Having supplied some of the richest people on the planet with some of the most expensive wines in the world, I was lucky enough to taste some extraordinarily expensive wines along the way. Some of which were drinking so beautifully that no description could come close to doing it justice, whilst others were rather underwhelming. I guess its human nature to expect more from very expensive products and wine is no different, but price is not always a determinant of quality, so it begs the question, what makes some wines so expensive?
Rarity:
Most expensive wines are produced in very limited quantities and are highly sought after by collectors and enthusiasts. The scarcity of these wines often increases their desirability and drives up their demand and consequently their prices. Whilst some wineries intentionally limit production to maintain exclusivity and enhance the perceived value of their wines, it is also due to an oft-tiny vineyard with a special terroir and micro-climate has the potential to produces an extraordinary wine. These plots are planted with the best or oldest vines that produce the finest grapes in the smallest of quantities. These plots are said to be so special, that blending the grapes with grapes from neighbouring plots will only reduce the special qualities of this plot. A case in point is the tiny production of Domaine de la Romanée-Conti which is a micro, two-hectare vineyard (20,000 square Metres) located in Burgundy. This vineyard has an iron-rich limestone soil on a base of rock and marl, with the vines lying around 240 m (800 ft) above sea level. The average age of these vines is also very old, averaging around 44 years, resulting in only a few bunches of fine, small grapes per vine, each with a little juice that’s worth its weight in gold. Producing an average of just 450 cases of wine a year, you can only imagine that getting your hands on just one bottles is already a special affair and is therefore only sold on very tight and strict allocations. So strict, that if you resell your allocation, they are said to stop your future allocations of the wine, giving it to someone who they believe, would appreciate it. Already considered one of the rarest wines in the world, the extremely rare bottle of 1945 Domaine de la Romanée-Conti was sold at Sotheby’s auction house at a whopping €520,000 a bottle.
Age:
Older wines from great vintages are often more expensive than the same wine from younger or lesser vintages, not only due to their rarity but also due to the unique flavours that develop over time. As top-quality wine ages, it undergoes complex chemical reactions that result in desirable characteristics such as increased complexity, smoothness, and depth of flavour that is sought after by the discerning palate. Storing a wine for decades is a costly, risky and time-consuming affair and is an-important determinant on the current value of the wine. Besides the cost of storage, keeping a wine for several decades before consuming the wine requires patience. In todays world of instant gratification, Patience is an increasingly hard to come-by ability to wait for that perfect moment in time.
The typical drinking potential of a top-quality wine usually increases with age till a certain point. After this peak age is reached the fruit in the wine will slowly start to reduce and the wine will need to be consumed before it loses all the fruit, depth and complex flavours that give the consumer enjoyment. This does not happen overnight, and there is no fixed date or year as to when this will happen, making it is much riskier and complex to find wines over a certain age in the market, thus once again, adding to rarity of these wines.
Certain vintages have the ability to age more then others. These highly-rated and sought after exceptional vintages will give the collector added peace of mind that the wine will continue to provide enjoyment long after vintages of lesser quality. For example, Bordeaux wines from 2005, 2010 or 2015 would fetch higher prices than the same Bordeaux wine from more difficult vintages like 2007 or 2013. Case in point is a bottle of the exemplary 2015 Chateau Margaux, is likely to fetch around three times the price of the 2013 vintage, which is valued at an already pretty healthy €400 a bottle.
Quality:
Wines that have received exceptional ratings from critics or have won prestigious awards tend to command higher prices. Positive reviews from renowned wine experts or recognition from prestigious competitions can significantly increase the perceived value of a wine. Consumers are often willing to pay a premium for wines that are considered exceptional in terms of taste, craftsmanship, and overall quality.
Relating back to the legendary 1982 vintage in Bordeaux, it is also the vintage famous for launching the career of the world’s most successful wine critic, Robert Parker. Parker’s non-stop, exuberant praise of 1982 Bordeaux wine earned him the respect of a new generation of wine lovers that continued for more than 4 decades. Much like Parkers predictions, the 1982 vintage was in fact magnificent and continued to evolve into the legendary vintage he expected. The vintage became synonymous with quality and perfection.
