt and grain whiskies from around the world among the region’s drinkers. A non-profit organisation, the Malt & Grain Whisk(e)y Society Hong Kong (MAGWSHK) wants to promote understanding and appreciation of all whiskies – both single malts and blends. Responding to questions from the drinks business, founder an chairman Eddie Nara explained: “The aim of the MAGWSHK is to promote and educate whisky drinking here in Hong Kong. Our idea is to include everything whisky/whiskey, regardless of ingredients and origin. We also hope to show people that blended is not necessarily inferior to single malt; likewise, the higher age statements are not always better than the younger ones etc.” Having been founded in May and officially launched in August, the society has already held two events, the first covering Amrut Whisky with the Indian brand’s ambassador, and the second was a dinner pairing Thai food with Springbank. Pointing to the growing popularity of the category in the city, Nara said: “The whisk(e)y market is definitely growing here in Hong Kong. You can tell from the increasing number of whisky bars and shops, tastings and masterclasses being conducted. “I started MAGWSHK because there are a lot of wine-related societies or associations, but none at all when it comes to whisky. I can say we are at least the first registered nonprofit making whisky appreciation society in Hong Kong. He noted also that Japanese whisky was increasingly popular and for two reasons: “it suits their palate more, and there are some extremely rare versions like the Hanyu’s and Kairuzawa’s, which attract more collectors.”

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WINE WASTE CONVERTED INTO BIOFUEL Australian researchers have developed a technique for turning winery waste into compounds that could have potential value as biofuels or medicines. Avinash Karpe, a PhD student at Swinburne University of Technology in Melbourne, has developed a method using fungi to break down grape must, turning it into compounds that can be used to create ethanol and other biofuels. According to Karpe: “Various fungi are known to degrade this waste by generating an array of enzymes. These enzymes convert the waste to soluble sugars which can then be converted

into various other products.” Australia is the world’s sixth largest wine producer, with around 1.75 million tonnes of grapes crushed for wine every year. After the final pressing, more than half of the grapes crushed end up as biomass waste comprised of skins, pulp, stalks and seeds. Unlike other agricultural by-products, this waste has limited use as animal feed due to its poor nutrient value and digestibility. It is also not suitable as compost because it degrades too slowly. Thus a majority of this grape waste ends up in a landfill, but this could soon change. “We have demonstrated this technique in the laboratory, but this process can be scaled up to an industrial scale,” said Professor Enzo Palombo, chair of Swinburne’s Department of Chemistry and Biotechnology.

Could robots replace wine critics? Researchers in Denmark have created an artificial tongue which they claim is able to assess the effect of tannins in wine more effectively than professional tasters. The research, published in ACS Nano, claims the optical nanosensor is a superior judge of the effect of tannins in the mouth than a human due to being entirely objective. Created at Aarhus University, the nanosensor uses salivary proteins to detect the level of astringency by measuring the molecules in your mouth. “With the sensor, we’ve developed a method that mimics the binding and change in the structure of the proteins, i.e. the early part of the process. It’s a more sensitive method, and it reproduces the effect of the astringency better,” said researcher Joana Guerreiro, a PhD student at the university.

THE MACALLAN VERTICAL UP FOR SALE A 42-bottle vertical lot of The Macallan is to be auctioned by Zachys in Hong Kong this month as the company adds to its ever-growing spirits business. Spanning from 1945 to 1987, the vertical will go on sale at the auction house’s next Hong Kong auction on 22 November. The auction will be the second to feature a substantial spirits section, with the first having proved a notable success. Speaking to the drinks business, David Wainwright, senior

managing director of Zachys Asia, said the second auction would be a real “step up” from the last, with two major whisky collections – one Scotch-focused the other heavily weighted towards Japanese whisky – alongside two large wine collections. Joining what is still a very small number of major auction houses offering spirits as a regular part of their wine auctions, Wainwright said rare spirits “will probably be a feature of every sale”, adding: “I was approached for quite some time to add whisky. I held back as I didn’t think there was demand but now there is.” Alongside the demand for single malt Scotch, Wainwright noted that Japanese whisky was a popular choice for buyers in Hong Kong, Singapore and elsewhere in Asia and that top Bourbon was popular too.

Hong Kong’s Aussie imports hit record

Hong Kong has recorded record levels of Australian wine imports this year and is among a core of increasingly strong markets. Hong Kong was one of the best performing export markets in the year ending September 2014 according to the latest Wine Export Approval Report September 2014, released by the Australian Grape and Wine Authority (AGWA). Singapore, Malaysia and Taiwan were among the strong Asian performers with Hong Kong a standout as sales increased 9% to 7.5 million litres, worth HK$641m. Singapore’s exports went up to HK$378m, Malaysia’s to HK$237m and Taiwan’s to HK$72.3m. China’s export figures continued to decline but at a slower rate, down 5% to 37m litres, while the ongoing austerity measures hit the premium segment; the average value of bottled wine exports to China slipped 8% to HK$42 per litre. AGWA’s acting chief executive, Andreas Clark, said: “Growing interest by consumers in premium wines was a contributing factor in wine exports in the HK$51-HK$68 price segment increasing by 8% to 15m litres and by 6% in the HK$70 and above segment to 16.7m litres. Total Australian wine exports increasing in volume were helped in part by the stronger performance of the white wine category which offset declines in red wine. “White wine exports rose by 5% to 290m litres while Pinot Gris continued to demonstrate its popularity with drinkers, increasing by 32% to 38m litres. Chardonnay remained flat at 166m litres. Red wine exports fell by 3% to 383m litres with Shiraz, Cabernet Sauvignon and Merlot all recording falls.”

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AD MOGUL SLAMS ‘APPALLING’ TRADE The wine industry is “peculiar, fragmented, confusing and impenetrable”, has done little to further its growth and lacks innovation – this is according to one of the UK’s foremost figures in marketing and advertising. Sir John Hegarty, the man behind iconic adverts including Johnnie Walker’s “keep walking” campaign and Levi 501’s famed laundrette advert, gave his criticism to delegates at the Wine and Spirit Trade Association’s (WSTA) 2014 annual conference in September. Hegarty, whose career in advertising spans six decades, was knighted in 2007 for his services to the industry and is the owner of a vineyard in the Languedoc where he produces his Hegarty Chamans wine. Despite his investment in wine, he admits he has never come across an industry “so appalling” as the wine industry in that it has “no brand leaders” driving the market place and is constantly battling against the fact that 90% of its consumers do not understand fully understand quality. Speaking at the conference he said: “Most people think paying anything more than £6 a bottle is mad. Most of the industry think anything under £6 is shit. So that’s what we are selling: shit.” His answer? “Lose the mystery, keep the magic. The trouble with our industry is

that to the average consumer it’s a complete mystery”, he said. According to Sir John the industry needs to simplify its message, put the user at the centre of the market and start talking about people as “audiences”, ready to engage and be entertained, rather than “consumers”, waiting to buy something. Sir John also said the “middle” is falling out of the market and that any producer sat in the middle is “dead” as it has no future, adding that there is now only “value” and “luxury” positioning. Looking at the industry as a whole Sir John said the industry was “peculiar, fragmented, confusing and impenetrable” and had done little to achieve any growth. “They all talk about there being a glut of wine and that there is too much of it, but no one talks about growing the market. That’s what I have been trying to do all my life working in the advertising profession. If we could grow the market we could begin to have a better conversation with our audience. The wine market has grown, but has it grown exponentially? It hasn’t actually grown the way it could have grown if it had been brilliantly marketed and it certainly has not,” he said. Sir John said one of the first steps is simplicity of ideas which he described as the “holy grail of communication.” “Our PR people should be out there coming up with a big idea for wine, and don’t make it about food. You have to have an idea that’s big, then it’s about function and in that way we will possibly grow the market” he concluded.

Karaoke wine labels are ‘pitch perfect’ Wine has always been helpful in encouraging people to take to the stage for a bit of karaoke, but with these labels they might actually be able to sing in tune. The labels on house wines at a restaurant in Plymouth, England, are allowing the bottles to double-up as tuning forks for wannabe singing sensations. Each label has lines drawn at different levels of the wine, so when the drinker reaches the mark on the bottle and gives it a tap they hear the note they need to start their rendition of its corresponding karaoke classic. The songs

include such fan-favourites as Abba’s Dancing Queen and Don McLean’s American Pie. The restaurant is situated at the Plymouth Arts Centre, which specially commissioned the labels from a local artistic duo, as reported by the Plymouth Herald. “The idea is to link what we do: art, film and food,” said spokesperson Kate Foster.

Alcohol-free club launches in Sweden

A club at which guests are breathalysed on the door and where no alcoholic beverages are sold has recently launched in Stockholm, Sweden. Believed to be the first of its kind, “Sober” is the brand child of Swedish celebrity entrepreneur Mårten Andersson (pictured), which launched at the Sodra Theatre in Stockholm. Upon arrival clubbers are breath-tested and turned away if they register a reading, with staff told to also eject anyone using drugs. The opening event is almost sold out. Andersson, a Scandinavian television host, said he came up with the idea of creating an space for people who chose not to drink. Launching in Sweden, Anderson believes the concept would work in other locations. He said: “I strongly believe the world has only seen the start of this movement. We’re just trapped inside this dangerous bubble of alcohol and can’t see clearly until we step out of it.” One country he believes could benefit is Australia, where he told the country’s Herald Sun newspaper that he has seen “a lot of really drunk Aussies”, adding that perhaps it was “time to be known for something else.” Aussie nightclub director Matt Giles hit back saying it wouldn’t work. He said: “If you restrict the way people enter a building by removing the allowance of alcohol you either need to have a world famous DJ roster or know a good Colombian. Without alcohol, what have you left? A disjointed dance hall full of people discussing serious life issues and forgetting why they are there – to have fun, let loose and forget the week they just had. Melbourne would never put up with such a concept. We love to party too much.’’

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BBR ASSESSES NINGXIA FOR FINE WINES Berry Bros & Rudd’s Burgundy buyer, Jasper Morris MW, is heading to China’s Ningxia to assess its fine wine potential. Morris is flew to the region in northern China this month and visited numerous wineries in what should be the first of a series of visits to various Chinese winemaking regions over the next few years as the country develops its viticultural industry. He freely admitted, “I know too little about it” but also that both he and BBR “ought to know”

more, hence the reason for his visit. However it is the region’s potential that Morris is looking for adding: “It will take a little time but look at the short time it took [relatively speaking] for Sauvignon Blanc in New Zealand, Shiraz in Barossa Valley and Cabernet Sauvignon in Napa Valley to establish themselves. If someone gets serious about wine in China it stands to reason a grape may find its natural home somewhere – and it may not be one of the main varieties.” On the subject of where he would like to go next in China, Morris added he was keen to visit Yunnan – touted by fellow MW Jancis Robinson as a wine region of the future – although that would be for the tea as much as anything else.

Ancient ‘industrial winery’ discovered Israeli archaeologists have uncovered an “impressive compound” boasting an “industrial-scale” wine and oil press which dates back nearly 2,000 years. The remains, unearthed in Ramat Bet Shemesh 15 miles west of Jerusalem, were most likely to have formed part of a monastery, according to archaeologists with the Israel Antiquities Authority (IAA). Along with an “unusually large” press used to produce olive oil, archaeologists also discovered a large wine press with two treading floors and large collecting vat, which the IAA said indicated residents were engaged in wine and olive oil production on an “industrial-scale”. Archaeologists believe the compound dates back to the Byzantine age of the Roman Empire, which began in the year 313BC.

HOT AUTUMN ‘TO SAVE’ BORDEAUX 2014 An Indian summer and a burst of September sunshine in Bordeaux may have rescued the fortunes of the 2014 vintage. With the region having been blighted by wet weather and hail storms the outlook was bleak, though a burst of September sunshine could save the harvest, reported by The Telegraph. Antoine Médeville, who consults for several Médoc estates, said: “We’re making up a lot of ground. This September sunshine is a fantastic stroke of luck.” White wine specialist consultant Denis Dubourdieu said that he was hoping for a miracle: “It wasn’t hot enough this summer, but we made up for the August heat deficit with an

exceptional September,” he said, describing the white grapes as striking the right balance between sugar and acidity. “It is a rare and interesting vintage thanks to the combination of a cool summer and this beautiful September weather with cool nights, which has stopped the damage,” he added. Fabien Teitgen, winemaker at Château Smith Haut-Lafitte in Pessac-Leognan, described the whites as having “great acidity and good body”, while he is “crossing his fingers” about the quality of the reds, leaving them to ripen for as long as possible. Sales of Bordeaux fell by 28% in the six months to June 2014. The decline has been blamed on the austerity measures imposed in China, meaning a slump in gift giving and a dwindling interest in classed growth Bordeaux.

Italian police bust HK$7.9m wine scam

Police in Siena seized 160,000 litres of Tuscan wines labelled falsely as Brunello and Rosso di Montalcino in September. A total of 165,467 litres of fake Brunello and Rosso di Montalcino wine, worth an estimated HK$7.9m was seized by police after a consultant along with several workers within the local wine industry were allegedly attempting to pass off wine of inferior quality as the two top-quality labels between 2011 and 2013. Speaking to Bloomberg, Luca Albertario, head of the financial police in Siena, said that if sold as Montalcino on the market the wine could have earned about €5m (£4m). The consultant allegedly used his relationship with producers to steal official seals and other documents used to certify authenticity. Police described the wines as “common” and said that they were far below the required standards. In addition to the theft of the seals, the consultant is alleged to have hacked into Tuscany’s agricultural department records and made alterations which in turn made it more difficult to challenge the authenticity of the wines. The consultant, who has not been named, is facing charges of false advertising, embezzlement, fraud and unauthorized access to a computer system. The alarm was raised after a report by the Brunello di Montalcino Consortium wine cellars highlighted discrepancies during an audit of the inspection body Valoritalia. Produced in the vineyards surrounding the town of Montalcino in Tuscany, Brunello is one of Italy’s most famous and expensive wines, often selling for thousand Hong Kong dollars a bottle.

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ASIA AND EUROPE DRAG DOWN COGNAC Sharp declines in shipments to the Far East and Europe have brought an end to Cognac’s three consecutive years of record growth as the category posted a 10.2% value decline for 2013/14. Figures released by the Bureau National Interprofessionnel du Cognac (BNIC) for the period from 1 August 2013 to 31 July 2014 showed total exports reached 155.5 million bottles with a market value of HK$22bn. A 3.1% volume increase in exports of VS (Very Special) category Cognac, accompanied by declines of 13.3% for VSOP (Very Special Old Pale) and 16.9% for older quality categories, meant that total value shipments fell more sharply than volume, which decreased by a more modest 6.7%. In keeping with figures released by major Cognac producers, Asia showed the sharpest slowdown, largely due to the clampdown on luxury goods by China’s government. In total, the Far East showed a decrease of 20.9% in volume and 19.1% in value. Despite this marked decline, the BNIC emphasised the “significant” quantity of 49.2m bottles that was shipped to this region in the last 12 months, with a total value of almost £7.9bn. In Europe, the BNIC attributed a 4.7% volume and 11.7% value decline to the ongoing effect of the global economic slowdown. However, it noted a 4.4% volume increase in shipments to Eastern Europe, which helped to boost total European sales to 41m bottles. There was more positive news from the US, which at 54.1m bottles is Cognac’s largest

export market. Hailing “some outstanding results” from this country, the BNIC reported a total uplift for North America of 6% volume and 3% value. Continuing a trend shown by BNIC data released earlier this year, sub-Saharan Africa also put in a positive performance. Led largely by South Africa and Nigeria, exports to this region rose by 16.9% in volume and 20.1% in value. Highlighting the almost even split of exports between its main markets of North America, the Far East and Europe, the BNIC emphasised the stability this helps to maintain. “Cognac benefits from a strong position in global markets and is supported by famous, well known brands, all of which helps to ensure it has a firm and lasting foothold in its key markets,” the organisation assured.

Wet summer dampens Italian harvest Italian wine authorities have warned of a likely 15% volume shortfall this year after exceptionally high July rainfall caused problems with disease. A forecast released by the Unione Italiana Vini (UIV) and Istituto di Servizi per il Mercato Agricolo Alimentare (ISMEA) predicted a total harvest of 40.9 million hectoliters for 2014, a significant drop on the 48.2m recorded last year. The decline has been driven by the country’s southern regions in particular. However, the far north of Italy was also affected as the country

experienced 73% higher than average rainfall during July. Sicily and Puglia are expected to see harvests shrink by 27% and 25% respectively, while in the north Piedmont is likely to be 8% down, with the Veneto expecting a 17% slide. Domenico Zonin, president of the UIV, described 2014 as “a difficult, complicated harvest, which in many regions still leaves room for an uncertainty not seen for a long time.”

Tullamore distillery to meet Irish demand William Grant & Sons has opened a new HK$344m distillery designed to help it meet demand for growing Irish whiskey brand Tullamore Whiskey. Two years after the project was first announced in the wake of William Grant’s 2010 acquisition of the distillery, Irish minister Simon Coveney officially opened the new facility. Located on a 58-acre site in Clonminch, the distillery’s four stills, six fermenters and 100,000 cask capacity warehouse will be able to produce the equivalent of 1.5 million cases of Tullamore Dew each year to help the brand meet growing international demand. The move represents one of the most significant of a flurry of recent investments by spirit groups in the Irish whiskey sector, including Beam Inc’s 2011 purchase of Cooley Distillery.

Ham cellar hides secret wine stash A treasure trove of wines has been discovered in a Parma ham cellar in the northern Italian region of Emilia-Romagna. The unusual discovery was made by Notting Hill based fine wine merchant Armit, with the ham cellar proving an ideal environment for the sleeping wine collection. In order for the hams to mature at the correct rate, the temperature and humidity in the cellar was strictly controlled, which has proved beneficial for the wines. With gems covering the length and breadth of Italy, the collection includes established names along with wines that are a little more under the radar. With many of the boxes boasting personal notes from producers, among the wines unearthed were magnums of Gaja Barbaresco 1986 and bottles of Allegrini Amarone 1971, Antinori Guado al Tasso 1997, Solaia 1997 and Sassicaia 1990. Bottles of Dom Pérignon 1982 and Cristal 1990 Champagne were also discovered.

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JOHNNIE WALKER OPENS ASIA ‘EMBASSY’ Scotch suffers from hence Diageo’s interest in setting up a new Diageo has opened one more “Johnnie Walker House” in China, as well as two new travel retail “theatres” in Taiwan and India. The new “whisky embassy” has been opened in Chengdu, while new travel retail outlets have been set up in Taiwan’s Taoyuan and India’s Mumbai airports. The three new outlets join the three existing and extremely popular venues that have been set up in Shanghai, Beijing and Seoul since 2010. Chengdu is the fourth largest city in China,

house there, while Taiwan is one of the largest Scotch markets in Asia and Diageo has recently invested heavily in getting a foot in the door of the Indian market through the acquisition of United Spirits. “The extension of the Johnnie Walker House concept to airport retail environments, in partnership with Diageo Global Travel, represents a significant evolution of our business model,” said Lawrence Law, Global general manager for Johnnie Walker House. “We believe that these travel retail theatres, in addition to our growing network of flagship properties in Shanghai, Beijing, Seoul, and now Chengdu, provide an avenue of engagement that truly resonates with the modern day luxury consumer,” he said.

French ‘know nothing about wine’ Seven out of 10 French people don’t know their Chablis from their Champagne according to a recent survey on wine knowledge in the country. According to a poll by ViaVoice on behalf of Terre des Vins, 71% of those asked said they would not consider themselves knowledgeable about wine, and of those 43% admitted to knowing nothing at all. 26% said they knew “enough” with only 3% saying they knew “a lot”. ViaVoice also found a link between social class and wine knowledge, with white collar workers more likely to know about wine compared to their blue collar compatriots. According ViaVoice, “evidence indicates that a very elitist initiation to wine still exists in French society.”

AUSTRIA STEPS UP SUSTAINABILITY PUSH The Austrian Winegrowers Association has launched an online tool that allows producers to assess their sustainability practices, with a view to creating a full certification programme by next year. The project has seen the organisation work closely with a number of industry experts to set out a series of objectives across areas such as grape production, winemaking, vineyard management and socio-economic conditions. The online tool allows producers to enter a series of operating figures, which are then analysed and returned to them in the form of an easily comprehended diagram. Each of the black dots marks progress within a certain area relating to

sustainability, with the green zone representing an above-average performance and the red zone highlighting areas where there is particular room for improvement. The system operates on a relative scale rather than concrete figures and is weighted so that activities which make a big contribution to sustainability, such as lightweight bottles, receive a higher value. Insisting that the project “is not a marketing gag,” Johannes Schmuckenschlager, president of the Austrian Winegrowers’ Association, commented: “It is important to put this topic positively in the heads of the consumers now, before it is approached from outside the sector.”

11% drop in exports

Scotch whisky has seen a decline in exports worth HK$2.7 billion in lost sales, with some markets receding by nearly 50%. While Scotch whisky exports to some markets, such as France and Taiwan, increased in the first six months of 2014, the overall trend was downwards, with “economic headwinds and uncertainty” blamed by the Scotch Whisky Association (SWA). Figures published by the SWA show that exports of whisky in the first half of the year were HK$22bn, down 11% from HK$25bn in the same period of 2013. Exports to Singapore, the third largest value market for the spirit, were slashed by 46% and 47% in value and volume respectively, while Scotch’s biggest valued market, the US, dropped by HK$786m – a 16% decline on last year. There is also decline in many other major markets in Asia and the Americas, for example China and Brazil. Importantly, there was also a huge recession in exports to Latvia, a route-tomarket hub for products sold in Russia, showing the impact of Russia’s crackdown on western goods. The Latvian market declined by nearly a third in value, down from HK$416m last year to HK$283m. However with projects for new distilleries under way, and up to HK$25bn of capital investment in Scotland committed by producers, the hope is that the long-term prospects for the spirit will improve. Exports to France grew by 3% to 86m bottles making it the biggest market by volume, and by 6% to HK$2.6bn to put it in second place behind the USA in value. David Frost, SWA chief executive, said: “We are confident that Scotch whisky will continue to grow in the long-term as markets stabilise and new ones open up. However, it is clear that there are economic headwinds affecting exports.”

