Is Lafite the best-performing asset of the noughties?
Is a case of 1982 Lafite Rothschild the best-performing asset of the last decade? A 12-bottle case of 1982 Lafite Rothschild has increased in price by 857% over the last ten years, from £2,613 to £25,000.
The best-performing equity on the LSE (British American Tobacco) increased in price 454% over the same period, while gold prices are up 297%.Overall, fine wine has proved itself one of the top-performing assets of the “noughties” – beating equities, houses, oil, stamps and fine art.
So which wines have seen the largest price increase over the period? As mentioned earlier, Lafite 1982 tops the charts and it comes as no surprise that Lafite dominates the rest of the top ten, taking another five places. (Only includes those wines that are components in the Liv-ex Fine Wine Investables Index)
The Château Lafite estate run by the Rothschilds is, with its 100 hectares of cultivated land, the largest of the main Pauillac vineyards.
It is located in the highest part of the area and the view from its château, with its conical towers that appear on the label, takes in the banks of the River Gironde, which flows nearby. The wines are a blend of four different varieties of grape – Cabernet Sauvignon, Merlot, Petite Verdot and Cabernet Franc. Lafite matures slightly earlier than other Premier Cru wines in the region on account of the generous amounts of Merlot used, and it is this that also makes the wine more delicate and subtle than those wines which are completely dominated by Cabernet Sauvignon.
“Lafite has a soul, a beautiful, generous, kindly soul. Lafite turns bare earth into heaven. Lafite is harmony, a harmony between man and nature, because without our magnificent winegrowers, nothing would be accomplished.”
Baron Eric de Rothschild
Of the five Premier Cru wines in the region, Château Lafite to my mind has managed to produce the year’s best wine in many of the top years in 1900th centrury. The times I have spent in the company of a 1934, 1953, 1959, 1982 and 1986 have been unforgettable. And it was then that I always remembered how many wine critics fondly describe Lafite as ‘the perfection of elegance’.
Vineyard soil: fine gravel mixed with aeolien sands on a bedrock of tertiary limestone
Production area: 103 ha
Grape varieties: Cabernet Sauvignon (71%), Merlot (25%), Cabernet Franc (3%) and Petit Verdot (1%)
Average age of vines: 30 years
Harvest method: hand picked
Winemaking: the vinification is nowadays done with all the sophisticated instruments which modern oenology has created. Fermentation takes place in large oak vats in which the musts remain for 18 to 25 days.
Ageing: the wines are aged entirely in new barrels for 18 to 24 months. During this time,the wine is racked 7 times and is fined with the whites of 6 eggs per barrel. Only certain vats are selected to make the Grand Vin, Lafite. The others are used to make the second wine of Lafite, the “Carruades de Lafite”.
Vintage: 1982 Bordeaux / James Suckling
The 1982 vintage in Bordeaux changed the wine world as well as changed my life. It was the first vintage I tasted from barrel as a young wine writer working for the American magazine The Wine Spectator, and I was amazed how gorgeous the quality of a young red could be from barrel.
I remember the first barrel samples I tasted during the summer of 1983 at Chateau Prieure-Lichine with the late wine author and vintner Alexis Lichine. The wines were so fruity with soft and rich tannins. They seemed too drinkable for a young wine, yet Lichine who had over forty years of experience tasting young wines told me the wines were “exceptional” and “some of the greatest young wines ever produced.”
He had invited some of his winemaking pals from the Medoc to a lunch at his chateau following the tasting. And he kept telling them, which included such names as Bruno Prats (then Cos d’Estournel), Anthony Barton (Leoville-Barton) and Jean-Eugene Borie (Ducru-Beaucaillou) that young writers like myself were the future of the region and that they had to make me understand that 1982 was a great year. He was upset that the New York Times and some other magazines had come out saying that the new vintage was not outstanding do to it seemingly early drinkability.
It was also a time an American lawyer in his mid-30s began writing full time on wine, creating a newsletter called The Wine Advocate. Many say Robert Parker built his career on advocating the greatness of Bordeaux’s 1982 vintage, although he obviously did much more.
More importantly, 1982 vintage marked a big change in the way Bordeaux was produced. It underlined fruit and ripe tannins in reds as well as a slightly higher level of alcohol and lower, or less strong acidity – higher pH. This is what gave the wines such wonderful texture, or drinkability in their youth.
It was a big change from most vintages before 1982 that produced hard and tannic wines that needed years, even decades to soften. The 1982 vintage became a model vintage for red Bordeaux in the future, and arguably for the wine world at large. Think of all the fruit-forward reds that are produced today in the world – for better or for worse. Alcohols are at least two, sometimes three or four degrees higher. Tannins are stronger yet riper. And natural acidities are lower. Chapitalization – adding sugar to the fermenting grape must to increase alcohol – seems a thing of the past.
“Young wines are so drinkable now,” said Alexander Thienpont, the winemaker of Pomerol’s Vieux-Chateau-Certan and Le Pin. The latter made its reputation on early drinkability. “It’s what people expect in a modern wine today.”
I believe some of the change with the 1982 was due to the “California” like growing conditions the Bordelias spoke of at the time. The summer was extremely hot and sunny. The harvest was warm and mostly clear of precipitation. Grape yields were high with many of the best wine properties making more wine per hectare than set by French authorities. In fact, the late Jean Pierre Moueix of Chateau Petrus always told me that the 1982 vintage would have been at the same level as the 1945 or 1949 vintage if yields had been lower.
Yet, the experience of the growing season and harvest in 1982 made a whole new generation of winemakers in the region understand the importance of picking grapes later and riper. They understood early on when wine critics such as Parker and myself as well as members of the US wine trade enthused so much about the 1982 reds from barrel. This also was the beginning of the popularization of barrel scores used to purchase wines.
The US market was the biggest market to buy top notch Bordeaux with the 1982 vintage. It began a decade of intense buying of Bordeaux in the states with consumers buying first growth and second growth as well as Pomerols and St. Emilion. Americans regaled in the wine’s juiciness and beauty. They also made a shit load of money if they held on to the wines in sold them later. For example, most of the first growths sold for about $40 a bottle in 1983 as futures and some are now as much as $3,500 a bottle. Prices for 1982 are down slightly now, but the price appreciation over 30 years is impressive after 30 years.
So is the quality of the wines still for the most part. I am lucky enough to drink top 1982 on a regular basis, and the best ones never cease to amaze me with their generous and complex fruit and polished, ripe tannins. Bottle variation can be a problem because many of the top names have been bought and sold and stored all over the world, but on a whole it is a treat to drink a great 1982. And the vintage always reminds me of my beginnings in the wine world
Recommended glass shape
Average Bottle Price
|2 501€ +19.2%||2 099€ -21.8%||2 683€ -2.2%||2 743€ -0.4%||2 754€ -19.3%||3 411€ +58.7%||2 150€ +305.7%||530€ +70.4%||311€ +32.9%||234€|