Anthony Hanson's nose is a sobering economic indicator. The senior wine consultant at Christie's International is poised over an uncorked barrel of one of the world's most expensive white wines in a dungeon 9 metres beneath the ancient French town of Beaune.
He declares "one of the greatest vintages in history" the 28-day-old Batard-Montrachet Grand Cru, which is set for sale at the 149th Hospices de Beaune wine auction on November 15 that will establish the 2009 benchmark prices for Burgundy.
Hanson sniffs a glass of Hospices de Beaune Mazis-Chambertin Grand Cru and telegraphs a delicious signal. "I suspect bargains," says Hanson, whohas spent 38 of his 64 years grading Burgundy wine and analysing its long-term value for clients such as Microsoft and the British government.
"The world has a remarkable 2009 Burgundy crop with supposedly very little money to invest in a vintage that matches those of 1989, 1990, 1999 and 2005," he says.
He takes a long sip of Corton Grand Cru Cuvee Dr Peste and issues a prognosis. "If prices drop, we're going to have difficult times in 2010," says Hanson, manager of the charity event for the past five years. "A good auction has always pointed towards optimism and vitality. The Hospices is a global economic barometer."
In November last year, the auction's forecast on this year's economy as reflected through 544 assorted barrels of cherished Burgundy wine was swift and sour: €2.8 million (HK$27.5 million) in total sales, down from a record €4.2 million in 2007 and equivalent to a 30 per cent per cent drop in price.
"Which way the 2009 [auction] swings in price will send a significant message about how people are viewing the economy in 2010," Hanson says.
"Burgundy prices going up is a positive economic indicator for sure," says Robert Lyster, 65-year-old co-founder of Lyster Watson Management hedge fund in New York. "The system is now clogged with three years of Burgundy that has been hard to sell because of the economy, but I'm confident people will be going for the 2009 vintage."
This year the Hospices has 799 barrels in its cellars, 31 reds and 13 whites harvested from some 60 hectares of the region's Grand Cru or Premier Cru vineyards. Since 1443, estate owners have donated wine for auction to help the sick and poor.
With the prospect of a further drop in prices, Hanson says investors don't need to be millionaires to get in on the action. Christie's Live, a software program that can be downloaded from christies.com, allows potential buyers anywhere to participate live in the auction.
"Anyone can bid on a barrel," Hanson says. "All you need is an internet connection and around a €3,500 wine budget."
Hanson has estimated the per-barrel or "piece" price on the four luxury casks of 2009 Batard-Montrachet Grand Cru Cuvee Dame de Flandres at between €40,000 and €60,000 each. The bountiful supply of Hospices Burgundy on tap this season, though, makes the arithmetic aromatic for those suffering from a shrinking wine budget, he says.
One barrel of wine pours 288 bottles (about 24 cases) and Hospices manager Roland Masse reckons the tastiest deal this year is the 10 barrels of Auxey-Duresses Premier Cru Les Duresses Cuvee Boillot pinot noir set to sell for between €2,000 and €3,000 a barrel.
"The cost-to-quality ratio is important," Masse says. "Les Duresses is the value leader."
Other budding bargains emerge after sampling all 44 of the 2009 Hospices wines, including Baronne du Bay's Corton Grand Cru Clos du Roi (15 barrels at between €5,500 and €8,500 each). Hanson has set five precious pieces of Paul Chanson's white Corton Vergennes Grand Cru - arguably the rarest white Burgundy ever made - to open at a bid of €9,000 a barrel, with a top estimate of €12,000 a barrel.
Among the possible top pinot noir deals at the 2009 Hospices auction are the 14 barrels of Beaune-Greves Premier Cru Cuvee Pierre Floquet. Hanson plans to start the bidding at €2,800. The 2008 vintage sold for €3,200 a barrel, less than €12 each for a bottle of Burgundy's signature wine with a retail price of more than €60 in Europe.
"Christie's doesn't normally sell 24 cases of French wine for €2,800," Hanson says with a laugh. "We usually sell cases of Chateau Lafite for €20,000 per case, but I wanted the auction to level the playing field and let all wine drinkers become participants in seven centuries of Hospices history."
The low-cost ticket to becoming part of Burgundy's storied annals while enjoying the fruits of its labour is a cask of Beaune Premier Cru Cuvee Cyrot-Chaudron. It's a red wine from one of the oldest plots in the Hospices estate and estimated to sell at €2,500 a barrel, not including the 7 per cent commission Christie's levies on the ultimate hammer price.
No matter the cask price, add another €500 to purchase the oak barrel and, depending on the "negociant" chosen by Christie's or the buyer to mature the investment, a minimum of €1,000 to cover the cost of ensuring an expert oversees the wine's delicate voyage from barrel to bottle.
"It's really like raising a child," Hanson says of the 18-to-20-month process required before delivery. "And you get to visit the cellar where the wine is kept and barrel-taste the investment as it grows."
Hanson says that most of the 2009 vintage will be ready to drink by 2014, and many of the reds will have a lifespan of 50 years or more.
"Hospices wine is not an assurance of quality, but there's not one dud in the 2009 cellar," he says. "The best thing about it is you get to keep the barrel."
Bloomberg
WINE
