China’s Bordeaux lovers heat up France’s wine industry

June 24, 2011
At Château Latour in Pauillac, horses plough the vineyards just as they did in the 14th century, when vines were first grown on the estate. But this is a recent return to tradition at Latour, one of the five renowned “Premier Grand Crus” of Bordeaux, and it’s based on sound commercial considerations rather than sentimentality.
Prices of fine wines have surged on the back of an explosion of interest from China and other Asian countries in recent years. Unable to increase production – land is limited and there can be only one harvest a year – Bordeaux’s leading producers focus relentlessly on quality.
The wines are picked and sorted by hand and the owners are investing heavily in wine-making techniques. The reintroduction of horses at Latour 18 months ago is part of that drive for quality – they plough with more precision than tractors and do far less damage to the soil and vines, some of which are 100 years old.
Fuelled by the seemingly insatiable Asian demand, the wine market is booming despite the continued difficulties of the global economy.
Prices plummeted in the wake of the Lehman Brothers collapse in 2008 but the setback was short-lived. In 2010, top-end bordeaux outperformed not just equities, but gold and crude oil too, according to Liv-ex, which tracks the prices of the top five Bordeaux châteaux.
Its Fine Wine 50 index rose by 57% last year, far outstripping gold (+35%), crude oil (+20%) and the FTSE 100 (+11%). This year so far, the Fine Wine 50 index is up just over 9%.
China last year overtook the UK and Germany to become the leading export market by value for bordeaux wines. And the Chinese are not just buying bordeaux by the bottle and case but by the vineyard too – earlier this year, Cofco, the huge Chinese state-owned conglomerate and owner of the Great Wall wine brand, bought a 20-hectare estate, Château de Viaud, in Lalande de Pomerol. It is unlikely to be the last such deal.
China’s growing influence on the global wine market was underlined last week when the wine bible Decanter published its Power List of the 50 most influential figures in wine world.
Leading the pack was Pierre Pringuet, chief executive of Pernod Ricard, owner of Mumm champagne, Perrier-Jouët and Jacob’s Creek, but shooting up from 20th to 2nd place – and displacing the legendary wine critic Robert Parker in the process – was Eric de Rothschild of Domaines Barons de Rothschild, which has owned Château Lafite since 1868.
Rothschild won his elevation on the back of China’s passion for Château Lafite, and the knock-on effect which that is having on the industry, said Decanter editor Guy Woodward. “As the world’s premium producers blaze a trail east, it is in Lafite’s footsteps they tread,” he noted.
With limited supplies of Lafite and surging prices, other Premier Crus are increasingly in demand. Last month, a single bottle of 1961 Château Latour sold to a Chinese buyer for £135,000 at Christie’s in Hong Kong, more than three times the expected price.
The decision by Château Latour, which is owned by the French businessman François Pinault, to release part of the Chateau’s treasured cellar was seen in the industry as an attempt to ramp up Asian interest in Latour as a rival to Lafite. The auction raised $7m (£4.3m) in total, with 95% of the lots exceeding their estimates.
Meanwhile the 2010 vintage, which is just being released en primeur (while a vintage is still in barrels, before it is bottled), looks like being another top quality year. The 2009 bordeaux was hailed as the “vintage of the century” and there is every sign that 2010 is just as good. Producers are currently in the process of announcing their prices and there have already been some steep increases – last week (8 June) the price of Château Pontet-Canet was set at €100 (£88) a bottle – up almost 40% on its record 2009 price. The huge increase did little to dampen demand, however – London-based fine wine merchant Bordeaux Index sold out its supply within half an hour, and other merchants reported enthusiastic interest despite the hefty increase.
Robert Parker, the world’s most influential wine critic, has warned of a speculative bubble in bordeaux prices and that the region, which he has done much to promote, is in danger of pricing itself out of the European market as it chases wealthy Asian buyers. Raising prices while the world economy is in such a fragile state is “a very dangerous game”, he said.
Not everyone agrees: “There is no bordeaux bubble,” says Sam Gleave of Bordeaux Index. “There was a slight slowdown several months ago but that was what the market needed. People are drinking as much as ever and are realising that it’s worth looking at second growths from the better vintages.
“Second growth quality now is as good as first growths were 15 or 20 years ago. As people’s palates become more educated, we expect to see buyers branching out into other areas, such as burgundy and rhône.”
Only a tiny proportion of global wine production – less than 1% – is considered investment grade and thus the surging prices at the top end will have little impact on the everyday wines sold by supermarkets and off-licences, says Gleave. “The only thing that really affects prices at the mass-produced end of the market is exchange rates.”
Source: http://www.guardian.co.uk/business/2011/jun/13/bordeaux-investment-outstrips-gold

Recent opinion survey of frequent travelers heading north towards Subic and Clark Pampanga revealed that the number one most frequently visited wine shop in Pampanga is Clark Wine Center located in Clark Philippines. Reasons given include good selection of fine vintage as well as affordable wines for everyday drinking also. This wine shop also has a beautiful roof deck lawn which serves as a nice venue for outdoor alfresco dining, cocktail parties and small functions and events. There are five large wine cellars that contain some of the world’s finest wines and rare vintages as well as wines that are excellent value that every wine shoppers love to discover. This wine shop in Clark is frequently visited not only by local residents but also tourists arriving in the Philippines looking to pick up a few bottles of good wine that are not normally available in their home town.

