This presentation is to show you that wine, which was once just a drink to accompany food, has over the years become one the hottest commodities on the auction front for collectors who love the finer things in life. This presentation will take you through a brief history of wine then to its place in the trade market, then from the auction block to people’s personal cellar and finally to its place in the future of collection.
Whilst there have been tools found from 8000bc that could have been used in viticulture, the earliest evidence of wine been made and stored is 6000bc in Georgia where clay pots have been found. It was until approximately 2000bc, when the pharaohs of Egypt became established that viticulture and wine making began to flourish. Paintings on the walls of tombs suggest the making if wine from grapes and storing it into clay jars. Some historians believe it is in this era that the wine trade started and was a foundation for our modern economy.
The Egyptians seems to have passed their knowledge onto the ancient Greeks and by the end of 2000bc wine making and viticulture had become an important part of their culture. It was the Greeks who spread their knowledge of the vine as they conquered new regions in the Mediterranean, France, Italy and Spain. Already by this time people had recognised that there was a wide range of varieties, and that each one needed different climate and soil to get the highest quality taste and style.
The Romans saw that the trade of wine could be a great commodity. They started important trade centres in Trier and Bordeaux. They would also ship wine by sea in clay containers, but these were very heavy and often the boat would not be able to hold the weight of the containers. They also had a habit of cracking, it was the use of wooden barrels that made the trade of wine really pick up.In the 17th century coal furnaces were invented that were a lot hotter than any before them, this lead to sand being able to be melted down into glass making thicker glass that could be used for transport. It also meant that wine could be corked and left to age for much longer periods of time. (A short history of wine bottles, 2009)
Wine auctions have been around for hundreds of years, in 1766 Christie’s auction house in London held its first auction, and among the items was a lot that included wine. During the war times there were restrictions put in place on auctioning wine, so it was not until the 1960s that it began to be seen as a luxury must have item.
Many auctions are now held in exclusive restaurants where the wines are often opened and drunk throughout the evening as a way to get the buyers relaxed and eager to spend more. In the USA alone wine auction sales gross approximately $75million a year. With the creation of online auctions it opened the wine world to a much larger market. It gives the bidder time to research the product, and has also made it possible to buy wine that at one time could only be brought by the case to be now brought in much smaller quantities. (Broadbent and Hermacinski, 2007).
Cult wines are those trophy wines that are collected for investment rather than to drink. It is thought that there are only 250 producers that make premier wine that is worth investing in, with 90% of those wines coming from the Bordeaux region. These wines are often very hard to get hold of as most of the wineries have close relationships with certain brokers, so those trying to start investing find it a very hard nut to crack. (Cult wine, 2012).
Like any industry when there is a lot of money involved there is going to be people trying to make that bit extra. The collectable wine industry is no different. With large amounts of money on the line some people are going to extreme lengths to get their share. Label fraud became a big problem in the 19th century when phyllorexa was rife and it was becoming more difficult to find expensive wines, to try stop this governments introduced appellations to try control what regions were being put onto the label. (Broadbent and Hermacinski, 2007). One of the most famous cases of wine fraud was the Thomas Jefferson bottles. These were brought in 1998 for $500,000us and were then found to have never been owned by Jefferson, and that the engravings that were thought to have authenticated the bottles were actually done by modern equipment. (Steinberger,2012.)
With changes to everyday people’s income most consumers are looking for a reasonably priced bottle of wine to have at dinner rather than that something special. The quality over quantity argument still battles on, but new technology in the industry means that the wine of higher quality can be made at a cheaper price. Supermarkets still are in the leading place to purchase wine as most people still see wine and food as paired together.
For the collectors world things are not looking quite so rosy, the economic crisis hitting Europe and a slowing in the USA market has been noticed in the wine trade. The Asian market though has not been hit has hard, wine collectors throughout the area spend $200million in the first half of 2011 alone, there is a worry that this is just a new fad, but only time can tell.(Nick, 2011)
With the wine industry constantly changing and adapting to the current trends there even more of a struggle to stay on top. With supermarkets offering a wider selection of wines at very competitive prices this is seeing the boutique wine producers feeling the pinch. These retailers now have to come up with new and innovative ways to stay strong in the market.(Bryant,2012). Consumption of wine in Asia has grown significantly over the last ten years and it’s these newer markets that are going to help the industry continue to grow. Education of the younger generation is key, as it will be these people with the means of investing in the future. (Nick, 2011).
The world of wine has changed a lot since its beginnings, and these changes have opened it up to an entire new industry. As long as there is a demand for a nice glass of wine this is sure to be people who are willing to go the extra mile to buy it. Current global trends are sure to have an impact, but as long as the want or need is there it is an industry that will continue to grow.
