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Cult Wines Ltd
 
Wine Investment Offer
 
Petrus 2014 @ £3,850 per 3 x 75cl
 
Petrus 2014 (95-96 pts) @ £3,850 per 3 x 75cl



'As you would expect there is real class here'

Neil Martin - Wine Advocate Apr 2015



Key Investment Points


  • Best value Petrus currently available.
  • 95-96 Pts James Suckling.
  • 93-95 Pts WA.
  • Less than 2,800 cases produced.
  • Last 20 vintages demonstrated average 5.2% over the last 6 months and average 8.1% over 12 months, lending weight to the argument that the market is recovering.
  • Despite the sizeable price tags that accompany Petrus, the wine continues to demonstrate strong price appreciation and can achieve astronomical prices at auction as seasoned collectors go in search of stock in pristine condition such as this.
 
Want to invest in Petrus 2014? Ask your portfolio manager or...
 
 
Testing Notes

"There's a density and refinement to the 2014 Petrus with a dark chocolate, walnut and blueberry character. Violet. The length is beautiful with such density and intensity. The tannins arrive at the end. The wine is 14.3% alcohol. They cut back the crop and what they were left with was ripe and clean grapes. This has more texture. Fine and toned tannins. This takes off. Marvelous potential for the vintage."

James Suckling  |  Score: 95-96  |  March 2015


Estate Overview

Chateau Petrus is undeniably one of the world's finest red wines. The estate consists of 11.5 hectares lying at the heart of the Pomerol appellation, producing approximately 30,000 bottles per year. Petrus wine is produced on the famed 'plateau' in the eastern part of Pomerol where the vineyard enjoys excellent drainage and thick clay soil.

Although the wines of Pomerol have never been officially classified, Chateau Petrus ranks alongside the Bordeaux first growths Mouton Rothschild, Lafite Rothschild, Latour, Margaux and, Haut Brion and their left bank equivalents Ausone and Cheval Blanc. With production being much lower than the first growths of the left bank, and yields as low as possible, Petrus fine wine is rarer and thus invariably more expensive. Thanks to winemaker Olivier Berrouet, Petrus continues to be one of the most expensive and preferred wines for collectors and investment.

Make no mistake, Ch. Petrus is by no means a short term investment, but for investors looking for a stable medium to long term investment, there is arguably no safer play. The low supply and subsequent difficulty in sourcing pristine condition OWC banded cases of mature stock, certainly incentivises investors/collectors to buy young whilst there is more availability.

It is also worth noting that upon physical release in spring 2017, Robert Parker will be assessing the 2014's and awarding them there final bottle scores. Based on historic results, Neil Martin tends to be slightly 'harsher' with his scoring, which leads us to feel that his current score of 93-95 is potentially somewhat lower than what RPJ would have awarded. Based on the fact that the 2014 vintage is widely regarded as the best vintage since 2010, if we look at the RPJ 2012 and 2011 scores of 96+ and 95 respectively, one could easily expect the worst outcome in spring 2017 to be 95.


Investment Analysis

The table below illustrates 6 month and 12 month performance of the last 20 vintages on the market - 1994-2013, excluding vintages 1991 (not produced), 1992 and 1993 (passed their drinking windows).





Average 12 month performance has been 8.1%; however, 5.2% has been seen within the last 6 months, which suggests that while price improvements were relatively slow for Q1 & Q2 of 2015, we are seeing the first stage of recovery towards the long-term trend.





Potential Downside

Since mid-2011, in what has been the worst period of down turn for fine wine prices on record, the Liv-ex 100 has seen declines of 33.15%. In comparison, the Petrus Index over the same period has only seen a decline of 10.4%, an outperformance of 22.75%. Although a 10% loss over a 5 year period is some distance of the historic gains of 10-13% per annum, investors can certainly take encouragement from these statistics, in that even in the worst 5 year period on record, wines from this estate have only retracted in price by 10%. This can be characterised by a number of factors, but the main driving force behind this resilience is the consistent levels of quality, minute production levels and continued global demand.




Summary Points

  • Best Value Vintage.
  • Best vintage since 2010.
  • Less than 2,800 cases produced.
  • Strong medium-long term growth potential.
  • Limited availability at this price.
 
We only have a modest allocation at UK market best and would therefore encourage our client base to contact their portfolio manager to secure this highly attractive option.
 
 
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