Shopping for French wines in SA

The classed growths of Bordeaux set the standard for red wines around the world. Want to drink more of them? Christian Eedes interviews two local retailers who tell you how. Predictably, WINE magazine readers listed Bordeaux as their favourite wine region in the reader survey published in June, a preference in keeping with that of their counterparts around the world.

The question must be asked, however, as to how successful locals are in getting to drink the genuine article made in France, as opposed to settling for homegrown Bordeaux-style wines.

If it is accepted that the best South African red can justifiably sell for between R250 and R300 a bottle on release, then a First Growth from Bordeaux's Left Bank sells for around four times more. Under these circumstances, it might appear that South African-based wine enthusiasts must content themselves with domestic produce.

David Brice, co-owner of Wine Cellar, a wine brokerage and cellaring firm in Cape Town, advises that drinking Bordeaux is not impossible. He feels that there is value to be had at even R150 a bottle and for someone prepared to spend R500 a bottle, it's "Open Sesame". He currently offers a range of Bordeaux from Cru Bourgeois Chateau Jonqueyres 2002 at R90 a bottle right up to Second Growth Pichon-Longueville-Baron 2000 at R1 195 a bottle.

The serious collector is counselled by Brice to go "half and half". Half of the money available should be spent on the very best wine with the intention of re-sale; the other half should be spent on wines that, because they are slightly lesser in reputation, are lesser in price, these being consumed for personal enjoyment.

"Most people can't tell the difference between First and Second Growth anyway," says Brice's business partner, Richard Burnett, only slightly flippantly. His point is that when it comes to premium Bordeaux, there is sometimes very little difference in quality between the top classed growths and those one or two tiers down, although the price differential can be significant. Invest in the best and use this to fund the drinking of the not-too-inferior rest.

Whether you are investing for financial return or drinking pleasure, Brice sounds some cautionary notes. The impact of vintage is a key issue to take into account when deciding what to buy. "Because 2000 was so good, you can shop down to Cru Bourgeois level and get nice stuff." This is not the case in poorer vintages, and he describes the very hot 2003 as a "death-trap" for the unwary buyer.

In addition, Brice warns potential customers not to be overly fixated with the historical classifications of Bordeaux, but rather focus on the ratings as generated by respected critics. "The growths don't really matter anymore. Parker scores are what count."

Wine bought solely for investment purposes will probably never reach South Africa, explains Brice. It will be left in a bonded warehouse (without duties paid) in London or New York, the two main trading centres of fine wine.
Concerning wine for own use, storage conditions are also something to bear in mind. "Under the bed is not acceptable," says Brice. Careful cellaring is critical if the wine is to show at its best when finally opened. Also, in the event that a private individual wants to sell his or her collection, wine in its original packaging retains its value much better.

Burnett compares investing in wine to investing in vintage motorcars: "You wouldn't do it purely for a return on your money. You have to be motivated by passion as well."

Nevertheless, Brice points out that the consumer can expect good returns from investing in fine wine. The production of the world's best appellations is finite while demand is ever increasing. The First Growths (Haut-Brion, Lafite, Latour, Margaux and Mouton) make between 10 and 30 000 cases each, and the Grand Cru Classé properties of St.-Emilion significantly less, which means very little to supply the entire world market. "Even if you can afford it, you have to find the stuff first," says Brice.

Until recently, ultra-premium Bordeaux was largely traded and rarely consumed. With the emergence of buyers in the Far East, there has been a significant amount of stock being removed from circulation. "They want to taste the wine and can afford it. Prices have to sky-rocket."

Bear in mind that as top Bordeaux moves towards drinking stage, so the price of it increases. Latour 1982 fetched an average of $752 a bottle (about R5 000) when sold on commercial auctions in the United States and London through the fourth quarter of last year. By the time duties, freight and retail mark-up have been added, the wine is likely to cost twice that, which makes you wonder just how many South Africans are gulping it down.

Carrie Adams, co-owner of leading liquor retailer Norman Goodfellows, which is situated in upmarket Illovo, Johannesburg, estimates that out of her turnover in wine, 80% is of local origin and 20% is international, with Champagne accounting for a significant proportion of the latter.

Though she won't disclose precisely what kind of earnings she derives from international wine, she does admit that most of the value comes from a disproportionately small pool of customers buying especially expensive wine "at R2 000 a bottle and more".

According to Adams, the sector of the market in South Africa that buys purely to invest is tiny. Nevertheless, she prides herself on how well connected her retail outfit is. Top-end retailers and private collectors from the rest of the world contact her on a regular basis offering her highly desirable parcels of wine, for which she has a ready market. A typical transaction? Twelve cases of First, Second and Third Growth with an asking price of maybe R800 000. "No more than three phone calls and it's sold," she says.

Just before you conclude that Norman Goodfellows only caters for the super-rich, it bears mentioning that the store carries around 350 international labels at all price points. The range of Bordeaux currently in stock runs the gamut from a mass-market Merlot from négociant Yvon Mau at R43,50 a bottle to Chateau Pétrus 1985 at around R4 000 a bottle. "There's value in Bordeaux but also from all over the world," comments Adams.

Stocking a wide range of international wine is something of a labour of love for Adams. For many of her customers, buying foreign is "intimidating" as a result of a generally low level of wine knowledge. With international wine more difficult to move than local produce, it makes it relatively more expensive to list.

Nevertheless, she accepts that the average consumer "must be led down the road" of what's available at entry level towards developing an appreciation for the more exotic. She is happy to "hand sell" her foreign wines and relates that most often customers trade up once they've developed a taste for the flavour of wines from other countries. "If you're looking to further your horizons, there's plenty available. You just have to be inquiring," she comments.

And what better inquiry to make than to find out how local Bordeaux-style reds stacks up against the real deal.