Wines to Bank On

How to spend your vino bucks wisely in today's spirituous international money market

Knowing The international financial climate as well as the top vintages that are always in demand can put you ahead of the pack in developing an intelligent strategy for buying wine. The past seven years, 1979--1985, offer valuable insight into how the wine market operates. In 1979, the market place was dominated by California. The American dollar was weak and French wines were very, very expensive. In fact, the marketing experts in the domestic wine industry were predicting a boom period for home-grown products. Even Time and Newsweek had gotten caught up in the hoopla surrounding California, running stories about the surging interest in the wine industry. Would anyone have suspected in the optimism that flowed in 1979 that only four years later, French wines would again dominate the fine-wine market and the California wine industry would be in a depression, with millions of gallons of inventory unsold? What happened between 1979 and 1985 that caused this slide--and what can we learn from it?

In simple terms, what happened was a classic case of supply and demand, fueled by a macho American dollar that made imported wines more attractive, pricewise. than they had been in more than a decade. In addition, the domestic wine industry simply produced too much. The demand for imports skyrocketed and (continued on page 156)Wines to Bank on(continued from page 113) the demand for California reds dropped. California wineries that had had to allocate their fine cabernet sauvignons and chardonnays to retailers in the late Seventies saw those merchants turn their backs on the same wines. After a period of significant price escalation for California wines, prices first stabilized and then declined sharply.

As for imports, it was the fine-wine regions of France, particularly Bordeaux, Champagne and Burgundy, that benefited the most and had an uninterrupted period of booming sales. The dollar, which traded as high as ten francs in 1985 (a whopping 150 percent higher than its value in 1979), made France's best Bordeaux, champagnes and Burgundies look modestly priced.

Today, the dollar, after giving a beating to all the major wine currencies--the French franc, the Italian lira, the Spanish peseta and the German mark--for the past four years, is in full retreat on the international money market. This means that prices have skyrocketed for European wines. In addition, the current trade war brewing between the United States and the European Common Market may result in high tariffs on European wines in retaliation against European tariffs on American products. Lastly, the increasing wine scandals involving lethal chemical additives in Austrian and Italian wines have created an era of apprehension on the part of many wine consumers.

In short, the international wine market in 1986 is in a state of rapid change. Consequently, it is essential for wine consumers to devise an intelligent buying strategy to maximize the value of their dollars. Here are my guidelines for buying wines over the next 12 months.

California

For the immediate future, California looks set to make a strong rebound in the market place. The 1984 and 1985 crops are the best two vintages for California since 1974. And prices should remain stable and attractive compared with the prices of imports.

So what California vintages would I buy over the next 12 months? For chardonnay, the 1983 was maligned by the California wine press before the grapes were even picked. In reality, the vintage produced very stylish and lovely chardonnays, particularly in Napa Valley. Top producers of 1983 chardonnay include Sonoma-Cutrer, Chalone, De Loach, Château Montelena, Matanzas Creek, Simi, Trefethen, Kalin, Robert Mondavi's Reserve and Acacia. All of them are priced between $12 and $20 a bottle. For value, Fetzer and Stratford consistently produce delightful chardonnays in the $7.50 to $9 range. The just-released 1984 chardonnays from California are more opulent, powerful and fruity than the more reserved, elegant 1983s.

California's best cabernets are also again on the verge of challenging the French for market supremacy. The 1982 vintage has turned out some fruity, immensely drinkable wines that are perfect for consuming now while waiting for the excellent 1984s and classic 1985s to become available. The 1984 cabernets, deep, ripe, with a creamy richness, are well-balanced wines loaded with fruit. They should prove to be the best over-all vintage for this grape in California since the great 1974s. Most of the 1984s will be released in the next 12 months. This is a must vintage to buy.

In assessing the wines from barrel samples I have tasted, I find the following 1984s potentially outstanding: the cabernets of Diamond Creek, Ridge's Montebello, Ravenswood, Santa Cruz Mountain Vineyard, Dunn, William Hill, Caymus, Joseph Phelps, Buehler and Shafer. Interestingly, many of these wineries plan to offer prearrival future prices à la Bordeaux that will be significantly lower than the normal suggested retail prices. I have generally been opposed to buying wine futures from California, but given the quality of these wines in 1984 and the high prices that now exist for Bordeaux wines, this may be an opportunity to stock up on high-quality cabernet very reasonably.

