Ditton Wine Traders’ fine wine blog

Late Thursday afternoon and Lafite has also released. The price is the same as Latour at EURO 130. Duhart Milon has been released at EURO 22. Both prices are ex the Bordeaux Negociants. For some reason, Carruades de Lafite has been held back for now. I’m buying heavily into Lafite, Carruades and Duhart Milon, I think it’s an almost sure bet.

I must say I'm pleasantly surprised and quite impressed with Lafite for releasing at the same price as Latour did. I have commented on the popularity of Lafite before, last in my blogpost of 24th of January. There is just an extraordinary demand from Asia for Lafite, much more so than for Latour. Just how much more shows below table:

When you recall my blogpost of 2 days ago, on Latour, it's very apparent that all Lafite vintages pre 2004 command a much higher price than Latour. This is totally due to the demand from Asia. It's remarkable that you can't get a mature Lafite, say older than 2000, for less than GBP 2,800 – even for mediocre vintages like '94/'93/'92/'91. Compare that to Latour, which in those vintages you can buy for between GBP 1,500 and 1,800. Moreover, it's sheer impossible to find any older Lafite anymore.

Coming back to 2008, again it's the cheapest vintage on the market. Forgetting about 2007 (a dead fish in the water), 2008 is more than 30% cheaper than any other vintage of Lafite. With availability of Lafite rapidly decreasing (the Chinese buy to drink, not to invest) and with Uncle Bob Parker likely to score the 2008 at 94-95 points (my best guess), it's only a matter of time that you will see a return of 30+ %. Moreover, I see signs that Asia is starting to buy En Primeur, which would only decrease the time before young vintages increase in price.

For those of you who are not entirely familiar with the workings of En Primeur campaigns, please note that Chateaux release their production in tranches. The first one (this one) being the cheapest. I predict that the next tranche, which I think will be released May/June, will already be 20-25% higher. Nice return for a 1-2 month investment... To conclude, if it wasn't already clear, I am buying as much Lafite as I can.

Forgive me for the financial take in this post: when you buy to drink, I'd say pick up a few bottles because it's unlikely you will be able to enjoy Lafite at a similar price.