Friday, January 1, 2010

Investing in a vineyard

In November 2009 prices for a Grand Cru were between 200,000 and 3 million Euros per hectare. In Saint Emilion, a “normal” good terroir fetches between 300,000 and 500,000 Euros.
Nice properties with great potential tend to sell fast in Saint Emilion, even in this period of financial crisis. These kind of properties are rare and in-demand and over-bidding is done, for such places, not only by rich French people or foreigners but also by locals. A friend of mine talks to me about a property for sale, I visit it and quickly give my OK. Unfortunately, the price shoots up as some big fish show up. Of course, it is impossible for my friend to fight.
Next to that, I hear that generic Bordeaux can sell for less than 10,000 Euros per hectare, when in Pomerol or Margaux, the average price is around 1 million. If you ad to this sum 3 years of cash flow necessary, rebuilding the cellar and house, it’s a costly purchase, regardless of the appellation.

A good recommendation for the end of year holiday: Domaine Buisson Charles

I don’t sell much white wine with my company, but we have the privilege to have an allocation of Burgundies from Domaine Buisson Charles we drink and sell to our customers. This series of fine white Burgundies still are sold at a reasonable price for Meursault fans, and this despite the good notes given by Wine Advocate.
The last notes given to the 2007 vintage confirmed their place in the top group of Meursault and gave Murielle the desire to vinify Chardonnay, even if we will never have the same terroir as in Meursault Goutte d’Or or Charmes...

No comments: