I don’t know if they still do, but at one time the Chinese called America Gum Shan, the mountain of gold, a symbol of opportunity and the chance to get rich. Today, the Chinese have found another symbol of opportunity whose very name beckons the ambitious. In French Lafite means small hill, in Chinese it is very similar to the word lai-fat or “come get rich.”

It is this association with wealth and opportunity that has made Chateau Lafite-Rothschild and it’s second wine Carruades de Lafite the currency of choice for negotiating Chinese business deals. Which bottle you get depends on who you are and what is “requested”. In China, anything with Lafite in the name sells be it Bordeaux or Burgundy. As such, both wines are becoming literal mountains of gold for owners of bordeaux futures.

Chateau Lafite and its second wine, Carruades de Lafite, continue to defy the fine wine market, with prices of both continuing to rise week on week. Lafite 2008 is currently trading at around $6,000 per case, rising in price by around $140 per week, even though it is not due to be bottled until next year. Margaux 2008, in contrast, is trading at just over $3200.

Carruades 2008 is still at around $1600, but it is predicted to keep climbing closer to the other first growths once in bottle. Gary Boom, managing director of the Bordeaux Index, told decanter.com, ‘Today a case of Carruades 2004 would set you back $2900, which is considerably more than the $2600 you would pay for a case of Mouton 2004.

The September Liv-ex report also looks at the phenomenon of the “seemingly unstoppable Brand Lafite”, reporting that Carraudes has bucked the trend of price drops during the financial crisis, and that on average, recent vintages are now 22% more expensive than they were at the peak of the market in June last year.

“Asia has made up its mind on this brand,” said Boom, “and completely ignores either vintage effect, or Parker scores.”



This is a post from: The Wine Cellar Blog

Another set of taxes would hit sugar-sweetened drinks, which are not currently taxed by the federal government. Although the exact rate has not been set, the Senate Finance Committee has proposed taxing per 12 oz container of these beverages. It would cover carbonated and noncarbonated drinks sweetened with sugar, high-fructose corn syrups and similar sweeteners. These would include sodas, iced teas and coffees, energy and sports drinks, fruit and vegetable drinks and flavored milks. It would not apply to artificially sweetened drinks. The Congressional Budget Office estimated a tax of 3 cents per 12 oz container, which would raise an estimated $50 billion over the next decade.

Rep. Mike Thompson is dubious. The St. Helena Democrat and co-chairman of the congressional wine caucus said the proposal “would be trading tax dollars for jobs and makes absolutely no sense for the wine and wine grape community, health care reform or our economy.”

So, why not tax fast-food instead of further damaging an already frail California economy or slugging a wine industry that’s already on the ropes? Because at this point, McJobs are the only avenue left for job growth, and the Big Mac is subsidized food for the poor.



This is a post from: The Wine Cellar Blog

The first comprehensive survey of women’s attitudes toward wine has overturned several preconceived notions. Over 4,000 women in the UK, France, Japan, Germany and the US responded to a survey commissioned by Vinexpo, revealing a preference for red wine and skepticism for marketing campaigns that target them specifically (e.g. White Lie and Slender Wines). Among the more surprising results were that women prefer red wine to both white and rose, and consider wine compatible with a balanced diet. 79% of the women said they drink wine because they like the taste – as opposed to its compatibility with food or fashion status. Of the 1300 UK-based respondents, 80% choose the wine for their household, with price as the main criterion, followed by varietal and country of origin; and 54% said they were undeterred by government health warnings. Consultant and presenter Angela Mount said other results, notably that women continue to be more price-led than brand or quality-led, was worrisome, with only 10% choosing wine over $15 a bottle.



This is a post from: The Wine Cellar Blog

The wine industry was battered and bruised in 2008, the astronomical prices for top-level wines plunged, and as if in an act of repentance more winemakers went green. For example, Boisset, the second-largest producer of Beaujolais Nouveau, bottled its entire 2008 harvest in lightweight plastic bottles. Biodynamic and organic wines increased. Yet many still doubt the wine industry’s sincerity when it comes to carbon neutrality because they still ship wine in wooden crates as opposed to the much lighter corrugated cardboard. The Liv-Ex 100 Fine Wine Index, the wine world’s Dow Jones Index, has fallen more than 20 percent from its all-time high. Among the hardest hit was Domaine Romanee Conti 1990, which commanded more than $20,000 a bottle in November 2007, but sold last fall for $6,500 – a 67.5 percent drop. The global credit crisis has threatened Bordeaux’s en primeur sales. And as wine buyers search for bargain-priced bottles, Bacchus seems to be favoring Chile and Argentina.



