James recently interviewed several esteemed wine traders for his special report for Financial Times on wine investment. One of the wine merchants James interviewed is Patricio de la Fuente Saez, managing director of Hong Kong-based Links Concept.
Regarding wine investment, Patricio believes it’s best to buy wines that could be drunk beautifully now instead of buying wines that could store for 30 years. Napa wines from the 70’s and Bordeauxs from the 60’s and 70’s, for example, are perfect for drinking now, says the wine merchant. And Euro’s recent depreciation helped spurn interest in Bordeaux wines again, especially in Hong Kong, he continues.
But when comparing top Italian wines with wines from other regions of similar quality, the executive believes that the italian wines offer great value, and “will always appreciate in value because of the limited production,” says Patricio, citing names such as Tignanello and Solaia.
You can read our full interview below to get more of his comments and insights on the latest wine investment trend, and his buying suggestions on Bordeaux, Burgundy and Italy.
JamesSuckling.com: What are your views on wine investment at the moment?
Patricio de la Fuente Saez: I have never really thought wine was a very good investment for anyone unlesss you are actually working in the wine trade and know both the buyer and seller very well. Most wine merchants will offer you all kinds of beautiful statistics showing what a great investment wine is, however, when you ask them to buy back those wines at the mentioned prices, most will turn silent. Instead of buying wine and storing it for 30 years, I think its much wiser to simply buy a very good 30-year-old wine and drink it straight away, save you a lot of extra costs such as storage, delivery and other financial costs. I think wine should be bought for enjoyment only, wether it’s for enjoyment now or 20 years for now. Saying this, if you had bought first growth wines anytime before 2006 you would probably have done very well. Times have changed and most top Chateaux now are selling at much higher prices making speculation on wines more difficult, current prices over Lafite and Latour are in the hundreds of euro per bottle as opposed to below 100 euros in the 90’s. If you do decide to invest on wines, there are only about 20 estates in Bordeaux which I would invest in.
There are obviously exceptions to the rule and these can be found in Italy and the U.S. Wines such as Sine Qua Non seem to have an ever growing fan base as have some of the top Italian wineries.
JamesSuckling.com: How is Bordeaux selling?
Patricio de la Fuente Saez: The low euro has certainly been the bright spot in what would otherwise have been another quiet year for Bordeaux. In Hong Kong, we have seen a very big demand for top Bordeaux because of the lower prices from the place de Bordeaux and the low euro/U.S. exchange rate. As a matter of fact, I have – myself – done quite a lot of buying of Bordeaux this year because of the attractive prices. Regular Bordeaux wines under 40 euros have always been selling well and will continue to do so in our markets.
JamesSuckling.com: Is there any upside to Burgundy? Why?
Patricio de la Fuente Saez: As the production of most of the top estates in Burgundy is so small, the upside would always be that you actually have a few bottles on hand to drink. Burgundy, when you do your home work well, still has lots of great wines for reasonble prices, the best way to find these wines is to head down to Burgundy and spend a few days exploring the region. I love the wines from young Bachelet brothers at Bachelet Monnot and I kiss every bottle of Domaine Prieure Roch I can get. There are still good deals to be gotten in Burgundy because as opposed to the Bordelais the Burgundians are much more picky as to who they sell to, and from my experience a lot of them would rather keep the wines for themselves than selling to someone they don’t like.
JamesSuckling.com: Any other regions to highlight for wine investment, price inflation or just plan collecting?
Patricio de la Fuente Saez: I love U.S. wines and I am a big buyer of the Napa from the 70’s, these wines are drinking incredibly well now and should put a big smile on anyone face. Argentinean malbecs are absolutely fantastic and have a great aging potential, everyone should have a few cases of top malbec in their cellars and, last but not least, beautiful shiraz from down under – Adelaide Hills and Barossa Valley. As for Bordeaux, instead of buying cases and storing them forever, why not start drinking Bordeaux from the 60’s and 70’s. These wines are highly underrated and drinking incredily well and they are very well priced compared to current vintages.
JamesSuckling.com: Italy seems to be outperforming most regions at the moment, are you bullish? Why?
Patricio de la Fuente Saez: Whenever the vintages in Bordeaux are not terribly exciting, peopple seem to be looking elsewhere. Italy has embraced the international wine taste and they are combining both their Italian traditional methods together with international grape varieties and wine growing techniques. This unique combination has resulted in outstanding wines, with my personal favourites: the super Tuscans. Wines such as Tignanello and Solaia are not expensive compared to similar quality wines from other countries, they age fantastically and will always appreciate in value because of the limited produciton.
JamesSuckling.com: What areas from Italy sell the best?
Patricio de la Fuente Saez: Tuscany!
JamesSuckling.com: What producers are the most highly coveted?
Patricio de la Fuente Saez: The pioneer of Tuscany, Marchesi Antinori, is obviosuly a front runner with wines such as Solaia, Guada al Tassso and Tignanello. Apart from this, I would say the wine from Gaja, Massetto and Sassicaia.
JamesSuckling.com: What areas and producers do you look for the future in Italy for investment and purchase?
Patricio de la Fuente Saez: I like looking for the young guns, guys that are just starting out, exploding with passion for their grapes, vineyards and barrels, the new kids on the block. I am a very big fan of Brunellos and love the style of Castello Romitorio. When collecting these kind of wines for investments I would always look for large formats as this is what collectors like to add to their collections.
Photos from top to bottom: Patricio de la Fuente Saez, managing director of Hong Kong-based Links Concept; Château Margaux Margaux 1986 and Château Mouton Rothschild Pauillac 1986; Marchesi Antinori Solaia 2009
