Flametree Cabernet Merlot 2008

It appears that the 2007 version of this wine won the coveted Jimmy Watson trophy - I haven't tried it, but you would imagine it's probably quite good.  

What then of the 2008 version?   To be honest, it was ok, but not that great.  The wine revealed an aroma of dark fruit, with a similar palate with noticeable acidity and that capsicum/shoe polish note that I notice on some of Leeuwin Estate's cabernets, and don't really like.  I suspect I'll have to try this one again to be sure.  80 to 81 points.

Source: restaurant

Unanime Cabernet Sauvignon Malbec Cabernet Franc 2005

This wine is a blend of 60% cabernet sauvignon, 25% malbec and 15% cabernet franc.  It revealed an aroma of pepper, spices and plums and around 5 seconds of length on the palate.  The wine is really quite good; you can see the potential though that it could be, perhaps with the right vintage or circumstances, very good indeed.  83 to 84 points.

Felipe Rutini Malbec 2006

The Argentinian malbecs that I have tried have all been in a very modern and well-made style, but I have not yet had a "wow" moment.  This example, tasted blind, had an aroma of bright slightly cooked raisined fruit with some sweet notes.  A high acid palate.  79 points.

Perez Cruz Reserva Carmenere 2007

I profess that I am not particularly experienced with the carmenere grape variety.  Tasted blind, this wine had a very particular and unusual aroma that I associate with some Chilean wines ie I guessed the wine was from Chile.  A winemaker friend said the aroma was one of incredibly youthful, but simple, fruit - to me, it was almost bubblegum like - perhaps it's the oak used.  Anyway onto the wine: this wine had an aroma of sour plums, socks, chewing gum and intense herbs.  A palate of blackfruits, tannin and noticeable acidity.  Not my style I'm afraid.  77 points.

Medalla Real Santa Rita Chardonnay 2007

Tasted blind, this wine had an aroma of pears and stones, with noticeable acidity and a slight tinny note on the palate.  Ok, but not really a style I enjoy.  80 points.

Clyde Locale Pinot Noir 2008

Pinot noir from the Geelong region can be really quite good. Although this $20 wine didn't hit those heights, it had a simple pleasant fruit aroma and a palate of light red fruits with acidity evident. 80 to 81 points.

Source: South Melbourne Cellars

Hanging Rock Jim Jim Sauvignon Blanc 2008

I like quite a few of the wines of Hanging Rock, a producer located in the cool climate Macedon region north of Melbourne.  The aroma of this wine was almost non-existent, though the palate showed clean citrus flavours and noticeable acidity.  80 points.

Source: cellar door.
Website: http://www.hangingrock.com.au/

Cartwheel Cabernet Sauvignon 2008

An aroma of dusty black fruits, and a palate with noticeable acid.  Ticks for pleasant, safe and well made, but maybe a bit unexciting.  82 points.

Domaine de Coyeux Muscat de Beaumes de Venise 2004

An aroma of light raisins.  A similar palate, with additional notes of pears and apples.  86 points.

Shaw and Smith Shiraz 2006

This producer clearly knows how to make shiraz and this well priced wine is worth seeking out.  The 2006 vintage has an aroma of pepper and spice, and a palate with 15 seconds plus of length, and plum notes.  89 to 90 points.

Source: restaurant
Website: http://www.shawandsmith.com/

Port Phillip Estate Tete de Cuvee Shiraz 2007

I actually slightly preferred the "lesser" 2007 shiraz of this estate (just reviewed) to this wine.  Nonetheless, it was pleasant and well made.  An aroma of herbs, mint and evident oak.  A soft palate with notes of plum jam.  84 points.

Bordeaux 2009 en primeur, Australian wine taxes and retailer mark-ups

If you follow Bordeaux wines, it will not have escaped your attention that the 2009 Bordeaux en primeur campaign is currently in full swing.  You probably will have, like me, received offers, and mostly glowing reviews, from a series of local Australian wine merchants.   In this post, I look at en primeur and its limits, en primeur prices v Australian retail shelf prices, Australian wine taxes on imported wine and high Australian retailer mark-ups on imported wine.