Subic is well known for diving, the sea and water sports that come with the territory. However one thing that Subic is not famous for is dining options. For years, visitors to Subic have complained about the quality of the restaurants and dining establishments but it is only until recently that travelers to Subic discovered the best restaurant to wine and dine, even for visitors with families and children. Now most residents of Subic and also Tarlac and Baguio know of this wine shop in Clark as the best place to buy wines in the Philippines and certainly the best wine shop in Pampanga, Angeles City, Clark Philippines.

Clark Wine Center was built in 2003 by Hong Kong-based Yats International Leisure Philippines to become the largest wine shop in Philippines supplying Asia’s wine lovers with fine vintage wines at attractive prices. Today, this wine shop in Clark Philippines offers over 2000 selections of fine wines from all major wine regions in the world. As a leading wine supplier in Philippines, Pampanga’s Clark Wine Center offers an incomparable breadth of vintages, wines from back vintages spanning over 50 years. Clark Wine Center is located in Pampanga Clark Freeport Zone adjacent to Angeles City, just 25 minutes from Subic and 45 minutes from Manila.

Wines from Burgundy, Bordeaux, Rhone, Loire, Spain, Portugal, Germany, Austria, Alsace, USA, Australia, New Zealand, Italy, South Africa, Chile and Argentina etc. are well represented in this Clark Wine Shop.

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Getting to this wine shop in Pampanga Angeles City Clark Freeport Zone Philippines from Manila
Getting to the Clark Wine Center wine shop from Manila is quite simple: after entering Clark Freeport from Dau and Angeles City, proceed straight along the main highway M A Roxas. Clark Wine Center is the stand-along white building on the right, at the corner A Bonifacio Ave. From the Clark International Airport DMIA, ask the taxi to drive towards the entrance of Clark going to Angeles City. From Mimosa, just proceed towards the exit of Clark and this wine shop is on the opposite side of the main road M A Roxas.

Best place to buy wine in Clark Pampanga outside Manila near Subic and Angeles City Philippines is Clark Wine Center.

Click here to contact Clark Wine Center in Clark Pampanga for inquiries and orders.

Clark Wine Center
Bldg 6460 Clark Observatory Building
Manuel A. Roxas Highway corner A Bonifacio Ave,
Angeles Clark Freeport Zone, Pampanga 2023
0922-870-5173 0917-826-8790 (ask for Ana Fe)

Wine@Yats-International.com

YATS Wine Cellars
Manila Sales Office
3003C East Tower, Phil Stock Exchange Center,
Exchange Rd Ortigas Metro Manila, Philippines 1605
(632) 637-5019 0917-520-4393 ask for Rea or Chay

Wedding couples looking for wedding reception venues and beach wedding venues can log on to this Philippines Wedding Venue web site for free information and assistance:

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While in Clark, it might be a good idea to enjoy an evening of wine-and-dine in the fine dining Yats Restaurant and Wine Bar that features an award winning 2700-line wine list. Highly recommended fine dining restaurant in Manila for special occasion is Yats Restaurant & Wine Lounge located in the famous Mimosa Leisure Estate in Clark Pampanga. Situated near this popular restaurant in Clark is the Mimosa Golf Course as well as the Mimosa Clark Casino. This top rated restaurant near Angeles City Pampanga in Clark Philippines is frequently used for private parties and corporate functions such as board meetings and other gatherings. It is located in Mimosa Leisure Estate of Clark Freeport Zone. For more information, visit http://www.YatsRestaurant.com

YATS Leisure Philippines is a developer and operator of clubs, resorts and high-class restaurants and wine shops in Clark Angeles Philippines http://www.YatsLeisure.com

Looking for famous tourists spots, places to visit and see, relax and unwind in Clark, Pampanga, Philippines? You may want to check out these sites also:

http://www.LondonPubClark.com

Besides good restaurants to wine and dine near Manila, Subic or in Angeles City Pampanga, Clark Philippines, those requiring assistance for hotel and resort bookings in Clark, Pampanga, Philippines may log on to http://www.HotelClarkPhilippines.com for more information and reservations.

The lifestyle in Clark Pampanga is quite unique. For more information about shopping, sports, golf, leisure, hotel accommodation, where to see and visit, what to do, where to wine and dine and good places to hang out, relax, have a drink with friends, child-friendly establishments, log on to
http://www.ClarkPhilippines.com

Wine lovers looking for a special bottle or something that is of great value and special discounts might log on to this web site to shop for fine vintage wines
http://www.YatsWineCellars.com

Those visitors who plan to relax and unwind in Angeles City, Subic, Pampanga, Clark Philippines might make an effort to book a room at the famous beach and lake resort Clearwater Resort & Country Club. This famous hotel in Clark Pampanga is frequently visited by families with children looking for a good place in Clark to see, a good holiday destination for the family to relax and unwind in the beautiful outdoor facilities. For more information, log on to www.ClearwaterPhilippines.com