Appraising Fine Wines
This article is sponsored by Chubb & Son, insurer of fine wines.
by Fritz Hatton, Director, Christie’s Wine Department, U.S.

A professional wine appraisal must take a number of factors into account. Among these, the most important are:

1) Quality
The specific climate of a vineyard and its suitability to the production of the finest wine-producing grapes, along with the skills of the grapegrower and winemaker, affect most directly the quality of the wine. Excellence of both site and labor are the most important underlying factors of value. Consistently good performance over time enhances value.

2) Condition
The second most important factor is condition, as wine no matter how good is worthless to drink (although perhaps worth something as a conversation piece), if not cared for properly. Wine kept in continuous temperature (and preferably humidity) controlled storage since release or in “passive” underground storage providing similar conditions, will hold its value throughout the “life-expectancy” of the wine. The best conditions for wine are a constant temperature in the 52°-58°F range, with 80% humidity, without light or vibration. The appearance of the bottles is also a factor: bottles kept in original wooden cases or cartons, with good labels, capsules, and fills for age, receive a “full valuation”. The fill level of the wine is very important; fills less than expected for age (below bottom neck for vintages less than 20 years old; just below top shoulder for vintages 20-40 years old) are usually discounted by 20%-50%.

3) Ageability
Wine with a long life-expectancy is much more valuable; this explains the high prices for top Bordeaux and Montrachet, the best examples of which have the longest life expectancy of all chardonnays. Quality of the vintage is a related factor as the best vintages (such as 1990, 1989, 1986, 1982, 1961, and 1959 in Bordeaux) impart power and richness to the wine through high extract and tannins, which evolve over time, adding complexity and finesse (and “tastes values”) to the wine. The greatest wines can last over fifty years, though the acceleration in value is usually faster prior to the peak age of the wine (25-30 years typically for great Bordeaux).

4) Rarity
Chateau Le Pin, which produces 600 cases annually, and Chateau Petrus, which produces 4,500 cases annually, are wines from Pomerol (Bordeaux) of comparable quality; however Le Pin has recently sold for 50%-100% more than Petrus. The only explanation is rarity. Hard-to-obtain “cult” wines are more valuable than larger production wines of similar quality as long as they have been made well-known to collectors.

5) Provenance
Wines from a famous collection will sell for more than the same wines from an anonymous collection. Part of this has to do with knowing where the wine has been, and having one’s own taste confirmed by that of the rich and famous. If you are a seller, it behooves you to be famous.

Zachy's Inc. Christie's Inc.

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