En primeur and its limits

En primeur is in effect a futures contract, where the consumer agrees to pay money now for the delivery of a finished wine when bottled in a couple of years time.  In my humble opinion, while en primeur can be good value, it involves a number of risks.  These include:

1. Paying money 2 years in advance prior to the arrival of the wine (and so not earning interest on that money).

2. Entering into a legally complicated relationship.  For example, the customer's contract is with the wine merchant, but does the retailer itself own the wine?  No, they too have a contract with an intermediary, who may have further contracts back to the source of the wine, which sits unidentifiably in a barrel for a good period of time.  This may make it hard to work out who is liable for what, and who owns what, if something goes wrong, or a link in the chain goes broke.  The one thing that is certain is that the customer has handed over his or her money well before receiving anything for it.

3. The product itself is hyped as "certain to increase in price".  If the same claims were made about a share or investment scheme, you might expect to read about the risks in a prospectus or other disclosure document.  As we all know or should know, there is no such thing as risk free returns.

Despite these risks, en primeur offers seem surprisingly almost impossible to resist due to the hype generated and the fear of missing out ...

2009 Bordeaux vintage reports

By all reports, the 2009 Bordeaux vintage is a fantastic vintage, but the cynic in me notes that 2000, 2003 and 2005 are also fantastic Bordeaux vintages, and the French appear to consider 2001 the equal of 2000.  And 2002, 2004, 2006 and 2008 (according to Robert Parker) are hardly bad.  So that's 5/10 vintages that are "great", and most of the remainder being noted as very good!

If global warming or better vineyard management and technology (or all three) are assisting Bordeaux to produce great wines more regularly, one might legitimately ask the following question: will all vintages from now be this good, so that exhorbitant year-on-year price increases are not really justifiable from a consumer's perspective, since consumers won't actually be missing out on the higher quality wines by simply waiting for next year's vintage?

En primeur prices v Australian retail shelf prices

With the benefit of the pricing transparency that the internet brings, I tested some of the en primeur pricing offers that I saw against their source prices in France.  My starting point was the Liv-Ex website (an English merchant fine wine exchange) which helpfully shows the en primeur release prices in France (see http://liv-ex.typepad.com/livex_fine_wine_market_bl/2010/04/bordeaux-2009-release-recap.html)  This site also appears useful: http://bordoverview.blogspot.com/.

To add some test subjects, Liv-Ex showed the price of Chateau Filhot Sauternes at €14.80 per bottle ex-negociant, and Chateau Beaumont Haut Medoc at €7.20 per bottle ex-negociant.  In Australian dollars, at the moment that's about $21.76 (Filhot) and $10.59 (Beaumont).

The en primeur offers that I have seen offered in Australia though so far include $48 (Filhot) and $22-$25 (Beamont).  Hmm, more than double the price!  What has caused this exhorbitant mark-up?

Australian wine taxes on imported wine

Doing some detective work on current Australian wine taxes, we seem to have:

• Customs duty of 5% which applies to 5% of the "customs value" which appears generally to be the "list price" excluding transport and insurance;

• WET of 29% which applies to the "taxable value" of imported wine, which appears to equal the "customs value" plus the costs of transport, insurance and customs duty; and 

• GST of 10% which is payable on the sum of the customs value, the cost of insurance and shipping, any customs duty and any WET tax payable. 

So, on some rough calculations that exclude shipping costs, about 48.99% of the price differential between the sale price and the Liv-Ex price is due to Australian wine taxes.  A further amount then should be allowed for shipping costs.

High Australian retailer mark-ups on imported wine

Some simple maths then shows that the remainder of the price differental is due to Australia's wine retailer mark-ups.  With the wines above, they are in the order of 40% to 50%.  Not bad.

Wine: Chateau Filhot/Chateau Beaumont
Base price: $21.76/$10.59
Customs tax: $1.09/$0.53
WET tax: $6.63/$3.22
GST: $2.95/$1.43
Total Australian tax: $10.66/$5.19
Post tax price: $32.42/$15.78
Aus price: $48.00/$22.00
Profit: $15.58/$6.22
Margin: 48.1%/39.4%

In fairness, these figures should be a bit lower after shipping costs are factored into account, but nonetheless, are high, and are consistent with my anecdotal experience of comparing non en-primeur Bordeaux wine prices in France with those in Australia.  I suspect the same type of numbers would be borne out (or even exceeded) by examining prices of fashionable Burgundy as well.

