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Super Tuscan: Investment Recommendation – Tignanello 2007 - 28th June 2012
By Tom Gearing (Director) - Cult Wines Ltd - http://www.cultwinesltd.com

Super-Tuscan: Tignanello 2007 (6x75cl) by Antinori
*Only 60 cases available

Overview:

Tignanello is the flagship wine of Piero Antinori who helped revolutionise the Italian wine scene and in particular the wine making region of Tuscany. In the 1970’s he was a pionerring winemaker who introduced Cabernet Sauvignon into his wines, moving away from the classic Chianti blends. Tignanello was first produced in 1971 and along with fellow Tuscan blockbuster Tenuta Sassicaia, were the first wines to start this trend becoming known as the ‘Super Tuscans’.

Tignanello and the wines of Piero Antinori, whilst initially vilified by traditionalists, have become massive successes achieving widespread appeal and admiration. Internationally, the US market were initially responsible for coining the phrase ‘Super Tuscan’ and putting wines such as Tignanello on the map in the international wine market. Now, Super Tuscans command high prices and many investors diversify their investment portfolios, which tend to consist mainly of Bordeaux and Burgundy, with these wines.
 

Investment Overview:

Whilst the Bordeaux 2011 En Primeur campaign offered buyers very little incentive to part with their money, Super-Tuscan wines have been experiencing an increase in demand over the same period. Wines such as Tignanello offer buyers strong scores and value for money. The powerhouse Italian region is currently experiencing strong demand from Asia, Europe and the Americas. James Suckling recently noted that Super Tuscans ‘globally lead the way in Fine Italian wine trading’ and also stressed that high end wine collectors in Hong Kong and Shanghai are particularly keen on wines such as Tignanello, Ornellaia, Masseto & Sassicaia.

Italian wine sales have increased year on year since 2009 and have seen a growing interest in the Far East, with the limited production being part of the mass appeal.

Diversification across other wine producing countries can lead to more efficient portfolio performance and also reduce potential risk of a wine portfolio.
 

Tasting Notes:
 

eRobertParker

Antinori’s 2007 Tignanello is wonderfully ripe and seductive in its dark cherries, flowers, spices, tobacco, sage, cedar, mint and minerals. This is as opulent a Tignanello as I have ever tasted but there is just enough acidity and structure from the Sangiovese to keep things from going over the top. The wine’s richness and warmth are such that in a blind tasting I mistook the 2007 Tignanello for a wine from Maremma! The dense, muscular fruit follows through to an impeccable finish with no hard edges and impossibly fine, silky tannins. Simply put, the 2007 is a magnificent Tignanello.

I first sampled Antinori’s 2007 Tignanello and Solaia two years ago, when they were still separate wines from individual parcels, but even then it was clear these were going to be special wines.

Anticipated maturity: 2012 - 2027.


Score: 95 Points


Price Trend:

The graph below compares the current prices of Tignanello vintages, from the youngest in 2008 through to the oldest, the 20 year old 1990 vintage.

For this year’s campaign we will only be recommending wines that we feel meet our investment grade criteria.
 


 

The graph clearly shows the price appreciation Tignanello undergoes as it ages and more remarkably, it shows this price appreciation to be almost perfectly uniform as the wine increases with age. This is almost a textbook representation of fine wines appreciating in value as they mature, become rarer and as a result more desirable.

The graph below illustrates the relationship with current prices and erobertparker tasting scores. As shown, there is little correlation between price and score. However, the graph does show that of the last 20 years the 2007 has been the highest scoring vintage.


 

If there was to be a shift in correlation and emphasis placed on critic scores rather than bottle maturity then those holding the 2007 will be in good shape seeing as it is currently rated higher than any other year.


Investment Expectations:

Based on our projections we would expect the 2007 vintage of Tignanello to reach a trading price of c. £1,000 per 12 within the next 5 years. That would represent a 100% ROI, which calculated over the time period would represent 14.8% CAGR.

Given historical prices, the general trend for Tignanello and increasing demand from emerging markets we believe that the 2007 vintage has the potential to return 3-fold to the investor over a longer term horizon of 7-10 years.

 

 

     
 
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