Investment Recommendation: Château d’Yquem 2008
(12x75cl) WA: 96 pts
Back
in April of this year, we looked at one of
Bordeaux’s most prestigeous estates – Château
d’Yquem. Following the lifting of a sulphites
restriction on wines imported through Hong Kong
around 12-months ago, the sweet white wines of
Sauternes and Barsac became eligible for import
through Hong Kong and given the discernible demand
for Bordeaux in the Far East, the promise held by a
new offering could be huge. Whilst Yquem was present
in the Far East previously, Hong Kong is the main
import hub for fine wines in the region and the vast
majority of China’s fine wines are sourced through
Hong Kong based merchants.
In terms of the marketability of the wine in the
Asian market, Yquem holding company LVMH – the
world’s largest luxury goods conglomerate and owners
of St. Emilion producer Château Cheval Blanc – are
masters of marketing luxury goods, with a
particularly good track record in the Far East where
Louis Vuitton has been the most popular luxury brand
for several years.
Tasting Notes
“The 2008 Yquem, now in bottle, has a nuanced
bouquet, with scents of clear honey, lime flower,
vanilla and orange blossom that is beautifully
defined. The palate is very harmonious on the entry,
with a fine thread of acidity, tense and full of
energy like the 2010 tasted alongside, with notes of
white peach, citrus lemon, clear honey and a hint of
quince. Long and persistent on the finish, this is a
very fine Yquem that might be over-looked between
the 2007 and 2009, but is a superb Sauternes in its
own right. Drink 2014-2050.”
Neal Martin, Wine Advocate (194), May 2011
In the 6-months following the lifting of the
sulphites ban, the Far East secondary market
appeared to be none the wiser as to Bordeaux’
sweeter option. However, the last 2 quarters have
seen a strong uptake in Sauternes’ only 1er Grand
Cru Superieur, with prices rising 5-10% across the
board and a large increase in trade frequency on the
London Exchange (Liv-ex).
What’s been particularly interesting are the recent
auctions, with a huge surge in Hong Kong based
activity, which has been impressive by the volume of
lots, the range of vintages and consitency of
estimates being achieved (and in numerous instances
exceeded). Most recently, a case of 2001 sold for
£6,338 at one of Acker’s Hong Kong auctions – over
26% above recent Liv-ex trades. But topping
estimates at auction is not a new phenomenon for
Yquem. Headlines were made in 2006 when a 135-year
vertical was sold by The Antique Wine Company at a
London auction for $1.5 Million, the record for a
single lot of wine at the time. In July this year,
Stephen Williams, Managing Director at AWC , sold a
single bottle of 1811 Château d’Yquem at a private
auction in London’s Ritz Hotel, making it the most
expensive bottle of white wine ever sold.
Another
consideration must be the average annual production
of 60,000 bottles, which is a quarter of Lafite’s
annual yield, resulting in sufficient liquidity to
create a presence, but limited enough to put a
serious strain on supply for older vintages.
This is another fabulous offering from the Chateau,
and with the top vintages of Yquem trading up at
£5,000 the 2008 appears fantastic value by
comparison. The ’08 vintage offers great long term
potential. This vintage seems to be undervalued and
being the youngest of the physical vintages
available, also offers fantastic growth potential.
The added importance of the number 8 in the vintage
year and the significance in China could see this
particular wine pick up notoriety in the Far East.
On current demand, I would expect the 2008 vintage
to accrue 15% per annum over the next 5 years. If
however, as expected, the world’s premier sweet
white wine sparks interest and demand in the Far
East then returns of double that figure could be
achievable.
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scrolling trades below are brought to you in association with the
London International Vintners Exchange
Another
consideration must be the average annual production
of 60,000 bottles, which is a quarter of Lafite’s
annual yield, resulting in sufficient liquidity to
create a presence, but limited enough to put a
serious strain on supply for older vintages.
