©2006, The Birmingham Post
The clamour for fine and expensive wine has never been greater. Fuelled by big City bonuses, and the increasing wealth of Russian and Asian millionaires, the fine wine market is truly worldwide, and business at the auction houses has never been more profitable.
Serious money is involved. In the USA last year, Christies achieved a stultifying world record of US$ 345,000 for a 6-magnum case of 1945 Chateau Mouton-Rothschild. Whilst back in Europe, a 12-bottle case of 1978 Romanée-Conti fetched a breath-taking £93,500.
2006 witnessed record sums invested in Bordeaux 2005 futures. Whipped up into a veritable feeding frenzy by superlative reviews from such powerful and influential authorities such as the American Robert Parker and the Wine Spectator, the opening offers for first-growth claret broke the barrier of £4,000 a case.
Chateaux Latour and Margaux are currently available online at £5,700 a case, and the Right Bank Ausone and Petrus are listed at £10,200 and £22,200 respectively. Bear in mind that these wines are still in cask and won't be ready for drinking for between 10 and 15 years.
Cult wines demand a premium, too. Australia boasts Penfold's "Grange" and Hentschke's "Hill of Grace" whilst in California, the Screaming Eagle 1996 commands £1,314 a bottle, and the Colgin 1995 is available for £446. The "garagiste", Valandraud from St. Emilion is up to £1,825 a bottle, but it's totally eclipsed by the 2000 Le Pin, priced at a staggering £38,000 a case.
Over in Burgundy, the futures market is not as developed. The quantities are simply too small. The view is that "Bordeaux is for investors, but Burgundy is for wine-lovers". Nevertheless, a case of Domaine Romanée-Conti "La Tache" 2001 costs around £6,765, and a Romanée St. Vivant 1990 £9,975.
So, why can wine become so expensive? In terms of production, the primary factor is the price of land. Leading Grand Cru sites in Champagne and Burgundy are fetching between 1 to 1.4 million euros per hectare, representing the world's most expensive farmland.
Possibly with the exception of Champagne, the best wines come from low-yielding vines which produce healthy and fully-ripened grapes. To achieve this is a labour-intensive process, and manual labour nowadays comes at a significant cost, particularly at harvest-time.
The best estates not only manually harvest grapes, but employ sorters to reject unripe or rotten berries. Clearly, this limits yields still further, but nothing is as restrictive as sweet wine from botrytised grapes. Teams of pickers may visit the vineyards as many as 7 times during a single vintage. At Chateau d'Yquem, it is said that it takes one vine to produce one glass of wine.
The winery itself represents a significant capital investment. The latest technology is computer-monitored and includes temperature-controlled vats and pneumatic presses. Even the cost of a new barrel is around 600 euros, and that adds approximately 2 euros to the cost of each bottle.
Of course, the leading estates are often the plaything of incredibly wealthy entrepreneurs or corporations. As part of their grandiose plans, leading architects are engaged to design their wineries, for example, Marques de Riscal have employed the iconic Frank Gehry of Bilbao's Guggenheim Museum fame.
Regrettably, all too often, fine wine has become detached from its humble origins. Style and taste can be manipulated by leading critics, and certain wines develop a certain cachet or snob factor. The wine is no longer an alcoholic beverage, it's become an investment, trophy or fashion statement.
It is depressing to witness wine judged on cult status rather than quality. The rapping scene has fallen in and out of love with Cristal, but this has now been endorsed by "Brand Beckham".
Whilst Cristal is undoubtedly one of Champagnes finest, most connoisseurs know there is little to choose between the less well-known Dom Ruinart. Not so the Beckhams, who ordered it to be removed from their guests' tables at the Hempel in London, to be replaced with their beloved sparkling white. This from a couple who, but a few years ago, confessed their favourite tipple was Liebfraumilch. Oh, how times have changed!
Yet, in spite of looking for a return on his capital, the cost of making a fine wine cannot account fully for its market price. Once the bottle has left the Chateau, the owner effectively loses control. The price is simply dictated by market forces driven by brokers, merchants and speculators, and decided by how much the buyer wants, or can afford to pay.
It's governed by the simply economic law of supply and demand. Great wine is made in limited supplies and becomes scarcer as it ages. Hence the price, whilst high on release from the chateau, can become exorbitant once it attains maturity.
Most of our best merchants list at least a handful of great wine but, unquestionably, the leader in fine and rare wines is Nickolls & Perks in Stourbridge. Visit their website, www.nickollsandperks.co.uk, and you will find page after page of amazing mature Bordeaux, Champagnes, Ports and Cognacs stretching back over 70 years or more.
Tanners have a "holy of holies" at their Wyle Cop shop in Shrewsbury, containing an impressive range of highly-prized classics. Visit www.tanners-wines.co.uk (telephone 01743.234455). Finally, for off-the-shelf ease, House of Fraser boast a great selection of Prestige Champagne.
Wine lovers should note in their diaries, Decanter's "Great French Wine Encounter" on 24th February. The venue is the Landmark Hotel opposite Marylebone Station (direct line from Snow Hill) and costs £36. Telephone 0207.471.2000, or visit www.decanter.com/events/ticket.php.