Dr Vino's wine blog

With incredible speed, Peter Meltzer, author of Keys to the Cellar: Strategies and Secrets of Wine Collecting replies to your questions. His answers follow in italics:

At 1:33 PM, January 29, 2007, Anonymous said…
Just this weekend I opened the first bottle of ’90 Figeac purchased at an HDH auction last year. It was flawed. It tasted more cooked than corked. What, if any, are my chances of recourse from HDH, and should I try to return the rest of the lot? I have purchased from HDH both at auction and at retail and this is the first flawed bottle from them.
Rick
Chicago

At auction, in most instances you are buying “as is,” and if the wine is off, you’re stuck. However, it sounds as if you have a pre-existing relationship with HDH, so why not contact them and dispatch an “offending” bottle of the ’90 Figeac for them to sample. Auction houses are not generally in the business of making enemies, so HDH might make an exception. In the future, however, don’t wait a year before sampling your purchases. Try a bottle right away so that you can detect potential problems in a timely fashion.

At 2:15 PM, January 29, 2007, Anonymous said…
I’m just starting to think about collecting, and I don’t have a fancy cellar or anything in place yet, just a cool (but probably not constant-temperature) basement. Should I invest in a wine refrigerator before proceeding?

It all depends on your game plan. While a temperature and humidity-controlled storage unit is always preferable, if you plan to focus on wines for immediate consumption, you can probably get by with your existing basement space. (However, if you have any intention of selling your wines at auction, a climate-controlled facility is preferable to a passive one.) If you plan to lay down fine bottlings that require extended aging, you should definitely invest in a wine refrigerator. It’s always best to choose a unit with a capacity that exceeds your present stash so that you have room to expand. If you have a modest starter collection, however, you may want to consider a small unit like the Haier (whose 93-bottle unit costs about $1,000) for your better or best bottles.

At 2:16 PM, January 29, 2007, Kasie said…
How do I know when I wine has peaked? I have a ’94 that recently went up in value, but does that mean it’s time to drink it?

Price is really not an issue here, as many wines (including oldies like 1982 classified Bordeaux, and select California bottlings from 1985 and 1987) continue to escalate in value but are not yet past peak. Vintage charts and “drink” recommendations are always helpful in determining a wine’s shelf life. Ultimately, you and your palate are the best judge. Periodically open a bottle that you think might be approaching maturity. If the color has turned to mahogany and you detect an earthy aroma and sweetish taste, it’s time to drink up.

At 2:18 PM, January 29, 2007, Anonymous said…
Maybe I’m a cynic, but it seems that people can get really competitive at auctions, and rational pricing can sometimes go by the wayside. Is there any systematic way to get real values at auction?

Yes. Probably the best recourse is to place realistic absentee or “order” bids instead of attending the auction in person. That way, you don’t risk getting swept up by auction fever. In addition, consult the Wine Spectator auction index (available online to website subscribers) which contains thousands of prices for frequently traded wines. It’s a powerful tool to cross-reference estimates against recently realized prices.

At 4:21 PM, January 29, 2007, Bruce said…
What is the best single source for tracking the progress of specific vintages of specific wines (most importantly Bordeaux) so that I know when to pull them out of the cellar? (I know, I know, depends on storage conditions, etc., but let’s assume they are “perfect”)

See above.

At 2:28 PM, January 30, 2007, Mike said…
I’m curious if you have a rule of thumb as to when a pre-auction tasting is a good value? Or perhaps how to make the most of such a tasting?

A pre-auction tasting is a wonderful opportunity to sample wines from diverse regions and vintages, many of which may be unfamiliar. It gives you a heads up on wines you may contemplate acquiring, without having to go to the expense of buying a bottle before the sale. Most auction houses list the roster of wines to be presented at the tasting (either in the catalog or online) so if you see something interesting, don’t hesitate to attend.

At 5:34 PM, January 30, 2007, Ben said…
Does the auction site matter? E.g., do you get better values at Chicago auctions vs. New York auctions?