France

French wine prices are on a dangerous upward spiral. Both red and white Burgundies have reached levels that are absurd. I see no reason whatsoever to buy white Burgundies such as Meursaults and Puligny-Montrachets that are now selling for between $25 and $50 a bottle, when much better chardonnays from California and Australia are available at one half to one third the price. The situation for red Burgundy is much the same.

The area in France that still merits considerable consumer interest is Bordeaux. It remains the leader in the world for producing large quantities of superb wines. The 1985 vintage, a very good one, is now being offered as a wine future. The prices asked for these wines, which will not be delivered until spring 1988, are approximately double and sometimes triple the prices asked for the very similarly styled 1981s and the better 1982s. Furthermore, it is the largest crop Bordeaux has ever had. There are many delicious, very charming wines, but on the assumption that one buys Bordeaux futures to save money, it is my belief that the great majority of 1985s will come onto the market in two years at no higher than 20 percent above current prices. The exceptions may be the small limited-production estates of Pomerol and Saint-Emilion, two areas that had a much stronger vintage in 1985 than elsewhere in Bordeaux. These intense, sumptuous wines should see a great deal of futures activity directed their way.

However, if 1986 turns out to be an even better vintage for Bordeaux, the high prices for 1985 Bordeaux futures may go down. Today's best Bordeaux bargains are not the 1985s or the great 1982s but the 1979s and the 1981s--two vintages that produced very good, stylish, elegant wines that were ignored when the media and consumer attention were directed to the 1982 vintage. Prices for the 1979s and the 1981s, wines that by and large can be drunk now, are approximately one half of those asked for the 1985 futures and one third of those 1982s that remain in stock. I would look for the following châteaux in these two vintages: Gruaud-Larose, Talbot, Ducru-Beaucaillou, Léoville-Las-Cases, Branaire-Ducru, Giscours, Chasse-Spleen and Cos d'Estournel, all of which are making some of Bordeaux's finest wines.

Elsewhere in France, champagne prices, like those of Bordeaux, have increased significantly. However, despite the high prices for Burgundy, Bordeaux and champagne, there are bargains still to be had in French wine. The 1985 Beaujolais was a great vintage, and one of the best producers is Georges DuBoeuf, whose wines sell at quite reasonable prices if five to eight dollars.

Some of France's most distinctive wines are produced in scenic Alsace on the German border. By and large, they also represent the greatest white-wine values in all of Europe. From the spicy Gewürztraminers and smoky tokays to the steely rieslings and straightforward pinot blancs, there are plenty of top-notch wines at excellent prices. In Alsace, 1983 was an outstanding vintage, and the market place is loaded with these wines. I would look for bottles from such top producers as Pierre Sparr, Leon Beyer, Hubert Trimbach, Jean Hugel, Zind Humbrecht, Dopff and Irion and Domaine Weinbach. These wines, contrary to what many consumers think, are quite dry and taste much more full-bodied and powerful than their counterparts made across the Rhine in Germany from the same varietal grape.

Italy

Italy produces and consumes more wine than any other country in the world. However, the current international furor over the criminal adulteration of cheap wine with lethal chemical additives is having a far-reaching effect on Italian wine sales. The top producers in Italy make majestic wine and for years have tried to improve the image of Italy as a producer of great, not cheap wine. My buying strategy with respect to white wines from Italy would be to concentrate on two areas that offer spectacular values. The vibrant, zesty, light, refreshing white wines of Fruili-Venezia Giulia at less than seven dollars a bottle have no peers in the world for freshness and lightness. These wines, made from such grapes as riesling, ribolla, char-donnay, pinot grigid and muller thurgau, never see an oak barrel and are bottled and sold several months after the wines are made to retain their vivacity and freshness. The 1985s are excellent and the 1984s are certainly quite good. The best producers consistently are Gnemiz, Abbazia di Rosazzo, Borgo Conventi, Felluga and Bortoluzzi.