This is a post from: The Wine Cellar Blog

A San Francisco cooperative is selling futures in a new wine called “Bailout,” inspired by the economic crisis. Crushpad, a custom crush facility, will sell the Napa Valley Cabernet Sauvignon at $39 per bottle. But there’s a twist, for every 100-point drop in the Dow Jones from the date of purchase to the projected bottling date of 14 August 2009, the final price will be discounted $2 per bottle. If the Dow is higher on the bottling date, the price is still $39 a bottle, making Bailout futures a minor hedge on the economy. Only 500 cases will be produced. Crushpad is doing this for fun and exposure, but it may be instructive for high-end Bordeaux winemakers who refuse to lower their exorbitant 2008 futures prices given the current environment. According to those in the wine trade, Bordeaux must lower it’s prices by 50% or the 2008 en primeur campaign could be a disaster. Crushpad is an urban winemaking facility that enables budding entrepreneurs to make their own wine with the expert help of the staff.



This is a post from: The Wine Cellar Blog

When People magazine reported seeing an unopened bottle of Kendall-Jackson chardonnay in the Obamas’ kitchen, the California winery fired off a couple of cases to No. 44. Just another gift? Hardly. Winning over the presidential palate is a big deal for the wine industry, leaving vintners and vinophiles curious about what’s on tap for the next occupants of 1600 Pennsylvania Ave. Wine and the White House go back to No. 1, who tried his hand growing vines at his Mt. Vernon estate in Virginia. But it was Thomas Jefferson who really embraced enology, building and stocking White House Cellars. He also introduced guests, not always successfully, to fine, dry vintages vs. the sweet, fortified wines then in vogue. Kendall-Jackson hasn’t heard back about its shipment. But Lettie Teague, executive wine editor for the magazine Food & Wine, said K-J chardonnay seems a good choice for modern times, popular and reasonably priced at around $11 a bottle.



This is a post from: The Wine Cellar Blog

Click here for more information about Bordeaux wine appellations and classed growth system.



This is a post from: The Wine Cellar Blog

Click here for more information about the damage caused by heat and wine oxidation (maderization).



This is a post from: The Wine Cellar Blog

“If anyone orders Merlot, I’m leaving.” Remember that line from “Sideways”? Called the “Sideways Effect” it made one of America’s favorite wines uncool while boosting the sales of Pinot Noir. Well apparently the disdain has worn off. After years of plummeting sales Merlot is recovering. During the 12-month period ending December 7, 2007, dollar sales of domestically produced Merlots rose 6%, led by category leader Blackstone Winery, whose benchmark Merlot jumped 11.6% in sales in the last four week period alone. Blackstone Merlot is the best-selling Merlot and the single best-selling domestic red wine in the United States. Despite Pinot Noir’s recent growth in popularity, sales of the variety are less than half those of Merlot.



This is a post from: The Wine Cellar Blog

It usually starts right before Thanksgiving, there’s a huge increase in demand for Champagne, not just in stores but in restaurants and bars. This increase in demand puts incredible pressure on Champagne prices. Avoid the price hike. If in December you’re thirsting for a popular brand like Veuve Clicquot, choose a high-volume, warehouse-style store. Distributors try to get a premium in December, but larger stores that have the space and the buying power buy in September or October, when they can take advantage of the lower cost. Smaller stores that don’t have room to store the stuff and may not have the budget to buy in advance have to pay more and therefore charge more.



This is a post from: The Wine Cellar Blog

Who knew that a hippopotamus on a wine label symbolized something good to the consumer? Cute and colorful “critter labels” may seem more fitting for a box of “Animal Crackers,” nevertheless, new table wines with animals on the label outsell all other new table wines by more than two to one. Yellow Tail wine is a perfect example. Yellow Tail from Australia (with a wallaby on the label) became the number one imported wine in the US in just two years. Yellow Tail Shiraz is the best-selling red wine in America (not just imports but ALL red wine) and it took just five years.



This is a post from: The Wine Cellar Blog

For the wine investor, absolutely! But for the wine drinker, it’s much more complicated. Hugh Johnson (the world’s best-selling wine writer) declares in his 2008 Pocket Wine Book that, “Vintages used to be really crucial but the difference now is not so much in quality as reputation, because the most famous ones are traded up to ridiculous prices. The reasons people buy a particular wine are complex but have a lot to do with snobbism.

“If you sold a nonvintage bordeaux nobody would buy it. It would be just as good, but it would not have the romance and the interest.”

More Info on Bordeaux Wine Vintages and Their Effect on Pricing



This is a post from: The Wine Cellar Blog

Beaujolais Nouveau is a wine synonymous with November. This wine has made it’s way onto many Thanksgiving tables as a result of the huge marketing blitz that takes place this time of year. Beaujolais Nouveau has a reputation for being Kool-Aid wine: easy-to-drink, fruity and one-dimensional. But Beaujolais can be much more than this, Cru Beaujolais wines (like Moulin-a-Vent and Brouilly) can be mistaken for Burgundy in a good vintage. As a rule of thumb, fruity wines with lower tannin levels like Beaujolais are perfect for Thanksgiving fare, as are Zinfandel, Riesling and Pinot Noir.

Ch. de la Chaize 2004 Brouilly (Gamay) – Beaujolais Red Wine



This is a post from: The Wine Cellar Blog