Chateau d’Yquem: China goes for gold
This week comes with important news from the fine wine investment world: China has finally legalised the importing of sweet desert wine from Bordeaux.
This cohort includes Sauternes, which has until now been banned due to the high sulphite levels. In the coming weeks and months, prices for the definitive, undisputed king of noble rot – Château d’Yquem are expected to go into orbit as demand in Chinese markets explodes. As the only wine from its region to be credited with Premier Cru Supérieur status, this is very quickly turning into a wine to watch.
The China factor
The absence of any exposure into China has kept prices relatively modest – at least by comparison to other First Growth fine wine investments. But commentators have long agreed that, were it allowed, the combination of sweetness and pedigree would be an enormous hit in China.
The Vuitton factor
To further add to the appeal in brand-conscious China, the estate has been owned since 2004 by the luxury goods brand Louis-Vuitton-Moet-Hennessy (LVMH). Other Vuitton brands are already a big hit in China, so chances are Yquem is going to be an even bigger hit thanks to the brand label.
Yquem plans Chinese launch
According to Liv-ex, LVMH are in the advanced planning stages of a major marketing campaign throughout China, including appointing a permanent Yquem ambassador.
Yquem director Pierre Lurton added weight to this, telling Decanter magazine that LMVH ‘had a good business network in place in China, and they were planning to market the wine there’.
Fine wine investments with Château D’Yquem
Since buying the estate in 2004, LVMH have significantly hiked prices for the en primeur d’Yquem.
Consequently, the 2005, 2006 and 2007, all with admirable 95+ Parker scores, trade around £3,500 each. This is surely familiar territory in the world of First Growths, but if you look back at equivalent quality from older offerings, you’ll find quite remarkable value. Taking into account the length of time Yquem takes to mature, this gets better and better.
Invest in fine wine
We strongly recommend the fabulous 1996 vintage.
Graded 95/100 by Parker, they are available in cases of 24 half bottles – which is undoubtedly the best way to buy Sauternes. 17 cases are available at £1,550 in bond (excludes management fee).
Offer made on a first come, first serve basis.
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Originally published September 2010.