The other white wines of Italy that offer great value are from the scenic countryside of Tuscany. Vernaccia di San Gimignano is a dry, medium-bodied wine that is refreshingly crisp and flavorful and an ideal complement to fish and poultry. The 1985s are excellent across the board in Vernaccia and cost less than six dollars a bottle. My favorites are the wines from such noteworthy producers as Falchini, Strozzi, Pietraserena and Ponte a Rondolino.

Italy has made tremendous progress with its white wines in recent years, but the real glories of this country are its majestic, long-lived reds. Italy's greatest red wines come from Piedmont and the best of them are massive, very tannic, rather tough, stern barolos and the more elegant, yet no less complex, barbarescos. Both are made from the nebbiolo grape and are not inexpensive. Expect to pay from $15 to as much as $45 a bottle for the greatest wines from the best producers, such as Gaja, Giacosa, Ceretto, Ratti, Gresy, Pio Cesare, Valentino and Aldo Conterno. These are world-class wines that in a great vintage require a full decade of cellaring to reach their summit of maturity. A less expensive and time-consuming way to introduce yourself to the glories of the red wines of Piedmont is to try a wine called Nebbiolo d'Alba, or Piedmont's answer to Beaujolais, the soft, fruity Dolcetto. Both of these wines have broad popular appeal in Italy but have yet to be discovered by wine enthusiasts in this country.

Other Areas

From Australia, there is a quantity of increasingly high-quality wine. Traditionally, the big, high-alcohol reds have been the stars here. One suspects that if Rambo drank wine, he would drink an Australian red. However, with modern wine-making technology, the quality of this country's white wines has increased dramatically. Australia is beginning to turn out beautiful chardonnays that are well under ten dollars a bottle. Most of them compete with the best chardonnays of California and with the highest-quality French white Burgundies. Distribution in America is still rather poor, but should you see any of the chardonnays available from such producers as Tyrrell, Montrose, Rosemount, Lindeman or Peter Lehman, don't hesitate to give them a try. Only the powerful, opulent Rosemount sells for more than ten dollars a bottle.

South American wines are normally relegated by wine merchants to the back shelves, but there is one producer from Chile that should arouse considerable interest. Chile's best winery, Cousiño Macul, is finally getting deserved distribution in many American cities. It produces three wines of stunning quality for the price. The chardonnay at five dollars a bottle is produced with modern technology and is a clean, fresh wine with an applelike fruitiness. Be sure to try only the most recent vintages, 1984 and 1985. The regular cabernet sauvignon from Cousiño Macul for the same price in vintages such as 1981 and 1982 offers another excellent value. Its uncomplicated, supple, blackcurrant fruitiness and well-defined style are a joy to drink. It won't be long-lived but for the next two to four years offers a great bargain. The best wine from Cousiño Macul is its cabernet sauvignon Antiguas Reservas. This is quality wine comparable to very good Bordeaux and some of California's best cabernet sauvignons. It sells for a mere $6.50 a bottle. Both the 1978 and the 1979 are deliciously soft, fragrant, complex, rich, well-balanced wines that should drink well for at least another four or five years.

Lastly, shrewd wine consumers the world over are cognizant of the fact that Spain's best red wines offer, dollar for dollar, the best red-wine values in the world. The two areas that are filled with good buys are Rioja and Penedes, both in northern Spain. One should remember that the Spanish style of wine is more noticeably oaky in taste than others, as this has considerable appeal to the Spanish palate and increasing numbers of Americans. In Rioja, try one of the red wines from the Marques de Caceres or Olarra for its mellow, savory, mature fruitiness and toasty, oaky aroma. Neither winery sells any of its reds for more than seven dollars a bottle. In Penedes, the huge Torres Winery produces a bevy of great red-wine buys ranging from its low-end, four-dollars-a-bottle, fruity, delicious Coronas, its midrange, complex, rich, full-bodied Gran Coronas, to its majestic Black Label Gran Coronas at $15 a bottle. Vintages are rather consistent, but 1978 and 1982 are the two recent ones the local growers consider the best.

Yes, the world-wide wine market is changing considerably; but armed with the right facts and an awareness of the top values and the top vintages, a consumer can still maximize his purchasing power.