It’s difficult to generalize, as prices will vary from lot to lot and location to location. Overall, Zachys has a large number of high winning bids – but it also has quite a number of low ones. Prices at Bonhams & Butterfields (San Francisco) can be lower than the Manhattan competition, and Hart Davis Hart may offer great value. But when HDH auctions a 20 year vertical of Château Lafleur this weekend (estimate $300,000-$400,000), don’t expect any bargains.

I have a case of 1989 Mouton in my basement (cool but passive storage conditions). How can I check the value? And what is the best way to sell it?
Thanks,
Kevin
Boston

According to the Wine Spectator second half 2006 auction index (printed bi-annually in the magazine and updated monthly for website subscribers) the average price for Mouton-Rothschild 1989 was $258 per bottle or $3,096 per case. Its high was $373 per bottle. At retail bottles range from $245-$489. If you have a friendly local wine merchant, see if he will make you an offer. Otherwise, contact one of the major commercial auction houses.

• Acker Merrall & Condit, (877) 225-3747
• Aulden Cellars-Sotheby’s (New York) , (212) 606-7050
• Bonhams & Butterfields, (415) 861-7500, ext. 307
• Edward Roberts International, (847) 295-8696
• Hart Davis Hart, (312) 482-9996
• Morrell & Co., (212) 307-4200
• NYWinesChristie’s (New York), (212) 463-8600
• Zachys (New York), (914) 448-3026
• Winebid.com

At 11:50 AM, January 31, 2007, Schliecker said…
I just bought a house and have a basement where the temp is between 60F and 65F with humitity between 30%-45% depending on the day. I have some wines I want to keep cellared for a while (not anything like an ‘82 Lafite mind you). What are your thoughts on those conditions. Good enough or would you go for a Vinotemp or something like it.
Thanks – Dave S. – Brooklyn, NY

These conditions are acceptable for short-term storage of good wines. However, have you any idea what the temperature rises to in the summer? The humidity level is on the low side.
(See second answer above for more details.)

tags: wine | wine collecting | peter meltzer

Peter Meltzer, author of Keys to the Cellar: Strategies and Secrets of Wine Collecting, joins us this week for a Q&A about wine collecting. In Keys to the Cellar, Meltzer draws on his twenty years as Wine Auction Correspondent for Wine Spectator to craft a thorough book about the ins and outs of collecting, storage and investing.

Meltzer will respond to your questions just as the auction market heats up for 2007. After a record year of $167 million worth of wine auctions last year in the US, the auction market kicks into gear with a big auction at Hart Davis Hart in Chicago this weekend. Next weekend, Sotheby’s and Morrell have auctions in NYC. In fact, almost every auction house has one in the next month or so.

So post your questions on auction strategy, wine cellars, and general wine collecting here in the comments. I’ll close the comments at 3PM Eastern on Wednesday. Peter Meltzer will then reply here on this blog later in the week.

UPDATE: here’s the link to his replies

Buyers of cellars: BusinessWeek reviews home wine cellars. Cut straight to the photos.

Buyers and buyers: “Bidders shattered last year’s $12.2-million, single-day record when they hit lot No. 49, with 23 lots still to go.” Naples Winter Wine Festival brings in $16.5 million for charity through the sale of wine–and a Rolls Royce and trips on private jets [Naples News]

Buying more: Americans buy 300 million cases of wine in 2006, a new record. [Sonoma PD]

Sancerre, food pair [Mariani–Bloomberg]

The half-bottle may not be full enough: Landmarc, the very wine-friendly restaurant in Tribeca that has an extensive list of half bottles, moves uptown and upscale to the TimeWarner Center–but are they in over their heads? [NYM]

Pitch it or pour it? Jerald O’Kennard of the Beverage Testing Institute peers into the liquor cabinets of the Trib staff. Some of it is not pretty. [Chicago Tribune, thanks U:TB]

