The Reasons for Investment Growth when Investing in Fine Wine |
 Grapes, like all other fruits depend on ideal weather conditions to produce a good, sweet, juicy crop. France, like England has erratic and unpredictable weather. A truly magnificent wine can only be produced in ideal weather conditions. From the time the vine starts to bud in late April to the harvest in September or October, every drop of rain, every hour of sunshine and every degree of heat has its eventual effect on the quality and character of the wine. Hence the special uniqueness of each Vintage. The beginning of April sees the start of the year's crop with the first signs of life as the vine buds. Within 10 days of this the leaves have formed. A frost at this time of year would damage the crop thus reducing the total amount of grapes available. It is against the law to protect the vines with coverings, and you will often find the villagers out on a cold spring night using heaters and flame-throwers to warm the air and protect the buds. The vine flowers in early June and must go on for 10 - 14 days for good grapes to form. Heavy rain now could be fatal to the expected crop. If the flowers escape rain and frost, grapes take their place. In August the grapes turn colour to red or translucent yellow. The ripening process will now begin and last for about 100 days. It is during this time that the weather will have it's greatest effect on the wine, and will actually change the eventual taste and character of the vintage produced. A vine left to grow unmanaged would spread across as much as one acre of land, however the fruit of such a large vine will not produce a great wine. To concentrate all the vines energy into making a smaller amount of a better quality grape the vines are regularly cut back almost down to their main stem. In St. Julien (where wines such as Châteaux Beychevelle and Leoville-Barton are made) one vine produces only enough juice for half a bottle of wine. And in the case of Chateaux d'Yquem just half a glass. History has shown that only 3 or 4 vintages out of every decade are of a high enough quality to be used as an investment wine.
A French phrase, which indicates the wine to which it is applied, has been produced under the strict supervision of the Institut D'Appellations d'Origine, and has been made from grapes grown in a specific area of France. The first Appellation was set up in 1936 in Châteauneuf-du-Pape. Since then the system has been extended throughout France and now covers some 30% of total wine production, including the wines made in the west. The Institut d'Appellations d'Origine will initially measure and define the area to be included in the particular Appellation and thereafter has authority under French law, reinforced by EEC directives, to regulate the grape varieties that may be planted, the maximum amount of grapes produced, the method of pruning, and often the precise wine-making techniques to be employed. The Objects of the system are:- To maintain and enhance quality and to maintain the special characteristics of the wines of a particular area. Wine produced under the authority of the Institut d'Appellations d'Origine are entitled to display the term "Appellation Contrôlée" on their bottle labels as an indication that the contents is wine of the best quality and from a limited supply. They also limit the amount of labels each vineyard is allocated to only enough for 177 cases of wine per acre of land, for each vintage. Any wine that may be left over after all the 'labelled' bottles are full is sold under a secondary label, or blended with another wine.
As soon as the wine is ready to drink stocks start to diminish. Wines good enough to be used as an investment will usually have a life span of 40?49 years, some may last even longer. An excellent wine will take approximately 5?7 years (average) before it has matured enough to be drinkable, however most connoisseurs will wait until the wine has reached its optimum drinkable level, usually when the wine is approximately 12?18 years old. The wine will then carry on maturing in the bottle getting better and better as the years pass, right up until the end of its life when it will quite suddenly, (in comparison to its life span) 'go off''. Or as it is better known in the wine world as 'Over the Hill'. As we all know, an increasing demand (due to increasing quality and rarity) together with a decreasing supply (due to consumption) creates the basis for a very successful and stable market. With our panel of experts we are able to predict when specific top class wines will mature and when they will reach the end of their prime drinking life. We are able to offer structured investments, with varying degrees of risk, to mature at specific times. |
