Monday, June 18, 2007

100 Point Wine = 100 % plus increase in price!

Two of the most distinguished "Grand Ladies of Wine" have spoken out on the future and pricing of Bordeaux wines. Baroness Philippine de Rothschild, at a lavish dinner at her Chateau Mouton Rothschild spoke of her concerns about the Bordeaux wine trade and suggesting wine was not for investing but rather for drinking.
Meanwhile Jancis Robinson in a podcast conversation with Berry Bros and Rudd's Bordeaux sales director Simon Staples, openly states "I hope 2006 will not be a success. I hope it will really show the Bordelais the shortcomings of the system" Listen to the podcast.
Could these excessive prices be blamed on the Emperor? You can find an interesting observation on pricing and who is to blame over on Slate . However the status seeking nouveaux riche in China, Russia and other Asian countries are driving prices into the stratosphere as well.
According to Timothy Tong ( that name has kind of got a ring to it, doesn't it? ) imports to Asian countries will increase dramatically. Imported wines make up only 5.6 % of Chinese wine consumption. Currently there are over 500 wineries in operation in China. The top 10 Chinese producers make around 10-12 million litres of wine annually. Expect plantings to increase as the Chinese become a wine consuming society. I recently had the opportunity to taste the the 1997 Cabernet Sauvignon from China's Great Wall vineyards. Certainly not great but quality will improve dramatically over the next decade. Then watch for a flood of their wines to hit the export market. A survey carried out for Vinexpo 2007 by the London-based International Wine and Spirit Record (IWSR) predicts global wine sales will increase 45 percent by 2010 and production by 41 percent with subsequent price increases. Europe's wine lake may be drained but is there a new one in the making behind the Great Wall of China?

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