Wine and Chocolate: A Cliché or a Match Made in Heaven?

Although we have no idea why, there seems to be a general perception that chocolate and wine go well together. Pairing food and wine is almost a science, but what about chocolate? Let’s consider for a moment whether it’s just a concept somebody invented to increase sales on Valentine’s Day, or if it is something worth exploring.

wine-and-choclate

Chocolate and Wine Are Miles Apart

First of all the unlikely pair come from completely different geographical locations. Most of the cacao trees in the world are grown in hot and humid places like South America, West Africa and Asia – not really ideal areas for wine production. Although wine is also produced in South America, the best known wine countries are Chile and Argentina – not Ecuador and Brazil, where cacao is grown.

This does not necessarily mean that the two don’t match. Anybody who has had chocolate covered cherries or has dipped strawberries into a chocolate fondue fountain will tell you that fruit and chocolate can go very well together indeed. Continue reading

New Rules Could Lead to a Rise in Wine Storage in France

There are many kinds of wine warehouses. They vary in size, location, history and design, but there are some things they all have in common. Whether you store your wine collection in an old quarry or a disused World War II bunker, it is safe to say that your storage warehouse is most probably dark, cavernous, cold and absolutely traceable. These key elements are all essential for top wine investment merchants. These are the storage conditions they pride themselves on, and rightly so, after all, it is technically their money that is going into storage.

Wine Storage

High Quality, Low Profit

Surprisingly, some wine storage warehouses don’t profit from providing these perfect storage conditions. Believe it or not, France has not been making money from wine storing. Even though a large percentage of wine is stored there, the French facilities have not been profiting from the storage. While bonded warehouses in countries like the UK, Switzerland and the US charge for storage, in France payments are only due once the wine leaves the warehouse. This means that the wine can be sold and resold, the owner can profit from each sale, while the company providing the storage facility makes practically nothing.

An Aroma of Change

But, this is all about to change. After nine years of lobbying, certain laws regarding wine mobility in France have been relaxed. This could effectively put French storage facilities in line with other warehouses around the world. According to the previous rules, it was illegal to release wine back into the local market after it had been stored. As a result, wines were moved to other countries for more flexible storage and distribution. But as of recently, France no longer requires companies to know exactly where their wine is headed before storing it in bonded warehouses in the country.

Great News for France

The market for bond storage is nearly exclusively for high-end investment wines. With the new laws in place there is no longer any major reason to move wines out of France and sacrifice their distinction as truly ex-Bordeaux. In theory, the new rule makes Bordeaux an ideal centre for storing and reselling en primeur wines, which were delivered from a nearby winery with 100% traceability and a minimal carbon footprint. Having the ability to hold stock in transit without being liable for taxes also means that stock pools can be expanded.

What does the Future Hold

How will the UK, Switzerland and the US react to this new reality? Will they form partnerships with bonded warehouses in France, set up their own bonded facilities, or amend operations in some other way? We will have to wait and see. This is certainly an interesting time for these changes to take place. Despite Brexit affecting wine movement between the EU and the UK wine remains an excellent investment and is still being bought and sold all over the world. It may be down to a mere shift in perspective to make it work for all parties concerned.

Where Will the Smart Wine Money Go in 2017?

Every wine buff knows that Burgundy and Bordeaux are both very popular wines. What only the experts know is that Burgundy has been statistically outperforming Bordeaux for the last number of years, at least until recent months.

Let’s Look at the Numbers

The beginning of 2012 was also the start of a 50% rise for Burgundy wines that continued until at least 2016. During the same period Bordeaux wines fell by almost 20%. This was after the Bordeaux bubble that happened from 2009 to 2012 suddenly burst, and hailed the slow and steady decline. In January 2016, everything drastically changed.
Wine consumption
Although the market indicators showed a dismal performance from Bordeaux, it continued to remain popular, and this popularity finally started showing up in the numbers. In the months between January and September of 2016 all indices increased by at least 10%, finally showing excellent growth potential. After years of declining numbers, Bordeaux is once again on the upward trajectory. While Burgundy is also showing growth, two Bordeaux indices are paving the way. First Growths are up by 13.5% and the Bordeaux Medoc Classed Growth index rose by 16.5%. It is not only Bordeaux that is shooting up. Blue Chip Burgundies have also risen by 11.3%.

The Battle of the Bottle

If there was a competition between the two, all bets would certainly be placed on Bordeaux being resuscitated. It is also interesting to note that despite the numbers of the past few years, Bordeaux continues to be well-loved and well-chosen, time after time.

Predictions for the Next Year or Two

All the signs are there. The rapid improvement of Bordeaux in recent months heralds a time of increased interest in an already eminent brand, and prices may well rise even more dramatically than Burgundy prices have in the past few years. This doesn’t mean that Burgundy will succumb to a rapid rise and crash cycle the way that Bordeaux has. Like Bordeaux, even when short-term investments may be slightly affected, other factors, like reduced yields the past year, will drastically push up release prices in the coming years. Fine wine investors can rest assured that both the Bs remain relatively safe investment options.