Chateau Lafleur Breaks Tradition
Most of the talk in the wine world over the last couple of weeks has centred around the announcement that Château Lafleur, one of Pomerol’s main estates on the Right Bank of Bordeaux, is to leave the appellation and adopt the Vin de France classification. This move is designed to adapt to the impact of global warming by allowing the use of grape varietals that are better suited to changing conditions, while also giving the estate more freedom to irrigate, control yields, and experiment, freed from the constraints of the AOC (appellation d'origine contrôlée.)
It reminds me of the emergence of the Super Tuscan brands, which broke with tradition to produce wines that better reflected their terroir. It’s an exciting time for consumers, who stand to benefit from winemakers tackling these issues head-on and producing wines that truly reflect their origin, rather than conforming to a homogenous style aimed at mass appeal.
Embracing Vintage Variation
Each vintage should reflect the conditions nature dealt the farmers. Not all vintages are as good as the last. Being fond of analogies, it reminded me recently of my time in the music business, when we might have fallen in love with an artist and their breakthrough album, only to be disappointed by the follow-up… until they returned triumphantly with a masterpiece. Sure, consistency is key across all productions so consumers know what to expect, but I’m an advocate of avoiding the pigeonhole. Winemakers, like artists, should be brave and experiment. We look forward to seeing how Lafleur adapts with interest and excitement.
La Place de Bordeaux: Global Releases, Local Caution
La Place de Bordeaux is also in the midst of their bi-annual release, with a focus on back vintages like Château Palmer 2015, and producers outside France such as Super Tuscan Masseto 2022, Almaviva 2023 from Chile, and Penfolds Grange 2021 from Australia. I'm not convinced they've got their pricing right and will wait for market dynamics to find their equilibrium, just as we did when we made our En Primeur 2024 selection. Price is king, and we know when to access wines with the best chance of returns.
Looking at economic factors, we now know the Autumn Budget is scheduled for 26th November, almost a Winter Budget and it will no doubt feel pretty chilling to most. There's plenty of time for the Chancellor to test the City and electorate with potentially unpopular tax-raid ideas, aiming to land them as palatably as possible. We’re fielding plenty of calls from people looking to protect their wealth with fine wine.
Wine Investment in a Shifting Economic Climate
Equities and commodities are still riding a bull run at all-time highs. A potential Fed rate cut at the next decision on 17th September is being priced in weakening the dollar and pushing commodities and crypto markets (which are pegged to it) upwards. The latest, very disappointing Non-Farm Payroll figures suggest a cut is inevitable. We know the President is keen for a cut, wielding his firing finger at the independent members of the Fed, including Chair Jerome Powell, if they don’t comply.
U.S. Market Outlook and Fine Wine Access
President Trump also signed an executive order in August that would make it easier to include "alternative assets" in retirement accounts such as private market investments, real estate, and digital assets. Unfortunately, collectibles and tangible goods like fine wine are not included, so we’ll have to wait and see when the U.S. market gets back in. A weaker dollar and tariff impact continue to delay that for now. However, for our clients, accessing Californian icons like Screaming Eagle has become especially attractive. I haven’t seen prices like this in all my time at Vin-X, and everyone should be encouraged to take advantage while they last.
A Market Turning Point?
We’ve seen the correction in our market last almost three years, and the best prices in a decade,so anyone getting involved now stands to reap the rewards. Encouragingly, we saw most of our markets tick upward last month, suggesting the downturn is finding its bottom and has been slowing for much of this year. There are still plenty of suppliers clearing their balance sheets, offering excellent discounts and opportunities that we can pass on to our client base.
Strictly Business (and Dancing!)
Finally, look out for our Director of Sports and Entertainment, Chris Robshaw, who will take to the Strictly dancefloor later this month. We wish him all the best, to surprise the public, inspire others to push their limitations, and last as long as possible… longer than Ugo, at least!