Wine as food or wine as a collectors itemDocument Transcript
Slide 2: IntroductionThis presentation is to show you that wine, which was once just a drink to quench thirst andaccompany food, has over the years become one the hottest commodities on the auction front forcollectors who love the finer things in life. This presentation will take you through a brief history ofwine then to its place in the trade market, then from the auction block to people’s personal cellarand finally to its place in the future of collection.Slide 3: History of the GrapeWhilst there have been tools found from 8000bc that could have been used in viticulture, theearliest evidence of wine been made and storedis 6000bc in Georgia where clay pots have beenfound. It was until approximately 2000bc, when the pharaohs of Egypt became established thatviticulture and wine making began to flourish. Paintings on the walls of tombs suggest the making ifwine from grapes and storing it into clay jars. Some historians believe it is in this era that the winetrade started and was a foundation for our modern economy.Slide 4: History continuedThe Egyptians seems to have passed their knowledge onto the ancient Greeks and by the end of2000bc wine making and viticulture had become an important part of their culture. It was theGreeks who spread their knowledge of the vine as they conquered new regions in theMediterranean, France, Italy and Spain. Already by this time people had recognised that there was awide range of varieties, and that each one needed different climate and soil to get the highestquality taste and style.Slide 5: TradeThe Romans saw that the trade of wine could be a great commodity. They started important tradecentres in Trier and Bordeaux. They would also ship wine by sea in clay containers, but these werevery heavy and often the boat would not be able to hold the weight of the containers. They also hada 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, thislead to sand being able to be melted down into glass making thicker glass that could be used fortransport. It also meant that wine could be corked and left to age for much longer periods of time.(Ashort history of wine bottles, 2009)Slide 6 and 7: AuctionsWine auctions have been around for hundreds of years, in 1766 Christie’s auction house in Londonheld its first auction, and among the items was a lot that included wine. During the war times therewere restrictions put in place on auctioning wine, so it was not until the 1960s that it began to beseen as a luxury must have item. Many auctions are now held in exclusive restaurants where thewines are often opened and drunk throughout the evening as a way to get the buyers relaxed andeager to spend more. In the USA alone wine auction sales gross approximately $75million ayear.With the creation of online auctions it opened the wine world to a much larger market. It givesthe bidder time to research the product, and has also made it possible to buy wine that at one
timecould only be brought by the case to be now brought in much smaller quantities.(Broadbent andHermacinski, 2007).Slide 8: Cult WineCult wines are those trophy wines that are collected for investment rather than to drink. It is thoughtthat there are only 250 producers that make premier wine that is worth investing in, with 90% ofthose wines coming from the Bordeaux region. These wines are often very hard to get hold of asmost of the wineries have close relationships with certain brokers, so those trying to start investingfind it a very hard nut to crack.(Cult wine, 2012).Slide 10: The Dark SideLike any industry when there is a lot of money involved there is going to be people trying to makethat bit extra. The collectable wine industry is no different. With large amounts of money on the linesome people are going to extreme lengths to get their share. Label fraud became a big problem inthe 19th century when phyllorexa was rife and it was becoming more difficult to find expensivewines, to try stop this governments introduced appellations to try control what regions were beingput onto the label. (Broadbent and Hermacinski, 2007). One of the most famous cases of wine fraudwas the Thomas Jefferson bottles. These were brought in 1998 for $500,000us and were then foundto have never been owned by Jefferson, and that the engravings that were thought to haveauthenticated the bottles were actually done by modern equipment.(Steinberger,2012.)Slide 11: Current Industry for usWith changes to everyday people’s income most consumers are looking for a reasonably pricedbottle of wine to have at dinner rather than that something special. The quality over quantityargument still battles on, but new technology in the industry means that the wine of higher qualitycan be made at a cheaper price. Supermarkets still are in the leading place to purchase wine as mostpeople still see wine and food as paired together.Slide 12: Current industry for themFor the collectors world things are not looking quite so rosy, the economic crisis hitting Europe and aslowing in the USA market has been noticed in the wine trade. The Asian market though has notbeen hit has hard, wine collectors throughout the area spend $200million in the first half of 2011alone, there is a worry that this is just a new fad, but only time can tell.(Nick, 2011)Slide 13: Where to Now?With the wine industry constantly changing and adapting to the current trends there even more of astruggle to stay on top. With supermarkets offering a wider selection of wines at very competitiveprices this is seeing the boutique wine producers feeling the pinch. These retailers now have tocome up with new and innovative ways to stay strong in the market.(Bryant,2012).Consumption ofwine in Asia has grown significantly over the last ten years and it’s these newer markets that aregoing to help the industry continue to grow. Education of the younger generation is key, as it will bethese people with the means of investing in the future. (Nick, 2011).
Slide 14: ConclusionThe world of wine has changed a lot since its beginnings, and these changes have opened it up to anentire new industry. As long as there is a demand for a nice glass of wine this is sure to be peoplewho are willing to go the extra mile to buy it. Current global trends are sure to have an impact, butas long as the want or need is there it is an industry that will continue to grow.