Vintage wine picture.(2008) Jess Power
Outline History Trade Wine as a collectable Current Industry Where to from now History of wine.(2012)
A Very Brief History Earliest signs of grapes being fermented for wine was in 6000bc in Georgia 2000bc saw the rise of viticulture and wine making by the pharaohs in Egypt Harvesting and pressing wine in ancient Egypt(n.a.)
History continued The ancient Greeks join the party towards the end of 2000bc As they conquered new regions they took with them their knowledge of the vine Many varieties were found and quality becomes important
Trade The wine trade was an important commodity for the Romans Using wooden barrels meant that wine could be transported by sea Thicker glass leads to better storage and easy transport"The Italian merchants exploit the Gallic passion for wine. On the boats which follow the waterways or by wagons which roll across theplain, they transport wine, from which they make fantastic profits, going as far as trading one amphora for one slave, in such manner thatthe buyer brings his servant to pay for the drink."Siculus,D.(n.a). Barrel (2012)
AuctionsLiquid Assets: La Tour dArgents Big Pour. (2009). In 1766 Christies auction house held its first auction, with wine being among the items sold Since 1999 New York has taken over from London as the centre for wine auctions
Auctions continued Restaurants often hold auctions with many of the expensive wines opened and drunk throughout to help increase the amount of money spent Online auctions are opening the doors to new buyers wanting to enter the market (Nick.2011)
Cult Wine Trophy wine that’s to good to drink Only 250 producers make the grade as a cult wine Wines from the Bordeaux region makes up 90% of those good enough to invest in
The Price of Luxury The sale of champagne records were broken in 2008 when two bottles of 1959 Dom Pèrignon rosè were sold for $42,350 each. US The record for the most expensive bottle sold at auctions was for three bottles of Châteaux Lafite- Rothschild 1869 that went for $232,692 each at a US Hong Kong auction(Frank, R. 2010)
The Dark Side Fakes Label Frauds People will go to great lengths for the money Steinberger, 2012
Current Industry for us Is quality over quantity the new trend? New technology has helped make quality wine cheaper Food and wine still go together
Current industry for them Global economic crisis has taken its toll on the wine trade industry The Asian market is continuing to be resilient, but for how long?
Where to now? Boutique V Supermarket, who will come out on top? The next generation holds the key
Conclusion From just a drink to have with food, wine has grown into a whole new industry Global trend will play their part, but there are always going to be people who love a good glass of wine
References A short history of wine bottles.(2009.) From http://salutwineco.wordpress.com/2009/04/27/historyofbottles/ Broadbent, M., & Hermacinski, U. (2007).The Wine Lovers Guide to Auctions: The Art & Science of Buying And Selling. From http://books.google.co.nz/books?id=8eI_CEsFN8C&pg=PA16&dq=wine+as+a+collectors+item&lr=&cd=22#v=onepage&q=wine%20as%20 a%20collectors%20item&f=false Bryant, J. (2012). Supermarkets wrecking the wine industry. From http://www.unscrewed.co.nz/supermarkets-wrecking-the-wine-industry/ Cult Wine. (2012). Retrieved 13.08.12, from http://en.wikipedia.org/wiki/Cult_wine Frank, R. (2010). Most Expensive Bottle of Wine Ever Sold at Auction. From http://blogs.wsj.com/wealth/2010/10/29/most-expensive-bottle-of- wine-ever-sold-at-auction/ History of wine. (2012)From http://winemaking-equipment.com/history-of-wine/ Liquid Assets: La Tour dArgents Big Pour. (2009). From http://online.wsj.com/article/SB10001424052748704611404574556381264248554.html Nick. (2011). Fine Wine News: Global Wine Auctions, Investments to Slow in 2012. From http://bordeaux- undiscovered.co.uk/blog/2011/10/fine-wine-news-global-wine-auctions-investments-to-slow-in-2012 / Steinberger, M. (2012). A Vintage Crime. From http://www.vanityfair.com/culture/2012/07/wine-fraud-rudy-kurniawan-vintage- burgundies Siculus,D (n.a.) Barrel. (2012). Retrieved 13.08.2012, from http://en.wikipedia.org/wiki/Barrel#Wine Vineyards and winepresses.(N.A.) Harvesting and pressing wine in ancient Egypt. From http://emp.byui.edu/SATTERFIELDB/Ancient%20Israel/Vineyards%20and%20winepresses.htm Wine Picture. (n.a). From http://winepictures.co.uk/vintage-wine-picture-15.htm