The Paris tasting in 1976, also known as the ‘Judgment of Paris’, famously organised by the late Steven Spurrier, was a historic moment that catapulted Californian wines to highest echelons of quality. Two blind tastings by some of the most famous critics at the time, put some of the best Californian wines head to head with some of the greatest Bordeaux & Burgundy. The resulting winners, the Napa Valley 1973 Stags Leap ‘SLV Cabernet Sauvignon’ and the Chardonnay Chateau Montelena from the same vintage became an overnight sensation. Having suddenly received better scores than their rivals such as the 1970 Chateau Mouton Rothschild or white Puligny Montrachet from the highly acclaimed Domaine Leflaive their prices have soured. You can find the 1970 Stags Leap at an average price of €17,000 (source Winesearcher.com) and €10,500 for the Chateau Motelena Chardonnay respectively (Sold at this price on wine auction in 2010).
Provenance:
The reputation and history of a winery or vineyard can significantly impact the value of its wines. Wineries with a long-standing tradition of producing high-quality wines often have a loyal customer base and a strong brand reputation. Wines from renowned regions or vineyards associated with excellence in winemaking can also carry a premium due to their perceived prestige and heritage.
In fact, nine of the top ten most expensive wines in the world according to WInesearcher.com all hail from the famous wine-making town of Burgundy. Burgundy has built a reputation of quality and finesse, such that even the price of land in this small area has gone off the charts. Purchasing just one hectare (10,000 square meters) of Grand Cru Vineyard in this prestigious area will set you back about 6 million euros and you haven’t event started making the wine. On the other hand, Pauillac (Bordeaux) fetches a pricey 2.5 million per hectare but that pales in comparison to Burgundy, whilst down in Saint Emilion, an average vineyard could cost upwards of half a million euros per hectare.
Reputation is often built over time, such as the legendary wine Pétrus from Pomerol, Bordeaux, which was not an overnight success, but a series of well-timed choices by Madame Edmond Loubat from as early as 1925. On purchasing the estate, Madame Loubat was immediately focused on quality, hiring some of the best viticulturists of the time and keeping the average age of her vines at 45 years old and practising crop thinning (removing bunches of grapes early on, in order to concentrate on the quality of the remaining bunches) despite the reduction in volumes. These decisions resulted in wines that were outshining other wines from neighbouring vineyards giving them a reputation of extreme quality.
Other wineries chose to be different from their neighbours and priced their wines much higher than the regions’ average to show their quality was superior. At a time when Chianti was gaining a bad international reputation, rebels started stepping outside of the DOC regulations and winemakers began experimenting with different grapes and blends in a bid to bring back quality. In search of quality, famous wines from Tuscany, better known as Super-Tuscan wines such as Sassicaia, Masseto, Tignanello or Grattamacco intentionally stopped following the DOC rules of having Sangiovese blended with other local grapes likes Canaiolo. Labelling their wines as ‘Vino Da Tavola’, and receiving high scores from international critic, prices soared and the "Super Tuscan" was born. In fact, from the top 25 most expensive wines in Tuscany, 10 are considered ‘Super Tuscan’ whilst 11 are from the highly respected Monatalcino (Brunello|) area and only 4 are from Chianti.
Demand:
Wines that are in high demand, either due to their quality or exclusivity, can fetch premium prices. Limited-release wines, highly allocated vintages, or bottles from highly regarded winemakers often generate significant interest among collectors and enthusiasts. Of course, without the demand expensive wines would simply not sell and selling prices would have to be reduced.
The interplay between supply and demand dynamics can drive up prices as consumers compete for access to these sought-after wines and this can sometimes be controlled by big companies, consortiums and brand owners.
I think the Bordeaux system is a fascinating an interesting way of how an area get together to control the supply and demand dynamics to the best of their abilities. Many of the top Bordeaux estates are increasingly not selling all their wines and intentionally keeping back several cases to resell at a later date. This decision will immediately reduce the number of cases of their wine on the market, thus reducing the supply and rarity of their wine. In a bid to create hype and demand for Bordeaux wines, the Bordelaise invite all the top critics to taste their wines during primeur week. The region creates incredible hype & fanfare for several weeks slowly allowing a controlled flow of information to the international world. Celebrity visit, vintage ratings and critic ratings are slowly fed to media keeping the hype for the wines of the area at a high for several weeks before the wines are released and quickly snatched up through allocations. The remaining cases of wines that are kept back by the Chateaux are then re-released several years later (usually to celebrate decades or anniversaries) at a price that is usually much higher than the original release price.