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AUCTION TAKES ACTION AGAINST FRAUD The Nedbank Cape Winemakers Guild has introduced a new security seal designed to prove the authenticity of each bottle of wine sold at its auctions. Citing the recent high profile counterfeiting scandal involving Rudy Kurniawan, CWG treasurer David Finlayson (pictured) said: “The Guild auction has become the pinnacle showcase for South African wines and it is crucial that we protect the integrity and assurance of quality

of the wines sold annually at this event.” As a result, all wines put forward for the event will carry a security foil strip along the base of their back label to tell buyers the year in which the bottle was auctioned. This year, the 30th running of the auction, will see a record number of lots put forward. The 61 lots, each of which has been produced specifically for the auction by members of the CWG, include 40 reds, 18 whites, one Méthode Cap Classique, one straw wine and one pot still brandy. An additional feature of this year’s event will be the charity auction of an 18-litre bottle containing a blend of 2012 vintage wines from each of the Guild’s 45 members. The auction was due to take place in Stellenbosch on Saturday, 4 October.

C&B appoints new general manager Corney & Barrow has appointed a new general manager for its Asian operations as well as a new marketing manager and new additions to the sales team. Thibaut Mathieu will join as general manager replacing Cecily Burchett-Chambers, who left the business this June. Mathieu has 12 years of experience in Asia having spent time in Hong Kong and Shanghai, and joins the company as it seeks to expand its operations in the region. Over the last two months the merchant has also appointed Linda Tan as marketing manager, while Olivia Cain, Marco-Jean Cloete and Eunice Fu have joined the team to grow its private and on-trade businesses.

POMMARD SOLD TO US TECH TYCOON

Château de Pommard in Burgundy has been sold to Silicon Valley entrepreneur Michael Baum for an undisclosed sum. Baum, the chief executive of Silicon Valleybased investor in student entrepreneurs Founder.org, acquired the 18th century estate from property magnate Maurice Giraud. In

addition to Founder.org, Baum is also the CEO and founder of San Francisco-based software producer Splunk. As part of the sale, Baum acquired 20 hectares of land belonging to the château in the Pommard appellation of Burgundy. Giraud, who is due to stay on at the estate for the next three months, has spent the last decade renovating the property, which is open to tourists. Built in 1726 by a Paris lawyer and secretary to King Louis XV, the second château building was constructed in 1802. The estate’s grand vin is made from a blend from the five main plots that make up the clos. Each plot is hand-harvested and the five cuvées are individually vinified then aged in oak for up to 22 months before blending and bottling. The wine that isn’t used in the final blend goes into the estate’s second wine.

Asia has edge over US fine wine market Sotheby’s head of wine for Asia and the US, Jamie Ritchie, thinks that the former market has the slight edge over the latter when it comes to the future of the fine wine trade, despite signs the US is beginning to rally. Speaking to the drinks business, Ritchie said that while both markets were on the rise, “if you had to choose one between the two, you’d choose Asia. It’ll grower quicker and the pace of change is faster. What took 15-years in the US probably took five here.” As added proof of the importance of Hong Kong, one need only look at Sotheby’s historic and on-going results since 2009. In four years, wine auctions have realised US$184 million (HK$1.4bn), with sales jumping from a total of just HK$111m in 2009 to HK$403m in 2010 (dipping slightly to HK$347m in 2011). Even with a slight decline in the Asian market from 2011 to 2013, last year Hong Kong sales still accounted for 44% of Sotheby’s total wine sales by value. That said, there is no doubt that the US is on its way back having reclaimed its spot as the world’s leading auction market in the first half of the year with Ritchie adding it was clear that “the US is strengthening”. Despite the “huge opportunities” offered by the US, it is hamstrung by its “three-tier” import system which makes it a “protective” and “not very vibrant” market, according to Ritchie. He thinks this is what gives Hong Kong the continued edge over other markets. Indeed, sales in the first half of this year in Hong Kong realised HK$155m, more than double the sales for the first half of 2013 (HK$70m), a year-onyear growth of 123%. Regarding wine styles and regions that are poised to gain ground in Hong Kong, Ritchie pointed to California and the Super Tuscans. The Rhône, he pointed out, “doesn’t suit the climate here,” but th ere was better news for white Burgundy, which is “commanding more respect”, while the “market for vintage Champagne is growing.”

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CHOSEN ONE As is so often the case, it is by pure chance that the most influential figures in the trade simply stumbled upon wine as a career. Rupert Millar discovers how this was the case with Altaya Groupâ&#x20AC;&#x2122;s Paulo Pong 24

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interview Paulo Pong CV

THE FOUNDING head of one of Hong Kong’s most influential wine importing, retail and on-trade businesses –a man often-styled as Hong Kong’s “King of Wine” and certainly one of its most influential entrepreneurs –was never meant to join the wine trade. The grandson of one of Hong Kong’s leading industrialists, when Paulo Pong was packed off to the Massachusetts Institute of Technology to study material science and engineering it was almost certain he would carry on the family business upon his return. That, however, was not how it turned out. Pong says his degree, “bored me to death” and so he threw himself instead into scouring Boston’s wine bars, “discovering this wonderful ‘new’ subject”, wine. It wasn’t entirely new to Pong. He recounts that his parents were “very

and drinking” that had so far been his experience of it. “I wasn’t aware of the effort,” he admits. “It was tough labour but well worth it.” As an experience it is both enviable and second to none and he freely admits that it was the moment that cemented his plans to enter the wine trade: “Had I not gone to Bordeaux I wouldn’t have appreciated wine so much or delved further into it.” Returning to Hong Kong, his “first offer”, comprised of some Bordeaux, Burgundy, Super Tuscans, Napa and Champagne covering two pages of A4, was faxed out to friends and family. After two years his weekly offer was becoming increasingly successful and he realised he had a viable little business but also one that he needed “exclusivity to be recognised as a player in this market.” Despite being “definitely the youngest in town” he persuaded a few brands to grant him exclusivity and by concentrating on family-owned estates he gave himself, “plenty of contrast to the big players.” The Hong Kong on-trade is ruthless by any standards, and as well as a high turnover of venues a wet-behind-the-ears wine merchant needs a lot of perseverance if he’s going to thrive. Although many were impressed by the wines he was offering, it wasn’t always so easy. At what is now one of his most long-standing accounts, it took him two years before he even met the wine buyer. “It’s more challenging and more dynamic than the off-trade,” he thinks. “You’re fighting for spots. Everyone wants a piece of the five-star hotels and new Soho restaurant.” Nevertheless, in 2005 Pong and two friends, Arnold Wong and Alan Wo, “saw a gap for mid- to high-end dining as opposed to very high and low-end. We wanted to bring concepts to Hong Kong like the brasserie for example.”

‘Had I not gone to Bordeaux I wouldn’t have appreciated wine so much or delved further into it’

keen” wine drinkers and he had always been exposed to it while growing up. Nonetheless, like many in the trade, it wasn’t until he had an encounter with it that he thought of it as a potential career. He continues that, after spending his student years meeting winemakers, critics and other wine lovers in the bars and restaurants of Boston, “after graduating I thought I’d study wine and food.” Working a harvest in Bordeaux in 2000 with both Christian Moueix and Pierre Lurton at their respective estates left him with a completely new appreciation for wine and the hard work that goes into making it; a world away from the “labels

 Holds BA in Materials Science and Engineering from Massachusetts Institute of Technology  2000: Works a harvest in Bordeaux at Pétrus and Cheval Blanc.  2001: Sets up Altaya Wines on return to Hong Kong.  2005: Co-founds The Press Room Group.  2008: Sets up “etc” chain of shops and awarded Chevalier de l’Ordre de Merit Agricole by the French Ministry of Agriculture for contributing to the development of the “French culinary arts and wine culture.”  2011: Altaya Wines becomes the Altaya Group.  2013: acquires Rare & Fine, cofounds Duddell’s in Central.

The Press Room Group was the result, with its original venue being The Press Room on Hollywood Road – though it’s now closed and looking for a new location. Classified, a wine and cheesefocused bistro, followed and now has 11 outlets, including one in Jakarta. The Principal and The Pawn in Wan Chai are two further standalone restaurants – the latter reopening in October after a refit and with British chef Tom Aikens on board as consultant. In 2013, he, Lo and Yenn Wong founded Duddell’s in Central, one of the district’s more exclusive restaurants and members clubs and which also allows Pong to indulge his interest in art, with the venue holding regular art-based events. Firmly established in the on-trade and with plans to take the wholesale and retail businesses to China in the coming years,



24-27 Interview Paulo Pong Nb_Layout 1 24/10/2014 11:07 Page 26

interview

there are perhaps a few more loose ends to tie up in Hong Kong first. Having founded the “etc” chain in 2008 to fill the “missing link” between Altaya and the consumer, Pong acquired the Rare & Fine group in 2013 and went about expanding its outlets to seven in total. Pong describes it as a “great complement” to the “etc” franchise while also being a “different animal”, catering to “bankers in Central and professionals in Kowloon”, which allows the “etc” stores to broaden their horizons To begin with they dropped their previous designations as “Bordeaux” or “Burgundy” and have come under the

wing to “Wine Etc” would slot in neatly with Pong’s desire that the franchise offer consumers everything they need and putting his businesses head and shoulders above others in the famously fierce marketplace. Pong explains that it’s a case of “answering our customers’ demands. We need to deliver a whole package and better service than anyone.” So what do the people want? “We have more requests for mature wines,” Pong says. “People are more interested in mature wines to buy and consume the same night.” In part, he continues, this is due to the lack of space in people’s flats to keep any sizeable stores. When it comes to Bordeaux of course, “it’s a different story,” with “prices going lower post-release not building confidence.” The exception is Burgundy, where the group’s message is about buying early to secure allocations. Like UK merchants, Altaya is casting around for even more Burgundy to satisfy demand. “There are a lot of brands in Burgundy and lots from outside of the big-name villages, which are often more affordable and better quality,” says Pong. “There are stunning single vineyard Mâcon that we and sommeliers are pushing people towards. Mercurey, Santenay and PouillyFuissé are all totally over-looked but are very fine Burgundies. “Hong Kong people are increasingly sophisticated and know they don’t have to buy Puligny-Montrachet for several hundred dollars to have a good wine.” That is not to say that backs have been turned on Bordeaux. Pong reports that as much as people are trying out Burgundy, “now they’re looking back at Bordeaux. Stock and prices have come down to a reasonable level and some recent vintages aren’t so young anymore, such as the 2009s I’d love to see Bordeaux come back

‘Whether it’s Australian, whether it’s Napa or Bordeaux, people are taking a punt to find new wines and new producers to share with friends and family’

unified name of “Wine Etc”. Pong explains it creates a “stronger brand” and links them together more. They’ve been moved around as well. The original Causeway Bay store has moved to Central and the Soho store on Lyndhurst Terrace is moving to the largely residential Happy Valley. Although each retains a certain amount of “individuality” and may have a predominance for Bordeaux or Burgundy, the portfolio is now broader with “variety” being the order of the day. Would he open a “Spirits Etc” at some point? “I do think a ‘Spirits Etc’ could work,” he admits. “Rent is going down though the economy’s still a little tricky. There is a market for it but it would need the right location.” Nevertheless, a spirits

offering value again.” While there is a strong likelihood that this will be the case, Pong is driving ahead with his broad portfolio and building on the exclusivity he has with brands such as Salon, Gaja and Pol Roger, believing he’s probably never been better-served by his choice to concentrate on family-owned estates when he set out over 10 years ago. “Buyers are moving away from commercial brands to family-owned, boutique wines,” he explains. “Whether it’s Australian, whether it’s Napa or Bordeaux, people are taking a punt to find new wines and new producers to share with friends and family.” Pong often refers to Hong Kong as a “trend-setter” but it’s more than likely he’s the one that helps decide what those trends will be. db

24-27 Interview Paulo Pong Nb_Layout 1 24/10/2014 11:07 Page 27

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28-44 Fine Wine Power List 100 Nb_Layout 1 24/10/2014 16:48 Page 28

P OW E R P O U R S If the Fine Wine Power 100 list confirms one thing, itâ&#x20AC;&#x2122;s that the ripple effect which is spreading out from Bordeaux is picking up pace, writes Patrick Schmitt 28

28-44 Fine Wine Power List 100 Nb_Layout 1 24/10/2014 16:49 Page 29

liv-ex power 100

Liv-ex Power 100: the top 20 Rank Brand name

Source: Liv-ex

2013 rank

Change

Total score

LX total traded

Value share

Volume share

Average price (HK$)

Price performance

Av. critic score

Unique wines

164

2.64%

2.02%

24,225

0.56%

17 29

Pavie

Cheval Blanc

194

3.21%

1.11%

53,366

-3.12%

Sassicaia

218

1.64%

2.32%

13,130

4.66%

DRC

224

104

2.41%

0.19%

238,315

3.06%

Haut Brion

225.5

4.26%

2.41%

32,758

-6.13%

Pétrus

-3

235.5

3.12%

0.25%

233,995

-4.93%

Mouton Rothschild

240

9.02%

4.07%

41,071

-6.88%

Guigal

259.5

2.14%

1.73%

22,886

-8.32%

Latour

271

6.79%

2.72%

46,316

-11.04%

Yquem

281.5

1.10%

0.85%

24,061

-7.55%

Beaucastel

282

0.32%

0.66%

9,109

1.47%

Margaux

-3

286.5

4.79%

2.77%

31,983

-9.27%

Ornellaia

290.5

0.36%

0.49%

13,504

-1.39%

Gaja

Dominus

Opus One

17 18

new

–

296

0.85%

1.15%

13,757

-3.01%

297.5

199

0.12%

0.13%

16,225

13.77%

new

–

300

0.64%

0.52%

22,977

9.67%

Penfolds, Grange

-7

302

157

0.32%

0.14%

41,732

0.02%

Lafite Rothschild

305.5

15.84%

5.74%

51,156

-15.18%

Léoville Poyferré

306.5

1.05%

1.75%

11,086

-2.01%

Louis Roederer, Cristal

309

0.72%

0.81%

16,478

-1.64%

FOR THOSE in any doubt about the increasingly eclectic nature of the fine wine market, scan this year’s top 20 most powerful fine wines. Except for Spain, every major classic fine wine-producing region is represented within the first fifth of 2014’s list: there are brands from Right and Left Bank Bordeaux, Burgundy, Northern and Southern Rhône, Sauternes, Tuscany, Piedmont, Napa, Champagne, and Australia. However, as those who’ve followed this annual fine wine power list for the past eight years will know, it hasn’t always been like this. In fact, one only needs step back four years to our 2010 table to see that the top five brands were Bordeaux’s first growths, and just two non-Bordeaux brands featured in the top 20: Burgundy’s Domaine de la Romanée-Conti (DRC) and Australia’s Grange. So what’s been driving this decade’s considerable broadening of the market? In simple terms it’s the result of a

Feature findings 4 Fine wine buyers have continued to embrace new brands from an increasingly broad array of regions ensuring that Bordeaux’s dominance of the market has declined further. 4 Collectors are also moving down the value chain: people are buying less valuable wines, and fewer of them. 4 Bordeaux continues to be out of fashion due to the release of poor vintages at high prices, but also because the Rhône, California, Italy and Australia are producing some of their best wines ever. 4 Exacerbating Bordeaux’s declining share of the market was this year’s failed en primeur campaign, although there is a market for older vintages of cru classé Bordeaux if the price is appealing. 4 Although Pavie and Cheval Blanc are this year’s first and second most powerful brands, the Right Bank has succumbed to the Bordeaux malaise. 4 The Super Tuscans, particularly Sassicaia, have filled some of the space left behind by Bordeaux. 4 Burgundy remains strong, and interest in the region is broadening into new growers, but there’s a feeling that DRC is at the top of the market. 4 However, it is the Rhône that has increased its overall share of trade. 4 There’s a feeling that the firsts are getting close to their lowest point now they are trading at under £4,000 (HK$50000) per case on average. 4

28-44 Fine Wine Power List 100 Nb_Layout 1 24/10/2014 16:49 Page 30

liv-ex power 100

Liv-ex Power 100: the top 21-40 Rank Brand name 21

Bouchard Père et Fils

Pape Clement

23 24

2013 Change rank

Source: Liv-ex

Total score

LX total traded

Value share

Volume share

Average price (HK$)

Av. critic score

Unique wines

310.5

141

0.23%

0.20%

20,831

6.44%

-18

312

0.97%

1.56%

11,511

-2.28%

Chapoutier

-12

316.5

130

0.22%

0.30%

13,896

-4.82%

Le Pin

-7

322.5

178

0.75%

0.07%

194,971

1.84%

Masseto

323

125

0.58%

0.19%

58,310

-4.47%

Angélus

-24

324

1.01%

0.77%

24,339

-8.23%

Dom Pérignon

325

0.42%

0.58%

13,368

-1.94%

Ponsot

325.5

137

0.39%

0.18%

39,841

-0.64%

Ducru Beaucaillou

328

1.10%

1.55%

13,127

-3.45%

Armand Rousseau

334.5

199

0.32%

0.07%

78,512

8.98%

Giacomo Conterno

335.5

241

0.14%

0.06%

46,622

6.32%

Mission Haut Brion

-21

337.5

2.03%

2.32%

16,236

-9.79%

Pontet Canet

-6

340

2.60%

3.94%

12,234

-6.42%

Smith Haut Lafitte

-8

343.5

0.41%

0.91%

8,402

-1.84%

Joseph Faiveley

344

206

0.12%

0.11%

21,042

11.98%

Palmer

346

0.62%

0.67%

17,038

-0.73%

Montrose

-29

349.5

2.47%

3.96%

11,564

-7.05%

Cos d’Estournel

-3

350

1.30%

1.58%

15,209

-5.48%

Ausone

350.5

140

0.50%

0.15%

63,969

-7.96%

Dom. Jean-Louis Chave

351

230

0.12%

0.08%

28,134

6.62%

thorough search for value: people are spending less on fine wine and therefore looking for labels offering a compelling price-to-quality ratio, from wherever they happen to come. Confirming this reduced spend on fine wine, Justin Gibbs, director at Liv-ex – the compilers of the survey – records: “The market is moving down the value chain: people are buying less valuable wines, and fewer of them.” In fact, the average

trade on the Liv-ex fine wine exchange has dropped almost 50% to £2850 (HK$35420), from its peak in 2011, when it hit £5,660 (HK$70300). As for the average price per unit traded, that is down to £1,347 (HK$16740) – a drop of 20% from 2011 at £1,676 (HK$20830). This development is taking collectors out of the market for Bordeaux’s big names, because the average case price for First Growths traded on Liv-ex in September was £3,918, (HK$48700) compared to, for example, £1,838 (HK$22840) for the so-called Super Tuscans (which include Masseto, Tignanello, Sassicaia, Ornellaia and Solaia) – and that average falls to £1,082 (HK$13450) if one excludes the high-priced, low production Masseto. But there are other factors at work. Speculative wine buyers would be tempted to invest in

‘People are spending less, and buying less, but they are spending more outside Bordeaux’

Price performance

top-end Bordeaux if they believed they would see a return. However, ambitious en primeur pricing from top cru classé Bordeaux estates has ensured the opposite: people have lost money buying en primeur for five years in a row, according to Bordeaux Index founder Gary Boom. Considering the potential for profit provides the motive for the majority of fine wine purchases, the collector has been driven to look beyond the world’s most famous fine wine region. And, importantly, this desire to explore has coincided with a quality revolution in

28-44 Fine Wine Power List 100 Nb_Layout 1 24/10/2014 16:49 Page 31

liv-ex power 100 Relative prices and trade THE NUMBER OF BRANDS BY COUNTRY IN THIS YEAR’S LIV-EX POWER 100 VS LAST YEAR: Source20132014 Bordeaux59 54 Burgundy17 17 Italy710 Rhône76 Champagne66 USA23 Australia12 Spain01 Chile01 Argentina 10 PERCENTAGE OF TRADE ON LIV-EX (REGIONS, BY VALUE) Region20102011201220132014 (YTD) Bordeaux95.293.287.282.179.2 Burgundy1.22.65.57.06.2 Champagne1.41.12.32.32.8 Rhône0.71.21.52.84.0 Italy0.91.52.33.55.7 Others0.50.51.32.32.2 AVERAGE PRICE PER CASE (12X75cl, SEPTEMBER 2014) Champagne: £1,476 (HK$18.3) (comprises the top vintages in the market from Krug, Cristal, Dom Pérignon, Salon and Taittinger Comtes de Champagne). Super Tuscan: £1,838 (HK$22.8k) (composed of the last ten vintages of Masseto, Tignanello, Sassicaia, Ornellaia and Solaia) or £1,082 (HK$13.4k) without Masseto. First Growth: £3,918 (HK$48.7k) DRC: £22,716 (HK$282k with Romanée-Conti) or £10,200 (HK$126.8 without)

other places. “The market share of Bordeaux [on Liv-ex] peaked at 95% in 2010; last year it was 82%, and this year it is 79%, so the switch away from Bordeaux seems to be continuing,” says Gibbs. “People are spending less, and buying less, but they are spending more outside Bordeaux,” he adds. Explaining further the change, he says, “Bordeaux continues to be out of fashion, and a lot of that is to do with the release of poor vintages at high prices, but it is also a lot to do with the fact the Rhône, California, Italy and Australia are producing some of the best wines ever, making it easy to make the switch.” Exacerbating Bordeaux’s declining share of the fine wine market was this year’s en primeur campaign. In April 2014 the 2013 vintage accounted for 3.3% of Bordeaux

‘Bordeaux continues to be out of fashion, and a lot of that is to do with the release of poor vintages at high prices’

trade on Liv-ex, from just four wines traded: Carruades de Lafite, Haut Brion, Lafite and Mouton. To highlight how low this is, in April 2013 the 2012 release – which was hardly a hyped harvest – accounted for 15.7% of trade. “One cannot overemphasise what a shocking campaign 2013 was, both for Bordeaux négociants and international merchants, and for the reputation of Bordeaux generally,” states Gibbs. Certainly Jake Dean, fine wine sales director at Berry Bros & Rudd tells db that Bordeaux sales last year were just 18% of the company’s turnover, compared to around 70% following the release of the 2009 vintage. Nevertheless, due to the high levels of production, the majority of trade in the fine wine market is still made up of Bordeaux, as long as the price is attractive. “Bordeaux has traded high volumes but at a lower level,” explains Gibbs, adding, “the firsts still trade the most.” Similarly, Boom at Bordeaux Index records that his biggest sellers of the year through his merchant were first growth Bordeaux. “Generally Bordeaux is suffering from a major image problem… but there is a market if the wine makes financial sense: for example, Margaux ‘96

