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INVESTMENT OFFER:
CHÂTEAU PAVIE 2011 |
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Château Pavie 2011 (93-95 Pts)
£1,350 unit price per 12
(EXCLUDING MANAGEMENT FEE)
Limited availability
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Key Points
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#1 brand in Liv-ex 2013 Power 100 list.
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#2 value for money brand in Liv-ex 2013 value 100 list.
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Most affordable modern vintage of Chateau Pavie.
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Parker set to provide in bottle scores for 2011 vintage in
Spring 2014.
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Chateau Pavie elevated to Premier Grand Cru Classé A -
alongside Cheval Blanc & Ausone in new St. Emilion
Classification.
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Huge investment into new cellars (see right) and
marketing/brand building areas.
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Pavie vintages have risen by 12% since re-classification.
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Low production, enigmatic winemaker, and a favourite of
Robert Parker.
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"Another
terrific success for the flagship estate (a 92-acre vineyard
situated on the famed limestone and clay-rich slopes of Cote
Pavie) of Chantal and Gerard Perse, the 2011 Pavie is
composed of 70% Merlot, 20% Cabernet Franc and 10% Cabernet
Sauvignon. The harvest took place between September 20-30,
with final yields of a mere 28 hectoliters per hectare. The
natural alcohol is 14.3%, and the 2011 may be the biggest,
richest, most massive wine of the vintage. With thrilling
levels of concentration, tremendous purity, high but sweet
tannin, a skyscraper-like mouthfeel, and terrific intensity,
depth and palate presence, this larger-than-life effort will
require 5-8 years of cellaring, and should age effortlessly
over the following 25-30 years."
Score:
(93-95) |
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Robert Parker,
Wine Advocate #200
April 2012 |
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Investment Analysis
Right Bank wines have posted the most consistent growth
rates from Bordeaux, with the Liv-ex Right Bank 100 now
having posted 15 months consecutive gains. Shown below, a
breakdown of the components of Bordeaux 500 (Liv-ex's most
comprehensive index and reflects trends in the wider fine
wine market. It represents the price movement of 500 leading
wines and is calculated monthly using the Liv-ex Mid Price.)
This index is dominated by the Right Bank 100, which has
drawn a lot of market attention over the last couple of
years with investors focusing on quality as well as 'value
for money'. A large portion of this growth can be attributed
to the reclassification of Angelus and Pavie.
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Reclassification
In September 2012, the results of the long-awaited St
Emilion re-classification were announced. The big winners
were Angelus and Pavie, which were upgraded to Premier Grand
Cru Classe A to sit alongside Cheval Blanc and Ausone. In
the year since then, both have seen solid activity on the
secondary market, and substantial price rises across all
recent vintages.
Throughout the course of 2013 we witnessed the prices of
almost all vintages of Pavie rise, following its
Re-classification the winter before. At the start of last
year the average market price for Pavie's 2000-2009 vintages
was around £1,700 - it is now around £2,100. This price
movement has drawn our attention to the 2011 vintage, which
now looks massively undervalued by comparison.
The list of top 10 performers in the wine market for 2013
comprised of three off prime Pavie vintages which were
trading at a similar level to what the 2011 is at now. We
expect this positive price trend to continue for Pavie
across the board but anticipate the 2011 to be leading the
pack this year.
As shown below, we are currently offering Pavie 2011 at
£1,350 per 12x75 - which is not only far more affordable
than the other vintages, but also has speculative En Primeur
potential. It is the only recent Pavie vintage available at
under £125 a bottle and is also the first vintage to be
physically released since the reclassification to Premier
Grand Cru Classe A.
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Investment Value
In an effort to demonstrate the value of the 2011, one must
consider Parker scores as well as price. A simple way to
explore the value of a wine in this manner is to use our
very own POP Value Chart. A wine's POP score is its
price-over-points ratio, our loose measure of value. It is
calculated by dividing the price of a nine-litre case of
wine by a shortened 20-point Parker score. We calculate this
20-point score by simply subtracting 80 from the official
Parker rating and dividing the market price by this value.
In theory, the lower the POP score, the better value a wine
is. For the 2011 vintage the in barrel score of 93-95 is
represented by a mid-point score of 94.
As you can see in the table above, we have highlighted (in
yellow) the 2011 vintage and it is by far the best value
vintage currently available. Also highlighted (in grey) are
the closest vintages to the 2011 in terms of score. These
have an average price of £1,781 per case, highlighting the
value and growth potential of the 2011. Based on the average
price of physical Pavie vintages, we conservatively project
growth in the region of 20% over the next 12 months.
What has also become apparent when looking back at the
recent barrel to bottle scores from Parker for Pavie is that
it certainly tends to age well in barrel. Parker gave an
improved score in bottle for six out of the 10 most recent
vintages (see* in table) e.g. 2001 went from (94-96+ pts) in
barrel to 96 pts in bottle. Those that didn't improve in
score remained the same eg. 2005 went from (98-100 pts) in
barrel to 98+ pts in bottle.
With Parker scheduled to release his in bottle scores for
the 2011 vintage in Spring of this year, we expect Pavie to
cement itself as one of the wines of the vintage.
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Brand - Power and Value 100
In November, Liv-ex and The Drinks Business released
the 2013 edition of the
Power 100 (annual list of the most powerful brands in
the fine wine market) and
Value 100, which focuses solely on Bordeaux wines that
have achieved an average score of more than 90 points. In
order to identify lower-priced buying opportunities, all of
the labels that are trading at more than £2,000 per case are
removed. For the first time in its eight year history, the
Power 100 list was not topped by a First Growth or DRC.
Instead, the #1 and #2 spots were taken by Pavie and Angelus
respectively; a testament to the importance and legitimacy
of their recent status upgrade. Pavie moved from 3rd up to
1st and now sits as the most powerful brand in the world. |
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Investment summary
• Most Affordable Pavie vintage available
on the market.
• Growth in the region of 20% expected
over the next 12 months.
• #1 Power Brand in the wine market for
2013.
• Likely to be well scored in bottle from
in barrel score of 93-95pts.
• Market sentiment for Pavie extremely
strong.
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Reg. Company No: 06350591 | VAT No. GB 129 9514 84 | St Andrews House,
Upper Ham Road, Richmond TW10 5LA.
© 2014 All Rights Reserved. Cult Wines Ltd & Wineinvestment.com | You
must be 18 or over to order. |
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