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?

How High is Up..?

There has been a lot of news about the 2007 Australian grape harvest lately. Frost and drought has affected the grape harvest severely for this vintage and prices are predicted to rise for most wines. Production is expected to be down 400 million litres. While this is good news for the grape growers in Australia, big wine companies may be facing some tough negotiations with these same growers. During the oversupply, grape growers were forced to sell their grapes at practically give away prices but now feel its their turn.
The British wine market has been recognized as a very influential one ever since they pretty much established the Bordeaux wine trade in the middle of the 17th century. While the number one destination for Australian wines has been the UK market there are signs of renewed interest in French and Italian wines. The good news all around however for producers is that there is a definite trend to higher quality and higher priced wines. Tesco, British supermarket giant, reports that sales of wines at £10 or more has grown by 75 per cent over the past two years. The Australian Wine and Brandy Corporation announced plans to convince the Brits and the rest of the world that Australian wines are right up there with the best in the world and deserve higher prices. But perhaps it is too early to predict the demise of the "two buck chuck" phenomena. After all as Fred Franzia of Charles Shaw Wines once uttered "No bottle of wine is worth more than $10." I just happen to believe that good wine can be worth more and perhaps a lot more than $10.