Château Lafite Rothschild



28-44 Fine Wine Power List 100 Nb_Layout 1 24/10/2014 16:49 Page 32

liv-ex power 100

Liv-ex Power 100: the top 41-60 Rank Brand name

Source: Liv-ex

2013 Change

Total

LX total

Value

Volume

Average

Price

Av. critic

Unique

rank

score

traded

price (HK$)

performance

score

wines

352

0.49%

0.43%

21,389

-2.05%

Evangile

Lynch Bages

355.5

2.49%

4.24%

10,888

-2.09%

Comte Vogüé

361.5

160

0.41%

0.12%

64,075

-2.22%

Screaming Eagle

364.5

270

0.18%

0.02%

194,463

10.37%

Clos Fourtet

-14

367.5

0.53%

0.63%

15,566

-4.60%

Fleur Pétrus

370.5

103

0.39%

18,392

-3.29%

Trotanoy

-15

377

142

0.22%

0.21%

19,118

-4.51%

Pichon Baron

-25

398.5

0.95%

1.42%

12,376

-7.37%

Léoville Barton

407.5

0.42%

1.11%

6,955

-0.90%

Alain Hudelot Noellat

new

–

409.5

193

0.08%

0.18%

8,806

18.41%

19 22

Léoville Las Cases

Pegau

Eglise Clinet

Domaine Leflaive

Henschke

Lafleur

57 58 59 60

-31

413.5

2.13%

2.72%

14,538

-7.97%

new

–

416.5

188

0.07%

0.21%

6,404

3.90%

-47

417

148

0.30%

0.18%

31,000

-13.54%

11 19

-9

418

170

0.15%

0.18%

15,816

-1.81%

new

–

418

244

0.07%

0.08%

17,043

18.37%

-42

419.5

134

0.58%

0.16%

65,521

-10.13%

Meo Camuzet

new

–

423

206

0.11%

0.13%

15,867

9.01%

Georges Roumier

new

–

423.5

286

0.08%

0.03%

45,565

12.37%

Sylvian Cathiard

-7

425

277

0.07%

0.04%

30,710

23.11%

Bruno Giacosa

-20

428.5

293

0.05%

20,750

0.96%

is our biggest seller of the year – we’ve done over £1m (HK$12.4m) worth at £4,100 (HK$51000) a case, while our second biggest is Latour ‘96: we’ve done £750,000 (HK$9.32m of trade) at £4,900 a case. So under £5k (HK$62k) is where it really moves.” Furthermore, this year’s first and second most powerful brands are both from Bordeaux, but from the right bank: Pavie

and Cheval Blanc respectively. Pavie has retained its top spot after its sudden rise up the table last year, which followed its upgrade (with Angélus) to St Emilion’s top tier: Premier Grand Cru Classé A. This follows a trend spotted in 2013 of smaller production, high scoring Right Bank Bordeaux properties outperforming larger estates on the other side of the Gironde. “We do better with Right Bank Bordeaux [than Left Bank] because people like the idea of an estate that produces a few hundred cases of wine rather than several thousand,” records Joss Fowler, director at Fine + Rare. But Pavie’s top spot is also a question of relative performance, rather than any great increase in demand from collectors in the last 12 months. “It’s up 0.5% in performance, while the rest of Bordeaux is down,” says Gibbs,

‘We do better with Right Bank Bordeaux [than Left Bank] because people like the idea of an estate that produces a few hundred cases of wine rather than several thousand’ 32

referring to the “price performance” measure, which considers the price of a case of wine in August this year compared to August 2013. Continuing, he says, “Because of Pavie’s performance and high ranking score, despite a fall in trade, it has taken top position.” He also believes that Pavie “is still clearly benefitting” from the aforementioned reclassification, and notes that Pavie 2009 and 2010 both scored 100 points.

17_dbhk_Sep_MH Hennesy_Layout 1 18/09/2014 16:49 Page 1

28-44 Fine Wine Power List 100 Nb_Layout 1 24/10/2014 16:50 Page 34

liv-ex power 100 Liv-ex Power 100: the top 61-79 Rank Brand name 61 Vieux Château Certan

2013 Change rank 21 -40 –

Total score 431.5

LX total traded 122

Value share 0.30%

Volume Average share price (HK$) 0.31% 17,721

431.5

106

0.33%

0.41%

Price performance -7.70%

Av. critic score 94

Unique wines 16

14,836

-3.51%

Solaia

new

Clinet

444

133

0.19%

0.30%

11,810

-4.60%

Gruaud Larose

455.5

0.23%

0.71%

6,020

1.37%

Louis Jadot

new

–

456

269

0.06%

0.07%

17,033

6.16%

Calon Segur

457.5

0.38%

1.04%

6,786

-3.83%

Troplong Mondot

-16

459.5

166

0.12%

0.20%

11,524

-7.06%

Clos Papes

460

197

0.07%

0.19%

6,656

-0.71%

Beausejour Duffau

-12

461.5

195

0.18%

0.10%

32,514

-2.28%

Dujac

-4

463

277

0.06%

16,586

29.30%

Vega Sicilia

new

–

473.5

201

0.13%

0.11%

21,336

-3.57%

5 11

Rauzan Ségla

new

–

476.5

130

0.16%

0.39%

7,675

-2.52%

Almaviva

new

–

477

107

0.22%

0.51%

8,013

10.80%

Taittinger, Comte de Ch.

-49

490.5

0.40%

0.84%

8,766

-13.62%

Beychevelle

493.5

0.78%

2.13%

6,772

-5.48%

Tignanello

-22

493.5

153

0.12%

0.35%

6,160

0.88%

Gazin

-3

496.5

201

0.07%

0.19%

6,451

5.19%

Grand Puy Lacoste

499

0.30%

0.73%

7,451

-4.82%

Pichon Lalande

-30

500

0.61%

1.01%

11,143

-9.13%

Figeac

new

–

500

161

0.12%

0.21%

10,761

-1.93%

Perhaps more of a surprise is Cheval Blanc’s sudden rise up the rankings to second spot. “It has traded a lot this year: the amount of trade by value has risen 26%, while it trades across lots of vintages,” records Gibbs. He also says that “It scores well, and it’s only down 3% in performance,” while he wonders whether the fact that 2014 is the Chinese Year of the Horse may have had a positive impact on demand in Asia specifically. More generally though, Gibbs says that even the Right Bank has “succumbed to the Bordeaux malaise”. For example, if one looks at the top 10 fallers, Eglise Clinet, Lafleur, and Vieux Château Certan are all within the top five. “These were huge risers last year, and are very big ticket items, but people are not paying those extraordinary numbers any more.” Other names which have dropped down the table dramatically include LéovilleLas Cases and Pichon Lalande. “The Left

Source: Liv-ex

Bank firsts were the first to fall, then the second growths, and now the Right Bank wines – all because people realised they could get a very high scoring wine from elsewhere for a fraction of the price.” So what of DRC, which has risen up the list, despite being the most expensive brand in the survey? “It’s a bizarre scenario: it’s 2.4% of the share on Liv-ex by value, but by volume it’s 0.19%,” says

Gibbs. Nevertheless, as warned last year, there’s a sense that this wine is unlikely to retain its remarkably high prices. “It’s teetering… the volume of trade is declining but the value of trades are holding up; it feels like its at the top of the market.” Boom concurs, suggesting that the appeal of DRC is beginning to wane: “Before, if DRC was on the label, it would sell, but now it’s only strong if it is in perfect condition and the price is right.” Just above DRC in the table,

‘Before, if DRC was on the label, it would sell, but now it’s only strong if it is in perfect condition and the price is right’

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28-44 Fine Wine Power List 100 Nb_Layout 1 27/10/2014 14:52 Page 36

liv-ex power 100 Liv-ex Power 100: the top 81-100

Source: Liv-ex

RankBrand2013ChangeTotalLX totalValueVolumeAveragePriceAv. criticUnique namerankscoretradedshareshareprice (HK$)performancescorewines 81

Salon

-33

506.5

211

0.15%

0.08%

34,383

-3.65%

245

0.07%

0.08%

16,776

-3.76%

14.93%

82Clerc Milon875513.5960.20%0.80%4,7050.36%9012 83

Mondotte

518.5

84Emmanuel Rougetnew–5232060.19%0.08%46,3530.88%924 85

Monbousquet

Macchiole

Talbot

new

–

524.5

193

0.06%

0.24%

4,918

524.5

225

0.05%

0.15%

6,291

9.17%

-22

525.5

0.32%

1.20%

4,922

-4.06%

207

0.08%

0.14%

11,319

-3.04%

364

0.03%

0.01%

37,693

5.72%

88Henri Boillotnew–526.51740.06%0.35%3,40412.83%9017 89Joseph Drouhinnew–5272880.05%0.06%15,3504.27%938 90Jacques Frederic Mugnier58-32528.52520.11%0.06%31,957-3.82%9311 91Tertre Roteboeufnew–531.53180.04%0.04%16,4616.58%946 92

Conseillante

-22

533.5

92Domaine Chevalier953533.51400.11%0.45%4,707-5.59%9415 94

Krug

new

–

536

95Duhart Milon69-26541301.01%2.58%7,274-14.63%9115 95Perrier Jt. Belle Epoquenew–5411420.17%0.28%11,0028.06%886 97

Lascombes

Giscours

-17

547.5

141

0.13%

0.37%

6,276

-5.46%

new

–

553.5

137

0.12%

0.44%

5,138

-1.03%

99Canon La Gaffelière81-18566.52030.06%0.19%5,813-0.51%938 100Guado Al Tassonew–5701490.11%0.42%4,638-0.60%944

Sassicaia is a symptom of this year’s stand-out trend: Italy’s increasingly fashionable fine wine status. “Super Tuscans have filled some of the space the clarets have vacated,” states Fowler. Similarly, Boom comments, “We’ve done the Bordeaux trend morphing into Burgundy, the Burgundy trend morphing

‘Bordeaux ‘11 and ‘12 vintages were indifferent, and ‘13 was poor, while Italy’s ‘09 and ‘10 vintages were the best ever for the Tuscans’ 36

into Champagne, and the Champagne trend morphing into Italy, and we are catching the tail end of the Italy trend now –so we are running out of trends.” Nevertheless, he adds, “The Italians are probably the strongest in terms of a generic offer, so if there’s a good offer on Sassicaia, it moves.” “The big move up was Italy from 3.5% to 5.7% of trade,” says Gibbs, speaking of developments by region, rather than brand, while he also points out that Gaja is this year’s highest new entry, and Gaicomo Conterno is the second highest riser. Part of the region’s success has been the high quality of wines from Italy released on to the market in the last 12 months, particularly in contrast to those from Bordeaux. “Bordeaux ‘11 and ‘12 vintages were indifferent, and ‘13 was poor, while Italy’s ‘09 and ‘10 vintages were the best ever for the Tuscans, and

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liv-ex power 100 Fine wine market trends: The merchants’ views

2010 is regarded by some as the greatest Barolo vintage ever produced. So it is an unfortunate coincidence: merchants can’t sell Bordeaux but can turn their clients’ attention to other regions, and Italy is producing some of its best wines ever.” Furthermore, pricing favours Italy too. “The Super Tuscans are the proxy first growths of Italy, and around £1,000 (HK$12400) will buy you a case of a Super Tuscan [excluding Masseto], but you need over £3000 (HK$37280) for a first growth, and the scores are similar,” says Gibbs The same argument explains the success of Californian brands Dominus and Opus

‘Bordeaux needs to wake up to the fact that people can buy wine from other regions producing great wine’

TOM HUDSON, DIRECTOR, FARR VINTNERS What’s in demand? The two obvious areas that have done well are Italy and Spain –we are selling a lot more Italian wine at the moment than a couple of years ago. What’s falling out of favour? There is definitely reluctance in the market at the moment to follow Bordeaux... But after two years of prices gradually coming down, in the last two months the prices do seem to have stopped falling... it’s harder to replace things now at yesterday’s prices, so there is an indication that possibly we are seeing a bounce upwards. TOM STOPFORD SACKVILLE, MANAGING DIRECTOR, GOEDHUIS & CO What’s in demand? We are certainly seeing some key customers from the good old days dipping their toe in Bordeaux again, for example Montrose 2005: a great Château in a great vintage which is almost 10 years old and trading for around £900 (HK$11.2k)... In general, the châteaux that work have not changed: Pontet-Canet, Ducru-Beaucaillou, Lynch-Bages, Duhart-Milon, the Léovilles –and Talbot has a huge following in Hong Kong. What’s falling out of favour? The first growths remain fairly friendless among our private clients. We see a bit of a disconnect with Bordeaux at the moment but I still think the region provides great value, it’s just that the expensive Bordeaux that was making the headlines is no longer making the headlines.

Liv-ex 50 vs Liv-ex 1000: five years

Source: Liv-ex

200 180 160

One this year. “At the same time as Italy is doing well, Opus One 2010 is said to be the best ever made by the estate, and Dominus got 100 points in 2010… and these wines represent relatively cheap entry points to the best of their region,” observes Gibbs. Essentially, he stresses that Bordeaux must be mindful of the global competition. “Bordeaux needs to wake up to the fact that people can buy wine from other regions producing great wine and not necessarily charging so much money.” Looking elsewhere, but within France, it should be noted that this year’s top 10 year-on-year market price performance table is littered with Burgundian growers

140 120 100 80 09/09

03/10

09/10

03/11

09/11

03/12

09/12

03/13

09/13

03/14

09/14

SeriesCurrent Value6mths12mths2yrs5yrs Liv-ex Fine Wine 50*266-6%-13%-11%9% Liv-ex Fine Wine 1000**243-3%-6%0%22%

While the Liv-ex 1000 has risen 22% over five years, the Liv-ex 50 has risen just 8.7%. *The Liv-ex Fine Wine 50 Index tracks the ten most recent vintages (excluding En Primeur, currently 2002-2011) of the Bordeaux First Growths **The Liv-ex Fine Wine 1000 tracks 1,000 wines from across the world 

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liv-ex power 100 Fine wine market trends: The merchants’ views GARY BOOM, FOUNDER, BORDEAUX INDEX What’s in demand? Nothing is selling well unless there’s a good story and it is very well priced, but it’s the Italians that are probably the strongest in terms of a generic offer, so if there’s a good offer on Sassicaia, it moves. Bizarrely we are also selling a lot of Port, probably because we have five or six nuts in the office who are passionate about selling it: for example, we recently sold 130 cases of 2000 Taylor’s within an hour and a half. What’s falling out of favour? In general Bordeaux is suffering from a major image problem, because for five years in a row people have lost money en primeur… it’s all about confidence because the money is there, but it’s on the sidelines… nobody is buying until they perceive that the market has stablised.

Top ten: Average trade price* RankBrandAv. price (£+HK$) 1DRC£18,530 (230k) 2Pétrus£18,194 (226k) 3Pin£15,159 (188k) 4Screaming Eagle£15,120 (188k) 5Armand Rousseau£6,105 (76k) 6Lafleur£5,094 (63k) 7Comte Vogüé£4,982 (62k) 8Ausone£4,974 (61.8k) 9Masseto£4,534 (56k) 10Cheval Blanc£4,149 (51.6k)

JAKE DEAN, FINE WINE SALES DIRECTOR, BERRY BROS & RUDD What’s in demand? Spain has huge potential in terms of its range and value and we had incredible success this year with the launch of 2004 Vega Sicilia Unico, which was probably the best vintage since 1970. It sold for just over £500 (HK$6200) for a three-bottle case and the level of demand has been incredible. In general, it’s a collectors’ market, with demand for the best wines from Spain, Burgundy, Champagne, Australia and Italy. What’s falling out of favour? The market is good for everything except for top end Bordeaux, where the prices are still soft, although that does pose the question as to whether now is a good time to buy. However, the only Bordeaux that’s in demand at the moment is under £100 (HK$1200) and a bottle and with some age, so 2005 vintage backwards.

* (£/HK$ per 12 bottle case)

attesting to a deeper exploration of the Côte-d’Or. “People are moving from DRC to the second tier of Burgundy growers, like they did the second growths of Bordeaux, so the prices of Burgundy have marched north,” says Gibbs. He adds that encouraging this broadening of Burgundy demand is “the search for value in the same region.” Goedhuis & Co managing director Tom Stopford Sackville confirms the trend in Hong Kong specifically: “Burgundy buyers know DRC and will have Rousseau, Dujac, Cathiard, Ponsot, and

‘People are moving from DRC to the second tier of Burgundy growers, like they did the second growths of Bordeaux’



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liv-ex power 100

Top ten: trade share by value

Top ten: trade share by volume

Top ten: average score

RankBrandShare by value 1Lafite Rothschild15.8% 2Mouton Rothschild9.0% 3Latour6.8% 4Margaux4.8% 5Haut Brion4.3% 6Cheval Blanc3.2% 7Pétrus3.1% 8Pavie2.6% 9Pontet Canet2.6% 10Lynch Bages2.5%

RankBrandShare by volume 1Lafite Rothschild5.7% 2Lynch Bages4.2% 3Mouton Rothschild4.1% 4Montrose4.0% 5Pontet Canet3.9% 6Margaux2.8% 7Léoville Las Cases2.7% 8Latour2.7% 9Duhart Milon2.6% 10Haut Brion2.4%

RankBrandAverage score 1Masseto97.6 2Chapoutier97.2 3Giacomo Conterno97.1 4Dom. Jean-Louis Chave97.0 5Screaming Eagle96.9 6Guigal96.6 7Pétrus96.7 8Ornellaia96.6 9Bruno Giacosa96.6 10Krug96.5

Camuzet. Now they are working their way through the growers, and they are going through the gears quickly… there is a lot of good Burgundy being cracked open in Hong Kong.” Continuing, he observes, “There’s a feeling that Burgundy is sexier [than Bordeaux]… and even though prices have risen dramatically, I don’t think the love affair with Burgundy will wane, because there just isn’t the stock and there’s a real passion for Burgundy.” Nevertheless, Boom at Bordeaux Index says that many of his clients are already holding collections of great Burgundy growers, and are now being more cautious about the prices they will pay.

‘There is a lot of good Burgundy being cracked open in Hong Kong’



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liv-ex power 100 Fine wine market trends: The merchants’ views

“We can offer a great parcel of Roumier, Rousseau, Cathiard or Dujac, and people are saying ‘we’ve got it, what’s your price on that?’” he says. Gibbs then picks up on another development illustrated in this year’s power 100 results –and that’s the growing power of the Rhône. He points out that of all French wine regions featured in this year’s survey, it’s only the Rhône that has increased in the amount of trade in 2014: by value it has gone up 12.9% on Liv-ex, while Bordeaux is down 15%, Burgundy is down 11% and Champagne down 3.6%. Stopford Sackville records, “The cognoscenti are getting into the Rhône, both Châteauneuf and Hermitage, and there’s lots of interest in Chave at the moment… the great classical areas of France are being discovered one by one.” Gibbs also suggests that high scores are helping, and, as our table shows, Chapoutier, Chave and Guigal rank second, fourth and seventh for average score respectively. “The big guys from the Rhône are producing wines that are touching perfection… Parker has always rated the Rhône on average higher than Bordeaux — it is his favourite part of the world.” In essence, collectors are happy to source broadly as long as the brand is strong and the price, compared to the quality, is attractive. In other words, it is relative value for money that really explains the move up and down the chart of this year’s fine wine power brands. However, for Bordeaux’s first growth châteaux, there’s still a question mark

JOSS FOWLER, DIRECTOR, FINE + RARE What’s in demand? People want a quality, individual wine with some sort of artisanal edge to it. For example, this year we had a cracking sale of private cellar filled with Barolo, some of which were the top names, and some of which you’ve never heard of, but it was very successful. What’s falling out of favour? Bordeaux is permanently falling away and being replaced by other things. Having said that, 2005 Bordeaux at under £300 a bottle is selling very well because these are delicious wines and people are realising that they won’t be around forever.

‘I don’t think the love affair with Burgundy will wane, because there just isn’t the stock and there’s a real passion for Burgundy’



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liv-ex power 100 Top ten: Year-on-year market price performance RankBrandYOY Market price performance 1Dujac29.3% 2Sylvian Cathiard23.1% 3Alain Hudelot Noellat18.4% 4Henschke18.4% 5Monbousquet14.9% 6Dominus13.8% 7Henri Boillot12.8% 8Georges Roumier12.4% 9Joseph Faiveley12.0% 10Almaviva10.8%

Top ten: Unique vintages traded in the last year RankBrandUnique vintages traded in last year 1DRC56 2Lafite Rothschild50 3Latour46 3Margaux46 5Haut Brion45 6Mouton Rothschild39 7Guigal32 8Cheval Blanc29 9Chapoutier26 9Montrose26 9Cos d’Estournel26 9Lynch Bages26

‘My guess is that the firsts are getting close to their lowest point’

Liv-ex Power 100: Methodology A list was generated of all wines traded on Liv-ex in the past year (1 September 2013-31 August 2014) and grouped by brands. This list was narrowed down to 218 brands where at least three wines or vintages had traded. Only the wines traded in this period on Liv-ex were included in the following calculations. BRANDS WERE RANKED BY:  Price performance: We compared the market price for a case of wine on 1 September 2013 with its market price on 31 August 2014.  Critic score: We calculated the average score from Robert Parker from the last five physical vintages of the brand. Where no Parker Score was available we used scores from The Wine Spectator, Allen Meadows (Burghound), Stephen Tanzer (International Wine Cellar) and James Suckling.  Trading performance: We calculated two rankings, one for total value and one for total volume traded on Liv-ex in the last 12 months. These were then combined to produce an overall trading performance score.  Number of wines/vintages traded across a brand.  Average price of the wines in a brand. This is the volume-weighted average trade price for all units traded between 1 September 2013 and 31 August 2014. These individual rankings were then combined with a weighting of 1 for each criteria, except trading performance which had a weighting of 1.5 (as it combined two criteria). The final 100 brands accounted for over 1500 unique wines/vintages traded in the past year. In the tables, the “LX-total” represents the sum of the value and quantity ranking traded on Liv-ex, while the “total score” takes into account not only the traded value and quantity, but also the rankings for average trading price, performance, critics’ score, and number of vintages traded.

over what price these labels are deemed an appealing buy, and this is particularly the case for en primeur. “My guess is that the firsts are getting close to their lowest point,” says Gibbs, speaking of current prices, which average below £4,000 (HK$50000) per case. However, for Gibbs and others, the success of cru classé Bordeaux depends above all on next year’s primeur campaign: “Bordeaux has got to encourage people to come back… the pricing needs to be at a level to entice collectors who have an embarrassment of riches from other regions,” he warns. Importantly, he concludes, “People need to feel they are not going to lose money: and en primeur has hardly worked since 2005, with 2008 the exception. That’s a long time.” db

45 Edrington Highland Park Advertorial Nb_Layout 1 27/10/2014 09:16 Page 45

sponsored profile

R i s i n g f ro m the darkness Dark Origins tells the intriguing and somewhat illicit history of Highland Park RENOWNED FOR its Viking-inspired expressions, “Thor”, “Loki” and now “Freya” too, Orkney distillery Highland Park has turned to its hidden past as inspiration for its latest release named “Dark Origins”. The distillery was officially founded over 200 years ago in 1798 but, as with so many Scotch distilleries, its origins do in fact stretch back much further. For Highland Park that history goes back to Magnus Eunson, a preacher and yet a part-time smuggler in Kirkwall, where the distillery exists to this day. Providing spiritual succour to the people by day, by night Magnus would

distil single malt whisky in the hills of High Park which provided relief of a different sort to the people of Orkney who were suffering at the hands of the villainous tax collector. Magnus was known for hiding his whisky under the pulpit in the church and occasionally inside empty coffins which he would surround with “mourners” for the dead due to smallpox, to ensure the tax collector and his excisemen wouldn’t look inside. Dark Origins is designed to be a tribute to the cunning of Magnus and to his original spirit, which, because of the time in which it was made, is non-chill filtered

and has a “darker, richer flavour”. Although it carries no age-statement, Dark Origins still uses twice as many first fill Sherry casks as its 12 year-old expression, which gives it a dark colour and rich flavour. Mahogany in colour, the nose shows hints of sherried spice, toasted hazelnuts and baked apple, while the palate is peaty, giving way to maraschino cherries, dark chocolate and sweet smoke. Gerry Tosh, global marketing manager, comments: “Cask management is so very crucial to our work at Highland Park. We have strived to raise the bar, working tirelessly in sourcing the right wood and then working and finessing the balances to ensure we create single malt that is rich, warm and enticing in flavour. “Dark Origins sits in the heart of our core range complimenting them perfectly – distinct in itself, but always and forever a classic Highland Park.” Dark Origins stands as a testament to the over 200-year line of whisky-making in Orkney and Highland Park’s commitment to traditional disciplines and the highest quality craftsmanship.