On a roll: Have you ever had a California roll? Or teriyaki chicken? You can now report it to Japanese sushi “police” who are on the prowl, seeking out fraud maki–outside of Japan! [Financial Times]

Some like it hot–spicy and circular: “The United Nations food and health agencies are to lay down international standards for how the poppadum can be manufactured.” [TimesOnline]

The next edition of Wine Blogging Wednesday will focus on New World syrah. Taste, then blog it on Feb 7! [WineCast]

Many sales are happening now–check your local wine shop and stock up!

tags: wine | wine collecting | sushi

At dinner tonight an attorney from Boston mentioned that he inherited some fine wine from his brother. The bulk of the collection was sold at auction by Christie’s, but he has a case of Petrus that was kept at home. It was kept in “ok” condition, but lacks perfect storage pedigree. Any thoughts on how to best unload a few (or all) of these bottles? – Anonymous reader

Auction houses may be fine with you buying only a case at an auction. But it is often hard to sell small amounts of wine through houses that run live auctions. Some have started brokering small amounts or odd lots directly, without bringing them to auction. I would suggest calling John Kapon at Acker, Merrall in New York or Paul Hart at Hart Davis Hart in Chicago and asking them what they suggest. I suspect the questionable storage conditions will make them hesitant but it’s worth a call nonetheless.

Another option is trying to sell the bottles through WineCommune.com. They are an online person-to-person auction so the auctioneer in this instance cannot vouch for the quality of the wine being sold. Even with the questionable storage declared in the listing, I’m sure there would be some buyers who would be willing to take a chance since it is Petrus.

The advantages of this method are that you could even sell just one bottle at a time and the transaction costs are lower (two to five percent). The disadvantages are that the price may not be has high. One tip: your friend might want to sell a few, lower priced bottles first to garner a feedback rating on the site before selling the Petrus.

He could also call some good shops near him to see if they can recommend any local wine brokers. In many places shops aren’t legally allowed to buy from individuals since they must buy only from wholesalers.

Does anyone else have further suggestions? Or experience in selling odd bottles?

tags: wine | selling wine

You may have been disappointed that I only mentioned the 50 case lot of 1982 Mouton that sold for $1.05 million after it happened.

Here’s some new extravagance for you — one lot of 11 vintages of Cheval Blanc vertical from 1995-2005 (hey, wait, are those futures for the 04 and the 05? Make that 9 bottles and two bottles yet to arrive.) And, oh yeah, these are all enooooormous 18 liter bottles. The estimate is $750,000 – $875,000. There have been no bids thus far. Everybody must be waiting to snipe it. Twenty percent of the proceeds benefit a charity.

The craziest thing about this auction is that it’s through the online auctioneer, winecommune.com! See the lot listing. If they sell this lot, the internet wine auction may have come of age! If not, it will be back to the regular sized bottles for them…

What are you waiting for? It’s 1 day, 12 hours, 57 minutes, 9 seconds until bidding is over! And no buyer’s premium! (The seller’s premium in this case is six percent or less.)

Fwiw, Steve at Vinfolio reckons that the most this lot is worth for the wine itself is $226,380. Ha, much more reasonable!

tags: wine | wine auctions

A few weeks ago I was at a dinner, seated across from a significant wine collector. Among other things, he proclaimed that in 1982 Mouton “muffed it.”

Well, the anonymous European buyer who just paid $1.05 million for 50 cases of 82 Mouton would no doubt disagree. I bet he would side with Robert Parker who called the wine “perfect” and scored it 100 points. Or he might not give a rip what it tastes like and could just think that in a decade, somebody will pay him $2.5 million for it.

According to a Bloomberg story, the cases were sold as one lot from Park B. Smith’s collection. Smith, a textile and fabric magnate who also co-owns the restaurant Veritas, saw rapid growth of the asset. He purchased the 50 cases of magnums and rare double magnums only in 1997 for $420,500. They have been sitting in the cellar of his weekend home ever since.