As a consumer, I would dearly love to see more competition in this market to drive down prices, and wonder how this type of profit margin can be somehow sustainable from a consumer's perspective.  While economic good times remain in Australia, though, I won't be holding my breath for discounted Bordeaux just yet.

Note: I have updated the figures in this article since the original post, to include a better and more accurate calculation of applicable wine taxes.

Port Phillip Estate Shiraz 2007

I am usually slightly apprehensive reviewing shiraz from the Yarra Valley and the Mornington Peninsula since  I often simply don't feel like drinking them from the cellar (although I always do once open).  This wine was quite good, and reminded me of a slightly lesser version of Shaw and Smith's very good Adelaide Hills Shiraz.

Deeply coloured, this wine had an aroma of black pepper and herbs, and a palate with around 5-8 seconds of length, with plummy notes and noticeably high acidity.  84 to 85 points.

McWilliams Morning Light Botrytis Semillon 2007

An aroma of pungent botrytis, and palate with noticeable acidity and sweetness. A sound choice. 84 to 85 points.

Port Phillip Estate Quartier Barbera 2007

An aroma of herbs, with a smokey note I can only describe as "sock like".  A palate with a smokiness, and taught acidity.  Interesting.  84 points.

Kooyong Pinot Noir 2008

A classic cherry and herbs Australian pinot noir aroma.  A palate with nice lingering length and plums.  Pretty good.  85 points.

Penfolds Bin 389 Cabernet Shiraz 1998

Tasted blind, this wine presented beautifully, with an aroma of oak and plums, and a palate with good fruit and great length (of more than 10 seconds). A very good wine and worth seeking out. 89 to 90 points.

Port Phillip Estate Pinot Noir 2008

Deeply coloured, this wine had an aroma of cherries and spices.  On the palate, the palate reminded me of plum skins, and showed some length.  84 points.

Port Phillip Estate Massale Pinot Noir 2008

Rather deeply coloured, this pinot noir had an aroma of cherries, spice, oak and crushed rocks, with a flinty, smokey palate.  82 to 83 points.

Port Phillip Estate Quartier Arneis 2008

An aroma of dried pears, and an off dry pleasant palate.  82 points.

Shaw and Smith Chardonnay 2008

I am really quite partial to this producer's shiraz. Their M3 chardonnay though is not bad, with an aroma of flint and citrus and a similar palate with around 5 seconds of length. 84 points.

Kooying Chardonnay 2007

The more I taste, the more I am coming to the conclusion that chardonnay is the most reliably good varietal produced in the Yarra Valley and the Mornington Peninsula.  Chardonnays from these parts do not hit the heights of some the Margaret River chardonnays (for example, they are not in the league of the Leeuwin Estate wines recently reviewed), but they exhibit a typicity that is quite constant, pleasant and easy to detect in blind tastings.  This wine is no exception.  An aroma of oak, fruit and lingering sweet stone fruits.  A clean and pleasant palate. 84 to 85 points.

Claymore Wines Grenache Mataro Shiraz 2008

I reviewed this wine at two points in time - first on opening and then one day later, with the wine being exposed to some, but not much, oxygen in the intervening period.  On opening, the wine had an aroma of bright fruit and lavender with a slight candied note, and a pleasant palate with a bit of length that held its 15%av. I thought this a quite good example of this Southern Rhone style from the Clare Valley.  When I returned to it one day later, things were quite different.  The wine displayed a rather porty, raisiny aroma with more than a wiff of alcohol and was largely unpleasant to drink - the sink called out, we had a short conversation, and it prevailed.  An exercise in oxidation perhaps, but I was not expecting such a rapid deterioration in one day.  Day 1: 83 points.  Day 2: 51 points.

Port Phillip Estate Chardonnay 2008

A rather typical southern Victorian chardonnay aroma of citrus, sweet stone fruit, with a slight tinned fruit note.  Clean flavours on the palate.  Ok.  82 points.

Balgownie Estate Chardonnay 2007

This wine (tasted blind) was fairly clearly a typical Yarra Valley chardonnay with a flinty, citrus like aroma and taught acidity and around 5 seconds of length on the palate. Pretty good - an easy drinking wine.  84 points.

Port Phillip Estate Clonale Chardonnay 2008

An aroma of white peaches and oak.   The palate was rather neutral with evident citrus, slightly tinned notes.  80 points.