The distillery was officially founded over 200 years ago in 1798 but, as with so many Scotch distilleries, its origins do in fact stretch back much further Highland Park is one of the few distilleries to malt its own barley by hand, drying the grains in kilns fired on local peat that imparts a distinctive and aromatic Orkney “peat reek”. This combined with the sweetness of the Oloroso Sherry casks is what gives Highland Park’s whiskies their particular and unique character.

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W H E E LS

keep on turning Marqués de Cáceres has got the ball rolling on its latest white wine mission that promises to reveal the character of Rueda’s exceptional terroirs

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sponsored profile WHILE BASED in Rioja, Spanish wine brand Marqués de Cáceres has branched out to Rueda in the province of Valladolid, in order to focus on white wine production. The company’s Rueda project has been implemented in two phases, involving the purchasing of two vineyards and the construction of a new winery and bottling plant for its new fleet of whites. Distribution and marketing of Marqués de Cáceres Rueda meanwhile will take place at the company’s headquarters in Rioja Alta. The company looked to Rueda due to a shortage of white grapes in the Rioja region, with the volume of white grapes grown in Rioja in recent years proving unable to keep up with global demand. While the Consejo Regulador has made moves to try and increase white wine production in the region, allowing for 2,500 hectares of new white grape plantings taking in six foreign white grape varieties, the initiative has been slow to get off the ground, with white grapes still only accounting for a tiny 6%

of this DO’s exceptional terroirs. The intention is for Marqués de Cáceres Rueda to form the missing part of the triangle with its current range from Rioja and the brand’s successful Albariño from Rías Baixas. “We are convinced that there are opportunities for Rueda, especially on the international scene, for in 2013 only 19% of its total volume sales were exported,” says Forner, adding, “Rueda offers great diversity taking in everyday wines at entry level price points as well as quality wines that call for ‘grands terroirs’, as is the case in any prestigious wine area. Our aim is to explore the high end of Rueda.” The DO’s from Rueda and Ribera del Duero are in fact teaming up to launch a strategic co-marketing partnership this autumn in the USA. Marqués de Cáceres has purchased 125 hectares of vineyard land on sandy and pebbly soils in Rueda, comprised mainly of Verdejo vines, along with a small amount of Sauvignon Blanc in the villages of La Seca and Serrada, where the winery is based. Recruiting a team of local professionals, the Rueda project is being overseen by technical director Ramon Viega, with assistance from winemaker Carmen Blanco. The pair aims to extract the very best attributes from their Verdejo grapes in a bid to fully express the variety’s signature mineral character and make wines that stand out from the crowd due to their idiosyncratic personality. As always when quality is involved, this is a long-term project for Marqués de Cáceres, having learned from its 45 years of experience that consistency requires patience, savoir-faire and a passion for excellence. “Rather than volume, we are more interested in complementing our existing range with wines of personality that will add to the diversity of our other white Riojas and our Albariño. The quantities produced will very much depend on the selection that we make from the vinification of this first harvest with grapes from our own vineyards,” confirms Forner. In keeping with the quality

‘Rather than volume, we are more interested in complementing our existing range with wines of personality’

of vineyard land in Rioja. “The DOCa has lost opportunities to adapt to current trends when one in every three bottles of wine sold in the world is white. The situation drove us to invest in Rueda at the end of 2013 in order to guarantee excellent quality going forward, as the vineyards we have purchased are over 30 years old,” comments Cristina Forner, president of Marqués de Cáceres. Meaning “wheel” in Spanish, Rueda whites are known for the region’s indigenous Verdejo grape, which according to Forner, offers great and exciting potential to reveal the character

over quantity approach, Marqués de Cáceres will be seeking exclusive distribution channels for its new addition in a bid to stamp Rueda on the international wine map. The company has just completed its first harvest in the region and is “delighted” with the results, achieving yields of 3,500kgs/hectare in some parcels and 6,800kgs/hectare in others. “The grapes were harvested at night in healthy condition, with some picked by hand, and have been cold-macerated then fermented slowly between 14-16 degrees in order to obtain the maximum aromatic richness and structure in the wines,” says Forner. The wines were vinified in small tanks in order to keep the parcels separate. Marqués de Cáceres exports to over 120 countries, with Europe accounting for just over half of the estate’s sales, North America making up 31%, Latin America and the Caribbean 14%, Asia Pacific 2% and the Middle East and Africa 1%. Spotting the increasing importance of the Asian market, the brand is turning its gaze to the East and is ramping up both its marketing and export activity in countries such as China, Japan, Malaysia, Korea, Singapore and Vietnam. Wine tourism remains high on the company’s agenda, with the Marqués de Cáceres headquarters in Rioja Alta having recently undergone a two-year makeover in order to make it tourist friendly, from building a new barrel cellar to creating a consumer tasting room and wine shop. db

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LIQUID

history

To be recognised as the producer of a top, unique offering involves charging the top price –which is exactly what the leading Douro producers are up to with their latest ancient launches, writes Lucy Shaw HOW MUCH would you pay for a taste of liquid history? Is HK$37,000 a fair sum for a wine made the same year American President Abraham Lincoln signed the Emancipation Proclamation and the first section of the London Underground opened? When you consider that a sixlitre decanter of Macallan ‘M’ with no age statement broke the record for the most expensive whisky ever sold at auction, going under the hammer at Sotheby’s in Hong Kong this January for an unprecedented HK$4.7 million;

a HK$37,000 tawny Port from 1863 almost seems good value. Almost. Keen to compete at the top end of the market and get in on a slice of the luxury action the whisky boys have been enjoying for years, the big players in the Douro have recently released tiny amounts of super rare liquid in glitzy decanters. Each boasting an impressive story and elaborate packaging, the releases are bold and brave, as they could nosedive spectacularly if it transpires that there isn’t the same interest in ancient Port as

there is in mythical whisky. Though the combination of concentration and freshness certainly makes them a compelling proposition. It all started in 2010 with Scion. The brainchild of Adrian Bridge, head honcho of The Fladgate Partnership, Scion marked a new era for Port, catapulting the category into the luxury sphere. Having been made aware of the existence of a pre-Phylloxera tawny dating back to 1855 stored in the Corgo Valley, Bridge bought the two casks from the surviving

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port Feature findings

heirs of its owners in the January, moved them to Villa Nova de Gaia, created the Scion brand and put the wine on sale in the autumn at HK$31,065 a pop while his neighbours observed its reception with interest. Serving as a litmus test, the risk paid off and Scion’s success can be credited for sparking a flurry of luxury releases from the Douro such as Wine & Soul’s ‘5G’, a 120-year-old tawny from Quinta da Manoella at HK$13,668 a bottle. COMPETING FOR THE TITLE This summer, two of the region’s biggest players went head-to-head with headlinegrabbing launches. Released within weeks of each another, first out of the blocks was Taylor’s 1863 Single Harvest, which made its debut in Hong Kong on 26 May, soon followed by Graham’s Ne Oublie from 1882, which was given a grand unveiling among Monet canvases at Christie’s auction house in London on

distant past”. Not everyone has been complimentary of the tawny however – Telegraph wine writer Victoria Moore described it as smelling “like a puddle of old water in a cellar.” While Bridge was allowed to feature the vintage on the label, having had it registered and authenticated by the Port Wine Institute, Symington branded his Ne Oublie, meaning “do not forget”. Made in 1882, the same year Charles Darwin died, Ne Oublie marks the year Andrew James Symington arrived in the Douro Valley as an 18-year-old, kick starting a Port legacy now in its fifth generation. Priced at HK$55,900, the liquid, described by wine writer Andrew Jefford as “a synopsis of life and time,” is housed in hand-made crystal decanters featuring a trio of sterling silver bands engraved by Scottish silversmiths Hayward & Stott. Each of the 656 decanters are presented in a lockable Smythson leather box. DECIDING ON PRICE Gift boxes aside, the important question is whether or not these time capsules have an audience at their inflated price points. Bridge is predictably gung-ho about the success of the 1863, reporting that following the launch, all of the 1,600 decanters have since been allocated, with many of the them going to those who bought Scion. When pressed on the HK$37,000 price tag, Bridge defends his decision to aim high. “It’s not every day you get the opportunity to buy wines with that kind of history and story attached to them. For many people, HK$37,000is affordable. We’re targeting consumers with disposable income who don’t know what else to spend their money on. They could either buy another handbag or a bottle of 1863,” he says, adding, “Lots of people buy Lafite at that price, so it’s not that outrageous. If this had been a 150year-old whisky, we’d be selling for £30,000 (HK$372,789).”

‘It’s not every day you get the opportunity to buy wines with that kind of history and story attached to them. For many people, HK$37,000 is affordable’ 14 June. Regarded as the last great Port harvest before the spread of Phylloxera, Taylor’s 1863, hailing from two casks acquired last summer when Bridge bought Port firm Wiese and Krohn, had not one but three launches, in Hong Kong, London and New York. Housed in a crystal decanter and presented in a maple veneered gift box with a certificate personally signed by Bridge, he describes the tawny as displaying “extraordinary vitality” and being like “a time capsule offering a fascinating glimpse into a

 The successful release of Taylor’s be credited for sparking a flurry of luxury vintage tawny releases from the Douro.  This summer, Adrian Bridge and Paul Symington went head-to-head with high profile launches: Taylor’s 1863 Single Harvest and Graham’s Ne Oublie from 1882.  If charging HK$37,000 for a bottle of Port, every stage of the process has to be watertight, from the story and the packaging to the marketing campaign.  Luxury releases from the Douro are a vital way of illustrating that the region can compete at the top end of the wine market alongside Bordeaux and Champagne.  While not huge earners for their makers, these luxury releases have helped shine a light on the Colheita category and create a surge of interest in vintage tawny.

Symington is more cautious than Bridge about declaring Ne Oublie a success just yet. “I have no idea whether or not the decanters will sell – we’ve never done anything like this before and it’s still early days,” he says. Despite its lofty price point, the UK is already beginning to bite. On going to press, London-based fine wine merchant Berry Bros & Rudd had shifted eight of the 10 Ne Oublie decanters it was allocated just days after they went on sale. Like Bridge, Symington believes luxury releases from the Douro are a vital means of illustrating that the region can compete at the top end of the wine market. “If we don’t do something at the level of Cartier, Asprey and Louis Vuitton then we are accepting that our region is not at the top of the first division. It’s terribly important to have benchmark wines like these in order to



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port right. A lot of these luxury releases can be naff, clumsy and embarrassing as they’re going after the glitz,” he says. Hell-bent on working with Smythson on the launch, Symington went to the Bond Street HQ and charmed them into collaborating with him. He believes the fact that Graham’s 1952 was served at the Queen’s Diamond Jubilee lunch helped sway it.

The Symingtons

Dirk Niepoort compete with the likes of Champagne, whisky and Bordeaux. If we stick to selling ruby Port at the middle and lower end then we’re opting out,” he says. Aurélie Prat, brand manager at La

Adrian Bridge seeking out collector’s items within the category. This presents a golden opportunity for Port makers to release limited edition rare tawnies at high price points that fulfill this need,” says Prat, who believes these luxury Ports have a lot in common with single malt Scotch, with both centred around tradition and connoisseurship. Not all of these top end offerings have succeeded however – Wiese & Krohn’s recent dual launch of its 1863 and 1896 vintages at HK$99,400 for the pair flopped, highlighting that consumers expect more from these time capsules than simply the chance to sample something ancient. Every stage of the process has to be watertight, from the backstory and the packaging to the marketing campaign and client list. “The selling of a luxury dream is incredibly important,” offers Bridge, adding, “When you’re spending that sort of money there’s a level of expectation that it’s appropriately packaged and that the story is appropriately told. There needs to be an element of theatre. A lot of our customers are buying the wine to serve to friends, so it needs to impress.” Symington agrees that beautiful packaging is essential when charging HK$55,900 for a bottle of Port. “People can buy six bottles of vintage Port from Christie’s for the same price, so it’s hugely important we get the packaging

‘People can buy six bottles of vintage Port from Christie’s for the same price, so it’s hugely important we get the packaging right’

Martiniquaise, owner of the Porto Cruz brand, believes the releases signal a positive trend for the Port industry. “Their success shows that people are rediscovering handcrafted Port and are

NOT ABOUT THE PROFIT Ironically, given their lofty price tags, both Bridge and Symington reveal that their luxury launches will not be big earners for them. What they have done, however, is help shine a light on the Colheita category and stir up interest in vintage tawny. “British-owned houses neglected Colheita Port in the past, but they have realised that there is a market for the wines. Vintage Port was always seen as the king but times change and now the president is more important than king,” believes Niepoort, who describes the launch of Scion as having “awoken a sleeping beast.” A “strong believer” in the tawny category, Symington has seen a surge in sales, particularly in the US, Asia and Scandinavia. “Tawny has its benefits as you don’t need to decant it and it keeps for a few weeks after opening. We’ve had a lot of interest in our tawnies lately from top London restaurants like the Ledbury,” he reveals. Bridge is equally enthusiastic about the domino effect the luxury launches are having on vintage tawny. “The 1863 release has been great PR for the tawny category and draws attention to the other tawnies in our range. We’re selling more 20, 30 and 40 year old off the back of it,” he says. Bridge’s next release will be Taylor’s 1896 in 2016, which will be launched at a similar price point to the 1863. As for Symington, he’s leaving the remaining two casks of 1882 in the hands of his daughter, assuring that nothing will be released until at least 2024. Looking to the future, Bridge believes vital lessons can be learnt from both the Bordelais and whisky distillers. “Classed growth Bordeaux accounts for a fraction of the region’s production and yet no one talks about commodity Bordeaux, whereas with Port, people like to lump the two together,” he laments, adding, “The big player whisky

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48-52 Port feature Nb_Layout 1 27/10/2014 09:20 Page 52

Ageing gracefully Inspired by the success of Scion, in 2012 Port producer Dirk Niepoort came out with his own super rare tawny in the form of VV (standing for Vino Velho, or “old wine”) – with the majority of the blend taken from the acclaimed 1863 vintage. Aged in cask in Villa Nova de Gaia until 1972, the wine was then transferred to demijohns for further ageing in glass. Making just 999 bottles priced at HK$20,000 each, only 500 have been sold to date, though this is a deliberate tactic on Niepoort’s part in order to keep the wine in the market for longer, with the strongest interest coming from Hong Kong, the US and Brazil. Niepoort believes the tawny will age comfortably for a further 50 years and will improve with further bottle age. He’s currently planning a second 1863 release, only this time with more elaborate packaging than VV’s simple, wax-sealed bottle.

Taylor’s 1863 distilleries understand the importance of marketing and have created brands with global reach. As Port makers, we have a lot of work to do on our marketing. It’s key that we make iconic products with global appeal.”

‘As Port makers, we have a lot of work to do on our marketing. It’s key that we make iconic products with global appeal’

Graham’s Ne Oublie Niepoort echoes Bridge’s sentiments, believing that it’s time for Port makers to think big. “We need to be less dependent on supermarket sales and bring out more interesting rare releases. It’s time to accept that Port is unique. It’s not an everyday wine for everyone, it’s for special moments,” he says. While this may be true, in order for the category to thrive, the big brand owners need to constantly refresh their offerings in order to stay relevant, as Symington notes: “The wine world is an increasingly demanding place; if you don’t innovate you get forgotten about.” db

55 El Ron Prohibido Advertorial Nb_Layout 1 27/10/2014 09:21 Page 53

sponsored profile

The new Prohibido barrel ageing building features the biggest brick dome in the world

FORBIDDEN FOR YEARS...BUT NEVER FO R G OT T E N Hacienda Corralejo has resurrected Mexico’s sweet-wine-barrel-aged Habanerorum, banned by the Spanish during colonial rule for fear it would threaten brandy sales, in the form of premium rum El Ron Prohibido WITH A worldwide reputation for Tequila, Hacienda Corralejo has turned its hand to rum with a new product. Drawing on its Mexican drinks heritage, the resulting product is the new spirit ‘El Ron Prohibido’. By 1700, with Spanish rule in Central and South America firmly established, trade flowed to and from Spain and the New World. One product coming in from Spain was a sweet wine that proved very popular. Once the barrels were empty they were often refilled with a Mexican rum known as Chinguirito and shipped back to Spain – the drink also came to be known as Habanero as the Cuban capital, Havana, was the last port of call before setting off across the Atlantic ocean. On the journey the rum picked up more wood tannins and developed more complex flavours from the sweet wine that had been in the barrel before.

Just as the wine was popular in Mexico so the rum became enormously popular in Spain – so much so that brandy producers there became increasingly worried that it would threaten sales of their own products.

‘The ban was lifted in 1796, making it possible to drink Mexican rum without imperilling one’s immortal soul or suffering more temporal punishment’

As such, the King of Spain, Philip V, prohibited the production of rum in the New World. A proclamation declared: “Only communion wine, mezcal, aguardiente and white pulque are permitted to be manufactured in Mexico City and the surrounding area. “The beverage known as Chinguirito, or Habanero, is prohibited due to moral and health issues. Consumers of this beverage have cause widespread disastrous damage to the society while intoxicated. The court has decided to ban this beverage, and sentence heavy fines and punishments to those who consume it. Spanish citizens who drink this beverage can lose property rights and be exiled.” Those who continued to flout the law were also threatened with the severe punishment of excommunication from the church as well as a whipping in public. Clearly, however, the production of something so popular could never be stopped entirely. Fortunately the ban was lifted in 1796, making it possible to drink Mexican rum without imperilling one’s immortal soul or suffering more temporal punishment. The rum is produced in a solera system, where it is aged for at least 12 years. Because of the way the solera system works, the resulting rum is a complex blend of different ages and wood types. The blend is then allowed to marry in barrels that have been used in the production of sweet wine. The launch of this premium rum comes at a very interesting time for the rum category as a whole – and for Mexico in particular, which is now one of Latin America’s leading rum markets. Euromonitor International has predicted a global rise in rum volumes of 17% between 2011 and 2016, pushing total volume up to 1.7 billion litres. Furthermore, rum is becoming increasingly sophisticated and a growing demand has emerged for dark and golden rums. Important too is heritage and a story, which El Ron Prohibido certainly has. With global markets expanding, perhaps El Ron Prohibido will find as many new passionate consumers in the 21st century as it did in the 18th century.

54-56 Felix Solis AdvertorialAPPROVED Nb_Layout 1 27/10/2014 09:22 Page 54

sponsored profile

The interior of the Toro museum

EASTERN

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For FĂŠlix SolĂs, successfully tapping into the Asian market has proved pivotal in encouraging the continued and quickening growth of the leading Spanish wine company

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sponsored profile At a glance

ESTABLISHED IN 1952, Felix Solis Avantis, one of the leading wine companies in Spain, specialises in quality winemaking on an enormous scale, producing 250 million litres of wine a year across its six wineries from grapes grown on the company’s own estates and bought in from a trusted network of over 5,000 growers. In addition, Félix Solís acts as a holding company in charge of the logistics, communal services and marketing for two organisations – Félix Solís, with major facilities in both Valdepeñas and La Mancha, and Pagos del Rey, which manages four wineries in northern Spain. Owned entirely by the Solís Yáñez brothers – Félix, Pedro, Juan Antonio and Manuel – the company has winery operations in Rioja, Ribera del Duero, Rueda, Toro, Valdepeñas and La Mancha.

volume sales, with the company aiming to grow its export share to 70% by 2019. Currently, almost 30% of the wines Félix Solís Avantis exports are sold within the UK, making it the group’s largest export market and most important market after Spain. According to export and marketing manager, Félix Solís Ramos, “UK volume sales are growing at a good pace,” with the company’s brands representing one in every four bottles of Spanish wine sold in Britain today. The creation of a dedicated UK office has been hugely beneficial for Félix Solís in terms of building stronger customer relations and allowing for closer involvement in PR and brand-building. The Asian market is of increasing importance to Félix Solís, with Asia now accounting for 13% of the company’s sales, buoyed by China and Japan. “Since the creation of Shanghai Félix Solís Winery in 1998, we have experienced good growth in the region. This motivated us to open an office in Tokyo in 2007 and to further invest in China through the creation of Pagos del Rey Shanghai in 2008, which solely focuses on high-end wines,” says Solís Ramos, adding, “The investment in China was not easy at the beginning, but the results have been very positive in the last few years so we are optimistic for the future of Félix Solís in Asia, which is now one of our main markets outside Europe.” In Japan meanwhile, the company enjoys a wide distribution of brands like Viña Albali and Los Molinos through some of the biggest players in the Japanese market. While exports form a vital part of Félix Solís’ business, with the company selling to over 115 countries around the world, domestic sales remain strong. Setting its sights on expansion, Félix Solís branched out from its La Mancha base into northern

‘Since the creation of Shanghai Félix Solís Winery in 1998, we have experienced good growth in the region. This motivated us to open an office in Tokyo in 2007 and to further invest in China’ The Félix Solís headquarters in DO Valdepeñas holds a staggering 50,000 barrels, which are used to age a number of the wines in the company’s portfolio, including the Viña Albali label, one of Spain’s biggest wine brands. In addition to the UK and the US, Félix Solís has offices in Germany, France, the Czech Republic, Japan, China and Mexico, having widened its international sales network in order to better cater to the increasing international demand. Félix Solís’ international sales team is now 60 strong, echoing the fact that exports now account for 60% of its total

 Félix Solís Avantis was established in 1952.  The current Valdepeñas winery was started in 1968.  Shanghai Félix Solís Winery Corp was founded in November 1998.  Félix Solís Avantis acts as holding company for Félix Solís SA and Pagos del Rey.  The Pagos del Rey project was initiated in 2002 with cellars in Ribera del Duero.  This was followed by wineries in Rueda, Rioja and Toro.  In 2004, Félix Solís SA, purchased La Puebla de Almoradiel, located in DO La Mancha.  Félix Solís Avantis has subsidiaries in France, Germany, the UK, the Czech Republic, Japan, the US, Mexico and China.