But he didn’t keep the profit. The $5 million proceeds from the auction of his wines (minus the auctioneer’s fees) went to his alma mater, Holy Cross. I’m sure they’ll drink to that.

tags: wine | wine auctions | mouton 1982

I always love the rare opportunity of tasting older wines. One thing that makes me reluctant to buy them is that they can be so hit or miss. Quality today depends not only on whether the wine itself was built to last but also the storage conditions of the bottle. Indeed, excellent storage is part of why bidders recently paid 75 percent over the auction estimates for the wine collection of Paris City Hall.

Last week at a trade tasting I had a chance to taste some 20+ year old white wines from Austria. I tasted the 1986 Roter Veltliner Scheiben and the 1983 Weissburgunder Auslese both from the producer Leth in Wagram. The Roter Veltliner is a local variation of the Gruner Veltliner and is generally subdued in its youth relying on good acidity and minerality to carry it through to a more mature age. The example I had tasted incredibly fresh with delicate notes of white flowers, slight sweetness, richness, and crushed stones on the palate. The long finish made it stunning. (find this wine, about $80)

Weissburgunder is the local name for pinot blanc (and if you want to really one-up your Sideways buddies, Blauburgunder is pinot noir). The 1983 vintage (find this wine) was hot and dry like 2000 according to Franz Leth (pictured, right) who poured me the wines. The wine had a rich, honeyed nose that was complemented by a youthful acidity making the wine taste very vibrant. Maybe this should be the unofficial wine of Hollywood since all movie stars would like to be described as seeming much younger than they are.

I asked Franz how he would explain this? He had two reasons.

Franz personally uncorks all of the older vintages as they are withdrawn from the winery’s cellar. If they are bad, he discards them. If they are good, he tops them up with the current vintage, adds a shot of SO2 and recorks them.

On the one hand, this is amazing for the consumer since it brings the risk of buying an older vintage of Leth to near zero. This is as close as you get in the wine biz to a guarantee. Buyers would no doubt be willing to pay a premium for it. And Leth probably demands it since they must pour lots of wine down the drain that other wineries might be happy to sell to consumers who didn’t know any better.

But on the other hand, how true is it to the vintage with the shots of SO2 and the current vintage? Is this adulteration? Or just delivering the best that Leth can give? Adding a less expensive current vintage could devalue the older bottling.

After tasting the vitality and freshness of the wines, as a consumer I would prefer the almost-sure-thing that Leth provides, especially if I were planning to drink it in the near future. But would I pay the premium?

Weingut Leth

tags: wine | old wine | Austrian wine

A few weeks ago, I made a link between your mortgage and your wine collection (“Mortgage or future?”) observing that $6,000 a case for some 2005 Bordeaux futures ought to have some wine consumers wondering whether it was more important to have a roof over their heads or wines in their cellars. Now an English company has made the link between the financial foundation of your home and its wine cellar even closer.

Can your the value of your cellar pay off your mortgage? If it sounds too good to be true it probably is.

Premier Cru of England offers “investors” the opportunity to buy a collectible wine portfolio for investment purposes and then use expected growth to make principal repayments on your mortgage (more info). Although the details are not entirely clear, it seems that Premier Cru will take money you borrow as a mortgage at 7% and invest it with the dream of paying off that mortgage. (Ironic since the interest-only mortgage they recommend has risks–and paying off the mortgage seems old-fashioned according to this NYT business section article on re-refinancing.)

I am not a registered financial adviser but I can tell you that borrowing money to make money is not always prudent. This is like buying stocks on margin–except you could supposedly drink the stocks.

Yes, you may need a loan to buy Chateau Petrus futures at $2,400 a bottle (find this wine). But if that’s what it takes for you to buy it, then I’d recommend sticking with the cru bourgeois. At least you’ll be able to drink them–and there will be no whiff of principal or interest.

tags: wine | investments| mortgage