|
|
|
> magazine
|
|
||||
|
|
|||||
|
> magazine |
|||||
|
|
JULY 21, 2000 VOL. 26 NO. 28 | SEARCH ASIAWEEK A Fine Taste for Profits Wine prices are beginning to gush up again Before the Crisis, Asian buyers drove up the prices of fine wines. The cork popped out in late 1997. These days, the region's wine-lovers, especially those from Japan, are starting to buy again. Sotheby's wine specialist Stephen Mould mounted the first major auction of fine vintages in Hong Kong in 1998. The London-based expert spoke with Asiaweek's Alexandra A. Seno. What is the wine market like these days? It's fairly firm. The auctions have been going pretty well. Prices are not as high as they were in 1997 for the 1982 vintage [which is considered an outstanding year]. Still, the 1990s vintages seem to be progressing quite well. Wines made in 1995 and 1996 have really held up as great vintages and created demand. How do Asians figure in the equation? In 1996, Asians were attending auctions in force and really driving up prices. By September 1997, half the wines were going to Asian buyers. But in October that year, after the stock market upset in Hong Kong, prices dropped by about 25% overnight on key vintages. Now Asians, both old and new clients, seem to be getting more interested again, especially those from Japan. A recent report from the U.S. that wine was a healthy drink encouraged people to start drinking. But the Americans are really behind [the buying] now. How has wine fared as an investment? Anyone who bought in 1997 when prices were high would have a problem because [current] prices are not there yet. It is difficult to make money over a short period. But if you bought Chateau Mouton Rothschild 1982 before the wine was bottled, you would be getting a good return. The opening price for Mouton 1982 was something like 250 [$377] a case [of 12 bottles]. At our May auction this year, a case sold for 3,000 [$4,530]. What wines do well? It is always best to go for the very top red wines. For Bordeaux wines, people are really looking at Chateau Lafite, Chateau Latour, Chateau Mouton Rothschild and Chateau-Margaux. These are the blue chips. They tend to command high prices. Chateau PEtrus is very popular with Asian clients. It is a very rich, very complex [red] wine made from the merlot grape. It is very expensive and has a very small production. We recently sold a case of the 1982 vintage for 8,800 [$13,288]. I tasted a bottle of the 1990 vintage. Absolutely stunning. You can enjoy the 1990 now, but it will go on for many years. What qualities should investors look for? Go for something that has been written-up and universally agreed to be a great vintage. The Chateau-Margaux from 1995 has been very well received. It's definitely a very hot wine. If you're looking at it as an investment rather than to drink for pleasure, be prepared to wait a minimum of five years before you're likely to make money. There are exceptions like the 1982 vintage, which benefited from the Americans getting involved. In general, though, the increases in value tend to be more steady. Also important is the expectancy that a bottle will get better with age. For a wine that is ready now and without much potential in aging, the probability is that it will not go up much in price. How do you learn about wine? Read up as much as possible. There is the Sotheby's wine encyclopedia, which gives you an overview of the whole thing. There are specialized books such as David Peppercorn's Bordeaux, which gives you all the history and comments on the great wines. Look at magazines like Wine Spectator and Decanter. Get advice from different wine merchants with a good reputation. Paying attention to auctions also gives a good idea of what wines to look out for. It is very important also to compare and contrast prices. There can be quite a difference from one merchant to another. Learn about the different vintages. It helps to just really enjoy drinking wine, which makes it all more interesting. Wine is something people should not go into blindly because the price can come down as well as go up. Once you have bought wine, how do you protect your investment? Storage is very, very important. In Europe, there are various warehouses equipped to store wine very well. The one we use is 120 miles outside of London. It has cellars that are 70 feet underground and are cut out of limestone. The temperature is very consistent. [The best temperature is between 10C to 15C.] These warehouses have the right kind of humidity and special equipment. People also have special refrigerated units designed for wine at home. You have to keep wine at a cool temperature or it turns into vinegar. If it is too warm, the cork will also dry out, which will lead to oxygen getting into the wine, spoiling it. Write to Asiaweek at mail@web.asiaweek.com
Quick Scroll: More stories from Asiaweek, TIME and CNN |
|
|
|
|
|
|
||
| Back to the top |
© 2000 Asiaweek. All Rights Reserved. Terms under which this service is provided to you. Read our privacy guidelines. |
|
ASIAWEEK'S
LATEST