Spain where it operates as Pagos del Rey, beginning with a winery in Ribera de Duero, opened in 2002. Other northern Spanish wine estates quickly followed, including a 6m litre capacity winery in Rueda, acquired in 2004, and a 10m bottle capacity winery in Rioja, which cranked into action in 2006. This year, the company has focused on recovering the small dip in volume sales it experienced in 2013. One of the ways Félix Solís plans to stay ahead of the curve in an increasingly competitive market is by offering an outstanding quality-to-price ratio. Its Blume brand for example can be found at Asda for under £8, while its Castillo de Albali Crianza can be snapped up for less than £9 in the UK, making both very wallet friendly. Solís Ramos is positive about the quality of the 2014 harvest, due to



54-56 Felix Solis AdvertorialAPPROVED Nb_Layout 1 27/10/2014 09:22 Page 56

sponsored profile Contact details For more information, please contact: Félix Solís, Autovia del sur km 199 13300 Valdepenas, Ciudad Real, Spain Pagos del Rey Wine Museum Avda. Comuneros 90 Morales de Toro, Zamora, Spain www.pagosdelreymuseodelvino.com

The barrel room in the Toro winery

good growing conditions in the latter part of the year: “In Valdepeñas and La Mancha, we started harvesting earlier than usual. This year’s crop will be smaller than last year’s, as 2013 volumes were extraordinary,” he says, adding, “In

del Rey on a long-term basis when it comes to selling their grapes. A big investment has been made in the facilities in order to be able to accommodate for increased production and, at the same time, be able to keep our quality standards across all the wineries of the group.” Félix Solís’ winery in Valdepeñas, Europe’s largest family-owned still wine winery, has 15 bottling lines capable of filling 140,000 units each hour, as well as a newly enlarged warehouse holding 43,000 pallets of wine. It is here where Viña Albali is bottled. Striving to remain at the forefront of the latest technological developments, Félix Solís recently expanded its laboratory and technical department at its Valdepeñas flagship in order to maintain quality standards. Having acquired Toro’s largest cooperative, Viña Bajoz, in 2008, Félix

‘Our philosophy is to make attractive wines at affordable prices, from entry level to high-end in all of the important regions of Spain’

Rioja, Rueda, Toro and Ribera del Duero, yields will be up on last year and as a result we have increased our production because there are more local grape growers who trust in working for Pagos

Solís has spent the last five years refurbishing the winery into the largest and most modern facility in Castilla y León. This February, a wine museum opened at the facility to draw in tourism, in keeping with the company’s philosophy of extending wine culture. In just over eight months, over 10,000 visitors have come through the doors. “The museum is the first step that our company has made in the wine tourism arena. We expect to open up all of our wineries to wine tourism in the next few years,” says Solís Ramos. Looking to the future, one of the company’s big initiatives for 2015 is to find ways to increase wine consumption at home in Spain, along with selling more high quality wines from Spain. At the end of the year, the company will release its first sparkling wine range, which it has high hopes for in terms of sales. “We are also launching an interesting range of wines made with international grape varieties, including single varietals and blends at competitive prices to compete with the New World, with the majority of activity based in La Mancha,” says Solís Ramos. There are also plans for expansion outside of Spain with an operation in Chile, which will be the company’s key focus after it gets its sparkling wines off the ground. The company’s ultimate aim is to deliver on both the quality and price front, as Solís Ramos observes: “Our philosophy is to make attractive wines at affordable prices, from entry level to highend in all of the important regions of Spain.” db

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58-62 A pressing matter Nb_Layout 1 27/10/2014 10:50 Page 58

A PRESSING

matter

The importance of the pressing stage in Champagne production is paramount, making the technology in use as influencial as the hands at the helm, writes Michael Edwards

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champagne: pressing Feature findings

AS PLAYERS in the keenly competitive world of Champagne jostle for prominence, opinions differ sharply about who calls the shots and the best means of ensuring a secure ride along the high road to excellence. It’s the supremacy of great houses and their skills of assemblage versus the excitement of locale in good growers’ wines; oak or stainless steel; malo/non malo, and much else besides. So it’s a relief to turn to the first stage of Champagne-making on which everyone agrees: pressing the grapes as quickly as possible to avoid oxidation at all costs. “Everything happens during pressing,” declares Dominique Demarville, Veuve Clicquot’s cellarmaster. “If you take care at this crucial stage, afterwards everything is quite straightforward.” All Champenois winemakers have their preference from the choice of three main types of press. In truth, each type can make good champagne in the hands of a skilful driver at the helm.

Reims, Coquard Presses is now a cooperative of 30 workers, each with a share in the company. Despite stiff competition from the mega pneumatic press manufacturers such as Wilmes and Bucher, the Coquard still tends to be preferred by some of the best winemakers in Champagne, as well as now in Franciacorta and the cooler valleys of northern California. The consensus is that the Coquard presses better and more evenly. There’s no resting on laurels, with the company constantly refining the product with new technology. THE ROLLS-ROYCE OF PRESSES Until quite recently, the Coquard had one drawback: the winemaker still needed to employ highly-skilled workers to perform the heavy work of retrousse – scooping the edges of the marc after each pressing and then return them to the centre for the next press. So Masset came up with a brilliant bit of kit, which he called the PAI (presse automatique incliné) – the Rolls-Royce of the genre. The press squeezes the grapes very gently and is programmed to then turn the marc over an inclined angle that obviates the need for the manual retrousse. This automated tilted-plate press can give an exceptional level of quality. For example, the pomace (pulped grapes) as it falls from the plate by gravity, avoids bruising the skins and generating solids – especially important for mature Pinot Noir grapes. Certainly PAI is a press for our environmentally aware times. A typical marc of 4000kg is pressed very quickly for the five pressings (serres) – three for the cuvée (first pressings of finer juice) and two for the taille (‘cut’ of darker juice); the whole process taking seven minutes compared with several hours for a manual press. Obviously, the PAI uses a minimal amount of energy: 0.75kW per marc. It needs little water to clean it out,

‘Everything happens during pressing. If you take care at this crucial stage, afterwards everything is quite straightforward’ TRADITION MEETS MODERNITY The gold standard for many years has been the Coquard traditional vertical press – so suitable for Champagne because of its broad surface area and low oxidative effect on the ‘marc’ (the pressed remains). It was created in 1924 by the Coquards, a family firm that prospered, in the 1950s taking over a Lyonnais press manufacturer. By the 1990s old Monsieur Coquard, wanting to retire, decided to accept a management buy-out, led by technical director Jean-Pierre Masset. Based in Bézannes on the outskirts of

4 Everyone agrees that the pressing of the grapes as quickly as possible to avoid oxidation is a key stage in production. 4 The gold standard of grape pressing has been the Coquard vertical press, with a long history of innovation that has kept it fresh to face modern issues. 4 A commitment to environmental sustainability has also been at the heart of the press’s redesigning. 4 Houses that make use of the Coquard press read like a roll call of honour, and include Anselme Selosse, Francis Egly and Raphael Bérèche. 4 The continuing research into the quality of the juice produced by the automated press is resulting in improvements in consistency.

so reducing the effluent effect, and so in short doing its bit to save the planet. Such holistic scruples may cut little ice with canny Champenois concerned with the very high expense of buying such a machine used for just two or three weeks in the year. But those perfectionists farsighted enough to see the benefits of potentially finer juice from PAI are its own testimonial. The great house of Louis Roederer embraced the concept in the early noughties and even helped Coquard finance the project; the revitalized Mumm were quick to install a PAI in their Mailly winery; and domaines who have signed up read like a roll call of honour: Anselme Selosse, Francis Egly, Raphael Bérèche. Ridgeview, a pioneer of great English fizz was another early customer.

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champagne: pressing Connectivity

Interviewed in 2010, Jean-Pierre Masset recounted his long 15-year trek of trial and error towards the final holy grail of a perfect automated press. In making his first prototype in 1985, he had to resort to using a horizontal press, with hardpressing screws that crushed the grapes strongly like the Vaselin system – acceptable for tough red wine grapes like Cabernet but far from ideal for Pinot Noir, particularly in Champagne-making: “I realised pretty quickly I was on the wrong track, and it was back to the drawing board. For a while, I was still working with a noisy pneumatic press that used a

‘Its beauty was its simplicity, allowing it to operate by a hydraulic system rather than a power-hungry pneumatic one, and it was blissfully silent’ lot of energy. My boss then wisely said he wanted me to design a noiseless press; one that was closer to the classic vertical press system of a true Coquard.” The ultimately refined PAI was released in 2000. According to Masset, “Its beauty was its simplicity, allowing it to operate by a hydraulic system rather than a power-hungry pneumatic one, and it was blissfully silent.”



Guillaume Roffiaen, formerly the talented winemaker at Champagne Drappier, has joined The Centre Vinicole (Nicolas Feuillatte) as its director of winemaking and quality. He explains the process of connectivity, a technology used in Alsace winemaking for a good 10 years now. It’s particularly applicable to Crémant d’Alsace and could bring more precision to pressing in Champagne, as the sparkling wines of both regions are based on fractionated winemaking. Connectivity involves passing two electrodes through the first serre of three pressings of the cuvée to measure the quality of the juice, identifying essential freshness, energy and stabilising elements for future reserve wines. When the connectivity changes, the skilled winemaker may fractionate to the second of the three serres of the cuvée, what is traditionally known as the coeur (heart) where there should be

greater richness and harmony without loss of finesse –a hunting ground for possible vintage Champagnes . The excitement of the concept is that the winemaker can change gear, so to speak, when the connectivity changes rather than at a fixed volume in the press. It also gives some focus to the virtues of the very first pressings, not just the coeur. The third serre brings body and weight, heaviness if not carefully managed, but when well judged a useful roundness for nonvintage. Roffaien also comments on the introduction of azotes (nitrogen) into the membrane presses (eg Bucher) as an antioxidising agent. It may work temporarily but he believes causes problems later on when oxidation returns, largely because the infant wine hasn’t had a chance to acclimatise to some restrained contact with air. Oxygen is not always the enemy of wine.

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champagne: pressing Unanimity or key caveats?

TECH ADVANCES Rightly proud as Masset is of his creation, today it’s fair to say that the ubiquitous membrane presses in the wineries of the big houses and cooperatives can generally do an equally good, if less aesthetically pleasing job. What’s so positive during the last four years is the continuing rigorous research into the quality of the juice at more precise points of fractionated winemaking of the cuvée. Benoit Gouez, the maestro of Moët, reports that in 2010 Moët started an extensive study measuring conductivity and oxygen capacity throughout the pressing on various types of grapes and various types of press.

‘The idea for the future is to fractionate every single batch according to the change in conductivity rather than at a fixed volume’ The result shows that on average there was a change in conductivity at around 2050 litres –the liquid volume from a full marc –confirming that fractionating at that volume was a good standard measure. “But in detail,” Gouez explains, “the change in conductivity is never at exactly 2050 litres for a single batch, sometimes there is some taille in the cuvée… and it would have been better to fractionate earlier to preserve the finesse of the cuvée. Sometimes the change is later and we could have fractionated at

The CIVC (Champagne’s governing body), sitting on judgement like Solomon, is diplomatically correct to claim that there is no conclusive evidence that one sort of press is superior to another. A careful modulated view though comes from Michel Drappier, the leading independent house and domaine of the Côte des Bar (Aube). For him, there’s not a huge difference between Siprem (a membrane press inflated with water, not air) and PAI. The hydro-pressure is softer and more precise than air and we have been happy to use this membrane system for the past 20 years. “The PAI is just slightly better because, beside the quality of the mechanics and the sustainable concept, the most important oenological virtues for me are, first, the regular and gentle hydraulic pressure on the grapes and, second, the softer retrousses thanks to the larger surface. The fresh must doesn’t flow through a thick layer of grapes and the juice is clearer and less strained. The marc is broken gently by its own weight –ideal for mature oldvine Pinots.” According to Drappier’s philosophy towards sulphites, the PAI also gives an ideal exposure to oxygen. Not too much, not too little. “Using less sulphur doesn’t mean we have to overprotect the must in a closed press or under nitrogen.” Drappier has a positive view of the premiere taille. “When it comes from a very good marc, it can bring an attractive fruitiness but this will only be used for NV, not for a vintage wine to keep.” And like all fine champagne makers, he always emphasises the vital importance of the guy or girl up on the plate. “If some press manager is like a Formula One driver he could probably

that point to get a bigger volume with a cuvée quality. “Since then,” he concluded, “we have equipped our winery at Oiry with conductivity in-line analysers. Also there

draw beautiful clear juice from a Vaselin press, whereas a careless incompetent could produce a murky must from a Coquard.” Echoing this view, Regis Camus, the chef de cave at Charles & Piper Heidsieck, adds that each year the press manager must choose the programme of pressing best adapted to the characteristics of the vintage to obtain the best must. Clearly that programme will be very different in a weak year, where the natural strength barely reaches 9% abv compared with a glorious harvest touching 11%+”. Whatever the make of the car, from the smallest to the most prestigious, the chauffeur will make the difference,” says Regis. As a parting thought, Fabrice Rosset, President of Champagne Deutz, one of the most classic of the Grandes Maisons, is insistent that the house always prefers the Coquard, manual or automated. “I want to be sure that I have cuvée juice, not a trace of taille.” Something to consider in the wake of Moet’s trials with connectivity? Watch this space.

are portable analysers for R&D trials. “The idea for the future is to fractionate every single batch according to the change in conductivity rather than at a fixed volume.” db

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sponsored profile Corralejo barrels combine Canadian, French and Mexican oak

SHAKING

things up

Centuries of tradition paired with a passion for innovation is helping Tequila Corralejo spread the word about the quality of 100% blue agave Tequila KEEPING ONE eye firmly on the past while continuing to innovate and reinvent itself, Tequila Corralejo has built a brand rooted in its Mexican origins, but intent on pushing the image of Tequila in a modern direction. Located on the edge of the Jalisco hills in Guanajuato, Hacienda Corralejo was founded in 1755. The company’s original owner was Miguel Hidalgo, father of Mexican independence. The brand’s modern era began in 1994 when current owner Leonardo Rodríguez Moreno bought the property and restored it to its former glory. With this renaissance

came a drive to produce a range that not only met, but exceeded the quality requirements for denominación de origen Tequila. Another element setting Corralejo apart is the unique wood combination used in its barrels, which balance the various influences of Canadian, French and Mexican oak. In addition, Corralejo seeks out Canadian and French barrels formerly used by US whiskey producers in order to add a further layer of complexity to its Tequilas. Building on this quality-focused base, Corralejo continues to innovate via new

releases and marketing initiatives. In the 77 countries Corralejo is exported to, sales have been steadily rising. With European markets currently taking eight containers a year, Corralejo enjoys standout success in London’s high-end bars, led by its reposado expression. However man cannot live on Tequila alone and the company is aware of the need to offer products outside this realm, which has led to the creation of both Prohibido rum and Boker vodka. “Having already enjoyed success in the US and Europe, Prohibido rum has just gone on

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sponsored profile sale in duty free in Cancun and it’s already doing well there,” says Raffaele Berardi, CEO of Fraternity Spirits, Tequila Corralejo’s global marketing arm. The company has had a little fun with the launch, employing an actor to dress up as a town crier in 18th century attire who rings a bell in the store to signify the liberation of Mexican rum, which was forbidden from being produced by the King of Spain in the early 18th century as he viewed it as a threat to local spirits production due to it being warmly welcomed in Spain. Known as Habanero rum due to Havana being the last port of call for the rum barrels on the way back to Spain from the New World, Prohibido rum pays homage to the historic drop and the battles it faced. While Prohibido has yet to go on sale in the UK, Berardi reveals that the ink is soon to dry on a distribution deal that will see it hit our shores.

company is in negotiations to get it on sale in UK airports. At the Tax Free World Association in Singapore last month, Corralejo launched the Corralejo Margarita Collection, a cocktail book featuring recipes taken from the recent Corralejo mixology competition, The Margarita Challenge. This ran from March to May this year culminating in the final in New Delhi on 20 May in collaboration with celebrity sommelier Magandeep Singh, where the Ambassador of Mexico to India took part as a judge. With the focus on celebrating the spirit of the Margarita cocktail, India’s top bartenders had to battle it out for the title of Corralejo Tequila “Teqnician”, with the winner scooping a trip to Mexico. As a tie in, last month Delhi Duty Free launched a social media campaign centred around the competition. Berardi admits that Tequila remains a niche proposition, which has forced the company to defend its ground. “Sales are slowly growing – there is an increasing awareness among consumers about the quality of 100% agave Tequila,” says Berardi, adding, “The appreciation is there but from a small base. We’re spending a lot of time communicating the quality message so consumers get closer to the product.” One way Berardi hopes to lure new consumers into the Tequila category is through flavoured variants, which Tequila Corralejo is currently experimenting with. While most of the trials are under wraps, Berardi reveals that a coffee variant of Tequila Corralejo made with 100% agave will soon go on sale. “Consumers are always seeking something new so we need to adapt our products to their needs and flavoured variants are another string to our bow,” he says. Designed for sipping, Berardi believes the flavoured options will offer younger consumers and those previously averse to trying Tequila a softer entry into the category.

‘We launched Boker vodka in world duty free at the start of the year and it’s already doing really well’ Another recent success story for the company has been Boker vodka – a Mexican corn vodka housed in a striking electric blue spiral-shaped glass bottle. Targeting consumers aged 25-45, the vodka, which is enjoying success in Brazil, Paraguay and Central America among other countries, is five times distilled and filtered through charcoal. “We launched Boker vodka to world duty free at the beginning of this year and it’s doing really well. Sales are very positive and we’re currently working on summer in-store promotions and tastings that highlight its flexibility in cocktails in order to further flag it up,” says Berardi, who reveals that the

The Tequila Corralejo range BLANCO: bottled directly from the copper still to show the purest expression of Blue Weber agave REPOSADO: aged for four months in French, American and white oak AÑEJO: aged for 12 months in new, toasted American oak barrels TRIPLE DESTILADO: while most quality Tequilas undergo double distillation, this is triple distilled GRAN CORRALEJO: reserve style matured in barrels for at least two years 99,000 HORAS: limited edition añejo expression

Tequila Corralejo at a glance  The Hacienda Corralejo was founded in 1755 by Sanches de Taglie in the birthplace of Miguel Hidalgo, father of Mexican independence  The property was bought and restored in 1994 by current owner Leonardo Rodríguez Moreno  Tequila Corralejo is currently exported to 77 countries  Raffaele Berardi is CEO of Fraternity Spirits, the global marketing arm of Tequila Corralejo  For the DO certification, 100% minimum agave is required

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GALLIC

charm

While France hasn’t been able to compete for column inches with the New World over fronting the hottest wine trends, Gabriel Stone reports on how the Gallic offering is still turning heads in its own unique way

JUST AS many countries encounter a “brain drain”, seeing their brightest talent disappear off to flourish in more favourable conditions abroad, so too French producers must experience a stab of frustration as they watch their native grapes shine overseas. For many modern wine consumers Malbec means not Cahors but Mendoza, while today’s Sauvignon Blanc lover might gravitate more naturally to the New Zealand shelf than the Loire. Even when it comes to wider trends such as the UK’s current thirst for sparkling wine, the runaway success of Prosecco has eclipsed the

French Crémant that should be such a natural cheaper alternative to Champagne. What’s more, when countries such as Chile can turn out consistently good quality, well branded, competitively priced Cabernet, it’s easy to overlook those ranks of Bordelais producers whose offer is a world away from the 1855 classification cabal making the region’s headlines. Recently however, there has been evidence of a resurgence in several major French regions whose wines, with varying degrees of severity and justification, fallen out of fashion. This

uplift has been accompanied, indeed further boosted, by a flurry of investment from large or influential producers, enticed by the prospect of a bright commercial future in these areas. Beaujolais is a case in point here, offering a natural geographical and stylistic outpost for Burgundian producers thwarted by the scarcity –not to mention expense –of expanding within their own borders. Having bought Henry Fessy in 2008, Maison Louis Latour has since added a Fleurie estate and is a major proponent of new appellations Coteaux Bourguignons and Bourgogne Gamay.

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france Feature findings 4 French grapes seem to enjoy greater success today when grown and marketed by others. 4 Rosé offers a significant exception to this trend, specifically Provençal examples, which have enjoyed explosive growth. 4 Other corners of southern France are also attracting external investment from producers who believe that these wine have a bright future. 4 The Loire stands out as a source of current growth, led by strong demand for Sauvignon Blanc and sparkling wine, with Muscadet also tipped for a revival.

