2000 prices falling..

Tom Archer · Post by **Tom Archer** » Sat Apr 28, 2007 4:08 am

Christies sale this week saw the great majority of 2000 vintage wines (and there was plenty) failing to sell.

Some Noval did sell, but for up to 30% less than previously. Checking wine-searcher I find Noval listed by several merchants and supermarket Waitrose at a retail price of around £40 - this suggests that there has been a significant quantity offloaded cheaply to the trade.

We saw a glut of '97 in the market a year ago, since when prices have recovered somewhat - but I'm not convinced this will be the same, as this glut looks as though it's mainly sourced from VNG rather than the secondary market.

Anyone watching what's happening on the Bordeaux front?

Tom

jon bricken · Post by **jon bricken** » Mon May 07, 2007 4:30 am

Since last summer ALL older good/great (best ever 2000, 2003 & 2005 good/very good 1995 & 1996) vintages have increased in price dramatically.

I correlate this to the stratospheric 2005 Bordeaux pricing.

As the public, especially in the USA, realized how expensive the 2005 wines were and how cheap the US dollar has become, it made more sence to look to older vintages which were selling at a significant discount compared to the 2005's.

All I have heard from the trade is that the 2005 wines sold well here in the US but it is the first time in 20 years of my future buying that I have been offered the opportunity to buy SINGLE bottles of wine.

The trade also has trumpeted the demand for any classified Bordeaux in China and Russia and to a lesser extent India, where the very wealthy have excessive disposal income.

Demand in these areas has created a situation where all or any first growths are being sold without regard to vintage or price.

It has become very much of a status symbol to drink multiple bottles of a first growth wine at dinner.

Prior to last summer the 2000 vintage was not a hot item and in some cases I was able to purchase wines at prices equal to or less than the last round of future pricing, now these wines are 50 - 80 % higher.

I have been buying the 2000 vintage since they were first offered and have been accumulating them ever since.

I also believe that wine buyers in their late 40's and onwards have realized that the 2005's will not mature for 20 + years and that it made more sence to purchase the older vintages which already have 5-10 years of bottle age.

Within the last two months the other not so great vintages (2001, 20023 & 2004) are seeing some price increases as people realize that these wines are NOT collectables and were/are reasonably priced.

Most of these wines will actually drink well within a realitively short time span with the exception of 2002.

The buzz on the pricing of 2006 Bordeaux is that these wines will not be significantly lower than 2005 compared to their relative quality.

I guess the bordeaux producers of classified growth realize that now the demand is out stripping supply and they can charge what they want.

I believe that it is just a matter of time before port gets caught up in this economic squeeze where the developing countries become exposed to the wine and start buying it.

Till then lets all drink well.

Tom Archer · Post by **Tom Archer** » Mon May 07, 2007 6:27 am

where the developing countries become exposed to the wine and start buying it

I looked into this earlier this year, while in Thailand and China, and concluded that the appetite for Bordeaux is pretty much limited to the Caucasian markets.

Heavy tannic wines seem to be broadly at odds with the Asian palate.

When the fashionable crowd in Beijing thought it would be cool to drink foreign wine, they found the need to mix it with coke to make it palateable!

I think the notion that China is going to become a mega importer of expensive western wines is something of a French fantasy!

Tom

Moses Botbol · Post by **Moses Botbol** » Mon May 07, 2007 7:46 am

uncle tom wrote: When the fashionable crowd in Beijing thought it would be cool to drink foreign wine, they found the need to mix it with coke to make it palateable!

Tom

When I use to work at nightclubs, Asians were big into Cognac and Coke... Too funny on the wine. What about the affluent Chinese who will just buy the 1st growths to to show off (as many all over the world do) without any intention on drinking them?

Post by **Roy Hersh** » Sat May 26, 2007 2:42 pm

So with all these bargains from 2000 and some from 2003 as well, are you guys buying them or just seeking out older VPs?

dave leach · Post by **dave leach** » Sun May 27, 2007 12:01 am

i have only about 12 2000s, i'm all about older vintages that i'll drink in the next 20 years, before they hand me the drool cup.

dave

Tom Archer · Post by **Tom Archer** » Sun May 27, 2007 2:18 am

What about the affluent Chinese who will just buy the 1st growths to to show off

A curious difference between east and west is that the Caucasian rich like to load their houses and show off at home, whereas the Asian rich keep the interior of their houses relatively spartan, and very private.

When they want to show off they throw lavish dinner parties (always in restaurants), wear designer clothes and drive expensive cars...

So with all these bargains from 2000 and some from 2003 as well, are you guys buying them

I'm buying 2000's (on lean bids) but the 2003 prices have still got a long way to fall before I'd rank them as prime purchase stock.

Tom