Captains Creek Organic Sparkling 2004

I tasted this wine in a blind line up, and while it could not be mistaken for a Champagne, it was clean, pleasant and well made. It showed an aroma of light toast, and a palate with notes of citrus, honey and very crisp acidity. In fact, it reminded me of certain other sparkling wines from the Macedon region - which is perhaps not surprising given their proximity and comparable cool climates. Certainly a better wine than their unusual 2008 pinot noir and worth a try. 83 points.

Port Phillip Estate Sauvignon Blanc 2008

It seems that many Australian producers are seeking to capitalise on the recent (probably soon to end) fashion for NZ sauvignon blanc.  This particular example is not far off the New Zealand Marlborough paradigm.
A fresh grassy aroma, with nice acidity and typicity.  83 points.

Ten Minutes by Tractor McCutcheon Vineyard Pinot Noir 2007

A rather smokey, flinty aroma and palate.  83 points.

Ten Minutes by Tractor 10X Pinot Noir 2008

This pinot had a bit more going on than the "X" version, but was not overly exciting to my palate.  The aroma was of spices and cherries, with crisp acidity on the palate.  83 points.

Ten Minutes by Tractor X Pinot Noir 2008

This was a rather simple wine with aromas of cherries and a plainish palate.  Ok.  81 points.

De Bortoli Melba Lucia Cabernet Sauvignon Sangiovese 2007

This interesting blend of 91% cabernet sauvignon and 9% sangiovese had an aroma of cassis, dark cherries, chalk and bright red fruits. The palate showed around 5 seconds of length, with a few tannins and some cassis notes. Rather similar to a Toscana IGT (which is a compliment) and seemingly unaffected by the frosts that impacted the 2007 Yarra Valley vintage elsewhere. 84 to 85 points.

Murdock Riesling 2002

The Coonawarra region on the border between South Australia and Victoria is not really known for its riesling. But this bargain wine showed that it is indeed very possible to produce a reasonable varietal riesling wine from this region. It showed an aroma of stones and citrus, and while there was not a lot of length on the palate, there were some citrus and mineral notes. 82 points.

Ten Minutes by Tractor Wallis Vineyard Chardonnay 2007

A pleasant aroma, rather similar to the 2008 10X Chardonnay, but a little less length on the palate.  Still pleasant though.  84 to 85 points.

Metala Shiraz Cabernet 2006

Deeply coloured with an aroma of dusty plums and oak. Buttery oak and good length on the palate. A somewhat powdery mouthfeel. Perhaps a bit buttery for me, but this is a good wine and very good for the price. 83 points.

Ten Minutes by Tractor 10X Chardonnay 2008

This chardonnay was my pick of this producer's current release chardonnays.  Good aromatics, with notes of pears and sweet nectarines.  A palate with some pleasant length.  86 points.

Giant Steps Tarraford Vineyard Chardonnay 2008

This well made wine is rather typical of chardonnays from the Yarra Valley, with an aroma of citrus, oak and flint and a similar palate with some length. Enjoyable. 84 points.

Ten Minutes by Tractor X Chardonnay 2008

To my palate, chardonnay is Ten Minutes by Tractor's strongest suit.  Here is the first of three chardonnay reviews from this Mornington Peninsula producer.  A quite grassy aroma, with a clean citrus palate.  Pleasant.  84 points.

Ten Minutes by Tractor 10X Pinot Gris 2009

An aroma of pears and almonds.  A pleasant palate.  Not bad.  82 points.

Ten Minutes by Tractor 10X Barrel Fermented Sauvignon Blanc 2008

A slighty dank, grassy aroma.  A rather flat palate.  Fair.  79 points.

Austins Pinot Noir 2007

From an unknown estate (at least to me) with a rather confident website, comes this quite good wine.  An earthy aroma with notes of crushed rocks and dark fruit remiscent of certain Central Otago pinot noirs. A similar palate, with better than average length.  Interesting.  84 to 85 points.

Koonara Ezra's Gift Shiraz Viognier 2003

A blend of 95% shiraz and 5% viognier, and 13.5%av.  An aroma of dusty plums, kernels and rather Christmas cake like note.  A similar palate, with pretty length.  Pleasant.  83 points.

Plantagenet Lionel's Lot Classic Dry Red NV

I understand that this bottle may not be generally available.  Nonetheless, it had an aroma of spices and pepper and a plummy palate.  Pleasant.  83 points.