Other big Burgundy names with a presence here are Louis Jadot and Bouchard Père & Fils, while recent shoppers have included Maison Albert Bichot and Domaine Michel Lafarge. BUCKING THE TREND However, when it comes to current rather than perhaps more speculative success, the most exuberant reports come from Provence. Here at last is one French region which has managed to harness a contemporary trend more successfully than its global competitors. The UK’s thirst for rosé, which accounts for 90% of this region’s production, have seen volume exports to this market grow by 60% in the last year to reach 1.4 million bottles, according to Conseil Interprofessionnel des Vins de Provence (CIVP) data released in September. The US has also proved a strong market for Provençal rosé: CIVP export for the 12 months to May 2014 shows a 20% uplift.

It can’t hurt that the last decade has seen several estates snapped up by outside investors – Louis Roederer’s Domaine Ott, Sacha Lichine’s Château D’Esclans, the Bamford family’s Château Léoube and let’s not forget Brad and Angelia’s Miraval. Each of these and several more besides have combined a high quality product with marketing that oozes Riviera chic to devastating effect. What’s more, reports CIVP director François Millo, “The boom in Provence rosé doesn’t seem to be slowing down”. In particular, he points to the focus on quality and innovation through studies being carried out at the CIVP’s Rosé Research Centre and Rosé Wine Global Economics Observatory. “These are helping us produce exceptional rosés that continue to live up to consumer expectations,” reports Millo. Meanwhile on the export front, he observes: “The future looks bright, particularly in the USA, Brazil, and, of course, the UK, our three fastest growing markets.” In addition to building on the success here, Millo highlights new focus areas, saying: “Singapore is our latest venture and we are very excited about it.” Although the Provençal rosé boom is difficult to beat, other regions of southern France are attracting investment thanks to their combination of reliable weather – a sore point for several more northerly areas in the last couple of years – as well as relatively cheap land and an ability to rival the New World when it comes to meeting retailer demand for ripe, fruit-driven wines at a keen price-point. The last few years have seen Rhônebased négociant Raphaël-Michel expand its operations with the purchase of vineyards in Provence and the Claude Nicolas négociant business in south-west France, as well as a new partnership with a Languedoc cooperative. Outlining the strategy behind these developments, RaphaëlMichel’s export manager Julie

‘The boom in Provence rosé doesn’t seem to be slowing down’

Fernandez explains, “Our goal is meeting the increasing demand in France and abroad on a region, a kind of wine or also on a particular grape.” Another major player to cast its gaze south is Alsace-based group Les Grands Chais de France. Having already picked up a number of vineyards across the Languedoc-Roussillon region, this summer the company made its first foray into the Costières de Nimes with the addition of 59-hectare Château de la Tuilerie to its portfolio. “We bought a château in Costières de Nimes because we believe in the potential both of the property itself and the region,” explains Tim North, UK director of GCF. In his view, “reds are the most important part of the region's production, but we also see the potential for exceptional rosé wines.” Given the strength of this category at the moment, it comes as little surprise to hear that GCF is wasting no time by introducing what North describes as “a premium rosé cuvée” from the estate this vintage, which will be targeted at independent retailers. It’s not only the southern end of France that is enjoying a sunny period: producers in the Loire have a whole handful of reasons to be happy right now. Exports to the UK, its second largest market after the US, have risen by 15% in the last year, according to Inter-Loire data for the first six months of 2014. Even better, that growth is spread across the board, with white, red, rosé and sparkling all showing strong increases.

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france Bordeaux: pockets of positivity

GLORIOUS LOIRE “I think the Loire probably now matches what a lot of consumers are looking for in wine,” muses Sébastien Briend, commercial director at one of the region’s largest producers, Ackerman. While crediting the New World for helping a new audience to embrace wine, he suggests that as people’s tastes mature “now many are looking for something more complex, more representative of terroir and not so oak oriented – and that’s what the Loire is.” This enthusiasm is echoed by Siobhan Irons, wine buyer for major UK on-trade supplier Matthew Clark. “We are currently working on our Loire range as we see this area as having great potential in the on-trade due to the mix of grapes like Sauvignon Blanc, Chenin Blanc and Cabernet Franc, as well as the variety of styles of wine available – sparkling, still, dry, medium, and sweet”, she reports. “There are some good value wines coming from Haut Poitou and Anjou that are perfect to drink on their own or with food as you would if you were in France.” Of the many styles currently finding favour, Sauvignon Blanc is perhaps the most obvious beneficiary as the Loire basks in this grape’s global popularity. “It’s very easy for Sauvignon Blanc at the moment,” confirms Briend. “The Loire is the original land of Sauvignon Blanc so when people look for a more delicate, complex Sauvignon Blanc they really can find them in our region.” Indeed, he remarks, due in part to two consecutive small harvests in 2012 and 2013, ”there’s a lack of Sancerre, Pouilly Fumé and Touraine – we really could sell much more than we have today.” A similar mismatch between supply and demand is cited by North, who flags up one of the Loire’s more neglected regions as a “great alternative” for those struggling to get their hands on enough Touraine Sauvignon. “In recent years Muscadet has not received the acclaim it deserves,” he suggests. “This is starting to

However eloquently defended, the recent pricing strategy of many top estates in Bordeaux is hardly doing the region’s reputation any favours. The Asian-led shopping frenzy for both its wines and indeed entire châteaux may have slowed, but once you look beneath the turbulent fortunes of investment-grade Claret, there is evidence of a rather more stable situation. Of the 530,000 hectolitres exported from the region to China and Hong Kong in 2013, the Conseil Interprofessionnel du Vin de Bordeaux reports that 55% was Bordeaux Superieur. Meanwhile these “everyday” priced wines retain a loyal following with their traditional UK fanbase. “We used to be rather philosophically not disposed to Bordeaux but paradoxically we’re buying more and more,” observes Simon Taylor, director of Hampshire merchant Stone Vine & Sun. “It’s what our customers want and there is some great value from the ‘09 and ‘10 vintages between £8 and £25.” Likewise, John Melhuish, fine wine manager at Tanners points to “buoyant” private customer sales in this category. “Despite inflated prices at the top end, Bordeaux provides us with some of the best quality and value Cabernet and Merlot based wines in the world,” he maintains. It may be better known as the parent company of first growth Château Haut Brion, but Domaine Clarence Dillon’s most recent activity has focused on a more modestly positioned – for now at least – new purchase in St Emilion. Having bought Château Tertre Daugay, since renamed Quintus, in 2011, last year the group added neighbouring property Château L’Arrosée and merged it into Quintus’ holdings. Prince Robert of Luxembourg, president of Domaine Clarence Dillon, points to prestigious neighbours such as Ausone and Angelus when he sets out his ambitious plans for this latest addition to the portfolio. “We anticipate Quintus in time becoming an equal to our other estates,” he remarks, describing the purchase as “a rare opportunity to reveal and revive a ‘Premier Grand Cru’ terroir that had lost some of its lustre.” Meanwhile the group is also pushing hard at its Clarendelle range, which retails for just over the £10 mark. Describing the objective here as being “to produce the first super-premium Bordeaux brand worldwide,” Prince Robert reports: “Our team and sales are growing every year and Clarendelle has a presence in over 80 countries.” For all the challenges facing his region, Prince Robert remains confident in its enduring appeal. “We believe that Bordeaux still remains the benchmark for quality wines the world over,” he insists. “We cannot control the global wine market so all of our energy is focused on making the best local wines in a region that we understand and know well.”

‘The Loire is the original land of Sauvignon Blanc so when people look for a more delicate, complex Sauvignon Blanc they really can find them in our region’

change and we expect growth in 2015.” This confidence in the future of Muscadet is clearly shared by Ackerman, whose latest acquisition – following its 2010 purchase of sparkling wine house Monmousseau – has been at the western end of the Loire in the form of négociant Celliers du Prieuré. Briend describes this 2014 addition as being “in a strategic place for us between Nantes and Angers so we have the opportunity to vinify in the Muscadet and Anjou appellations.” It may not have quite the trendy cachet of Sauvignon, but the Loire’s other flagship white, Chenin Blanc, is quietly

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france Trade talk: Are there any unfashionable or ‘under the radar’ wine styles or sub-zones in your region which deserve a wider audience? Photo courtesy: Cerino

JEAN BOURJADE, MANAGING DIRECTOR, INTER-BEAUJOLAIS Ever since the Beaujolais Nouveau heyday during the 1980s and ‘90 in the UK, Beaujolais wines and their emblematic grape variety, Gamay, have been seen as unfashionable and people began to prefer the more tannic and oaky wines with high abv from Bordeaux or the New World. Times have changed, consumers’ tastes have evolved and Beaujolais and Beaujolais Villages wines as well as the 10 crus probably offer the best quality to price ratio for French AOC wines in Britain at the moment.

enjoying a significant boost thanks to its role as a base for the region’s sparkling wine. Quoting a global export volume increase for Loire fizz of 18%, bolstered by a 24% uplift for Crémant de Loire, Briend describes this sparkling category as “booming”. However, for the moment at least, its appeal appears to be rather more niche and upmarket than the current position adopted by Prosecco. “The big supermarkets do not really have Crémant, but we are seeing really big demand in restaurants and that’s where a new market starts,” he outlines. “We really believe that it is the beginning of something,” he says. As for Rosé d’Anjou, flat sales in the UK indicate that it may not have captured consumers’ imagination in the same way as its Provençal counterpart, but Briend points to a strong domestic performance, as well as promising growth in the US. Indeed, this latter market’s blossoming love affair with the Loire saw it leap into the region’s number one export spot for the first time last year. DIFFICULT REDS Turning to Loire reds, Briend admits that these remain “more of a challenge”, although they are performing well in the French market. “Cabernet Franc is a really wonderful variety but for people who are not used to those wines which are a bit tannic sometimes they are not as easy to drink as reds from the New World,” he remarks. However, Briend remains confident that, similarly to Crémant, the enthusiasm for these wines shown by

CLAIRE DUCHÊNE, JOINT DIRECTOR GENERAL, INTER-LOIRE Alongside popular appellations like Touraine, the Loire Valley has a number of appellations which are still under the radar but really do merit a wider audience. The Loire is the home of Chenin Blanc, in all its styles, from Anjou and Saumur blanc through to Coteaux du Layon, Bonnezeau and Quart de Chaume. I’d also like to make a mention of our sparkling wines – Crémant de Loire is perfectly placed at a price point between Champagne and Prosecco. Clearly the Brits are starting to see the advantages of these top quality Loire wine as volumes are up a staggering +158% year on year. BENOIT ROUMET, DIRECTOR, BIVC Alongside our iconic wines, Sancerre and Pouilly Fumé, there are a number of other appellations which deserve a wider audience. If I was forced to pick one, I’d plump for Coteaux du Giennois, which is starting to rise in popularity. In the last year we have seen export volumes increase globally by +32%. In the UK, their most important market, this is at +19%, so there is room to grow! LOUIS-FABRICE LATOUR, ACTING CHAIRMAN, BIVB In Bourgogne we have a new appellation called Coteaux Bourguignons that we are really excited about. Created in 2011 the Coteaux Bourguignons appellation can be produced in the four departments of greater Bourgogne (Yonne, Côte-d’Or, Saône-et-Loire and Rhône). An entry point to Bourgogne wines, the appellation is available in white, red and rosé, and can be single varietal or blended wines. Coteaux Bourguignons wines offer excellent value for money, and as such, represent a simple and natural gateway into the world of Bourgogne wines. FRANÇOISE ROURE, MARKETING COMMUNICATION MANAGER, BIVB CHABLIS The Chablis vineyard comprises four appellations : Petit Chablis, Chablis, Chablis Premier Cru et Chablis Grand Cru. Chablis Premier Cru represents around 14% of total volume produced in Chablis, and remains probably the least understood appellation. Yet the wines represent fantastic value for money in terms of the quality and impressive palette of styles that they offer.

sommeliers will gradually seep out into more mainstream sectors. For the northern regions of France in particular, much hinges on the quality and quantity of the 2014 vintage, which needs to make up a shortfall

created by the challenging 2012 and 2013 growing seasons. As harvest got underway in warm, dry conditions, Briend was brimming with optimism. “We’re very happy,” he reports. “We will have an average quantity this year and

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france

Trade talk: Are there any unfashionable or ‘under the radar’ wine styles or sub-zones in your region which deserve a wider audience? FREDERIQUE DE LAMOTHE, DIRECTOR, CRUS BOURGEOIS DU MEDOC Within the Bordeaux region, the Cru Bourgeois du Médoc deserve more recognition as this family of wines has been successful thanks to their unique and strict selection process based on quality. Moreover, after five years of applying such a selection process these wines should reach a wider audience as they can be easily identified on shelves with the QR codes affixed to each bottle. Around 25-32 million bottles depending on the vintage carry this sticker.“ OLIVIER LEGRAND, MARKETING DIRECTOR, INTER-RHÔNE The Think Red, Think Côtes du Rhône campaign focuses on raising awareness of the prevalent colour style amongst the AOCs we represent, but there is another Rhône ace which true wine lovers keep up their sleeves. Lower in volume, Côtes du Rhône whites are popular with wine connoisseurs. This is a rare golden nugget which is increasing its share of the market. ELODIE LE DREAN ZANNIN, HEAD OF WINE, SUD DE FRANCE The trendiest appellation right now in Languedoc-Roussillon is Pic St Loup. It’s a real ‘star’ appellation and does have distribution in the UK but it’s still a hidden treasure. Terrasses du Larzac is also a brand new appellation (it acquired the status of AOC last June). Producers in the appellation can ensure homogeneity of quality and on top of that it’s a beautiful place!

the quality will be even better.” One good harvest will not be enough to take on the production and marketing might of its New World competitors – and not all corners of France have enjoyed such benevolent conditions – but it certainly provides a valuable boost. We may not look to France for the hottest new trend, but time and again its wines demonstrate their ability to offer a coolly understated take on the latest craze. Call it élan, je ne sais quoi or plain old Gallic savoir-faire, but that gives France’s dizzying mosaic of wine regions an enduring appeal. db

PAUL FABRE, DIRECTOR IVSO In the last few years South West France Wines has seen a significant rise in volume sales in the UK, suggesting that there is an increasing interest in this diverse region. Our research indicates that part of the increase in volume sales is because UK consumers are starting to explore off the beaten track and try different grape varieties to those found internationally. This is particularly true in the on-trade, where hand-selling and telling the story behind the wines on offer is an important part of the sommelier’s role. JÉRÔME D’HURLABORDE, EXPORT DIRECTOR EMEA, ADVINI Definitely AOPs from Languedoc & Roussillon and especially Picpoul, Terrasses du Larzac, Maury sec, and Faugères blanc cannot be overpraised. Dynamic young winemakers are producing extraordinary wines. Likewise our Côteaux Varois en Provence and Côteaux d’Aix en Provence are getting closer and closer to Côtes de Provence in terms of quality and offer a unique vision of their own. VIANNEY FABRE, SALES MANAGER, CHATEAU D’ANGLES The wine that deserves more attention is Languedoc white from the new communal AOC La Clape. Fabulous old Bourboulenc white grapes, brought by Romans to the area, give a beautiful southern French style of white wine specific to the La Clape terroir: tender, fruity, fresh and exotic with a true Mediterranean identity.

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S PA N I S H

armada Despite austerity measures in China, there is still a demand for Spanish wine and a growing interest in its history, styles and flavours. ByMark Graham

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s p a n i s h w i n e in ch in a Feature findings

IT WAS a Spanish producer that showed European companies how to handle distribution in China. Like so many neophyte entrepreneurs in the country, Torres took financial losses and made mistakes, but the results of that earlyentry into the world’s fastest-growing market is evident today. Torres revenues from China are around €27 million (HK$271 million) annually, a significant portion of the Catalan-based producer’s overall turnover, but it is now far from the only Spanish operator in the market. There are up to ten importers now active in China that either specialise in Spanish wine, or carry a significant range in their portfolio. The China market, while not expanding as rapidly as it did during the early part of the century, still has room for major growth given that the vast majority of the

towards alternatives that are more affordable from Spain, Chile and Australia,” he continues. “We like to say that Spain is almost like passion in a bottle –it is value for money, an Old World producing wine that has records going back as far as France does. We sell a lot of Tempranillo and the white wines of Spain are popular: Albarino has a characteristic that is similar to Sauvignon Blanc.” HARD TIMES It was a very different China when Miguel Torres first made the decision to set up shop, some 15 years ago. The nowretired Torres company head admits that he made mistakes, losing US$1 million (HK$7.8m) along the way, but persevered, ultimately building up a thriving business that now has eight offices and more than 300 staff. Torres had deep pockets, allowing it to weather tougher times, which was not the case for Pasion International when it started up five years ago. Its principals, husband-and-wife team German Andrea Skubinn and Spaniard Alberto Pascual, who met in the Chinese capital Beijing were determined to carve out a business supplying niche Spanish wines to the market. “In the beginning it was very tight,” recalls Skubinn, whose company represents, among others, Ateca, Egomei, Terras Gauda, Agustí Torelló and Aalto. “We started with less than one container of wine, maybe 1,500 bottles and 12 or 13 references. We were lucky because we found some big distributors the first year and that really helped us develop quickly. Now we have around 30 wineries and 70 to 75 labels and import up to 60,000 bottles a year. The most popular wines are the traditional ones, the more oaky wines. “Hotels are now demanding more Spanish wines. In the past they were not so keen but now they are becoming more and more interested. The Park Hyatt

‘People are not just fixated on France anymore, although it still accounts for about 48% of wines into China’

1.3 billion population have never sampled grape wine, Spanish or otherwise, in their entire life. That is changing, as increasingly-affluent people in the major cities begin to embrace wine drinking as part of their everyday life; the Torres offshoot, Ever Wines, has established wine bars in larger cities and specialises in offering an on-line selection for internet-savvy nouveau riche. “People are not just fixated on France anymore, although it still accounts for about 48% of wines into China,” says Damien Shee, Torres vice general manager for China. “They are moving

 Spanish producer Torres’ revenues from China are around HK$271 million annually, a significant portion of the Catalan-based producer’s overall turnover.  Torres admits that the company initially lost HK$7.8m in China, but persevered, building a thriving business that now has eight offices and more than 300 staff.  The China market still has room for major growth given that the vast majority of the 1.3 billion population have never sampled grape wine, Spanish or otherwise.  According to Pasion International’s Andrea Skubinn, hotels are now demanding more Spanish wines. In the past they were not so keen but now they are becoming more and more interested.

Beijing sommelier went to Spain and visited lots of the wineries; the country needs people like her. When Spain is mentioned, the broad mass of people would think about bullfighting and Barcelona and paella and Gaudi but it is surprising how many people have more in-depth knowledge of Spain.” Skubinn speaks fluent Chinese, which is a major help when venturing outside the cities, where English-speaking people, or knowledgeable sommeliers, are something of a rarity. Less discerning buyers are interested only in the price and the look of the label rather than the actual quality or composition of the wine. But that is changing, thanks to educational efforts by Skubinn and other people in the business. Bringing in winemakers from Spain also helps to push the country’s products: wine dinners and



72-75 Spanish Wine Nb_Layout 1 27/10/2014 14:53 Page 74

span is h w in e in c h i na Félix Solís enjoys China success Like Torres, the Asian market is of increasing importance to other major Spanish company, Félix Solís. The region now accounts for 13% of the company’s sales, buoyed by China and Japan. “Since the creation of Shanghai Félix Solís Winery in 1998, we have experienced good growth in the region,” says export and marketing manager, Félix Solís Ramos. This motivated us to open an office in Tokyo in 2007 and to further invest in China through the creation of Pagos del Rey Shanghai in 2008, which solely focuses on high-end wines,” says Solís Ramos, adding, “The investment in China was not easy at the beginning, but the results have been very positive in the last few years so we are optimistic for the future of Félix Solís in Asia, which is now one of our main markets outside Europe.” In Japan meanwhile, the company enjoys a wide distribution of brands like Viña Albali and Los Molinos through some of the biggest players in the Japanese market. For more on the Spanish company see pages 54-56.

promotional efforts allow knowledgehungry Chinese to gain an appreciation of different styles and flavours. They are also fascinated by the rich history of Spanish vineyards such as Gil Family Estates, which was founded a century ago. Loren Gil – a direct descendant of the founder – was happy to play on that heritage when visiting China, pushing the products of the seven different regions where the company makes wine. The total annual production is around three million bottles. He says: “Our target market is the middle class in China, for example in Spain ten years ago everyone talked about Rioja wine, our wines in Murcia were not so well known but now we have spent a lot of time visiting the markets

Miguel Torres outside his Restaurante de Vinos in Santiago, Chile

and tasting and people know more, we will have to do more educational work on different regions and different styles. “We met Alberto and Andrea and they know China well and know the wine, so it was a good feeing and I think they are doing a great job, we are doing it slowly but in a correct way. When we have wine dinners the Chinese love to see pictures of the vineyards and want to learn more about the wood and the barrels. On the other hand, there are Chinese who only want to see the price and the bottle!” Frenchman Olivier Six, who manages the northern part of the vast country for East Meets West wines (EMW), says Spanish wines offer some of the best value, which is helping increase their popularity. His company offers a selection

of higher-end wines including Emilio Moro bodegas, a winery in Ribera del Duero with a three-generation history. Among the prime offerings are the Malleolus de Valderramiro 2008 vintage, made from the Tempranillo grape, which sells for ¥2,160 (HK$2727) a bottle. He says: “I think there is a big market for wines such as the full-bodied Tempranillo, Chinese will love it, possibly switching from Cabernet Sauvignon. There is big potential for Spanish wine – we want to add more to our portfolio, but not the cheap wines.”

