Bordeaux 2008 offers quality and value

The Union des Grands Crus de Bordeaux tasting in London this week confirmed the good value present in the 2008 vintage compared to 2009.

While those present at the event on Tuesday picked up on the variability among the wines on show, it was widely agreed that this was a potentially long-lived and “classic” vintage that has been overshadowed by a very ripe year in 2009.

the drinks business has already reported widely on the value inherent in 2008, a year which attracted extremely high Parker points, but – because of its en primeur release in the depths of the economic downturn – not high prices.

Although appreciation has occurred since the wines were first showed to the trade and press, it still appears undervalued relative to 2009 and 2005, and it is believed that when the leading labels are shipped early next year, there will be a spike in prices.

Currently however, The Fine Wine Fund, managed by Wine Asset Managers, has performed some analysis to show just how undervalued the vintage is currently when it comes to the leading labels.

“The 2008s, the top wines of which outscored the 2005s according to Robert Parker, are looking very cheap,” the fund notes in its latest report.

To support this, it shows that 2008 Lafite is 31% less expensive than the same wine’s 2000 vintage, at current prices, while Margaux and Cheval Blanc are both 35% cheaper.

The research also highlights how seemingly overpriced the 2009s are (see below), with buyers of Latour 2009 for instance paying a 75% premium over Latour 2000.

Unsurprisingly, much of the discussion at Tuesday’s tasting of 2008 Bordeaux surrounded the 2010 vintage, widely held to be extremely high quality with good concentration and low yields.

However, Gary Boom, managing director at Bordeaux Index, cautioned the Bordelais and trade. “It’s a complicated market at the moment," he said. "Normally the arrival of a great vintage is one of the most powerful tools for attracting interest but the reality is that we already have ample supply of ‘prime’ vintages, with plenty of the 00/05/09s sat awaiting consumption.

“In contrast, it’s the highly sought-after ‘off-prime’ vintages of 99/01/04 that are looking increasingly stretched,” he added.

Referring to increased consumption in Asia, where the demand is centred on certain Bordeaux brands, whatever the year, he advised: “As we’re on the cusp of another ‘great’ vintage, my advice to investors would be to focus on the 2007/08s with the right labels and be wary of the 2009/05s at the wrong price.”

Patrick Schmitt, 21.10.2010