72-75 Spanish Wine Nb_Layout 1 28/10/2014 09:10 Page 75

spanish wine in china Rioja brand moves into Rueda

The other Spanish winery represented by EMW is Borsao bodegas, located to the north of Zaragoza and is known for producing good-value products. The range offered in China starts with the RMB100 (HK$126) Borsao Classico Tinto, a blend of Garnacha, Cabernet Sauvignon

The flagship wine on the carte is the Vega Sicilia Unico Reserva Especial, from the Ribera del Duero region, which sells for ¥10,380 (HK$13,105). There are also offerings from Rioja, Bierzo, Campo de Borja, Alicante, Priorat, Castilla La Mancha Jumilla, Toro, Ribeira Sacra, Castillay Leon and Catalunya, with the price starting ¥366 for a bottle of Casa Gualda Plus Ultra. Lecleir says: “They are great value for money wines and with the white wines there is such a lot of diversity. I think for producers from Spain or anywhere else, if you want to get your wines known in China then the distributor is very important, and also for the wine makers to come to the market and come quite often. It is better to have a presence; it is still a very human interaction with events such as wine dinners and wine tastings. You are not selling cars, you have to be very much in the market.” The demand for wines has also been partly fuelled by the increased number of restaurants serving food from Spain. One of the longest established operations is Agua, where the menu and wine list is supervised by chef Jordi Valles, a longtime resident of Beijing. Valles says: “There has been a big boom in food, the more Spanish restaurants the more wine you sell and more suppliers are interested in bringing in Spanish wine. I think also because of the economic crisis they needed to go out more and sell Spain and Spanish wines. “We used to have just three distributors focussing on Spanish wine and now there are up to ten. It is a question of quality, we can get good brands.” Although the Agua carte is extensive, it is the old favourites that sell the best, in particular wines from Ribera del Duero and Rioja. Chinese and, perhaps surprisingly, even Spanish expatriates tend not to venture too far from familiar regions and better-known grapes.

Chinese love to see pictures of the vineyards and want to learn more about the wood and the barrels. On the other hand, there are Chinese who only want to see the price and the bottle and Tempranillo up to the RMB417 (HK$526) Borsao Tres Picos, which is made from Garnacha. In total, Spain is estimated to supply up to 10% of the wines imported into China, but much of that is cheap, bulk wine that is sold under various labels. It is not wine that would find its way onto the increasing number of fine-dining restaurants in the country. ON THE TABLE One of the prime gourmet spots in Beijing is run by the personable Belgian Ignace Lecleir who has worked as a sommelier with famed chef Daniel Boulud on board the up-market Crystal Cruises and, earlier in his career, at the famous Dorchester hotel in London. His Temple Restaurant Beijing, located in a former Tibetan temple compound, boasts an impressive wine list picked personally by Lecleir. It contains two full pages from Spain, reflecting the fact that Chinese customers – who are now in the majority – are prepared to venture out of their Bordeaux comfort zone.

Earlier this year renowned Rioja-based producer Marqués de Cáceres bought 125 hectares of vineyards in Rueda. The region is famed for its production of crisp white wines, primarily from Spain’s native Verdejo grape, and it is one of the country’s fastest-growing wine regions. Marqués de Cáceres hopes to “reinforce its presence both in Spain and on the international markets” with the addition of the D.O. to its portfolio. The newly-acquired vineyards are located in the villages of La Seca and Serrada. Founded in 1970 by Enrique Forner in the heart of Rioja Alta, Marqués de Cáceres is one of the region’s largest producers and exports Spanish wine to more than 130 markets. For more on the company’s Rueda project see pages 46-47.

Newly arrived restaurant manager Marc Font is discovering that Chinese tend to drink less than expatriate customers, and do not like to linger over a meal, or a glass of wine. He says: “It is all different here. Chinese people have dinner around 6pm whereas in Spain it is 10pm. Chinese people want to eat faster and like to share rather than have three courses. They like to choose from a lot of dishes. “We drink wine in restaurants and at home in Spain, we always eat with a glass of wine, but here there is not the same mentality. Wine is for weekends, or holidays, not for every day, so it is more difficult to sell wine during the week. “Chinese drink more by the glass, the girls drink less, so for the men – maybe a bottle is too much for them.” db

76-77 Social media Nb_Layout 1 24/10/2014 11:17 Page 76

SPREAD t h e wo rd

Social media as a facilitator of ‘word of mouth’ marketing is key to winning in the Chinese spirits market. Jonny Forsyth, Mintel’s global drinks analyst, investigates

PEER-TO-PEER BEATS TV ADS The Chinese market for luxury spirits has endured a widely publicised fallout from the government’s anti-extravagance policies in recent years. Yet, while this may be leading to a correction in the market, it still represents the “promised land” for luxury Western spirits. However, understanding this very different consumer is vital to succeeding. Mintel’s latest report on spirits in China, shows Chinese drinkers, perhaps more than those in any other nation, are bypassing traditional forms of media such as television as an influencer of which Western spirits products and brands to buy. Chinese consumers are still very new to Western spirits, meaning the choice of brands and different spirit sub-categories (i.e. vodka, whiskies, tequila, etc) is often overwhelming. Mintel’s consumer research has found that this confusion – rather than any taste barrier – restricts a still sizeable portion of Chinese baijiu drinkers from giving Western spirits a try. Chinese spirits drinkers crave more information to inform their choices, particularly for luxury spirit brands, and it is the internet to which they almost always go looking. Yet, over a quarter (27%) of

Chinese spirit drinkers conclude that ‘It is hard to tell the authenticity of the information on spirits from the internet’. Such mistrust of “official” brand information reflects the culture of overclaiming of many Chinese spirit brands, which has led consumers to rely increasingly on peer-to-peer opinions and validation for a more “objective” view. Almost half (45%) of online Tier I, II and III 20-49 year-old Chinese spirits drinkers say ‘I rely on recommendations from people I know when selecting spirit products’ which is a huge proportion. This peer-to-peer influence is far greater than TV adverts. For example, just 22% of Chinese spirit drinkers believe ‘Conventional media is the main channel for me to obtain relevant information about spirits’, showing that TV, radio and magazine adverts, while still playing a key role in brand awareness, are limited in terms of deepening a brand’s appeal. TAPPING INTO CELEBRITY BRAND AMBASSADORS The need for more personal recommendations is one reason why celebrity brand ambassadors are a powerful means of marketing for Western

spirits brands. Diageo, in particular, has used this tactic heavily. For example, the success of Baileys in China has been carefully choreographed since 2007, when Diageo named Shang Wen Jie, a 25-yearold winner of the third season of Supergirl (the Chinese equivalent of American Idol), as brand ambassador. Ms Shang’s appeal lay in not being a relentless self-promoter like many of her fellow candidates, but someone of humility, making her accessible (and influential) to fans. Fan Bingbing, one of China’s most influential celebrities, is also “a friend” of Johnnie Walker House. While celebrities may not be people that Chinese consumers actually “know”, increasingly, social media is breaking down social barriers and allowing fans to interact with and “follow” what their favourite stars are doing and to mimic their lifestyles. The Chinese are voracious users of Chinese language social media sites –such as Wechat and Sina Weibo –on a scale far beyond that of Twitter and Facebook in the Western world. The popularity of these social media sites is facilitated by the country’s very high smartphone penetration. Mintel’s data shows that in 2013, the population accessing the internet who use mobile

76-77 Social media Nb_Layout 1 24/10/2014 11:17 Page 77

brand building in china phones was approximately 500 million, accounting for 81% of China’s total “netizens” (i.e. internet users). Almost nine in 10 Chinese consumers agree that ‘It is more and more popular to use social networks via mobile devices (e.g. smartphones and tablets)’. THE RISE OF CHINA’S KEY OPINION LEADERS Increasingly, the most popular Tier I bloggers on Weibo, known as Key Opinion Leaders (KOLs), have become a highly influential second tier of brand ambassadors, with half (49%) of Chinese consumers admitting to have been influenced by such figures. Johnnie Walker has worked with influential blogger Han Han (currently 15million+ followers), a spokesperson for the post-1980s Chinese generation. Increasingly, bloggers in Tier II and III cities are also gaining notoriety and larger fanbases. The fact that these KOL bloggers are ordinary people rather than brandaffiliated “hired guns” (although many do get paid by brands in either cash or other perks) gives them stronger credibility among the wider Chinese public. Their opinions are given significant weight in a country where state media is controlled. Another advantage of KOL bloggers is that they tend to have more time and motivation to engage with brands as they seek to maintain or grow their audiences. The preference of KOL bloggers for curation rather than creation means that brands can provide a valuable source of “buzz” topics. For example, Diageo is estimated to have held around 10,000 byinvitation-only tastings for KOLs in its Johnnie Walker Houses, with most posting subsequently on their well-viewed social media platforms. CREATING BRAND AMBASSADORS AMONG THE MASSES The third tier of stimulating peer-to-peer persuasion is through more engagement of China’s social media masses. It is the ultimate grass-roots product validation if people are engaged enough with a Western spirit brand, that they are prepared to champion it among their friends and social network peers. Currently, brands have sought to engage a

General attitudes towards drinking spirits (China, June 2014)

Source: QQSurvey/Mintel

I rely on recommendations from people I know when selecting spirit products It is hard to tell the authenticity of the information on sprits from the internet Conventional media (e.g. TV, radio, newspapers) is the main channel for me to obtain relevant information about spirits

% 45 27 22

Base: 2,166 Internet users aged 20-49 who have drunk spirits in the six months to June 2014

Attitudes towards social networks and opinion leaders (China, February 2014)

Source: QQSurvey/Mintel

Social networks have become an essential part of my life It is more and more popular to use social networks via mobile devices (eg smartphones, tablets) Opinion leaders (eg VIP users on Weibo) on social networks have influenced me (eg will try the product they recommend, following their lifestyles) Base: 3,000 internet users aged 20-49

wider Chinese audience mostly through prize incentives, with 70% of Chinese consumers, ‘interested in taking part in/paying attention to brands’ interactive activities on social networks (e.g. following the brand for lucky draw, forwarding to 10 friends and get a free sample)’. The next step is for brands in China to move beyond just surface-level financial incentives and to engage at a deeper level with consumers. Johnnie Walker’s #keepwalking campaign, which invites people to post their own success stories, is one minor example of this, but increasingly brands will be looking to go much further, thereby creating an army of brand promoters. They will find a willing Chinese consumer, very receptive to brands operating within the social media space. db

Any agree % 87 87 49

78-79 fine wine monitor Nb_Layout 1 24/10/2014 11:17 Page 79

fine wine monito r Rising Stars (HK$/9 litre case) Bordeaux (Red) Ausone Calon Ségur Cantemerle Cheval Blanc Conseillante Cos d'Estournel Ducru Beaucaillou Figeac Grand Puy Lacoste Gruaud Larose Haut Brion Lafite Rothschild Lafleur Lagune Latour Léoville Barton Léoville Las Cases Léoville Poyferré Lynch Bages Margaux Mission Haut Brion Montrose Mouton Rothschild Palmer Petrus Pichon Baron Pichon Lalande Pin Talbot Vieux Château Certan

1982 48290 23823 9259 88853 38722 46358 33120 36700 30906 34769 68250 334810 354126 13521 191614 21248 43886 38181 36559 100907 109457 17384 127485 29283 522317 25755 74083 489338 23102 32193

1989 36056 13521 9658 41851 33120 11538 11203 13521 10302 11190 136821 66962 109431 8950 42302 11203 16483 11590 35413 43268 99799 29553 38632 28845 385032 27519 19960 232023 9658 15453

1990 44169 12285 5795 90012 44762 22252 12620 21891 23823 19316 57948 70825 154528 8950 69306 14809 25111 32129 34125 82415 49578 61811 39739 21132 399184 30751 12362 463583 9658 23179

1995 61811 8950 3799 37988 13521 17771 17384 13907 10791 8499 38632 66962 42495 4893 47646 9529 18028 9207 14165 45045 20604 11847 42495 21132 199598 10701 19213 190571 8692 11847

1996 48290 9246 3799 36056 11062 14706 19316 10753 10817 9014 36649 91429 33481 5795 65674 10044 22522 10881 15453 52797 18028 12233 42495 22535 195864 13251 20604 201401 8370 11525

2000 115896 9272 4224 73401 19316 16097 17320 13521 9787 10624 63086 142011 167405 5408 90141 11912 25729 14165 18994 79195 54085 14165 139075 26398 447487 18672 19960 419208 9014 19316

2003 97868 7726 3335 37421 9207 17153 14680 8602 4494 5408 32837 82415 45071 3902 83445 9272 15195 12620 12684 48934 16741 18646 41207 15182 200886 11590 12414

1988 11319 7083 5408 38310

1990 14165 9272 8718 30712

1996 6696 4507 4958 17771

1997 6117 4250 4507 22381

2001 25703 10946 8885 51509

Burgundy 1995 Comte de Vogüé, Bonnes Mares 33223 Comte Lafon, Meursault Charmes 43139 DRC, Assortment 225353 DRC, Montrachet 540847 DRC, Romanée Conti 1359844 Rousseau A, Chambertin 100443 Rousseau A, Clos Roche 32438

1996 33223 35670 283301 525394 1197590 147419 15092

1998 36159 14860 212476 548573 1274854 77882 24184

1999 38632 14860 386319 432678 1444834 154528 36134

Bordeaux (White) Climens Rieussec Suduiraut Yquem

5730 13521

2005 128129 7340 3335 50222 18028 16097 18659 12877 8370 5795 55372 76620 93257 6439 74688 8370 21891 8229 12233 65674 39598 10624 46358 23179 307793 11590 9658 240793 5924 14487

2009 128773 7920 2962 87566 18093 27042 25111 17101 6439 6825 70825 82724 118471 5344 115896 7971 21248 18672 12671 65674 52797 25111 62069 25626 317117 13907 12362 354126 5087 25755

2010 151927 7147 3091 96400 18131 18028 18659 19316 6683 6439 70181 79839 117338 4971 118471 9272 19960 10817 11525 63743 51509 17642 61811 29837 326157 15453 13135 309055 4906 28974

2003 6696 3722 3863 18028

2004 4713 3348 4507 17771

2005 7083 4378 4378 27042

2007 9980 3142 4146 27042

2009 7469 4172 6181 58824

2002 50531 27107 263985 440404 1066241 141650 34434

2005 51458 26875 388277 460493 1404657 185433 32193

2006 30777 17784 244669 409498 1121099 75216 25497

2007 28330 17320 289739 401772 1112600 73092 27042

2009 40860 16238 270424 366849 1390749 136139 32193

2010 38632 18543 341249 373030 1287679 146801 40564

1998 19960

1999

2000 19316 21248 12877

2002

2004

21891 13521

18028 11461

2009 7083 5537 30584 42959 45071 18543 25690 15066 39920

2010 6825 5924 30906 42495 38632 14680 23179 16728 48934

13650 4121

13199 6181

2007 7083 5640 5408 4636 6052 3863

2011 6696 7945 6155 8126 6117 5924

Champagne Krug, Brut Louis Roederer, Cristal Dom Perignon

1985 47749 38632 30906

1989 38632 40641

1990 38632 84990 27042

1995 24209 35207 19316

1996 34769 30906 21891

18157

25497 12233

Others Antinori, Tignanello Beaucastel, CNDP Chapoutier, Ermitage Pavillon Chave JL, Hermitage Guigal, Côte Rôtie Mouline Jaboulet, Hermitage Chapelle Mondavi, Opus One Ornellaia Penfolds, Grange Rayas, CNDP Reserve Sassicaia Vieux Telegraphe, CNDP

1998 11590 7083 22432 22535 45071 8757 27442 19316 57948 42920 23179 7469

1999 11409 5872 13521 28974 81668 7662 33636 17706 34769 34769 20089 4636

2000 9529 5666 21994 25755 23823 8705 30416 22407 34769 36314 21505 4378

2001 13264 6413 14809 20951 38014 9503 30416 21891 37344 9310 21891 4829

2005 7636 5924 16225 24724 61966 9787 29965 16728 40564 60266 16741 5524

2006 9272 5022 19187 20604 21891 10302 28665 19960 43139 29347 21248 3734

2007 9272 6181 11461 19316 27042 13238 28588 18028 38786 61038 17384 5795

2008 8370 4610 10817 11319 16689

Port Dow’s Fonseca Graham’s Noval Taylor’s Warre’s

1966 13740 18389 15453 10817 13444 11590

1970 10817 14680 11590 9272 15453 8950

1977 7855 13907 7726

1985 5795 7083 7070 4636 6696 5408

1997 4250 5087 4507 25111 5795 4327

2000 4378 5151 4893 7340 6632 4378

2003 7083 4893 5473 6439 7469 5666

2005

10044 6696

27686 15324 50222 25497 15195 3992

1623 6052

78-79 fine wine monitor Nb_Layout 1 24/10/2014 11:17 Page 78

fine w in e mon ito r

The 2005 revisited Eight years after release –and six years after Robert Parker's scores burst its bubble –the underrated Bordeaux 2005 has the prices to tempt buyers back The 2005 was tipped to be one of the greatest Bordeaux vintages ever produced. Eight properties – Haut-Brion, Margaux, Latour, Pavie, Pétrus, Ausone, Pavie Decesse and Pape Clément – were awarded a potential 100 points in barrel by Robert Parker. The wines were released at record highs: the first growths, on average, were HK$49k per 12x75. The 2000s had been released at less than half of that. But the market was on the way up, and though many winced at the prices they still bought the wines. Parker's in-bottle scores were due two years later, in the spring of May 2008. In anticipation of a bounty of 100s, prices skyrocketed. By April 2008, Haut-Brion 2005 had a market price of HK$109k per 12x75. This remains its highest price to date. Parker's scores were lower than expected. Only two wines – Ausone and EgliseClinet – received 100 points. In his commentary, the critic commented that the top wines were likely to “become primarily museum pieces given their already astonishing price climbs.” Parker had

played his part in the price activity and did so again when he declared his in-bottle scores: prices dropped. By the end of August, Haut-Brion had fallen to HK$96k. Then came the collapse of Lehman Brothers. By December 2008, Haut-Brion 2005 was down to HK$64k: a drop of 42% in eight months. Prices never really recovered. Many wines peaked in April 2008. Others managed to rise in the market bull run of 2009 and 2010, falling again when the market did in mid-2011. In 2012 Parker spoke to Liv-ex on whether there was a vintage he had underrated. “There is tremendous sentiment about 2005, which many writers rated slightly better than I did”, he said. “I was originally worried about the tannin levels in 2005, but the wines are so concentrated they will be just fine: they just need a lot of time.” His recent re-scoring of Montrose 2005 (95 to 96) included an amended drinking date: from 20202040 to 2014-2064. As shown in Charts 1 and 2, 2005 is the cheapest of the most highly rated

vintages from the 21st century. The 2009s and 2010s – released at record prices – have fallen; many are at new lows. The 2005s are not far off the prices they were released at in 2006: the first growths 25% higher and the wines in Left Bank 200 index 42% higher. The fine wine market, as measured by the Liv-ex 100, has risen 78% during that time. The 2005s may have the lowest Parker scores of the vintages below, but other critics were more favourable: Lafite 2005, scored 96 by Parker, received 100 from James Suckling. Of the Firsts, Haut-Brion 2005 – Parker's top with 98 points – looks interesting. At HK$53k it is just 7.5% above release price and 51% below its highest market price. On the Left Bank 200, 98-point Léoville Las Cases has a market price of HK$21k and last traded at HK$19.8k, below its HK$20.8k release. For those dipping their toes back into the water, 2005 looks like a good place to start.

The Liv-ex Fine Wine 50

HK$125k HK$100k HK$75k HK$50k HK$25k £0

2000

2005

2009

2010

100 99 98 97 96 95 94 93 92 91 90

Release Price

Current Price

Score

High/Low Range

Source: Liv-ex.com

Chart 2: Left Bank 200: vintage comparison

Average Price per 12x75

HK$150k HK$125k HK$100k HK$75k HK$50k HK$25k

2000

2005

2009

2010

100 98 96 94 92 90 88 86 84 82 80

Release Price Average Parker Score

HK$175k

£0

278 276 274 272 270 268 266 264 262 260 258 01.06.14 08.03.14 15.06.14 22.06.14 29.06.14 06.07.14 13.07.14 20.07.14 27.07.14 03.08.14 10.08.14 17.08.14 24.08.14 31.08.14

Average Price per 12x75

HK$150k

Index Value

HK$175k

Average Parker Score (for five Firsts)

Chart 1: First growths: vintage comparison

The Liv-ex Fine Wine 50 Index tracks the daily price movement of the Bordeaux first growths from the 10 most recent vintages (excluding futures, currently 2002-2011)

Current Price

Score

High/Low Range

Liv-ex is an independent trading and settlement platform for the fine wine trade. For prices and other market information visit www.liv-ex.com.

78-79 fine wine monitor Nb_Layout 1 24/10/2014 11:17 Page 79

f i ne w i n e mo nito r Rising Stars (HK$/9 litre case) Bordeaux (Red) Ausone Calon Ségur Cantemerle Cheval Blanc Conseillante Cos d'Estournel Ducru Beaucaillou Figeac Grand Puy Lacoste Gruaud Larose Haut Brion Lafite Rothschild Lafleur Lagune Latour Léoville Barton Léoville Las Cases Léoville Poyferré Lynch Bages Margaux Mission Haut Brion Montrose Mouton Rothschild Palmer Petrus Pichon Baron Pichon Lalande Pin Talbot Vieux Château Certan

1982 48290 23823 9259 88853 38722 46358 33120 36700 30906 34769 68250 334810 354126 13521 191614 21248 43886 38181 36559 100907 109457 17384 127485 29283 522317 25755 74083 489338 23102 32193

1989 36056 13521 9658 41851 33120 11538 11203 13521 10302 11190 136821 66962 109431 8950 42302 11203 16483 11590 35413 43268 99799 29553 38632 28845 385032 27519 19960 232023 9658 15453

1990 44169 12285 5795 90012 44762 22252 12620 21891 23823 19316 57948 70825 154528 8950 69306 14809 25111 32129 34125 82415 49578 61811 39739 21132 399184 30751 12362 463583 9658 23179

1995 61811 8950 3799 37988 13521 17771 17384 13907 10791 8499 38632 66962 42495 4893 47646 9529 18028 9207 14165 45045 20604 11847 42495 21132 199598 10701 19213 190571 8692 11847

1996 48290 9246 3799 36056 11062 14706 19316 10753 10817 9014 36649 91429 33481 5795 65674 10044 22522 10881 15453 52797 18028 12233 42495 22535 195864 13251 20604 201401 8370 11525

2000 115896 9272 4224 73401 19316 16097 17320 13521 9787 10624 63086 142011 167405 5408 90141 11912 25729 14165 18994 79195 54085 14165 139075 26398 447487 18672 19960 419208 9014 19316

2003 97868 7726 3335 37421 9207 17153 14680 8602 4494 5408 32837 82415 45071 3902 83445 9272 15195 12620 12684 48934 16741 18646 41207 15182 200886 11590 12414

1988 11319 7083 5408 38310

1990 14165 9272 8718 30712

1996 6696 4507 4958 17771

1997 6117 4250 4507 22381

2001 25703 10946 8885 51509

1996 33223 35670 283301 525394 1197590 147419 15092

1998 36159 14860 212476 548573 1274854 77882 24184

1999 38632 14860 386319 432678 1444834 154528 36134

Bordeaux (White) Climens Rieussec Suduiraut Yquem

5730 13521

2005 128129 7340 3335 50222 18028 16097 18659 12877 8370 5795 55372 76620 93257 6439 74688 8370 21891 8229 12233 65674 39598 10624 46358 23179 307793 11590 9658 240793 5924 14487

2009 128773 7920 2962 87566 18093 27042 25111 17101 6439 6825 70825 82724 118471 5344 115896 7971 21248 18672 12671 65674 52797 25111 62069 25626 317117 13907 12362 354126 5087 25755

2010 151927 7147 3091 96400 18131 18028 18659 19316 6683 6439 70181 79839 117338 4971 118471 9272 19960 10817 11525 63743 51509 17642 61811 29837 326157 15453 13135 309055 4906 28974

2003 6696 3722 3863 18028

2004 4713 3348 4507 17771

2005 7083 4378 4378 27042

2007 9980 3142 4146 27042

2009 7469 4172 6181 58824

2002 50531 27107 263985 440404 1066241 141650 34434

2005 51458 26875 388277 460493 1404657 185433 32193

2006 30777 17784 244669 409498 1121099 75216 25497

2007 2009 28330 40860 17320 16238 289739 270424 401772 366849 1112600 1390749 73092 136139 27042 32193

2010 38632 18543 341249 373030 1287679 146801 40564

1998 19960

1999

Champagne Krug, Brut Louis Roederer, Cristal Dom Perignon

1985 47749 38632 30906

1989 38632 40641

1990 38632 84990 27042

1995 24209 35207 19316

1996 34769 30906 21891

18157

25497 12233

1998 11590 7083 22432 22535 45071 8757 27442 19316 57948 42920 23179 7469

1999 11409 5872 13521 28974 81668 7662 33636 17706 34769 34769 20089 4636

2000 9529 5666 21994 25755 23823 8705 30416 22407 34769 36314 21505 4378

2001 13264 6413 14809 20951 38014 9503 30416 21891 37344 9310 21891 4829

2005 7636 5924 16225 24724 61966 9787 29965 16728 40564 60266 16741 5524

2006 9272 5022 19187 20604 21891 10302 28665 19960 43139 29347 21248 3734

2007 9272 6181 11461 19316 27042 13238 28588 18028 38786 61038 17384 5795

2008 8370 4610 10817 11319 16689

Port Dow’s Fonseca Graham’s Noval Taylor’s Warre’s

1966 13740 18389 15453 10817 13444 11590

1970 10817 14680 11590 9272 15453 8950

1977 7855 13907 7726

1985 5795 7083 7070 4636 6696 5408

1997 4250 5087 4507 25111 5795 4327

2000 4378 5151 4893 7340 6632 4378

2003 7083 4893 5473 6439 7469 5666

2005

10044 6696

2000 19316 21248 12877

27686 15324 50222 25497 15195 3992

1623 6052

2002

2004

21891 13521

18028 11461

2009 7083 5537 30584 42959 45071 18543 25690 15066 39920

2010 6825 5924 30906 42495 38632 14680 23179 16728 48934

13650 4121

13199 6181

2007 7083 5640 5408 4636 6052 3863

2011 6696 7945 6155 8126 6117 5924

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china market trends

S TAT U S

re p o r t

Against the backdrop of Chinaâ&#x20AC;&#x2122;s new era of austerity, itâ&#x20AC;&#x2122;s price and personal preference rather than perceived status that are increasingly shaping the market for imported wine, as Andrew Catchpole reports 80

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china market trends Feature findings

THE IMPACT of the reduction of gifting in China, coupled with a fall off in conspicuous and especially higher end wine consumption, has been well documented. Rooted in Beijing’s anticorruption drive, along with a broader austerity program, government measures to curb spending on luxury goods has affected a host of aspirational imports including premium wines. In terms of market development, though, not all believe this to be a bad thing. Several suppliers and importers are suggesting that the reduced emphasis on iconic names and brands is hastening the advance of knowledge and adventurousness of regular consumers, thus benefitting a greater breadth of producers from around the globe. The figures certainly give pause for thought. Vinexpo research reveals that

results showing imports down across their portfolios, including wines. As Alan Wong, managing partner at Shanghai-based importer and distributor Winesday puts it: “The effect of the clamp down had been significant, with demand for high end wines, such as top Bordeaux especially, taking a nose dive, and generally anything that is positioned as premium being somewhat affected.” More fascinating, though, is the ongoing evolution of China’s market for imported wines beyond these warning headlines. Wong confirms that there is realignment going on in terms of the wines being offered by importers and wholesalers, retailers and on-trade outlets, as they continue to shape their portfolios to meet a still growing demand for more midlevel and affordable wines. This, he says, is where the growth is now coming from, with the additional observation that many of the fly-by-night speculators have now been forced to shut up shop, which “will hopefully make the industry healthier for those who are serious about what they do”. And while Wong predicts that it will be the lower end (¥100-150 at 75% share) that will now grow fastest, benefitting those that can ship large volumes of cheap wines, he also believes that the middle-market (around 20% share) will continue to pick up significant sales on the back of this consumer-driven – rather than conspicuous, status-driven – growth.

‘The effect of the clamp down had been significant, with demand for high end wines, such as top Bordeaux especially, taking a nose dive’

wine imports to mainland China fell for the first time in 10 years in 2013, down 2.5% on 2012, with initial reports suggesting that the market in 2014 is flat at best. High status wines such as Bordeaux have taken a big hit, compounded by issues over pricing and image, not least following the region’s much-derided 2013 en primeur activity. Australia, too, which had seen its strongest export growth to China for some years, also had to tighten its belt as exports dropped by 7% over the same period. Meanwhile, multinationals such as Pernod Ricard, Treasury Wine Estates and Diageo have also felt the pinch, with

SILVER LINING These factors, combined with cheaper volume imports introducing consumers to a wider sourcing in terms of origin, plus growing knowledge of and thirst for wines from a broader swathe of the producing world, is – in the medium-tolonger term – opening more doors for producers who are offering quality, midmarket priced wines.

4 While the curb on spending on luxury goods has impacted on a host of premium wine imports it could allow the market to focus less on iconic names and encouraging customers to advance their knowledge of other wine regions. 4 The evolution in Chinese wine consumer demographics and buying habits is perhaps most vividly illustrated by the growth of online buying. 4 Customers are actively being seen to care more about value for money and diversity than a famous name or region. 4 There are predictions that the market is likely to be in crisis for up to five years, but then will grow upward with this new growing consumer base, including those discovering wine in the second and third tier cities.

“The collapse of the gifting market and conspicuous consumption has helped bring a realistic view of what the market can be and develop in to, so this is a positive for the future,” says Fongyee Walker, co-founder of Dragon Phoenix wine consultancy. “With the gifting and corporate consumption culture, the market tended to be split with people buying either the most expensive or very cheapest wines,” continues Walker. “The market may be cooling, but the knowledge and appetite for interesting wines is growing because without the influence of wines having to impress, people are buying because they like wine and are interested in finding discoveries, bottles that make them look knowledgeable and cool.”

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Premium producers currently finding the going tough in China may find talk about ‘interesting’ and ‘cool’ purchasing habits somewhat trying. Some, like South Africa’s Vergelegen have, in the words of managing director Don Tooth, “put China on hold”. Others, such as Michael HillSmith of Shaw+Smith in south Australia, advise “patience”, having never been part of the icon buying frenzy. “Unlike some exporters, we are not expecting rapid growth in China based on a few years of market activity,” says HillSmith. “We see China as a long term play and expect some serious sales outcome in 10 years, not two or three, as hopefully good value, high quality and interesting wines become more important than a few famous labels and collectables.”

‘There is definitely realignment in the whole Chinese wine market’ LEARNING NEW TRICKS The evolution in Chinese wine consumer demographics and buying habits is perhaps most vividly illustrated via an example of a wine retailer riding high on current wine purchasing trends. Established in 2008, online merchant yesmywine.com is China’s leading webbased wine retailer; its share of the still fast expanding 250 million e-commerce market standing at around 7 million customers, with a third of these female, bucking the norm which sees 90% of wines traditionally bought by males.

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china market trends

Moreover, 70% of customers are aged 28-40 years old, and the while the average price per bottle sold is low (¥90), the value per order placed has risen 20% year on year (to ¥460 for an average of 5 bottles), suggesting that more regular home-consumption – rather than one off occasional purchases – is becoming more of a norm. This includes a remarkable 300% growth in sales to second and thirdtier cities. Most important, though, is the insight vice president Aline Bao offers into what styles of wine are being bought by China’s up-coming generation of new wine drinkers. “There is definitely realignment in the whole Chinese wines market and this is down to the development of the consumer wine market, for which the withdrawing of gifting is of little relevance,” says Bao. “While it is more efficient for us to work with medium and larger sized producers, it’s also true that interest in quality wines is growing quickly, with customers caring more about value for money and diversity than a famous name or region. Bao suggests that one of the major effects of stripping out much of the gifting market is that it impacts distributors looking to earn very high margins. “Now, with prices much more transparent than before, it’s harder for people to maintain such high margin, because the information is available online and elsewhere, and the consumer increasingly cares about value for money.” FILLING THE GAP Thus countries like Chile, which has a preferential duty policy with China, along with countries like Spain and Italy, are growing fast with Bao’s audience of wine drinking consumers and this openness is also being reflected across the market at

most price and quality levels. Chilean producer Eduardo Chadwick confirms that China and Hong Kong are already established (and still growing) as the first markets for his top wines, Vinedo Chadwick, Seña and Don Maximiano, saying that “the clamp down on excessive partying in China has led to Chile becoming more recognised for quality and consistency and value, with world class wines at prices that are more accessible than top Bordeaux. “China and Asia is also where the fastest growth is for [the mid-market portfolio

taxation, economic slowdown and the austerity drive have all pushed margins down, driving many importers out of business. He also estimates that the average purchased price of a bottle in the on-trade had slipped from ¥500-800 to ¥300-500 in the last year. On the upside, though, he also confirms Walker and Bao’s insights into the changing demographics of those who buy wine. “More and more people between 30 and 40 are now buying wine and buying wine to drink,” he says. “These are consumers that are buying medium and lower priced New World wines, single varietal wines that are easy to drink and understand, and also Cru Bourgeois Bordeaux and wines from other less well known regions of France.” Allegre predicts that the market in China “is likely to be in crisis for five years, but then will grow up”, with this new and fast growing consumer base, including those now discovering wine in the 2nd and 3rd tier cities, then providing the base for a sustainable, more affordably-priced, but more catholic wine market in terms of the breadth of wines available. Perhaps most revealing is FTI’s increasing success with smaller parcels of medium-priced wines from more esoteric producers, which appear to be finding a ready home with this new band of adventurous consumers. Allegre concludes: “People now want to be different, they are looking for less well known wines and, importantly, they are looking for special wines and are prepared to pay if quality is there.” db

‘They are looking for less well known wines and, importantly, they are looking for special wines and are prepared to pay if quality is there’

of] Viña Errázuriz, with the market consistently going up in double digits, and we expect little sign of this changing for the next five years,” continues Chadwick. “These are wines that appeal to other people, with middle incomes, but who want accessible wines that they can enjoy and drink at home.” Serge Allegre, managing director of French Touch International (FTI), an importer to China with offices in Beijing, Shanghai and France, has spent six years focusing on bringing a broad regional portfolio of primarily French wines to the Chinese market. He says that the combined effect of wine flooding in from the tax free wine hub of Hong Kong, coupled with harsh Mainland China

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BEST FOR STEAK: STRIP HOUSE

Strip House

Chef Harlan Goldstein’s little sister to his more European dining flagship, Gold, this is one steakhouse that has been designed to excite. “Strip House is a 1940s bordello, a real whorehouse,” the flamboyant chef recently told the drinks business. “I’ve exactly recreated a strip club [from that era].” With red velvet curtains, low lighting and the classics playing in the background, there is an intimacy – and naughtiness – to the joint. Using some careful interior design and a solid concept to stay faithful to, Goldstein has risen above the wood-panelling, cigar-bar vibe that is the hallmark of most steakfocused restaurants. That’s not to say the Strip House experience ends at the atmosphere. “I concentrate on prime beef and really great appetisers,” Goldstein says, along with excellent sides (like his Kick-Ass Mac and Cheese) and killer cocktails with names like The Pole Dancer. The steaks themselves are, of course, the main reason to pay a visit and as one would expect from a New Yorker, the Strip is king. Available in a 12oz and a full 16oz, the kitchen has clearly gained plenty of practice cooking this cut. 5/F, Grand Progress Building, 15 Lan Kwai Fong, Central, Hong Kong, 852 2521 863

BEST FOR COCKTAILS: WYNDHAM THE 4TH

TO P T E N h k ve n u e s The Hong Kong wining and industry is the envy of the world. Here, we take you on a tour of the places that best represent this vibrant scene 84

After being crowned the city’s first ever Diageo Reserve World Class Bartender of the Year, Tom Wood makes his official Hong Kong debut with this dark and mysterious cocktail haven. The space channels a thoroughly refined ambiance with soothing jazz and plush furnishings complementing Wood’s multisensory liquid creations. Try the Lucky Number Four, which combines the robust and rounded flavours of thyme, apples, apricots and smoky Talisker whisky. For brighter flavours, go for the classic Pink Lady cocktail spun from Tanqueray gin, Calvados, pomegranate and a squeeze of fresh lemon. 4/F, 48 Wyndham St, Central, 852 2523 8001, wyndhamthe4th.hk

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to p ten in h k Frites Belgium on Tap

Wellington Treasure – Wyndham the 4th

La Cabane Wine Bistro

Hoi King Heen

BEST FOR ORGANIC WINE: LA CABANE WINE BISTRO

BEST FOR CRAFT BEER: FRITES BELGIUM ON TAP

BEST FOR CANTONESE: HOI KING HEEN

La Cabane is Hong Kong’s first and only bistro serving biodynamic and organic wines exclusively. Owners Cristobal Huneeus and Karim Hadjadj are pioneers of the city’s move towards organic wines, and are responsible for supplying much of the wines to bars and restaurants across the city. La Cabane’s enormous wine portfolio is a collection of vin naturel. The term itself is a fairly recent one and relates to the physical winemaking process as well as the source of the grapes. According to Latif Dilworth, manager of La Cabane a Vin, the group’s wine store tucked under Hollywood Road: “Some winemakers seek to rid their wines of chemicals and manipulation and return to making wines that best represent their terroir with as little intervention as possible.” 62 Hollywood Rd, Central, 852 2776 6070

Complementing its selection of hearty mussel pots (including a boozed-spiked one) and signature fries, Frites offers a bible-thick menu of Eurocentric beers by the bottle and on tap. You’ll find the usual suspects, including Stella Artois and Hoegaarden, but the real showstoppers are the small-batch finds from Belgium. Try the Satan Gold – a spicy, bitter brew that’s balanced with a touch of summer fruit. Another fantastic find is the Delirium Tremens, praised for its crisp, yeast-driven profile. Shop 6, 1/F, Causeway Centre, 28 Harbour Road, Wan Chai, 2877 2422; G/F, Oxford House, Taikoo Place, 979 King’s Road, Quarry Bay, 852 2250 5188 www.conceptcreations.hk

Located in the basement level of the InterContinental Grand Stanford Hotel, Hoi King Heen is often regarded as one of the city’s finest Cantonese restaurants. Dishes are understated but brilliant, starting with incredibly tender braised short ribs paired with sweet papaya, and chef Leung Fai Hung’s award-winning pan-fried glutinous rice served with chicken and taro puffs. The chefs’ carefully honed skills also shine through in delicate dishes such as crab claw steamed in Hua Diao wine with egg whites, and gem-like winter melon balls, which are hollowed out in the centre and filled with preserved black olive leaves. B2/F, InterContinental Grand Stanford Hong Kong, 70 Mody Road, Tsim Sha Tsui, Hong Kong. 852 2731 2883 

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Tastings

BEST FOR WINE BY THE GLASS: TASTINGS

BEST FOR CIGARS: THE LAWN

Tastings offers 40 different wines by the glass. The bottles are all carefully culled from around the globe and are rotated on a regular basis so that there’s always something new to try. Yuen Yick Building, 27 & 29 Wellington Street, Central, 852 2523 6282, www.tastings.hk

In a city where space is at a premium, the proliferation of rooftop bars in Hong Kong is an understandable phenomenon. But how many in this urban jungle can offer a grassy lawn to lie back on? That’s the draw at boutique hotel The Upper House, which hides a sixth floor secret garden complete with bean bags, Chinese-style parasols and, of course, a cocktail bar. Order a Pimms, light a cigar, lie back and relax for Hong Kong’s stylish take on the English picnic. The Upper House Hotel, Pacific Place, 88 Queensway, 852 2918 1838

‘How many in this urban jungle can offer a grassy lawn to lie back on? That’s the draw at boutique hotel The Upper House’ 86

The Lawn

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to p ten in h k

Angel’s Share

Flutes

BEST FOR WHISKY: ANGEL’S SHARE

BEST FOR FRENCH: PETRUS

This recent opening offers more than 100 whiskies, including a discontinued 15year-old Bowmore Mariner and highly interesting Japanese whiskies, such as the 15-year-old Ichiro’s Malt Folks Bottling from Japan’s now-defunct Hanyu distillery. The main star of the show, however, is the 200-litre oak barrel in the centre of the bar, with its rotating offer of gems such as The Macallan 1990 and Highland Park 1997. 2/F, Amber Lodge, 23 Hollywood Road, Central, 852 2805 8388, www.angelsshare.hk

Petrus embodies all the opulence of classic French fine dining. The dining room channels old world elegance with crystal chandeliers and oil paintings adorning the walls and ceilings. Inside the kitchen, chef Frederic Chabbert and his team transform the finest seasonal ingredients into artistic dishes such as duck liver confit with lemon cream, and wild turbot with cockles and oyster

BEST FOR CHAMPAGNE: FLUTES This intimate space may not offer the most extensive or exciting sparkling wine selection, but it does win points for being the most laid-back and reasonably priced Champagne bar in town. The Elgin Street venue offers seven options by the glass, as well as a decent selection of reds, whites and sparkling wines. They also do a range of Champagne-based cocktails. For a chilled-out, casual evening, grab a high table on the small, entrance-side terrace and sip your bubbly while you watch the scenes of Soho. Don’t forget to order the excellent cheese platter while you’re at it. 27 Elgin Street, Soho, 852 2810 0005; www.flutes.com.hk

Restaurant Petrus

leaves. Petrus’ fine cuisine is paired with an exceptional wine list that boasts close to 2,000 labels from all around the world. 56/F, Island Shangri-La, Pacific Place, 88 Queensway, Admiralty, 852 2820 8590

88 Proust Q&A Nb _Layout 1 24/10/2014 11:19 Page 88

last word WHAT IS YOUR MOST TREASURED POSSESSION? My daughters, though I’m sure they’d disagree that they are my possessions. WHAT IS YOUR MOST MARKED CHARACTERISTIC? Friendliness.

THE PROUST Q&A...

Judy Leissner HONG KONG born Judy Leissner took over Shanxi-based Grace Vineyard from her father in 2002 aged just 24. In the space of 12 years, she has turned Grace into both a globally recognised brand and a flagship for Chinese fine wine. The 200-hectare estate produces around two million bottles a year, from flagship red blend Deep Blue to top wine Chairman’s Reserve. Leissner, who has become something of a celebrity entrepreneur in China, plans to develop wineries in other regions, each with their own branding. In 2012 we voted her our Asian Wine Personality for her work in drawing global attention to the quality potential of Chinese wine.

WHAT IS YOUR IDEA OF PERFECT HAPPINESS? Perfect happiness is about appreciating the simple pleasures and indulging yourself once in a while. WHAT IS YOUR GREATEST FEAR? Losing a family member. WHO DO YOU MOST ADMIRE? My father. WHAT IS YOUR GREATEST EXTRAVAGANCE? It is yet to come… WHAT IS YOUR CURRENT STATE OF MIND? Happy with what I’ve achieved so far and excited and hopeful about what lies ahead. WHAT IS THE QUALITY YOU MOST LIKE IN A MAN? Passion. WHICH WORDS OR PHRASES DO YOU MOST OVERUSE? “I’m sorry”.

WHO ARE YOUR FAVOURITE WRITERS? Contemporary Chinese novelist Jin Yong, American author and social activist Bell Hooks and British born historian Jonathan Spence, who specialises in Chinese history, WHO IS YOUR HERO OF FICTION? Pokonyan – a Japanese anime creature that’s a cross between a cat and a racoon. WHAT IS IT THAT YOU MOST DISLIKE? People who complain but don’t do anything to change their situation.

WHAT OR WHO IS THE GREATEST LOVE OF YOUR LIFE? Wine – I know it’s lame.

WHAT IS YOUR GREATEST REGRET? The way I treated my first boyfriend.

WHEN AND WHERE WERE YOU HAPPIEST? In Hong Kong when I was in 6th grade.

WHAT IS YOUR MOTTO? Live life to the full as you only get one shot at it.

WHICH TALENT WOULD YOU MOST LIKE TO HAVE? I’d love to be able to sing and draw.

WHO WOULD BE YOUR IDEAL DINNER PARTY GUESTS AND WHAT WINES WOULD YOU SERVE THEM? They are quite obscure guests your readers may not have heard of: Kangxi Emperor, the fourth emperor of the Qing Dynasty who ruled from 1661 to 1722; QingZhao Li – a famous Chinese writer and poet of the Song Dynasty born in 1084 who mentions wine in many of her poems; and Qichao Liang, a Chinese scholar, journalist, philosopher and reformist who lived the late Qing Dynasty and early Republican China. I’d serve my esteemed guests Grace Vineyard Chairman’s Reserve to show them what China can achieve in terms of fine winemaking; a German Riesling because I love it and 1924 Pol Roger for the sheer decadence of it.

IF YOU COULD CHANGE ONE THING ABOUT YOURSELF, WHAT WOULD IT BE? The ability to accept myself for exactly who I am. WHAT DO YOU CONSIDER YOUR GREATEST ACHIEVEMENT? It would have to be Grace Vineyard. WHERE WOULD YOU MOST LIKE TO LIVE? Right where I am in Hong Kong as it’s where my friends and family are.

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For more information please contact r.berardi@fraternityspirits.com www.fraternityspirits.com

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